UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB  S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For quarterly period ended March 31, 2007  £ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  Commission file number: 000-30245  IDI Global, Inc. (Exact name of small business issuer as specified in its charter)  Nevada87-0617040(State of incorporation)(I.R.S. Employer Identification No.)  462 East 800 North, Orem, Utah84097(Address of principal executive offices)(Zip code)  Issuers telephone number, including area code: (801) 224-4444  Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes S    No £  Indicate by check made whether the registrant is a shell company (as defined in rule 12b-2 of the exchange Act)   Yes £ No S  As of May 3, 2007, IDI Global, Inc., had 19,106,834shares of common stock outstanding.  Transitional Small Business Disclosure Format: Yes £  No S     TABLE OF CONTENTS    PART I: FINANCIAL INFORMATIONItem 1. Financial Statements3Item 2. Managements Discussion and Analysis12Item 3. Controls and Procedures20PART II: OTHER INFORMATIONItem 1. Legal Proceedings20Item 2. Unregistered Sales of Equity Securities and Use of Proceeds22Item 3. Defaults upon Senior Securities22Item 5. Other Information22Item 6. Exhibits23Signatures23          2    PART I: FINANCIAL INFORMATION   ITEM 1.     FINANCIAL STATEMENTS  The following financial information depicting our consolidated statements of operations for the three-month periods ended March 31, 2007 and 2006, is unaudited.  This financial information, in the opinion of management, includes all adjustments consisting of normal recurring entries necessary for the fair presentation of such data.  The results of operations for the three-month period ended March 31, 2007, are not necessarily indicative of results to be expected for any subsequent period, as explained in Managements Discussion and Analysis below.    3         IDI Global, Inc. and Subsidiaries Condensed Consolidated Financial Statements  March 31, 2007   CONTENTS   Unaudited Condensed Consolidated Balance Sheets5Unaudited Condensed Consolidated Statements of Operations7Unaudited Condensed Consolidated Statements of Cash Flows8Notes to the Unaudited Condensed Consolidated Financial Statements10     4     IDIGlobal, Inc. and SubsidiariesCondensed Consolidated Balance SheetsASSETSMarch 31,December 31,20072006(unaudited)Current AssetsCash$197,190$143,522Accounts Receivable, net63,21131,092Total Current Assets260,401174,614Software Development and Equipment, Net73,27579,923Other AssetsRestricted Cash736,840731,416Total Other Assets736,840731,416Total Assets$1,070,516$985,953         The balance sheet at December 31, 2006, was taken from the audited financial statements at that date and condensed.  The accompanying notes are an integral part of these condensed consolidated financial statements.    5     IDIGlobal, Inc. and SubsidiariesCondensed Consolidated Balance SheetsLIABILITIESMarch 31,December 31,20072006(unaudited)Current LiabilitiesAccounts Payable$871,310$589,135Accrued Expenses1,224,8851,138,542Reserve for Refunds and Chargebacks15,00015,000Derivatives7,0847,084Notes Payable - Related Party504,527504,527Notes Payable1,776,9151,750,000Total Current Liabilities4,399,7214,004,288Total Liabilities4,399,7214,004,288Stockholders' Equity (Deficit)Common Stock, Authorized 50,000,000 Shares,$.001 Par Value, Issued and Outstanding19,160,174 and 19,160,174, Respectively19,16019,160Additional Paid in Capital6,744,2686,744,268Retained Earnings (Deficit)(10,092,633)(9,781,763)Total Stockholders' Equity (Deficit)(3,329,205)(3,018,335)Total Liabilities and Stockholders' Equity (Deficit)$1,070,516$985,953  The balance sheet at December 31, 2006, was taken from the audited financial statements at that date and condensed.  The accompanying notes are an integral part of these condensed consolidated financial statements    6     IDIGlobal, Inc. and Subsidiaries (Debtor-in-Possession) Unaudited Condensed Consolidated Statements of Operations  For the Three Months EndedMarch 31,20072006Revenues, NetProduct Sales$1,265,063$2,985,470Total Revenues1,265,0632,985,470Cost of SalesProduct Costs940,9291,880,728Total cost of sales940,9291,880,728Gross Profit324,1341,104,742Operating ExpensesGeneral & Administrative609,3041,144,544Total Operating Expenses609,3041,144,544Net Operating Income (Loss)(285,170)(39,802)Other Income(Expense)Interest Income5,4364,457Interest Expense(31,136)(128,705)Gain on Valuation of Derivatives-(6,541)Other Income (Expense)-11,542Total Other Income(Expense)(25,700)(119,247)Income (Loss) Before Income Taxes(310,870)(159,049)Income Tax ExpenseIncome Tax Expense--Deferred Income Tax(Benefit)Expense--Total Income Tax Expense--Net Income (Loss)$(310,870)$(159,049)Net Income (Loss) Per Share$(0.02)$(0.01)Weighted Average Shares Outstanding19,160,17419,160,174  The accompanying notes are an integral part of these condensed consolidated financial statements.    7     IDIGlobal, Inc. and Subsidiaries(Debtor-in-Possession)Unaudited Condensed Consolidated Statements of Cash FlowsFor the Three Months EndedMarch 31,20072006Cash Flows from Operating Activities:Net (Loss)$(310,870)$(159,049)Adjustments to Reconcile Net Loss to Net CashProvided (used) by Operations:Depreciation & Amortization9,10731,060Change in Operating Assets and Liabilities:Accounts Receivable(32,119)(5,662)Prepaid expenses-(597,000)Increase (Decrease) in:Accounts Payable309,089232,761Accrued Expenses86,34493,832Derivative Liability-6,541Net Cash Provided(Used) by Operating Activities61,551(397,517)Cash Flows from Investing Activities:Purchase of Software and Equipment(2,459)-Net Cash Provided (Used) by Investing Activities(2,459)-Cash Flows from Financing Activities:Proceeds from Issuance of Notes Payable--Net Cash Provided (Used) by Financing Activities--Increase (Decrease) in Cash59,092(397,517)Cash and Cash Equivalents at Beginning of Period874,9381,803,977Cash and Cash Equivalents at End of Period$934,030$1,406,460  The accompanying notes are an integral part of these condensed consolidated financial statements.  8     IDIGlobal, Inc. and Subsidiaries(Debtor-in-Possession)Unaudited Condensed Consolidated Statements of Cash Flows (Continued)For the Three Months EndedMarch 31,20072006Cash Paid For:Interest$-$-Income Taxes$-$-Non-Cash Investing and Financing Activities:Conversion of Accounts Payable to notes Payable$26,915$-                   The accompanying notes are an integral part of these condensed consolidated financial statements.    9     IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Unaudited Consolidated Financial Statements March 31, 2007  GENERAL  IDI Global, Inc., and its subsidiaries (the Company), has elected to omit substantially all footnotes to the consolidated financial statements for the three months ended March 31, 2007, since there have been no material changes (other than indicated in other footnotes) to the information previously reported by the Company in their Annual Report filed on Form 10-KSB for the fiscal year ended December 31, 2006.  UNAUDITED INFORMATION  The information furnished herein was taken from the books and records of the Company without audit.  However, such information reflects all adjustments which are, in the opinion of management, necessary to properly reflect the results of the interim period presented.  The information presented is not necessarily indicative of the results from operations expected for the full fiscal year.  FILING OF BANKRUPTCY UNDER CHAPTER 11  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, Inc., filed for bankruptcy protection in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  (IDI Global, Case No. 0621261; IDI Small Business, Case No. 0621266; Chief Financial, Case No. 0621270; and PCS, Case No. 0621268.)  We anticipate that each entity will remain as debtor in possession, subject to the jurisdiction of the supervision and orders of the Bankruptcy Court.  Settlement and Sale Agreement with Mentoring Parties:   IDI Global, IDI Small Business, and Professional Consulting Services (the IDI Debtors) entered into an Agreement for Purchase and Sale of Assets and for Settlement of Disputes dated March 16, 2007 (the Settlement and Sale Agreement), with HG Marketing, Inc., and Mentoring of America, LLC (the Mentoring Parties).  The Settlement and Sale Agreement contemplates, except in one circumstance, the global resolution of all litigation between these IDI entities and the Mentoring Parties and the resolution of disputes and the sale of rights of the IDI Debtors in a call center located in St. George, Utah (the St. George Call Center).  Pursuant to the Settlement and Sale Agreement, the Mentoring Parties will pay the IDI Debtors $171,409.10, in addition to other funds previously paid, in settlement of disputes between the parties.  Unless a higher and better offer is received, the Mentoring Parties will pay $337,500 for all of the IDI Debtors rights in the St. George Call Center.  If a better offer is received, the St. George Call Center will be sold to the party making the better offer, but the settlement between the IDI Debtors and the Mentoring Parties will still close and all outstanding litigation and disputes between the parties will be settled.  If either the Mentoring Parties or a party making a higher bid purchases the IDI Debtors rights in the St. George Call Center, the Mentoring Parties will retain obligations related to the operation of the St. George Call Center prior to the closing of the sale.  The Bankruptcy Court approved the Settlement and Sale Agreement following hearing on April 11, 2007.  As of January 1, 2007, all pending litigation in the Bankruptcy Court between the IDI Debtors and the Mentoring Parties was subject to continuance to allow the parties to pursue settlement negotiations.  Payments by IDI Small Business.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of the IDI Debtors to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development, Inc.  In October 2006, however, Internet Development, Inc. informed the IDI Debtors that it would no longer have funds to pay the expenses.  Lawsuit filed by Internet Development, Inc. Against the IDI Debtors.  On February 6, 2007, Internet Development, Inc., filed a Complaint in the Bankruptcy Court against the IDI Debtors, seeking to impose a constructive trust on certain funds that are being held on behalf of the IDI Debtors in a trust account.   10    Court Authority for Creditors Committee to Represent IDI Debtors Bankruptcy Estate in Certain Claims.  On April 11, 2007, the Bankruptcy Court granted a motion authorizing the Official Committee of Unsecured Creditors (Committee) to defend this lawsuit on behalf of the IDI Debtors' estates.  In addition to authorizing the Committee to defend the lawsuit commenced by Internet Development, on April 11, 2007, the Bankruptcy Court authorized the Committee to take whatever actions are necessary to recover funds that the IDI Debtors transferred prior to the petition date to Advanced Business Development, Inc. (ABD) or any of ABD's insiders or affiliates.  As a result of the funds transferred to ABD, ABD produced an infomercial, and has provided a copy of the infomercial to the IDI Debtors.  Contrary to the parties' agreement, ABD has refused to test the infomercial.  The IDI Debtors are currently engaged in negotiations with the personality featured in the infomercial related to the testing and use of the infomercial.  No Extension of Exclusivity for Plan Confirmation.  On February 12, 2007, the exclusivity period for the IDI Debtors to file a plan of reorganization, as set forth in Section 1121 of Title 11 of the United States Code, expired and, as a result, any party in interest, including the IDI Debtors, may file a plan of reorganization in the IDI Debtors' Chapter 11 Cases.  Offer by MCB Printing, Inc.  On or about March 8, 2007, MCB Printing, Inc. dba excelgraphics, Inc., provided to the IDI Debtors and the Committee an offer to purchase Internet Development, Inc. and to merge with IDI Global, Inc.  This offer had not been accepted by the IDI Debtors as of the date of this report, but negotiations with MCB are continuing.  Additional disclosure for the statements of cash flows for the period ending March 31, 2007:  Operating Activities:  Interest received on cash accumulated because of the Chapter 11 proceeding: $0.00.  Interest stayed to on note payable because of the Chapter 11 proceeding: $393,085.  Professional fees paid for services rendered in connection with the Chapter 11 proceeding: $0.00.  Investing Activities:  Proceeds from sale of software and equipment due to Chapter 11 proceeding: $0.00.  Financing Activities:  Principal payments on pre-petition debt authorized by court: $0.00.  In this report, references to IDI Global, we, us, and our refer to IDI Global, Inc., and its subsidiaries.      11    SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS  The Securities and Exchange Commission (SEC) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions.  This report contains these types of statements.  Words such as may, will, expect, believe, anticipate, estimate, project, or continue or comparable terminology used in connection with any discussion of future operating results or financial performance, identify forward-looking statements.  You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report.  All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.   We disclaim any obligation or intention to update any forward-looking statement contained in this Report.   ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS  CRITICAL ACCOUNTING POLICIES  The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in our consolidated financial statements and accompanying notes.  Critical accounting policies are defined as those which are most important to the portrayal of the financial condition and results of operations and which also require a company to make its most difficult and subjective judgments. Based on this definition, we have identified the critical accounting policies and judgments addressed below. Although we believe that our estimates, assumptions, and judgments are reasonable, they are based upon information presently available. Actual results may differ significantly from these estimates under different assumptions, judgments, or conditions.  Metrics:  As an internet retailer, we consider growth in revenue to be a key indicator of our overall financial performance. We examine our revenue by using several key metrics, including: overall change in net sales; gross margin percent; gross profit; and operating income.  Our strategy for growth includes not only increasing our market share by expanding sales in existing channels, but also taking advantage of strategic opportunities for acquisitions. Ensuring adequate financing is central to the success of our growth strategy.  As a result, we have entered into a variety of financing arrangements which we believe will contribute to the long-term success of IDI Global.  Reserves: The reserve for refunds and chargebacks is maintained at a level that, in managements judgment, is sufficient to absorb any anticipated refunds or chargebacks as of the balance sheet date. The reserve is not specifically associated with individual sales transactions, but is a general reserve set aside to accommodate any future refunds or disputed transactions with an original transaction date prior to December 31, 2004.  We review the appropriateness of the reserve quarterly and have developed what management believes is a reasonable methodology for projecting the needed reserve that is based on our historical refund and chargeback data.  Income Taxes:  We record a tax provision for the anticipated tax consequences of our reported results of operations. In accordance with SFAS No. 109, Accounting for Income Taxes, the provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.  Executive Overview IDI Global is a holding company operating through its wholly owned subsidiary, Internet Development.  Internet Development offers web development services and software, web hosting services, and related support.  It provides websites and related tools for large and small vertical businesses with a network of affiliates, allowing for communication, marketing, e-commerce and business management online.  Chief Financial, IDI Small Business, IDI Technology and Sports Media are no longer operational subsidiaries of IDI Global.  Chief Financial was originally acquired to provide administrative support to our sales centers, as well as trending reports, sales tracking, lead generation and new lead source opportunities.  IDI Small Business managed our direct marketing operations in St. George, Utah.  Sports Media sold sports advertising and marketing programs for media companies.  IDI Technology provided Internet-based lead generation offerings aimed at producing monthly residual income.   12    Professional Consulting Services (PCS), located in St. George, Utah, is a wholly owned subsidiary of Chief Financial.  PCS sells add-on services and products to customers and other lead suppliers.  These products are focused on the small office and home office marketplace and include self-replicating web site tools, individual web sites, e-commerce solutions, and coaching and training services for small office/home office customers.  Pursuant to a settlement agreement signed on April 11, 2007, and approved by the federal bankruptcy court, assets of the St. George call center, some of which are owned by PCS, are to be sold to the Mentoring Parties (Mentoring of America and HG Marketing Inc.), or to another party making a higher and better offer at the auction in early June, 2007.  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, filed for Chapter 11 bankruptcy protection under Title 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  Although the Company has endeavored to maximize its value for the benefit of creditors and shareholders, as of the date of this report, it was unknown whether the Company would be able to continue as a going concern.  As of the date of this report, the Company was entertaining offers from third parties for a potential merger and was working to formulate a plan of reorganization, which will include its divestment of certain assets.  However, there can be no guarantee that the Company's negotiations will be successful or will enable the Company to continue as a going concern.  During 2006, we have continued our efforts to grow the business of our primary subsidiary, Internet Development through strategic partnerships and focused sales and marketing efforts.  The ARRAY software application continues to be considered as one of the leading web tool solutions for companies and their representatives in the Direct Sales and Network Marketing arena.  Version 5 of the application has proven to be a dynamic and effective platform for IDIs clients and affiliates using the software on a day to day basis to communicate, market and manage their businesses online.  The next release of the software is underway as Internet Development intends to maintain its position as one of the leading web solutions for the direct sales industry.  ARRAY version 6 is expected to be released later this year, which will again provide enhanced tools and functioning, with a number of improvements and additional features.  IDI plans to continue its focus on third-party relationships that can add value to the ARRAY offering, while capitalizing on those specialties.  Internet Development has received notice in early 2007 that one of its significant clients, Internet Services Corporation (ISC), plans to transition away from the ARRAY software and will not remain a client of IDIs.  ISC gave sufficient notice required by contract and continued using the ARRAY software on a month to month basis as of the date of this report.  The exact date of ISCs departure is unknown, but is anticipated to be no later than mid-summer 2007. ISC contributed just over $39,000 in sales in the first three months of 2006 and just over $36,000 in the first three months of 2007. Internet Development also had an in-house sales call center that marketed and sold a variety of small business packages, including the QuickSite Builder, coaching programs, and other products and services, to a variety of internal and third-party lead sources within the small office / home office sector.  As of October, 2006, the sales call center is no longer operational due to cash flow and management challenges, and is not a functional revenue component of IDI.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of IDI Global, Inc. Chief Financial, Inc. and Professional Consulting Services, Inc. to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development, Inc.  In October 2006, however, with the loss of the call center, Internet Development informed the IDI Debtors that it would no longer have funds to pay any expenses or charges related to the Debtors and Bankruptcy proceedings.  For the three-month period ended March 31, 2007, we recorded total revenues on a consolidated basis of $1,265,063, compared to total revenues of $2,985,470 for the three-month period ended March 31, 2006.  We recorded net loss of $(310,870) for the three-month period in 2007 compared to net income (loss) of $(159,049) for 2006.   The change of almost $152,000 from 2006 to 2007 was caused by the lack of income from the Mentoring contract and the closing of our SOHO operations.  Management may investigate additional acquisitions in order to acquire new technology.  We cannot predict the manner in which we may complete future acquisitions, and management will determine the method used based upon our review of the situation and our relative negotiating strength.  Possible methods may include, but are not limited to, leases, purchase and sale agreements, licenses, joint ventures and other contractual arrangements.  We may act directly or indirectly through an interest in a partnership, corporation or other forms of organization.  We may also choose to acquire a business opportunity through the issuance of common stock or other securities, if possible.   13    Filing of Bankruptcy under Chapter 11  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, filed for bankruptcy protection in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  We anticipate that each entity will remain as debtor in possession, subject to the jurisdiction of the supervision and orders of the Bankruptcy Court.  Settlement and Sale Agreement with Mentoring Parties.  IDI Global, IDI Small Business, and Professional Consulting Services (the IDI Debtors) entered into an Agreement for Purchase and Sale of Assets and for Settlement of Disputes dated March 16, 2007 (the Settlement and Sale Agreement), with HG Marketing, Inc. and Mentoring of America, LLC (the Mentoring Parties).  The Settlement and Sale Agreement contemplates, except in one circumstance, the global resolution of all litigation between these IDI entities and the Mentoring Parties and the resolution of disputes and the sale of rights of the IDI Debtors in a call center located in St. George, Utah (the St. George Call Center).  Pursuant to the Settlement and Sale Agreement, the Mentoring Parties will pay the IDI Debtors $171,409.10, in addition to other funds previously paid, in settlement of disputes between the parties.  Unless a higher and better offer is received, the Mentoring Parties will pay $337,500 for all of the IDI Debtors rights in the St. George Call Center.  If a better offer is received, the St. George Call Center will be sold to the party making the better offer, but the settlement between the IDI Debtors and the Mentoring Parties will still close and all outstanding litigation and disputes between the parties will be settled.  If either the Mentoring Parties or a party making a higher bid purchases the IDI Debtors rights in the St. George Call Center, the Mentoring Parties will retain obligations related to the operation of the St. George Call Center prior to the closing of the sale.  The Bankruptcy Court approved the Settlement and Sale Agreement following hearing on April 11, 2007.  As of January 1, 2007, all pending litigation in the Bankruptcy Court between the IDI Debtors and the Mentoring Parties was subject to continuance to allow the parties to pursue settlement negotiations.  Although the Company has endeavored to maximize its value for the benefit of creditors and shareholders, as of the date of this report, it was unknown whether the Company would be able to continue as a going concern.  As of the date of this report, the Company was entertaining offers from third parties for a potential merger and was working to formulate a plan of reorganization, which will include its divestment of certain assets.  However, there can be no guarantee that the Company's negotiations will be successful or will enable the Company to continue as a going concern.  In March of 2006, IDI Global or one of its affiliates transferred $597,000 to Advanced Business Development (ABD) or one of its affiliates to develop an infomercial to use to generate leads to be used on the sales and marketing floor of the St. George Call Center.  IDI Global understood that these funds would be used by ABD to develop an infomercial, and the remainder of the funds was to be used to pay for the testing and tuning and the eventual media time to run the infomercial on television stations through out the country.  It was anticipated that the leads to be generated by the infomercial would replace the leads that Mentoring of America, LLC threatened to pull from the Call Center floor by no later than July 2006.  ABD continually delayed the creation of the infomercial, and eventually IDI Global was informed that ABD had run out of money, and would not test the infomercial.  In addition, ABD sent invoices to IDI Global many months after services had been rendered indicating that IDI Global in fact owed ABD an additional $83,400.  The invoices are not representative of what was contracted to be accomplished.  At the request of IDI Global, the Bankruptcy Court authorized the Committee to commence legal action against ABD and its affiliates to attempt to recover the money transferred to it.  IDI Global will cooperate in that litigation.  As part of any such action, it is anticipated that the $83,400 claim asserted by ABD will be disputed in full.  On February 6, 2007, Internet Development filed a Complaint in the Bankruptcy Court against the IDI Debtors, seeking to impose a constructive trust on certain funds that are being held on behalf of the IDI Debtors in a trust account.  On April 11, 2007, the Bankruptcy Court granted a motion authorizing the Official Committee of Unsecured Creditors ("Committee") to defend this lawsuit on behalf of the IDI Debtors' estates.   14    In addition to authorizing the Committee to defend the lawsuit commenced by Internet Development, on April 11, 2007, the Bankruptcy Court authorized the Committee to take whatever actions are necessary to recover funds that the IDI Debtors transferred prior to the petition date to ABD or any of ABD's insiders or affiliates.  As a result of the funds transferred to ABD, ABD produced an infomercial, and has provided a copy of the infomercial to the IDI Debtors.  Contrary to the parties' agreement, ABD has refused to test the infomercial.  The IDI Debtors are currently engaged in negotiations with the personality featured in the infomercial related to the testing and use of the infomercial.  On February 12, 2007, the "exclusivity period" for the IDI Debtors to file a plan of reorganization, as set forth in section 1121 of title 11 of the United States Code, expired and, as a result, any party in interest, including the IDI Debtors, may file a plan of reorganization in the IDI Debtors' Chapter 11 Cases.  On or about March 8, 2007, MCB Printing, Inc. dba Excel Graphics, Inc. (MCB), provided to the IDI Debtors and the Committee an offer to purchase Internet Development and to merge with IDI Global, Inc.  This offer has not been accepted by the IDI Debtors at this time, but negotiations with MCB are continuing.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of IDI Global, Inc. Chief Financial, Inc. and Professional Consulting Services, Inc. to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development.  In October 2006, however, with the loss of the sales call center, Internet Development informed the IDI Debtors that it would no longer have funds to pay any expenses or charges related to the Debtors and Bankruptcy proceedings.  Liquidity and Capital Resources  We are currently able to support our recurring day-to-day cash operating expenses with recurring cash inflows and existing cash balances.  However, we are unable to satisfy our total current liabilities with cash on hand.  Also, we are dependent on the efforts of our subsidiaries and other third parties to increase sales and, thus, increase our cash balances.  Our revenues are primarily from product sales, Internet applications, and website hosting and training services.  Our monthly cash outflow is mostly related to cost of sales (product cost) and general and administrative expenses.  Net cash provided (used) by operations for the 2007 three-month period was $61,551 compared to net cash by operating activities of $(397,517) for the 2006 three-month period.  The increase in net cash provided by operations was mainly due to a decrease in Prepaid Expenses.  Net cash provided by investing activities was $(2,459) for the 2007 three-month period compared to $0.00 for the 2006 three-month period.  Financing  Net cash provided by financing activities was $0.00 for the 2007 three-month period compared to net cash provided by financing activities of $0.00 for the 2006 three-month period.  Commitments and Contingent Liabilities  Our principle commitments consist of operating leases for office space in Orem, Utah, and repayment of the Credit Agreement and our total current liabilities.  The total monthly lease payment for the Orem office is $7,218.  As of March 30, 2006, we owed $1,750,000, plus 2% interest, or an aggregate of $1,785,000, under the Credit Agreement. The interest for this was stayed by the bankruptcy proceedings for April 2006 though March 2007.  At March 31, 2007, we had total current liabilities of $4,399,721, and had notes payable totaling $2,281,442, which included notes payable of $1,750,000 to SBI Brightline, a third party, notes payable of $26,915 to Chisholm Bierwolf and Nilson, a third party and $504,527 in notes payable to Kevin R. Griffith, our CEO.  At March 31, 2007, our total current liabilities also included accrued expenses of $1,224,885, primarily related to deferred compensation, accrued interest, and payroll liabilities.  Accounts payable of $871,310, Derivatives of 7,084 and reserves for refunds and charge-backs of $15,000 added to our total current liabilities.   15    Off-balance Sheet Arrangements - None  Results of Operations  The following discussions are based on the consolidated financial statements of IDI Global, and its subsidiaries: Internet Development, Sports Media, IDISB, and Chief Financial.  These discussions summarize our financial statements for the three-month periods ended March 31, 2006 and 2007, and should be read in conjunction with the financial statements, and notes thereto, included with this report at Item I, Part I, above.  Summary Comparison of 2006 and 2007 Three and Three month Periods Three months endedMarch 31, 2007March 31, 2006Total revenue$1,265,063$2,985,470Total cost of sales940,9291,880,728Gross profit324,1341,104,742Total operating expenses609,3041,144,544Net operating income (loss)(285,170)(39,802)Total other income (expense)(25,700)(119,247)Total income tax Expense0.000.00Net income(310,870)(159,049)Net earnings (loss) per share$(0.02)$(0.01)  Total revenues decreased to $1,265,063 for the three-month period ended March 31, 2007, from $2,985,470 for the three-month period ended March 31, 2006. This change was a decrease of approximately $1.7 million, due in part to a lack of realization of revenues under the contract with HG Marketing which resulted in the lawsuit discussed in the Legal Proceedings section. This alone accounted for a decrease of $650,000, and the other $1.1 million decrease was in relation to the Internet Development Inc. SOHO sales floor closing.  Cost of sales decreased along with total revenues for the three month period ended March 31, 2007.  Cost of sales includes commissions for outsourced sales and our in-house sales force, costs of merchant accounts, fulfillment, and other third party products and services.  For 2007, total cost of sales was 74.4% of total revenues, compared to 63.0% of total revenues for 2006.  As a result of decreased revenues, our gross profit decreased to $324,134 for the three month period ended March 31, 2007 from $1,104,742 for the three month period ended March 31, 2006.  Total operating expenses include salaries and benefits, rental of office space, professional fees, and other general office expenses.  These operating expenses decreased to $609,304 for the three-month period ended March 31, 2007, from $1,144,544 for three-month period ended March 31, 2006. This decrease was due, in part, to the closing of the SOHO sales floor.  Total other income and expense for 2007 was primarily related to interest expenses from the SBI note.  We had a net loss of $(310,870) for the three-month period ended March 31, 2007, as compared to a net loss of $(159,049) for the three-month period ended March 31, 2006. This is the result of the loss of income from HG marketing not following through on their contract and the closing of the SOHO sales floor.  Net loss per share was $(0.02) per share for the three-month period ended March 31, 2007, compared to $(0.01) net loss per share for the three month period ended March 31, 2006.  The following chart and related discussions summarize our consolidated balance sheet for the years ended December 31, 2006, and the three-month period ended March 31, 2007, and should be read in conjunction with the financial statements and notes to the financial statements.   16     Summary of Balance Sheet March 31,
2007December 31,
2006(Unaudited)Cash$197,190$143,522Total current assets260,401174,614Total assets1,070,516985,953Total current liabilities4,399,7214,004,288Total liabilities4,399,7214,004,288Retained earnings (deficit)(10,092,633)(9,781,763)Total stockholders equity$(3,329,205)$(3,018,335)  We increased the total current assets at March 31, 2007, compared to the year ended December 31, 2006, due to more cash.  Total current liabilities and total liabilities increased at March 31, 2007, compared to the year ended December 31, 2006, primarily due to increases in accounts payable and accrued expenses.  Factors Affecting Future Performance  We may need additional external capital and may be unable to raise it.  Our success will depend upon our ability to access equity capital markets as needed and borrow on terms that are financially advantageous to us.  However, we may not be able to obtain additional funds if necessary on acceptable terms.  If we fail to obtain funds on acceptable terms, then we might be forced to delay or abandon some or all of our business plans, or may not have sufficient working capital to develop products, finance acquisitions, or pursue business opportunities.  If we borrow funds, we could be forced to use a large portion of our cash reserves to repay principal and interest on those funds.  If we issue our securities for capital, the interests of investors and shareholders could be diluted.  We are subject to intense competition from large and small companies, which limits our ability to obtain market share.  We face competition in the overall Internet software market, as well as in the web site development market.  We expect competition to persist, increase, and intensify in the future as the markets for our products and services continue to develop, and as additional competitors enter our market.  Our success in obtaining market share will depend upon our ability to build name brand recognition and to provide cost-effective, high-quality products and services to our customers.  We have developed our products to meet the needs of both small and large businesses in a targeted way, and we believe the generality of our competitors services may inadequately address our potential customers needs.  In addition, many of our current or potential competitors have broad distribution channels that they may use to bundle competing products directly to end-users or purchasers.  If these competitors were to bundle competing products for their customers, it could adversely affect our ability to obtain market share and may force our prices down.  We are dependent upon certain relationships with third parties, the loss of which may result in loss of customers.  We are dependent upon certain merchant and banking relationships, as well as strategic relationships with third parties, who provide payment processing to all our customers.  Failure of these financial institutions and third parties to continue to provide services in a satisfactory way to our customers could result in our loss of the business of the merchants to whom we sell products and services.  If these financial institutions and third parties do not continue to provide services to our customers, we may not be able to find other third party service providers.  In that scenario, our customers may terminate their agreements with us and move their business to our competitors, which could adversely affect our revenues and earnings.   17    Our research and development efforts could result in increased costs that could reduce our operating profit, a loss of revenue if promised new products are not delivered to our customers in a timely manner, or a loss of revenue and possible claims for damages if new products and services do not perform as anticipated .  The electronic commerce, web hosting and merchant processing markets in which we compete are characterized by technological change, new product introductions, evolving industry standards and changing customer needs.  In order to remain competitive, we may be required to engage in a number of research and development projects, which carry the risks associated with any research and development effort, including cost overruns, delays in delivery and performance problems.  In our core Internet-based services, these risks are even more acute.  These projects could result in increased research and development costs in excess of historical levels, as well as the loss of revenues, or we could lose customers if the new products and services do not perform as intended or are not acceptable in the marketplace.  Any delay in the delivery of new products or services could render them less desirable by our customers, or possibly even obsolete.  In addition, the products and services we deliver to the small business market are designed to process critical transactions, including key reports and other information associated with those transactions, all at very high volumes and processing speeds.  Any performance problems that arise with a new product or service could result in significant processing or reporting errors.  If competitive practices prevent our ability to pass along all increased merchant fees to our customers in the future, we would have to absorb all or a portion of these increases, thereby increasing our operating costs and reducing our profit margin .  From time to time VISA and MasterCard increase the fees that they charge processors.  We may attempt to pass these increases along to our merchant customers, but this could result in the loss of those customers to our competitors who do not pass along the increases.  Our revenues from merchant account processing are dependant upon our continued merchant relationships, which are highly sensitive and can be canceled if customer charge-backs escalate and generate concern - even if we have held back sufficient funds in reserve accounts to cover these charge-backs.  Cancellation by our merchant providers would most likely result in the loss of new customers and lead to a reduction in our revenues.  We rely on co-marketing alliances to generate clients, end-users, and revenue, and these agreements might hinder us from directly contacting potential clients in certain industries.  We have key co-marketing arrangements with strategic partners in order to use their industry and marketing expertise.  Some of these arrangements may provide or allow co-marketing partners some exclusive rights to co-market our services in a particular industry, which will limit our right to contact potential clients in that industry.  Also, if a co-marketing relationship is terminated, we may be unable to replace that relationship with other alliances that have comparable customer bases and user demographics.  This limitation may affect our revenues because we expect that revenues generated from the sale of our products and services through these strategic co-marketing arrangements will account for a significant portion of our revenues for the foreseeable future.  However, there can be no assurance that these arrangements will be successful in generating meaningful revenue.  We may experience software defects that may damage customer relations.  Despite rigorous testing, our software may nevertheless contain undetected bugs, errors or experience failures when introduced, or when the volume of services provided to end users increases substantially.  Any material errors could damage the reputation of our service or software, as well as damage our customer relations.  We have detected errors, defects, and bugs in the past and have corrected them as quickly as possible.  Correcting any defects or bugs we may discover in the future could require us to make significant expenditures of capital and other resources.  We believe that we follow industry-standard practices relating to the identification and resolution of errors, defects, or bugs encountered in the development of new software and in the enhancement of existing features in our products.  As of this date, we have not experienced any material adverse effect by reason of an error, defect, or bug.  We may experience breakdowns in our hosting services, infrastructure or payment processing systems, which may expose us to liabilities and cause customers to abandon our products and services.  We would be unable to deliver our payment processing services or hosting services if our system infrastructures break down or are otherwise interrupted.  Events that could cause system interruptions include, but are not limited to, the following:  - fire, - earthquake, - power loss,  18    - terrorist attacks, - telecommunications failure, - unauthorized entry or other events.  Although we regularly back up data from operations, and take other measures to protect against loss of data, there is still always some inherent risk of these losses.  Despite the security measures we maintain, our infrastructure may be vulnerable to computer viruses, hackers, rouge employees or similar sources of disruption.  Any problem of this nature could result in significant liability to customers or financial institutions and also may deter potential customers from using our services.  We attempt to limit this sort of liability through back-up systems, contractual provisions, insurance coverage, and other security measures.  However, we cannot assure that these contractual limitations on liability would be enforceable, or that our insurance coverage would be adequate to cover any liabilities we might sustain.  Also, a breach of our e-commerce security measures could reduce demand for our services.  The e-commerce industry is intensely focused on the need for Internet security, particularly with respect to the transmission and storage of confidential personal and financial data.  Any compromise or elimination of our security could erode customer confidence in our systems, and could result in decreased demand for our services, as well as possible litigation.  We depend upon our proprietary rights, none of which can be completely safeguarded against infringement.  We rely upon trade secrets with respect to our source code and functionalities and other non-patented proprietary information in our product development activities.  We seek to protect trade secrets and proprietary knowledge in part through confidentiality agreements with our employees, resellers, and collaborators.  These agreements may not effectively prevent disclosure of our confidential information and may not provide us with an adequate remedy in the event of unauthorized disclosure of this information.  In addition, if employees or collaborators develop products independently that may be applicable to our products under development, then disputes may arise about ownership of proprietary rights to those products or services.  Protracted and costly litigation could be necessary to enforce and determine the scope of our proprietary rights.  It would be impossible to predict whether litigation might be successful.  We depend on key employees who may leave at any time.  Our business is dependent upon key employees and the relationships they have formed. We have not entered into any contracts with these employees and they may leave us at anytime.  Economic downturns may also lead to a reduction in the marketing activities of our clients, which could result in decreased revenues.  As economic downturns begin, marketing dollars are often the first budgets to be cut.  Despite informal agreements and strong relationship-based opportunities, when marketing dollars are reduced, then marketing budgets are curtailed.  Because such a large part of our business is based on marketing, any reduction in the marketing budgets of our customers or clients could have a material adverse impact on our business.  It is possible that current shares in IDI Global will be cancelled and that shareholders will receive no distribution on account of their shares.  It is possible that, when the IDI Debtors (or other parties) propose a Chapter 11 plan of reorganization, the plan will provide for the cancellation of current shares in IDI Global and for no distributions to current shareholders on account of their shares.  There can be no assurance that the IDI Debtors will be able to reorganize and, in such event, the companies likely would be liquidated and current shareholders would receive no distribution on account of their shares.  There may be additional unknown risks which could have a negative effect on our business.  The risks and uncertainties described in this section are not the only ones facing us.  Additional risks and uncertainties not known to us as of the date of this report, or that we currently deem immaterial, may also impair our business operations.  If any of the foregoing risks actually occur, our business, financial condition, or results of operations could be materially adversely affected.  In such case, the trading price of our common stock could decline.     19    ITEM 3.      CONTROLS AND PROCEDURES    In accordance with Exchange Act Rules 13a-15 and 15d-15, Kevin Griffith, IDI Globals Chief Executive Officer, and Steven Weatherly, a consultant performing certain services typically performed by a chief financial officer, have conducted an evaluation of our disclosure controls and procedures as of the end of the period covered by this report.  Based on that evaluation, Mr. Griffith and Mr. Weatherly concluded that our disclosure controls and procedures were effective as of March 31, 2007, to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commissions rules and forms.     PART II: OTHER INFORMATION   ITEM 1.     LEGAL PROCEEDINGS   In March 2005, two former employees, Ryan Romero and Jeremy Hall, filed suit against IDI Global in the 4th Judicial District Court, Provo Department, State of Utah.  The suit alleges that Romero and Hall are entitled to options that were allegedly promised to them in connection with the termination of their employment. We filed our answer and discovery is proceeding. We deny these allegations, and intend to defend vigorously against this suit. On June 24, 2004, Independent Marketing, Inc. filed a lawsuit in the Third District Court for Salt Lake County, State of Utah, against Internet Development, Inc.  The allegations in the suit relate to the alleged hiring of three employees who were bound by a non-competition agreement with Independent Marketing, Inc.  However, we believe the three employees were not hired by Internet Development, Inc., and intend to vigorously defend this suit.  On April 1, 2004, Ascendiant Capital Group, LLC, filed a complaint against IDI Global in the Superior Court of the State of California for the County of Orange - Central Justice Center.  The complaint alleges that IDI Global breached a consulting agreement with Ascendiant Capital Group, and that Ascendiant Capital Group is entitled to damages in excess of $25,000.  We intend to defend against the claims, and on May 11, 2004, we filed a cross-complaint alleging breach of contract by Ascendiant Capital Group.  This case has been stayed pending the outcome of the Mercator litigation discussed below.  On March 12, 2004 Mercator Momentum Fund, L.P. and Mercator Momentum Fund III, both California limited partnerships, and Mercator Advisory Group, L.L.C., a California limited liability company, filed a complaint against IDI Global, Inc. in the Superior Court of the State of California for the County of Los Angeles.  The complaint alleges that IDI Global breached a Securities Purchase Agreement by refusing to accept $3,500,000 in consideration for promissory notes in the amount of $3,500,000 with 3.5% interest, warrants to purchase 1,312,500 shares of IDI Global common stock at an exercise price of $1.20, a $175,000 due diligence fee, and failure to register the shares of common stock.  We intend to defend against the claims.  Newave, Inc., vs. IDI Global, Inc., Chief Financial, Inc., et al., Superior Court for the State of California, in and for the County of Santa Barbara, Case No.  1167126.  Plaintiff Newave, Inc., filed a lawsuit against IDI Global and Chief Financial for breach of contract and unjust enrichment.  The lawsuit relates to a Lead Marketing Agreement between Newave and Chief Financial.  We dispute that we are a party to the Lead Marketing Agreement, and have filed our answer.  The case began trial on April 17, 2006, but was stayed in connection with the bankruptcy proceedings discussed below.  On August 8, 2005, Paul Watson, a former employee of the Company brought suit against the Company and Kevin Griffith in the 4th Judicial District Court for Utah County, State of Utah.  Mr. Watson brought claims for breach of contract, false light, and wrongful discharge, and seeks back pay and loss of income.  The Company and Mr. Griffith filed an answer and counterclaim against Mr. Watson, bringing claims of defamation, intentional and negligent interference with prospective economic relations, breach of fiduciary duty, breach of contract, conversion, and unjust enrichment.  The Company and Mr. Griffith dispute the claims brought by Mr. Watson and intend to vigorously pursue this action.  On or about February 21, 2006, Presson Airport, LLC served an amended complaint asserting claims against Chief Financial, Inc. and Internet Development, Inc., in the Third Judicial District Court, State of Utah. Plaintiff seeks to recover approximately $46,000 for unpaid rent plus continuing rent and other charges in the amount of $9,800 per month based on allegations of breach of a lease and guaranty.  The Company and its subsidiaries dispute this liability and intend to vigorously defend these claims.   20    HG Marketing, Inc., and Mentoring of America, Inc., vs. IDI Global, Inc., IDI Small Business, Inc., and Kevin Griffith, District Court, Clark County, Nevada, Case No. A518002.  Plaintiffs HG Marketing and Mentoring of America filed this lawsuit claiming breach of contract, conversion, fraud, and constructive trust.  The lawsuit relates to the asset purchase agreement between the parties relating to the call center located in St. George, Utah.  Plaintiffs filed a motion for a temporary restraining order, which was denied, and also sought a preliminary injunction, which was also denied.  We filed an answer, counterclaim, and third party complaint against the plaintiffs and their principals on April 10, 2006.  Pursuant to a settlement agreement signed on April 11, 2007, and approved by the federal bankruptcy court,   The assets of the St. George call center will be sold to the Mentoring Parties or to anther party making a higher and better offer for those assets at auction, unless the IDI Debtors receive a significant investment from a party who directs the IDI Debtors to to settle with the Mentoring Parties.  Filing of Bankruptcy under Chapter 11  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, Inc., filed for bankruptcy protection in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  (IDI Global, Case No. 0621261; IDI Small Business, Case No. 0621266; Chief Financial, Case No. 0621270; and PCS, Case No. 0621268.)  We anticipate that each entity will remain as debtor in possession, subject to the jurisdiction of the supervision and orders of the Bankruptcy Court.  Settlement and Sale Agreement with Mentoring Parties.  IDI Global, IDI Small Business, and Professional Consulting Services (the IDI Debtors) entered into an Agreement for Purchase and Sale of Assets and for Settlement of Disputes dated March 16, 2007 (the Settlement and Sale Agreement), with HG Marketing, Inc. and Mentoring of America, LLC (the Mentoring Parties).  The Settlement and Sale Agreement contemplates, except in one circumstance, the global resolution of all litigation between these IDI entities and the Mentoring Parties and the resolution of disputes and the sale of rights of the IDI Debtors in a call center located in St. George, Utah (the St. George Call Center).  Pursuant to the Settlement and Sale Agreement, the Mentoring Parties will pay the IDI Debtors $171,409.10, in addition to other funds previously paid, in settlement of disputes between the parties.  Unless a higher and better offer is received, the Mentoring Parties will pay $337,500 for all of the IDI Debtors rights in the St. George Call Center.  If a better offer is received, the St. George Call Center will be sold to the party making the better offer, but the settlement between the IDI Debtors and the Mentoring Parties will still close and all outstanding litigation and disputes between the parties will be settled.  If either the Mentoring Parties or a party making a higher bid purchases the IDI Debtors rights in the St. George Call Center, the Mentoring Parties will retain obligations related to the operation of the St. George Call Center prior to the closing of the sale.  The Bankruptcy Court approved the Settlement and Sale Agreement following hearing on April 11, 2007.  As of January 1, 2007, all pending litigation in the Bankruptcy Court between the IDI Debtors and the Mentoring Parties was subject to continuance to allow the parties to pursue settlement negotiations.  Although the Company has endeavored to maximize its value for the benefit of creditors and shareholders, as of the date of this report, it was unknown whether the Company would be able to continue as a going concern.  As of the date of this report, the Company was entertaining offers from third parties for a potential merger and was working to formulate a plan of reorganization, which will include its divestment of certain assets.  However, there can be no guarantee that the Company's negotiations will be successful or will enable the Company to continue as a going concern.  In March of 2006, IDI Global or one of its affiliates transferred $597,000 to ABD Development or one of its affiliates to develop an infomercial to use to generate leads to be used on the sales and marketing floor of the St. George Call Center.  IDI Global understood that these funds would be used by ABD to develop an infomercial, and the remainder of the funds were to be used to pay for the testing and tuning and the eventual media time to run the infomercial on television stations through out the country.  It was anticipated that the leads to be generated by the infomercial would replace the leads that Mentoring of America, LLC threatened to pull from the Call Center floor by no later than July 2006.  ABD continually delayed the creation of the infomercial, and eventually IDI Global was informed that ABD had run out of money, and would not test the infomercial.  In addition, ABD sent invoices to IDI Global many months after services had been rendered indicating that IDI Global in fact owed ABD an additional $83,400.  The invoices are not representative of what was contracted to be accomplished.   21    At the request of IDI Global, the Bankruptcy Court authorized the Committee to commence legal action against ABD and its affiliates to attempt to recover the money transferred to it.  IDI Global will cooperate in that litigation.  As part of any such action, it is anticipated that the $83,400 claim asserted by ABD will be disputed in full.  On February 6, 2007, Internet Development filed a Complaint in the Bankruptcy Court against the IDI Debtors, seeking to impose a constructive trust on certain funds that are being held on behalf of the IDI Debtors in a trust account.  On April 11, 2007, the Bankruptcy Court granted a motion authorizing the Official Committee of Unsecured Creditors ("Committee") to defend this lawsuit on behalf of the IDI Debtors' estates.  In addition to authorizing the Committee to defend the lawsuit commenced by Internet Development, on April 11, 2007, the Bankruptcy Court authorized the Committee to take whatever actions are necessary to recover funds that the IDI Debtors transferred prior to the petition date to ABD or any of ABDs insiders or affiliates.  As a result of the funds transferred to ABD, ABD produced an infomercial, and has provided a copy of the infomercial to the IDI Debtors.  Contrary to the parties' agreement, ABD has refused to test the infomercial.  The IDI Debtors are currently engaged in negotiations with the personality featured in the infomercial related to the testing and use of the infomercial.  On February 12, 2007, the "exclusivity period" for the IDI Debtors to file a plan of reorganization, as set forth in Section 1121 of Title 11 of the United States Code, expired and, as a result, any party in interest, including the IDI Debtors, may file a plan of reorganization in the IDI Debtors Chapter 11 Cases.  On or about March 8, 2007, MCB Printing, Inc. dba Excel Graphics, Inc., provided to the IDI Debtors and the Committee an offer to purchase Internet Development and to merge with IDI Global, Inc.  This offer had not been accepted by the IDI Debtors as of the date of this report, but negotiations with MCB are continuing.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of IDI Global, Inc. Chief Financial, Inc. and Professional Consulting Services, Inc. to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development.  In October 2006, however, with the loss of the sales call center, Internet Development informed the IDI Debtors that it would no longer have funds to pay any expenses or charges related to the Debtors and Bankruptcy proceedings.  ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS  Sale of Unregistered Securities  None  ITEM 3.     DEFAULTS UPON SENIOR SECURITIES  IDI Global entered into a Term Credit Agreement (the Agreement) on December 24, 2004 with Hong Kong League Central Credit Union, a Hong Kong corporation, and SBI Advisors, LLC (SBI Advisors), a California limited liability company.  Under this Agreement, IDI Global received a term loan in the principal amount of $1,750,000, with interest of 2.0% per month.  The loan was extended up to March 31, 2006, at which time IDI Global did not make the required payment.  On April 17, 2006, IDI Global filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code.  The filing of the Voluntary Petition creates an automatic stay that enjoins and restrains certain acts and proceedings pertaining to the collection of this loan pursuant to 11 U.S.C. § 362.   ITEM 5.     OTHER INFORMATION  Filing for Bankruptcy Chapter 11 Bankruptcy Protection  As discussed above in the Legal Proceedings section, on April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc. and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, Inc., filed petitions in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court) seeking relief under Chapter 11 of the Bankruptcy Code, 11 U.S.C. § 101et seq.  The bankruptcy cases are being jointly administered by the Bankruptcy Court under the Case No. 06-21261, and the companies are debtors in possession, subject to the jurisdiction, supervision and orders of the Bankruptcy Court.  The United States trustee has appointed a Committee of Unsecured Creditors in the case of IDI Global, which is comprised of three unsecured creditors.  The companies have obtained Bankruptcy Court approval of a centralized cash management system, and of the employment of all of their professionals, including LECG, which will serve as a forensic accountant to assist with contract dispute litigation.   22    ITEM 6.     EXHIBITS    Part I Exhibits 31.1 Section 302 Certification 31.2 Section 302 Certification 32.1 Section 1350 Certification    Part II Exhibits 2.1 Agreement and Plan of Merger between IDI Global and Sports Media International, Inc. and Integrated Communication Systems, Inc., dated October 3, 2003 (Incorporated by reference to exhibit 2.1 for Form 8-K, filed October 15, 2003) 2.2 Agreement and Plan of Reorganization between IDI Global and Chief Financial, Inc., dated January 8, 2004 (Incorporated by reference to exhibit 2.3 for Form 10-KSB, filed March 29, 2004) 3.1 Articles of Incorporation, as amended (Incorporated by reference to exhibit 3.1 for Form 10-KSB, filed January 31, 2002) 3.2 Restated bylaws of IDI Global, Inc. (Incorporated by reference to exhibit 3.2 for Form 10-KSB, filed January 31, 2002) 10.1 Lease Agreement between Internet Development Inc. and Stratford Park, L.C., dated July 7, 2000 (Incorporated by reference to exhibit 10.1 for Form 10-QSB, as amended, filed May 22, 2002) 10.2 Employment agreement between Internet Development and Kevin R. Griffith, dated April 1, 2002 (Incorporated by reference to exhibit 10.2 for Form 10-QSB, as amended, filed August 15, 2002) 10.3 Secured Convertible Promissory Note between idiglobal.com and Kevin R. Griffith, as amended (Incorporated by reference to exhibit 10.3 for Form 10-KSB, filed January 31, 2002) 10.4 Consultant Agreement between IDI Global, Inc. and Summit Resource Group, Inc., dated July 31, 2002 (Incorporated by reference to exhibit 10.2 for Form 10-QSB, as amended, filed August 15, 2002)      SIGNATURES  In accordance with the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.   IDI GLOBAL, INC.    Date: May 15, 2007  By: /s/ Kevin R. Griffith Kevin R. Griffith President, Chief Executive Officer, Principal Executive Officer  Date: May 15, 2007  By: /s/ Steven D. Weatherly Steven D. Weatherly Consultant performing certain services for the Company commonly performed by a Chief Financial Officer       23