**U.S.
      SECURITIES AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**





**Form
      10-K**





x
            ANNUAL
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934





**For
      the fiscal year ended March 31, 2008**





o
            TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934





For
      the
      transition period from _______________ to _______________.





**Commission
      file number 0-32345**





**MORRIS
      BUSINESS DEVELOPMENT COMPANY**


(Exact
      name of registrant as specified in its charter)





**California**
              (State
                or other jurisdiction of
              incorporation
                or organization)
            **33-0795854**
              (I.R.S.
                Employer
              Identification
                No.)**413
                Avenue G, #1**
              **Redondo
                Beach, CA**
              (Address
                of principal executive offices)
            **90277**
              (Zip
                Code)





**Registrant’s
      telephone number, including area code (310) 493-2244**





Indicate
      by check mark if the registrant is a well-known seasoned issuer, as defined
      in
      Rule 405 of the Securities Act. Yes oNo x





Indicate
      by check mark if the registrant is not required to file reports pursuant to
      Section 13 or 15(d) of the Exchange Act. Yes oNo x





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 xNo o





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





Large accelerated filer o
            Accelerated filer o
            Non-accelerated filer x





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





State
      the
      aggregate market value of voting and non-voting common equity held by
      non-affiliates computed by reference to the price at which the common equity
      was
      last sold, or the average bid and asked price of such common equity, as of
      the
      last business day of the registrant’s most recently completed fiscal quarter.
      $302,401, based on the closing price of $1.35 of our common stock on March
      31,
      2008.









**Applicable
      only to registrants involved in bankruptcy proceedings during the preceding
      five
      years:**





Indicate
      by check mark whether the registrant filed all documents and reports required
      to
      be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent
      to
      the distribution of securities under a plan confirmed by a court. Yes oNo o





**Applicable
      only to corporate registrants:**





Indicate
      the number of shares outstanding of each of the issuer’s classes of common
      stock, as of the latest practicable date. As of June 20, 2008, there were
      13,000,000 shares of common stock, par value $0.02, issued and
      outstanding





**Documents
      incorporated by reference**





List
      hereunder the following documents if incorporated by reference and the Part
      of
      the Form 10-K (e.g., Part I, Part II, etc.) into which the document is
      incorporated: (1) Any annual report to security holders: (2) Any proxy or
      information statement; and (3) Any prospectus filed pursuant to Rule 424(b)
      or
      (c) under the Securities Act of 1933. the listed documents should be clearly
      described for identification purposes (e.g., annual report to security holders
      for fiscal year ended December 24, 1980). None


2





**TABLE
      OF CONTENTS**





**PART
                I**ITEM
                1
            Business
            4ITEM
                1A
            Risk
                Factors
            8ITEM
                1B
            Unresolved
                Staff Comments
            8ITEM
                2
            Properties
            15ITEM
                3
            Legal
                Proceedings
            15ITEM
                4
            Submission
                of Matters to a Vote of Security Holders
            15**PART
                II**ITEM
                5
            Market
                for Registrant’s Common Equity, Related Stockholder Matters and Issuer
                Purchases of Equity Securities
            15ITEM
                6
            Selected
                Financial Data
            17ITEM
                7
            Management’s
                Discussion and Analysis of Financial Condition and Results of Operations
            17ITEM
                7A
            Quantitative
                and Qualitative Disclosures about Market Risk
            25ITEM
                8
            Financial
                Statements and Supplementary Data
            26ITEM
                9
            Changes
                in and Disagreements with Accountants on Accounting and Financial
                Disclosure
            27ITEM
                9A
            Controls
                and Procedures
            27ITEM
                9B
            Other
                Information
            29**PART
                III**ITEM
                10
            Directors,
                Executive Officers and Corporate Governance
            29ITEM
                11
            Executive
                Compensation
            31ITEM
                12
            Security
                Ownership of Certain Beneficial Owners and Management and Related
                Stockholder Matters
            33ITEM
                13
            Certain
                Relationships and Related Transactions, and Director Independence
            34ITEM
                14
            Principal
                Accounting Fees and Services
            35**PART
                IV**ITEM
                15
            Exhibits,
                Financial Statement Schedules
            36


3


**PART
      I**





This
      Annual Report includes forward-looking statements within the meaning of the
      Securities Exchange Act of 1934 (the “Exchange Act”). These statements are based
      on management’s beliefs and assumptions, and on information currently available
      to management. Forward-looking statements include the information concerning
      possible or assumed future results of operations of the Company set forth under
      the heading “Management’s Discussion and Analysis of Financial Condition or Plan
      of Operation.” Forward-looking statements also include statements in which words
      such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,”
“consider” or similar expressions are used.





Forward-looking
      statements are not guarantees of future performance. They involve risks,
      uncertainties and assumptions. The Company’s future results and shareholder
      values may differ materially from those expressed in these forward-looking
      statements. Readers are cautioned not to put undue reliance on any
      forward-looking statements.





**ITEM
      1 – BUSINESS**





**Business
      Development**





Morris
      Business Development Company, a California corporation (referred to as “we,”
“us,” “our” or the “Company”) was incorporated on March 10, 1998, in the State
      of California, as Electronic Media Central Corporation. Prior to our
      incorporation, we commenced sales distribution operations in late 1996 as a
      division of Internet Infinity, Inc. (“Internet Infinity”). Following our
      incorporation, on April 1, 1998, we continued to provide such services as a
      100%
      wholly owned subsidiary of Internet Infinity. Internet Infinity supplied us
      with
      management support to launch our sales distribution activities.





On
      September 28, 2001, all 500,000 of our issued and outstanding shares of common
      stock, held by Internet Infinity, were distributed to the Internet Infinity
      shareholders of record as of September 18, 2001.





Our
      initial business focus in late 1996 was on distributing electronic media
      duplication and packaging services for an unaffiliated company, Video Magnetics,
      LLC. In February 1997, as the result of L&M Media, Inc. acquiring Video
      Magnetics, LLC, these services were supplied by the affiliated company, L&M
      Media, Inc. which for over 10 years had been wholly owned by George Paul Morris,
      our Chairman, Chief Financial Officer and Secretary and the controlling
      shareholder of both Internet Infinity and us. L&M Media was supplying its
      products and services to us through its wholly owned subsidiary, Apple Media
      Corporation, through March 31, 2002. All products and services were provided
      by
      Pac Max Corporation of Brea, California and less than five other independent
      suppliers.





On
      May
      12, 2006, we filed an election to be treated as a business development company
      (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”), which became
      effective on the date of filing.


4


On
      March
      30, 2007, we changed our name to Morris Business Development
      Company.





**Description
      of Business**





We
      focus
      on the development of opportunities to invest in eligible portfolio companies
      like a closed end mutual fund and provide growth stage capital, strategic
      guidance and operational support.





Our
      principal objectives are long-term capital appreciation of portfolio company
      securities and shorter-term receipt of dividends from our portfolio companies.
      We may invest in debt securities of these companies, or may acquire an equity
      interest in the form of common or preferred stock, warrants or options to
      acquire stock or the right to convert the debt securities into stock. We may
      invest alone, or as part of a larger investment group. Consistent with our
      status as a BDC and the purposes of the regulatory framework for BDCs under
      the
      1940 Act, we will offer to provide managerial assistance, potentially in the
      form of a consulting agreement or in the form of a board of director’s seat, to
      the developing companies in which we invest.





In
      addition, we may acquire either a minority or controlling interest in mature
      companies in a roll-up strategy. It is anticipated that any acquisitions will
      be
      primarily in exchange for our common stock, or a combination of cash and stock.
      The principal objective of acquisitions pursuant to a roll-up strategy would
      be
      to consolidate an industry and either sell the acquired entities as a larger
      unit, or take the unit public through an initial public offering, spin-off
      portfolio shares to our shareholders, or reverse merger into a publicly traded
      shell corporation.





We
      operate as an externally managed investment company. Our operations will be
      governed by an Investment Advisory Management Agreement to be entered into
      between us and a new investment advisory limited liability company, BDC Fund
      Management, LLC, which was formed and is wholly-owned by our Chairman, George
      Morris. We have not elected to qualify to be taxed as a regulated investment
      company as defined under Subchapter M of the Internal Revenue Code.





Our
      common stock trades on the Over-the-Counter Bulletin Board (OTCBB) under the
      symbol “MBDE.”





Our
      financial statements have been prepared assuming we will continue as a going
      concern. Because we have historically incurred operating losses, and expect
      those losses to continue in the future, our Certified Public Accountants
      included an explanatory paragraph in their report raising substantial doubt
      about our ability to continue as a going concern.





**Regulation
      as a BDC**





Although
      the 1940 Act exempts a BDC from registration under that Act, it contains
      significant limitations on the operations of BDCs. Among other things, the
      1940
      Act contains prohibitions and restrictions relating to transactions between
      a
      BDC and its affiliates, principal underwriters and affiliates of its affiliates
      or underwriters, and it requires that a majority of the BDC’s directors be
      persons other than “interested persons,” as defined under the 1940 Act. The 1940
      Act also prohibits a BDC from changing the nature of its business so as to
      cease
      to be, or to withdraw its election as, a BDC unless so authorized by the vote
      of
      the holders of a majority of its outstanding voting securities. BDCs are not
      required to maintain fundamental investment policies relating to diversification
      and concentration of investments within a single industry.


5





Generally,
      a BDC must be primarily engaged in the business of furnishing capital and
      providing managerial expertise to companies that do not have ready access to
      capital through conventional financial channels. Such portfolio companies are
      termed “eligible portfolio companies.” More specifically, in order to qualify as
      a BDC, a company must (1) be a domestic company; (2) have registered a class
      of
      its equity securities or have filed a registration statement with the Securities
      and Exchange Commission pursuant to Section 12 of the Securities Exchange Act
      of
      1934; (3) operate for the purpose of investing in the securities of certain
      types of portfolio companies, namely immature or emerging companies and
      businesses suffering or just recovering from financial distress; (4) extend
      significant managerial assistance to such portfolio companies; and (5) have
      a
      majority of “disinterested” directors (as defined in the 1940 Act).





An
      eligible portfolio company is, generally, a U.S. company that is not an
      investment company and that (1) does not have a class of securities registered
      on an exchange or included in the Federal Reserve Board’s over-the-counter
      margin list; or (2) is actively controlled by a BDC and has an affiliate of
      a
      BDC on its board of directors; or (3) meets such other criteria as may be
      established by the Securities and Exchange Commission. Control under the 1940
      Act is generally presumed to exist where a BDC owns 25% of the outstanding
      voting securities of the company.





The
      1940
      Act prohibits or restricts companies subject to the 1940 Act from investing
      in
      certain types of companies, such as brokerage firms, insurance companies,
      investment banking firms and investment companies. Moreover, the 1940 Act limits
      the type of assets that BDCs may acquire to “qualifying assets” and certain
      assets necessary for its operations (such as office furniture, equipment and
      facilities) if, at the time of acquisition, less than 70% of the value of the
      BDC’s assets consist of qualifying assets. Qualifying assets include: (1)
      securities of companies that were eligible portfolio companies at the time
      the
      BDC acquired their securities; (2) securities of bankrupt or insolvent companies
      that were eligible at the time of the BDC’s initial acquisition of their
      securities but are no longer eligible, provided that the BDC has maintained
      a
      substantial portion of its initial investment in those companies; (3) securities
      received in exchange for or distributed in or with respect to any of the
      foregoing; and (4) cash items, government securities and high-quality short-term
      debt. The 1940 Act also places restrictions on the nature of the transactions
      in
      which, and the persons from whom, securities can be purchased in order for
      the
      securities to be considered qualifying assets. These restrictions include
      limiting purchases to transactions not involving a public offering and acquiring
      securities from either the portfolio company or its officers, directors, or
      affiliates.





A
      BDC is
      permitted to invest in the securities of public companies and other investments
      that are not qualifying assets, but those kinds of investments may not exceed
      30% of the BDC’s total asset value at the time of the
      investment.


6





A
      BDC
      must make significant managerial assistance available to the issuers of eligible
      portfolio securities in which it invests. Making available significant
      managerial assistance means, among other things, any arrangement whereby the
      BDC, through its directors, officers or employees, offers to provide, and,
      if
      accepted does provide, significant guidance and counsel concerning the
      management, operations or business objectives and policies of a portfolio
      company. The portfolio company does not have to accept the BDC’s offer of
      managerial assistance, and if they do accept may be required to pay prevailing
      market rates for the services.





We
      do not
      currently have any subsidiaries but do currently hold 2,500,000 shares of Leep,
      Inc., as of March 31, 2008 an EPC. However, we do have an operating division
      that provides services for the duplication, replication, and packaging of
      digital video disks (“DVD”) and compact disks (“CD”). We are actively seeking
      quality eligible portfolio companies in which to make an investment and provide
      managerial assistance.





**Morris
      Business Development Company Services**





We
      market
      the services of our BDC through the Internet, telephone, direct mail and trade
      conferences. The financial and management consulting services industry is highly
      competitive. However, the BDC delivery of these services to smaller American
      companies under $100 million in revenue is limited to 100 Business Development
      Companies operating under the 1940 Investment Act.





Our
      President George Morris and a network of independent contractor financial sales
      representatives known to Dr. Morris are actively engaged in sales of BDC
      services.





Our
      BDC
      can help but not guarantee to provide a wide range of services to our portfolio
      company clients such as, but not limited to, debt and equity financing,
      strategic business plan development, productive assets. management personnel
      and
      other resource acquisition including licensing, partnering, distributor and
      joint venture relationships, preparation for growth funding and financial
      restructuring, preparation and guidance for going public and remaining an
      efficient compliant public company, investor exposure and market trading
      support, exit strategy with tax planning and both professional and life
      coaching.





**Electronic
      Media Duplication Services**





We
      provide electronic media production, duplication, replication, and packaging
      services for CDs and DVDs.





Our
      sales
      of electronic media duplication services are primarily the duplication of a
      customer’s pre-recorded electronic media programs. The customer’s programs are
      principally used for education, promotion and documentation of the portfolio
      client’s company, products or services. We provide services to create multiple
      copies of a customer’s material on CD and DVD formats. The main target markets
      for our services are business, religious, government and other non-profit
      organizations. We do not provide services to the adult entertainment
      industry.


7





We
      charge
      a client for electronic media duplication services by quoting a price per piece
      duplicated to the customer. The price is based on the number of pieces
      duplicated and the specific requirements such as packaging. The greater the
      number of pieces a customer orders at one time, the lower the price per piece.





*Suppliers
      and Sub-Contractors*





Our
      production and duplication service orders are manufactured and fulfilled through
      unrelated independent suppliers. We do not own our production and duplication
      equipment.





We
      are
      responsible for sales force commissions plus other incentives.





*Distribution
      Methods*





Our
      sales
      representatives are responsible for managing their own clients by working with
      their own telephone, fax, mail and the Internet throughout the United States,
      with a majority in Southern California,





*Competition*





The
      general electronic media duplication industry has become highly price
      competitive and non-profitable. Therefore, the principal markets for our
      products and services are our BDC client companies that need to communicate
      with
      their customers, shareholders and anyone else affecting their sales and stock
      price performance.





*Advertising
      and Promotion*





Our
      advertising and promotion is primarily electronic-media focused. We engage
      in
      telephone, seminars and Internet campaigns to prospect for new clients needing
      BDC services and replication of media for communication.





**Employees**





The
      number of employees required to operate our business is currently two part-time
      independent contractors. We can scale up our staffing based on sales growth
      and
      our business need.





**ITEM
      1A – RISK FACTORS**





On
      at
      least an annual basis, we are required to provide our shareholders with a
      statement of risk factors and other considerations for their review. These
      risk
      factors and other considerations include:





***We
      have a limited operating history.***


8





Our
      business development company (“BDC”) was created on May 12, 2006. We have been
      offering our BDC service for approximately one year and have received stock
      for
      consulting services from one public stock company, Leep, Inc. (OTCBB symbol
      “LPPI”). Leep is a depressed modular building panel company with special
      technology searching for application sales or association with another building
      materials company. Our Company is trying to help Leep in any way possible since
      we could benefit from both earnings and share value increases for Leep.





Our
      BDC
      operation is undercapitalized and must be funded to successfully assist
      portfolio client companies.





We
      may
      incur losses on a quarterly or annual basis for a number of reasons, some within
      and others outside our control. The growth of our business will require the
      commitment of substantial capital resources. If funds are not available from
      operations, we will need additional funds. We may seek such additional funding
      through public and private financing, including debt or equity financing.
      Adequate funds for these purposes, whether through financial markets or from
      other sources, may not be available when we need them. Even if funds are
      available, the terms under which the funds are available to us may not be
      acceptable to us. Insufficient funds may require us to delay, reduce or
      eliminate some or all of our planned activities.





To
      successfully execute our current strategy, we will need to improve our working
      capital position. The report of our independent auditors accompanying our
      financial statements includes an explanatory paragraph indicating there is
      a
      substantial doubt about the Company’s ability to continue as a going concern due
      to recurring losses. We plan to overcome the circumstances that impact our
      ability to remain a going concern through a combination of increased revenues
      and decreased costs, with interim cash flow deficiencies being addressed through
      additional equity financing.





***We
      will likely experience fluctuation in our quarterly
      performance.***





Quarterly
      operating results can fluctuate significantly depending on a number of factors,
      any one of which could have a material adverse effect on our results of
      operations. The factors related to our business development operation include:
      the timing of services announcements and subsequent introductions of new or
      enhanced services by us and by our competitors, the market acceptance of our
      services, changes in our prices and in our competitors’ prices, the timing of
      expenditures for staffing and related support costs, the extent and success
      of
      advertising, and changes in general economic conditions.





We
      may
      experience significant quarterly fluctuations in revenues and operating expenses
      as we introduce new services, especially as we enter the BDC business.
      Furthermore, quarterly results are not necessarily indicative of future
      performance for any particular period.





***Since
      our competitors have greater financial and marketing resources than we do,
      we
      may experience a reduction in market share and
      revenues.***


9





The
      markets for our products and services are highly competitive and rapidly
      changing. Some of our current and prospective competitors have significantly
      greater financial, technical and marketing resources than we do. Our ability
      to
      compete in our markets depends on a number of factors, some within and others
      outside our control. These factors related to our business development operation
      include: the frequency and success of new service introductions by us and by
      our
      competitors, the selling prices of our products and services and of our
      competitors’ products and services, the performance of our products and of our
      competitors’ products, product distribution by us and by our competitors, our
      marketing ability and the marketing ability of our competitors, and the quality
      of customer support offered by us and by our competitors.





***We
      are dependent upon portfolio clients for our sales, and the inability to attract
      new client companies would materially reduce our future revenues and could
      harm
      our business, financial condition and results of operations.***





We
      are
      dependent upon portfolio clients for our sales revenue paid for the services
      we
      provide them; therefore, with our inability to attract new client companies,
      we
      would materially reduce our future revenues and could harm our business,
      financial condition and results of operations.





***We
      rely on a limited number of third-party suppliers to provide some of the
      services and products we resell and distribute.***





We
      create
      and deliver most all of our services but plan to also sell services and products
      to our clients such as software and training programs provided by independent
      third parties. There can be no assurance that there will not be a significant
      disruption in the supply of such products and services from a supplier or,
      in
      the event of a disruption, that we would be able to locate alternative suppliers
      of such products and services of comparable quality at an acceptable price,
      or
      at all. In addition, we cannot be certain that our unaffiliated suppliers will
      be able to fill our orders in a timely manner. There can be no assurance that
      alternative suppliers will be available when required on terms that are
      acceptable to us, or at all, or that any supplier would allocate sufficient
      capacity to us in order to meet our requirements. In addition, even if we are
      able to find new suppliers, we may encounter delays in production and added
      costs as a result of the time it takes to train our suppliers in our methods,
      products and quality control standards. Any delays, interruption or increased
      costs in the supply of such products and services could have an adverse effect
      on our ability to meet client demand for our products and result in lower
      revenues and net income both in the short and long-term.





***If
      our operations continue to result in a net loss, negative working capital and
      a
      decline in net worth, and we are unable to obtain needed funding, we may be
      forced to discontinue operations.***





For
      several recent periods, up through the present, we had a net loss, negative
      working capital and a decline in net worth, which raise substantial doubt about
      our ability to continue as a going concern. Our ability to continue operations
      will depend on positive cash flow, if any, from future operations and on our
      ability to raise additional funds through equity or debt financing. If we are
      unable to achieve the necessary product sales or raise or obtain needed funding,
      we may be forced to discontinue operations.


10


***We
      have never paid any dividends on our common stock.***





We
      have
      not paid any cash or stock dividends on our common stock to date and we do
      not
      anticipate paying cash dividends in the foreseeable future.





***Since
      we have limited experience with portfolio investment companies we may encounter
      problems that would negatively impact our financial
      condition.***





Our
      experience with portfolio investments is limited and we may encounter problems
      or underlying liabilities with portfolio companies that would put our investment
      or our business at risk. We may in our effort to correct or reverse these
      problems encounter significant accounting or legal expense that would deplete
      our working capital. These corrective efforts would adversely impact our working
      capital. We may also incorrectly estimate the value of our investments which
      would require a subsequent restatement or require an updated valuation due
      to
      our lack of experience with portfolio investments.





***Our
      common stock may be affected by limited trading volume and may fluctuate
      significantly.***





There
      has
      been a limited public market for our common stock and there can be no assurance
      an active trading market for our common stock will develop. This could adversely
      affect our shareholders’ ability to sell our common stock in short time periods
      or possibly at all. Our common stock has experienced and is likely to experience
      significant price and volume fluctuations that could adversely affect the market
      price of our common stock without regard to our operating performance and the
      performance of our portfolio companies. Our stock price could fluctuate
      significantly in the future based upon any number of factors such as: general
      stock market trends; announcements of developments related to our business;
      fluctuations in our operating results; announcements of technological
      innovations, new products or services or enhancements by us or our competitors;
      general conditions in the markets we serve; general conditions in the U.S.
      economy; developments in patents or other intellectual property rights; the
      performance of our eligible portfolio companies; and developments in our
      relationships with our customers and suppliers. Substantial fluctuations in
      our
      stock price could significantly reduce the price of our stock.





***Our
      common stock is traded on the "Over-the-Counter Bulletin Board," which may
      make
      it more difficult for investors to resell their shares due to suitability
      requirements.***





Our
      common stock is currently traded on the Over-the-Counter Bulletin Board (OTCBB)
      where we expect it to remain in the foreseeable future. Broker-dealers often
      decline to trade in OTCBB stocks given the market for such securities are often
      limited, the stocks are more volatile, and the risk to investors is greater.
      These factors may reduce the potential market for our common stock by reducing
      the number of potential investors. This may make it more difficult for investors
      in our common stock to sell shares to third parties or to otherwise dispose
      of
      their shares. This could cause our stock price to decline.


11


***Our
      share ownership is concentrated.***





Our
      officers, directors and principal stockholders, together with their affiliates,
      beneficially own approximately 83% of our voting shares. As a result, these
      stockholders, if they act together, will exert significant influence over all
      matters requiring stockholder approval, including the election and removal
      of
      directors, any merger, consolidation or sale of all or substantially all of
      our
      assets, as well as any charter amendment and other matters requiring stockholder
      approval. In addition, these stockholders may dictate the day-to-day management
      of the business. This concentration of ownership may delay or prevent a change
      in control and may have a negative impact on the market price of the Company’s
      common stock by discouraging third party investors. In addition, the interests
      of these stockholders may not always coincide with the interests of the
      Company’s other stockholders.





***We
      may change our investment policies without further shareholder
      approval.***





Although
      we are limited by the Investment Company Act of 1940 with respect to the
      percentage of our assets that must be invested in qualified investment
      companies, we are not limited with respect to the minimum standard that any
      investment company must meet, neither are we limited to the industries in which
      those investment companies must operate. We may make investments without
      shareholder approval and such investments may deviate significantly from our
      historic operations. Any change in our investment policy or selection of
      investments could adversely affect our stock price, liquidity, and the ability
      of our shareholders to sell their stock.





***Our
      investments may not generate sufficient income to cover our
      operations.***





We
      intend
      to make investments in qualified companies that will provide the greatest
      overall return on our investment. However, certain of those investments may
      fail, in which case we will not receive any return on our investment. In
      addition, our investments may not generate income either in the immediate future
      or at all. As a result, we may have to sell additional stock or borrow money
      to
      cover our operating expenses. The effect of such actions could cause our stock
      price to decline or, if we are not successful in raising additional capital,
      we
      could cease to continue as a going concern.





***Our
      officers and directors have the ability to exercise significant influence over
      matters submitted for stockholder approval and their interests may differ from
      other stockholders.***





Our
      executive officers and directors have the ability to appoint a majority to
      the
      Board of Directors. Accordingly, our directors and executive officers, whether
      acting alone or together, may have significant influence in determining the
      outcome of any corporate transaction or other matter submitted to our Board
      for
      approval, including issuing common and preferred stock, appointing officers,
      which could have a material impact on mergers, acquisitions, consolidations
      and
      the sale of all or substantially all of our assets, and the power to prevent
      or
      cause a change in control. The interests of these board members may differ
      from
      the interests of the other stockholders.


12





***Our
      board of directors will value our portfolio investments.***





There
      is
      typically no public market of equity securities of the small privately held
      companies in which we intend to invest. As a result, the valuation of the equity
      securities in our portfolio is likely to be stated at fair value as determined
      by the good faith estimate of our Board of Directors. In the absence of a
      readily ascertainable market value, the estimated value of our portfolio of
      securities may differ significantly, favorably or unfavorably, from the values
      that would be placed on the portfolio if a ready market for the equity
      securities existed.





***We
      plan to target portfolio companies that are early to growth stage companies
      dependent upon the successful commercialization of their goods or services.
      Each
      of our investments in portfolio companies is subject to a high degree of risk,
      and we may lose all of our investment in a portfolio company if it is not
      successful.***





We
      will
      be investing in early to growth stage companies that we believe can benefit
      from
      our expertise in structural support and market entry. Early to growth stage
      companies are subject to all of the risks associated with newer businesses.
      These risks include the risk that a newer business opportunity cannot remain
      commercially viable, may not work, or become obsolete. We cannot assure that
      any
      of our investments in our portfolio companies will be successful. Our portfolio
      companies will be competing with larger, established companies with greater
      access to, and resources for, further development requiring capital resources
      beyond our ability. We may lose our entire investment in any or all of our
      portfolio companies. Even if our portfolio companies are able to deliver
      commercially viable products, the market for new products and services is highly
      competitive and rapidly changing. Commercial success is difficult to predict
      and
      the marketing efforts of our expected portfolio companies may not be
      successful.





***The
      securities we hold in our portfolio companies may be subject to restriction
      on
      resale, and we may not be able to sell the securities we hold for amounts equal
      to their recorded value, if at all.***





Some
      of
      our portfolio companies may be or become thinly traded public companies or
      remain private companies. As a result, substantially all of the securities
      we
      hold in our portfolio companies are subject to legal restrictions on resale.
      Furthermore, our ability to sell the securities in our portfolio may be limited
      by, and subject to, the lack of or limited nature of a trading market for such
      securities. Therefore, we cannot assure you that we will be able to sell our
      portfolio company securities for amounts equal to the values that we have
      ascribed to them or at the time we desire to sell.





***We
      are subject to substantive SEC regulations as a business development
      company.***





Securities
      and tax laws and regulations governing our activities may change in ways adverse
      to our and our shareholders' interests, and interpretations of these laws and
      regulations may change with unpredictable consequences. Any change in the laws
      or regulations that govern our business could have an adverse impact on us
      or on
      our operations. Changing laws, regulations and standards relating to corporate
      governance and public disclosure, including the Sarbanes-Oxley Act of 2002,
      new
      SEC regulations and NASDAQ Market rules, are creating additional expense and
      uncertainty for publicly held companies in general, and for business development
      companies in particular. These new or changed laws, regulations and standards
      are subject to varying interpretations in many cases because of their lack
      of
      specificity, and as a result, their application in practice may evolve over
      time, which may well result in continuing uncertainty regarding compliance
      matters and higher costs necessitated by ongoing revisions to disclosure and
      governance practices.


13





***We
      have made no investments in other companies.***





Although
      we have a division that provides electronic media duplication, replication,
      and
      packaging services, we have very few assets. We need to raise capital before
      we
      can make substantive investments into, and offer managerial assistance to,
      other
      companies. We may not be successful in raising capital. If we are successful
      in
      raising capital, we may make investments that turn out to be
      worthless.





***We
      have never had any annual net profit and there is no assurance that we will
      be
      able to achieve the financing necessary to enable us to proceed with the
      development of our business plan.***





We
      have
      never generated an annual net profit. Our primary activity to date has been
      our
      electronic media duplication, replication, and packaging services, and more
      recently, the development of our BDC business plan. We plan to stop investing
      any additional capital or resources in the media business but to service any
      orders coming to us from existing clients, Our success is dependent upon the
      successful development of our business model as a business development company,
      as to which there is no assurance. Unanticipated problems, expenses and delays
      are frequently encountered in establishing a new business. These include, but
      are not limited to, inadequate funding, competition, and investment development.
      Our failure to meet any of these conditions would have a materially adverse
      effect upon us and may force us to reduce or curtail operations. We may not
      ever
      be profitable.





***We
      need to raise capital in order to fulfill our business
      plan.***





To
      date
      we have relied on sales revenue from our electronic media duplication,
      replication, and packaging services and private loans and equity investments
      from George Paul Morris, our Chairman, Chief Financial Officer and Secretary
      and
      controlling shareholder to fund operations. We have generated little revenue
      and
      have extremely limited cash liquidity and capital resources. Any equity
      financings could result in dilution to our stockholders. Debt financing may
      result in high interest expense. Any financing, if available, may be on
      unfavorable terms. If adequate funds are not obtained, we may be required to
      reduce or curtail operations.


14





***The
      services of our directors, officers and key staff are essential to our future
      success.***





We
      are
      dependent for the selection, structuring, closing and monitoring of our
      investments on the diligence and skill of Roger Casas, and George Morris, Ph.D.,
      our Chairman of the Board, President, and Chief Financial Officer. Any loss
      or
      interruption of our key personnel’s services could adversely affect our ability
      to develop our business plan. Our future success depends to a significant extent
      on the continued service and coordination of our senior management team and
      we
      cannot assure you we would be able to find an appropriate replacement for key
      personnel. We have no employment agreements or life insurance on Mr. Casas
      or
      Dr. Morris.





**ITEM
      1B – UNRESOLVED STAFF COMMENTS**





This
      Item
      is not applicable to us as we are not an accelerated filer, a large accelerated
      filer, or a well-seasoned issuer; however, we have not received written comments
      from the Commission staff regarding our periodic or current reports under the
      Securities Exchange Act of 1934 within the last 180 days before the end of
      our
      last fiscal year.





**ITEM
      2 – PROPERTIES**





George
      Morris, our chairman, provides approximately 100 square feet of office space
      in
      Redondo Beach, California, at $100 a month. We currently pay $140 a month for
      public storage. There is a large amount of office and storage space available
      for less than $2.00 per square foot within three miles of the existing
      office.





**ITEM
      3 – LEGAL PROCEEDINGS**





We
      are
      not a party to, or threatened by, any litigation or procedures.





**ITEM
      4 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**





There
      were no matters submitted, during the fourth quarter of the fiscal year covered
      by this report, to a vote of security holders of our company through the
      solicitation of proxies or otherwise.





**PART
      II**





**ITEM
      5 – MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
      ISSUER PURCHASES OF EQUITY SECURITIES**





Since
      December 2001, we have been eligible to participate in the OTC Bulletin Board,
      an electronic quotation medium for securities traded outside of the NASDAQ
      Stock
      Market, and prices for our common stock were published on the OTC Bulletin
      under
      the trading symbol “EMEC” through March 31, 2007. Subsequently, in conjunction
      with the name change to Morris Business Development Company, our OTCBB trading
      symbol was changed to “MBDV.” The stock traded under that symbol until the
      opening of business on May 30, 2008 when a 10-for-one stock split became
      effective and the symbol was changed to “MBDE.” The quotations reflect
      inter-dealer prices, without retail mark-up, mark-down or commission and may
      not
      represent actual transactions. This market is extremely limited and the prices
      quoted are not a reliable indication of the value of our common
      stock.


15





The
      following table sets forth the high and low bid information for each quarter
      within the two most recent fiscal years, as provided by the Nasdaq Stock
      Markets, Inc. The information reflects prices between dealers, and does not
      include retail markup, markdown, or commission, and may not represent actual
      transactions.





**Fiscal**
            
            
            
            **Bid
                Prices********Year**
              **Ended**
              **March
                31,**
            
            **Period**
            
            **High**
            
            **Low**2006
            
            First
              Quarter
            
            $
            1.05
            
            $
            0.55Second
              Quarter
            
            $
            1.75
            
            $
            1.01Third
              Quarter
            
            $
            2.10
            
            $
            1.10Fourth
              Quarter
            
            $
            1.10
            
            $
            1.102007
            
            First
              Quarter
            
            $
            1.20
            
            $
            1.20Second
              Quarter
            
            $
            1.30
            
            $
            1.10Third
              Quarter
            
            $
            1.35
            
            $
            1.30Fourth
              Quarter
            
            $
            1.35
            
            $
            1.352008
            
            First
              Quarter
            
            $
            1.50
            
            $
            1.35




**Holders**





The
      number of holders of record of shares of our common stock is approximately
      thirty-six (36). Approximately 110,227 shares of common stock are held in
      brokerage accounts and represent approximately one hundred seventy-seven (177)
      additional shareholders.





**Dividend
      Policy**





There
      have been no cash dividends declared on our common stock. Dividends are declared
      at the sole discretion of our Board of Directors.


16





**ITEM
      6 – SELECTED FINANCIAL DATA**





**Morris
                Business Development Company**
            
            For
                the Years Ended March 31,2008
            
            2007
            
            2006
            
            2005
            
            2004
            
            2003Statement
                of Operations Data:Total
                revenues
            
            $
            104,978
            
            
            156,728
            
            
            274,301
            
            
            235,652
            
            
            325,900
            
            
            297,820Income
                (loss) from continuing operations
            
            
            (12,046
            )
            
            (38,902
            )
            
            (13,169
            )
            
            (70,704
            )
            
            (19,274
            )
            
            (93,896
            )Net
                income (loss)
            
            
            (30,854
            )
            
            (49,444
            )
            
            (26,001
            )
            
            (82,322
            )
            
            56
            
            
            (94,696
            )Net
                income (loss) per common share from continuing operations
            
            
            (0.00
            )
            
            (0.00
            )
            
            (0.00
            )
            
            (0.08
            )
            
            0.00
            
            
            (0.09
            )Balance
                Sheet Data:Current
                assets
            
            $
            7,420
            
            
            88,144
            
            
            148,333
            
            
            68,910
            
            
            34,263
            
            
            32,410Total
                assets
            
            
            134,853
            
            
            88,144
            
            
            148,333
            
            
            68,910
            
            
            88,727
            
            
            32,410Current
                liabilities
            
            
            25,187
            
            
            338,478
            
            
            349,223
            
            
            288,799
            
            
            117,094
            
            
            60,833Total
                liabilities
            
            
            416,042
            
            
            338,478
            
            
            349,223
            
            
            288,799
            
            
            226,294
            
            
            170,033Total
                stockholders’ equity (deficit)
            
            
            (281,189
            )
            
            (250,335
            )
            
            (200,890
            )
            
            (219,889
            )
            
            (137,567
            )
            
            (137,623
            )Total
                dividends per common share
            
            
            -
            
            
            
            
            
            -
            
            
            -
            
            
            -
            
            
            -








**ITEM
      7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS**





**Disclaimer
      Regarding Forward-Looking Statements**





Our
      Management’s Discussion and Analysis contains not only statements that are
      historical facts, but also statements that are forward-looking (within the
      meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
      Securities Exchange Act of 1934). Forward-looking statements are, by their
      very
      nature, uncertain and risky. These risks and uncertainties include
      international, national and local general economic and market conditions;
      demographic changes; our ability to sustain, manage, or forecast growth; our
      ability to successfully make and integrate acquisitions; existing government
      regulations and changes in, or the failure to comply with, government
      regulations; adverse publicity; competition; fluctuations and difficulty in
      forecasting operating results; changes in business strategy or development
      plans; business disruptions; the ability to attract and retain qualified
      personnel; the ability to protect technology; and other risks that might be
      detailed from time to time in our filings with the Securities and Exchange
      Commission.


17





Although
      the forward-looking statements in this Annual Report reflect the good faith
      judgment of our management, such statements can only be based on facts and
      factors currently known by them. Consequently, and because forward-looking
      statements are inherently subject to risks and uncertainties, the actual results
      and outcomes may differ materially from the results and outcomes discussed
      in
      the forward-looking statements. You are urged to carefully review and consider
      the various disclosures made by us in this report and in our other reports
      as we
      attempt to advise interested parties of the risks and factors that may affect
      our business, financial condition, and results of operations and
      prospects.





**Overview**





We
      focus
      on the development of opportunities to invest in eligible portfolio companies
      providing early stage capital, strategic guidance and operational
      support.





Our
      principal objective is long-term capital appreciation. We may invest in debt
      securities of these companies, or may acquire an equity interest in the form
      of
      common or preferred stock, warrants or options to acquire stock or the right
      to
      convert the debt securities into stock. We may invest alone, or as part of
      a
      larger investment group. Consistent with our status as a BDC and the purposes
      of
      the regulatory framework for BDCs under the 1940 Act, we will offer to provide
      managerial assistance, potentially in the form of a consulting agreement or
      in
      the form of a board of director’s seat, to the developing companies in which we
      invest.





In
      addition, we may acquire either a minority or controlling interest in mature
      companies in a roll-up strategy. It is anticipated that any acquisitions will
      be
      primarily in exchange for our common stock, or a combination of cash and stock.
      The principal objective of acquisitions pursuant to a roll-up strategy would
      be
      to consolidate an industry and either sell the acquired entities as a larger
      unit, or take the unit public through an initial public offering, spin-off
      to
      our shareholders, or reverse merger into a publicly traded shell
      corporation.





We
      operate as an externally managed investment company. Our operations will be
      governed by an Investment Advisory Management Agreement to be entered into
      between us and a new investment advisory limited liability company which will
      be
      formed and wholly-owned by our Chairman, George Morris. We have not elected
      to
      qualify to be taxed as a regulated investment company as defined under
      Subchapter M of the Internal Revenue Code.





Our
      common stock trades on the Over-the-Counter Bulletin Board (OTCBB) under the
      symbol “MBDE.”





Our
      financial statements have been prepared assuming we will continue as a going
      concern. Because we have historically incurred operating losses, and expect
      those losses to continue in the future, our Certified Public Accountants
      included an explanatory paragraph in their report raising substantial doubt
      about our ability to continue as a going concern.


18





**Regulation
      as a BDC**





Although
      the 1940 Act exempts a BDC from registration under that Act, it contains
      significant limitations on the operations of BDCs. Among other things, the
      1940
      Act contains prohibitions and restrictions relating to transactions between
      a
      BDC and its affiliates, principal underwriters and affiliates of its affiliates
      or underwriters, and it requires that a majority of the BDC’s directors be
      persons other than “interested persons,” as defined under the 1940 Act. The 1940
      Act also prohibits a BDC from changing the nature of its business so as to
      cease
      to be, or to withdraw its election as, a BDC unless so authorized by the vote
      of
      the holders of a majority of its outstanding voting securities. BDCs are not
      required to maintain fundamental investment policies relating to diversification
      and concentration of investments within a single industry.





Generally,
      a BDC must be primarily engaged in the business of furnishing capital and
      providing managerial expertise to companies that do not have ready access to
      capital through conventional financial channels. Such portfolio companies are
      termed “eligible portfolio companies.” More specifically, in order to qualify as
      a BDC, a company must (1) be a domestic company; (2) have registered a class
      of
      its equity securities or have filed a registration statement with the Securities
      and Exchange Commission pursuant to Section 12 of the Securities Exchange Act
      of
      1934; (3) operate for the purpose of investing in the securities of certain
      types of portfolio companies, namely immature or emerging companies and
      businesses suffering or just recovering from financial distress; (4) extend
      significant managerial assistance to such portfolio companies; and (5) have
      a
      majority of “disinterested” directors (as defined in the 1940 Act).





An
      eligible portfolio company is, generally, a U.S. company that is not an
      investment company and that (1) does not have a class of securities registered
      on an exchange or included in the Federal Reserve Board’s over-the-counter
      margin list; or (2) is actively controlled by a BDC and has an affiliate of
      a
      BDC on its board of directors; or (3) meets such other criteria as may be
      established by the Securities and Exchange Commission. Control under the 1940
      Act is generally presumed to exist where a BDC owns 25% of the outstanding
      voting securities of the company.





The
      1940
      Act prohibits or restricts companies subject to the 1940 Act from investing
      in
      certain types of companies, such as brokerage firms, insurance companies,
      investment banking firms and investment companies. Moreover, the 1940 Act limits
      the type of assets that BDCs may acquire to “qualifying assets” and certain
      assets necessary for its operations (such as office furniture, equipment and
      facilities) if, at the time of acquisition, less than 70% of the value of the
      BDC’s assets consist of qualifying assets. Qualifying assets include: (1)
      securities of companies that were eligible portfolio companies at the time
      the
      BDC acquired their securities; (2) securities of bankrupt or insolvent companies
      that were eligible at the time of the BDC’s initial acquisition of their
      securities but are no longer eligible, provided that the BDC has maintained
      a
      substantial portion of its initial investment in those companies; (3) securities
      received in exchange for or distributed in or with respect to any of the
      foregoing; and (4) cash items, government securities and high-quality short-term
      debt. The 1940 Act also places restrictions on the nature of the transactions
      in
      which, and the persons from whom, securities can be purchased in order for
      the
      securities to be considered qualifying assets. These restrictions include
      limiting purchases to transactions not involving a public offering and acquiring
      securities from either the portfolio company or its officers, directors, or
      affiliates.


19





A
      BDC is
      permitted to invest in the securities of public companies and other investments
      that are not qualifying assets, but those kinds of investments may not exceed
      30% of the BDC’s total asset value at the time of the investment.





A
      BDC
      must make significant managerial assistance available to the issuers of eligible
      portfolio securities in which it invests. Making available significant
      managerial assistance means, among other things, any arrangement whereby the
      BDC, through its directors, officers or employees, offers to provide, and,
      if
      accepted does provide, significant guidance and counsel concerning the
      management, operations or business objectives and policies of a portfolio
      company. The portfolio company does not have to accept the BDC’s offer of
      managerial assistance, and if they do accept may be required to pay prevailing
      market rates for the services.





We
      do not
      currently have any subsidiaries or EPCs; however, we do have an operating
      division that provides services for the duplication, replication, and packaging
      of DVDs and CDs. We are actively seeking quality eligible portfolio companies
      in
      which to make an investment and provide managerial assistance.





**Results
      of Operations for the Three Months Ended March 31, 2008 and
      2007**





Introduction





Our
      revenues for the fourth quarter of 2008 were $35,779, compared to $16,307 for
      the same quarter in 2007, an increase of approximately 119%. This large increase
      was a result of payment from Leep for BDC for consulting services to
      Leep.





Revenues
      and Loss from Operations





Our
      revenue, cost of revenue, total operating expenses, and loss from operations
      for
      the three months ended March 31, 2008, as compared to the three months ended
      March 31, 2007 and December 31, 2007, are as follows:


20





3 Months
              Ended
              March 31,
              2008
            
            3 Months
              Ended
              March 31,
              2007
            
            Percentage
              Change
            
            3 Months
              Ended
              December 31,
              2007Revenue
            
            $
            35,779
            
            $
            16,307
            
            
            119.4
            %
            $
            3,957Cost
                of revenue
            
            
            3,142
            
            
            9,087
            
            
            (65.4
            )%
            
            2,726Total
                operating expenses
            
            
            25,726
            
            
            30,355
            
            
            (15.2
            )%
            
            16,145Income
                (loss) from operations
            
            $
            6,911
            
            $
            (23,135
            )
            
            129.9
            %
            $
            (14,914
            )





Our
      revenues for the three months ended March 31, 2008 increased to $35,779 compared
      to $16,307 for the three months ended March 31, 2007, and $3,957 for the three
      months ended December 31, 2007. The increase in revenues for the fourth quarter
      of 2007 compared to the fourth quarter of 2006 was due to receipt of Leep
      portfolio stock for BDC consulting services.





During
      the three month periods ended March 31, 2008, 2007 and December 31, 2007, we
      incurred a cost of revenue of $3,142, $9,087, and $2,726, respectively. Our
      cost
      of revenue as a percentage of revenue has decreased at 7,9%, 55.7%, and 68.9%
      for the three month periods ended March 31, 2008 and 2007 and December 31,
      2007,
      respectively. The decrease in our cost of revenue as a percentage of revenue
      in
      recent periods is attributed to BDC consulting activities provided by our
      Chairman George Morris versus purchases from outside vendors. in the DVD/CD
      replication business.







Non-Operating
      Income (Expense) and Net Income (Loss)





Our
      other
      income and expenses and net loss for the three months ended March 31, 2008
      and
      2007, as compared to the three months ended December 31, 2007 are as
      follows:




3 Months
              Ended
              March 31,
              2008
            
            3 Months
              Ended
              March 31,
              2007
            
            Percentage
              Change
            
            3 Months
              Ended
              December 31,
              2007Other
                income
            
            $
            -
            
            $
            4,590
            
            
            (100
            )%
            $
            -Interest
                expense
            
            
            (5,015
            )
            
            (4,284
            )
            
            17.1
            %
            
            (4,730
            )Net
                income (loss)
            
            $
            1,896
            
            $
            (22,830
            )
            
            108.3
            %
            $
            (19,644
            )





21


**Results
      of Operations for the Years ended March 31, 2008 and 2007**





Introduction





In
      2008,
      our revenues were $101,228, compared to $156,728 in 2007, a decrease of
      approximately 35%. This decrease was a result of a decrease in the number of
      customers for our CD duplication business.





Revenues
      and Loss from Operations





Our
      revenue, cost of revenue, total operating expenses, and loss from operations
      for
      the year ended March 31, 2008 as compared to the year ended March 31, 2007
      are
      as follows:





Year Ended
              March 31,
              2008
            
            Year Ended
              March 31,
              2007
            
            Percentage
              ChangeRevenue
            
            $
            101,228
            
            $
            156,728
            
            
            (35.4
            )%Cost
                of revenue
            
            
            42,410
            
            
            100,064
            
            
            (57.6
            )%Total
                operating expenses
            
            
            76,482
            
            
            95,565
            
            
            (20.0
            )%Loss
                from Operations
            
            $
            (17,664
            )
            $
            (38,902
            )
            
            54.6
            %





Revenues
      for the year ended March 31, 2008 were $101,228 a decrease of $55,500 from
      $156,728, for the same period ended March 31, 2007. All of our revenue was
      generated by our electronic media duplication, replication, and packaging
      division in the first three fiscal quarters ending December 31, 2007. The
      decrease in revenue was due to a decrease in the number of customers for our
      CD
      duplication business. However, consulting fees in the fourth quarter ending
      March 31, 2008 represent our new business direction.





Cost
      of
      revenues for the year ended March 31, 2008 was $42,410, a decrease of $57,654
      from $100,064 for the same period ended March 31, 2007. The decrease in cost
      of
      revenues was primarily due to the decrease in revenue compared to last year.





Operating
      expenses were $76,482 and $95,565, respectively, for the years ended March
      31,
      2008 and 2007. The operating expenses incurred during each of the years
      were:


22





Year Ended
              March 31, 2008
            
            Year Ended
              March 31,
              2007
            
            Percentage
              ChangeOperating
                Expenses:Professional
                fees
            
            $
            27,806
            
            $
            40,916
            
            
            (32.0
            )%Salaries
                and related expenses
            
            
            20,465
            
            
            30,769
            
            
            (33.49
            )%Consulting
                fees paid to related Parties
            
            
            -
            
            
            500
            
            
            (100.0
            )%Other
            
            
            24,344
            
            
            23,380
            
            
            4.1
            %Total
                Operating Expenses
            
            
            76,482
            
            
            95,565
            
            
            (19.97
            )%





Total
      operating expenses were $76,482 for the year ended March 31, 2008 versus
      $95,565 for the year ended March 31, 2007, which is a decrease of $19,083.
      Operating expenses consist primarily of professional fees, salaries and related
      expenses, consulting fees paid to related parties and other. The overall
      decrease in operating expenses was primarily due to the decrease in legal fees.
      In addition there was a decrease in salaries and related expenses during the
      twelve months ending March 31, 2008, compared to the same prior period. The
      decrease in salaries and related expenses was due to the officers and employees
      taking salary reductions and not accruing salaries





Non-Operating
      Income (Expense) and Net Income (Loss)





Our
      other
      income and expenses and net loss for the years ended March 31, 2008 and 2007
      are
      as follows:





Year Ended
              March 31,
              2008
            
            Year Ended
              March 31,
              2007
            
            Percentage
              ChangeOther
                income
            
            $
            0
            
            $
            5,395
            
            
            (100
            )%Interest
                expense
            
            
            (18,808
            )
            
            (15,137
            )
            
            24.25
            %Total
                other income (expenses)
            
            
            (18,808
            )
            
            (9,742
            )
            
            93.06
            %Net
                income (loss)
            
            $
            (37,271
            )
            $
            (49,444
            )
            
            (24.62
            )%





The
      interest expense for each of the years presented is related to notes owed to
      George Morris, our Chairman, Chief Financial Officer and Secretary.





During
      the twelve months ended March 31, 2008, our total other expenses increased
      to
      $18,808 compared to the twelve months ended March 31, 2007. The net loss for
      the
      year ended March 31, 2008 was $37,271, versus a net loss of $49,444 for the
      year
      ended March 31, 2007. This resulted in a 24.62% decrease in net loss in 2008
      compared to 2007.


23





**Liquidity
      and Capital Resources**





Introduction







During
      the twelve months ended March 31, 2008, we
      had a
      negative cash flow from operations of ($21,950) . Because
      our revenues are small, almost any change in our revenues or operating expenses
      has a material effect, and we anticipate that our net profit or loss, and
      operating profit or loss, will continue to vary widely from time period to
      time
      period .





Our cash
      and
      cash equivalents, accounts receivable, total current assets, total current
      liabilities, and total liabilities as of March
      31, 2008, as compared to March 31, 2007 and December 31, 2007, were as
      follows:





March 31,
            
            March 31,
            
            December 31,2008
            
            2007
            
            2007Cash
            
            $
            765
            
            $
            1,118
            
            $
            3,946Accounts
                receivable
            
            
            10,855
            
            
            10,988
            
            
            7,783Total
                current assets
            
            
            147,353
            
            
            88,144
            
            
            106,350Total
                assets
            
            
            147,353
            
            
            88,144
            
            
            106,350Total
                current liabilities
            
            
            69,047
            
            
            338,478
            
            
            395,851Total
                liabilities
            
            
            416,042
            
            
            338,478
            
            
            395,851





Cash
      Requirements





As
      of
      March 31, 2008, we had a total shareholder deficit of $268,689. Our cash
      obligations are anticipated to increase substantially over the next 12 months.
      The cash would be utilized for operational expenses and general working capital.
      Funds will also be utilized for continued legal and professional fees as a
      result of continuing litigation and reserve or deposit requirements which are
      a
      result of our administrative support business of Enstruxis. We intend for these
      funding requirements to be fulfilled through either equity or debt
      financing.





Sources
      and Uses of Cash





*Operations*





Net
      cash
      provided by (used in) operating activities for the twelve months ended March
      31,
      2008 and 2007 were $(21,950) and $12,940, respectively. We anticipate that
      we
      will continue to operate at approximately break-even and generate a small
      positive cash flow from the operations of our BDC consulting
      activities.





*Financing*





Net
      cash
      provided by (used in) financing activities for the twelve months ended March
      31,
      2008 and 2007 were $21,597 and $(18,270), respectively.


24





**Critical
      Accounting Policies**





Our
      accounting policies are fully described in Note 2 to our consolidated financial
      statements. The following describes the general application of accounting
      principles that impact our consolidated financial statements.





Our
      results of operations are based upon our consolidated financial statements,
      which have been prepared in accordance with accounting principals generally
      accepted in the United States. The preparation of these financial statements
      requires us to make estimates and judgments that affect the reported amounts
      of
      assets, liabilities, revenues and expenses, and related disclosure of contingent
      assets and liabilities. On an ongoing basis, we evaluate our estimates,
      including those related to bad debt, inventories, investments, intangible
      assets, income taxes, financing operations, and contingencies and
      litigation.





We
      base
      our estimates on historical experience and on various other assumptions that
      are
      believed to be reasonable under the circumstances, the results of which form
      the
      basis for making judgments about the carrying values of assets and liabilities
      that are not readily apparent from other sources. Actual results may differ
      from
      these estimates under different assumptions or conditions.





**Off-balance
      Sheet Arrangements**





We
      have
      no off-balance sheet arrangements that are reasonably likely to have a current
      or future effect on our financial condition, changes in financial condition,
      revenues or expenses, results of operations, liquidity, capital expenditures
      or
      capital resources that is deemed by our management to be material to
      investors.





**ITEM
      7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
      RISK**





Since
      we
      have very few assets and no eligible portfolio companies, there is no
      quantitative information, as of the end of March 31, 2008, about market risk
      that has any impact on our present business. Once we begin making investments
      in
      eligible portfolio companies we anticipate there will be market risk sensitive
      instruments and we will disclose the applicable market risk information at
      that
      time.





Our
      primary financial instruments are cash in banks and money market instruments.
      We
      do not believe that these instruments are subject to material potential
      near-term losses in future earnings from reasonably possible near-term changes
      in market rates or prices. We do not have derivative financial instruments
      for
      speculative or trading purposes. We are not currently exposed to any material
      currency exchange risk.


25


**ITEM
      8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**





Report
                of Independent Certified Public Accountants
            F-1Balance
                Sheet as of March 31, 2008 and 2007
            F-2Statement
                of Operations for the fiscal years ended March 31, 2008, 2007 and
                2006
            F-3Statement
                of Changes in Stockholders’ Equity for the fiscal years ended March 31,
                2008, 2007 and 2006
            F-4Statements
                of Cash Flows for the fiscal years ended March 31, 2008, 2007 and
                2006
            F-5Notes
                to Financial Statements
            F-6
                - F-15


26




**REPORT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
  To
        the
        Stockholders and Board of Directors
 Morris
        Business Development Company, Corporation
 
 We
        have
        audited the accompanying balance sheet of Morris Business Development Company,
        formerly Electronic Media Central, a California Corporation (the “Company”) as
        of March 31, 2008 and 2007 and the related statements of operations,
        stockholders’ deficit and cash flows for the years ended March 31, 2008, 2007
        and 2006. These financial statements are the responsibility of the Company’s
        management. Our responsibility is to express an opinion on these financial
        statements based on our audits.
 
 We
        conducted our audits of these statements in accordance with the standards
        of the
        Public Company Accounting Oversight Board (United States). Those standards
        require that we plan and perform the audit to obtain reasonable assurance
        about
        whether the financial statements are free of material
        misstatement.  An audit includes examining, on a test basis, evidence
        supporting the amounts and disclosures in the financial statements. An audit
        also includes assessing the accounting principles used and significant estimates
        made by management, as well as evaluating the overall financial statement
        presentation. We believe that our audits provide a reasonable basis for our
        opinion.
 
 In
        our
        opinion, the financial statements referred to above present fairly, in all
        material respects, the financial position of Morris Business Development
        Company, Corporation as of March 31, 2008 and 2007 and the results of its
        operations and its cash flows for the years ended March 31, 2008, 2007 and
        2006
        in conformity with accounting principles generally accepted in the United
        States
        of America.
 
 The
        accompanying financial statements have been prepared assuming that the Company
        will continue as a going concern.  As discussed in Note 3 to the
        financial statements, the Company’s significant operating losses and
        insufficient capital raise substantial doubt about its ability to continue
        as a
        going concern.  Management’s plans regarding those matters also are
        described in Note 3.  The financial statements do not include any
        adjustments that might result from the outcome of this uncertainty.
  */s/
        Kabani & Company, Inc.*
 
 KABANI
        & COMPANY, INC.
 CERTIFIED
        PUBLIC ACCOUNTANTS
 
 Los
        Angeles, California
 
 June
        20,
        2008
  F-1
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **BALANCE
        SHEETS**
 **MARCH
        31, 2008 AND 2007**
 
 **2008**
              
              **2007****ASSETS****CURRENT
                  ASSETS**Cash
                  & cash equivalents
              
              $
              765
              
              $
              1,118Accounts
                  receivable, net of allowance for doubtful accounts of $4,200 and
                  $3,700
                  respectively
              
              
              6,655
              
              
              10,988Marketable
                  Security
              
              
              37,500
              
              
              -Due
                  from related parties
              
              
              102,433
              
              
              76,037Total
                  assets
              
              $
              147,353
              
              $
              88,144**LIABILITIES
                  AND STOCKHOLDERS' DEFICIT****CURRENT
                  LIABILITIES**Accounts
                  payable & accrued expenses
              
              $
              106,296
              
              $
              77,924Notes
                  payable - related parties
              
              
              115,200
              
              
              114,000Due
                  to related party
              
              
              9,530
              
              
              7,850Due
                  to officer
              
              
              185,016
              
              
              138,704Total
                  current liabilities
              
              
              416,042
              
              
              338,478**STOCKHOLDERS'
                  DEFICIT**Preferred
                  stock, $0.001 par value; 10,000,000 shares authorized; none issued
                  and
                  outstanding
              
              
              -
              
              
              -Common
                  stock, $0.001 par value; 40,000,000 shares authorized; 13,000,000
                  shares
                  issued and outstanding
              
              
              13,000
              
              
              13,000Additional
                  paid in capital
              
              
              58,267
              
              
              55,600Accumulated
                  deficit
              
              
              (356,205
              )
              
              (318,935
              )Accumulated
                  other comprehensive income
              
              
              16,250
              
              
              -Total
                  stockholders' deficit
              
              
              (268,689
              )
              
              (250,335
              )Total
                  liabilities and stockholders' deficit
              
              $
              147,353
              
              $
              88,144
  *The
        accompanying notes are an integral part of these financial
        statements*
  F-2
 
 **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **STATEMENTS
        OF OPERATIONS**
 **FOR
        THE YEARS ENDED MARCH 31, 2008, 2007 AND 2006**
  **2008**
              
              **2007**
              
              **2006****Net
                  revenues**DVD/CD
                  replication
              
              **$**
              79,978
              
              **$**
              156,728
              
              **$**
              274,301Consulting
              
              
              21,250Total
                  revenue
              
              
              101,228
              
              
              156,728
              
              
              274,301**Cost
                  of revenues**
              
              
              42,410
              
              
              100,064
              
              
              177,586****Gross
                  profit
              
              
              58,818
              
              
              56,663
              
              
              96,715**Operating
                  expenses**Professional
                  fees
              
              
              27,806
              
              
              40,916
              
              
              33,519Salaries
                  and related expenses
              
              
              20,465
              
              
              30,769
              
              
              36,997Consulting
                  fees paid to related party
              
              
              3,867
              
              
              500
              
              
              12,000Other
              
              
              24,344
              
              
              23,380
              
              
              27,368Total
                  operating expenses
              
              
              76,482
              
              
              95,565
              
              
              109,884**Loss
                  from operations**
              
              
              (17,663
              )
              
              (38,902
              )
              
              (13,169
              )Non-operating
                  income (expense)Interest
                  expense
              
              
              (18,808
              )
              
              (15,137
              )
              
              (12,032
              )Gain
                  on settlement of debts
              
              
              -
              
              
              5,395
              
              
              -Total
                  other expense
              
              
              (18,808
              )
              
              (9,742
              )
              
              (12,032
              )**Loss
                  before income taxes**
              
              
              (36,471
              )
              
              (48,644
              )
              
              (25,201
              )Provision
                  for income taxes
              
              
              800
              
              
              800
              
              
              800**Net
                  loss**
              
              $
              (37,271
              )
              $
              (49,444
              )
              $
              (26,001
              )**Basic
                  and diluted weighted average number of****common stock outstanding**
              
              
              13,000,000
              
              
              13,000,000
              
              
              11,816,440**Basic
                  and diluted net loss per share**
              
              $
              (0.00
              )
              $
              (0.00
              )
              $
              (0.00
              )
 
 Weighted
        average number of shares used to compute basis and diluted loss per share
        is the
        same since the effect of dilutive securities is anti-dilutive. The basic
        and
        diluted net loss per share has been stated to retroactively effect a 10:1
        stock
        split in May 2008.
  *The
        accompanying notes are an integral part of these financial
        statements*
  F-3
   **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **STATEMENTS
        OF STOCKHOLDERS' DEFICIT**
 **FOR
        THE YEARS ENDED MARCH 31, 2008, 2007 AND 2006**
 
 **Common****stock**
              
              
              
              
              
              **Accumulated Other**
              
              **Total****Number of**
              
              
              
              **Additional**
              
              **Accumulated**
              
              **Comprehensive**
              
              **stockholders'****shares**
              
              **Amount**
              
              **paid in capital**
              
              **deficit**
              
              **Income**
              
              **deficit****Balance as of March 31,
                  2005**
              
              
              10,000,000
              
              $
              10,000
              
              $
              13,600
              
              $
              (243,489
              )
              $
              -
              
              $
              (219,889
              )Shares
                  issued for cash
              
              
              3,000,000
              
              
              3,000
              
              
              42,000
              
              
              -
              
              
              -
              
              
              45,000Net
                  loss for the year
              
              
              -
              
              
              -
              
              
              -
              
              
              (26,001
              )
              
              -
              
              
              (26,001
              )**Balance
                  as of March 31, 2006**
              
              
              13,000,000
              
              
              13,000
              
              
              55,600
              
              
              (269,490
              )
              
              
              
              
              (200,890
              )Net
                  loss for the year
              
              
              -
              
              
              -
              
              
              -
              
              
              (49,444
              )
              
              -
              
              
              (49,444
              )**Balance
                  as of March 31, 2007**
              
              
              13,000,000
              
              $
              13,000
              
              $
              55,600
              
              $
              (318,935
              )
              $
              -
              
              
              (250,335
              )Capital
                  contribution
              
              
              -
              
              
              -
              
              
              2,667
              
              
              -
              
              
              -
              
              
              2,667Unrealized
                  gain on marketable security
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              16,250
              
              
              16,250Net
                  loss for the year
              
              
              -
              
              
              -
              
              
              -
              
              
              (37,271
              )
              
              -
              
              
              (37,271
              )**Balance
                  as of March 31, 2008**
              
              
              13,000,000
              
              $
              13,000
              
              $
              58,267
              
              $
              (356,205
              )
              $
              16,250
              
              
              (268,689
              )
 
 The
        number of shares has been stated to retroactively effect a 10:1 stock split
        in
        May 2008
 
 *The
        accompanying notes are an integral part of these financial
        statements*
  F-4
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **STATEMENTS
        OF CASH FLOWS**
 **FOR
        THE YEARS ENDED MARCH 31, 2008, 2007 AND 2006**
 
 **2008**
              
              **2007**
              
              **2006****CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Net
                  loss
              
              
              (37,271
              )
              
              (49,444
              )
              $
              (26,001
              )Adjustments
                  to reconcile net loss to net cash provided by (used in) operating
                  activities:Gain
                  on debt settlement
              
              
              -
              
              
              (5,395
              )
              
              -Related
                  party note payable issued for consulting fees & office
                  expense
              
              
              1,200
              
              
              1,200
              
              
              3,600Revenue
                  in form of marketable security
              
              
              (21,250
              )
              
              -
              
              
              -Capital
                  contribution
              
              
              2,667Decrease
                  (Increase) in accounts receivable
              
              
              4,332
              
              
              113,779
              
              
              (62,722
              )Increase
                  (Decrease) in accounts payable
              
              
              28,372
              
              
              (47,200
              )
              
              52,795Net
                  cash provided by (used in) operating activities
              
              
              (21,950
              )
              
              12,940
              
              
              (32,328
              )**CASH
                  FLOWS FROM FINANCING ACTIVITIES:**Common
                  shares issued for cash
              
              
              -
              
              
              -
              
              
              45,000Proceeds
                  from loans from officers
              
              
              46,311
              
              
              44,148
              
              
              21,738Decrease
                  (Increase) in receivables from related party
              
              
              (26,395
              )
              
              (58,919
              )
              
              (34,827
              )Increase
                  (decrease) in due to affiliates
              
              
              1,681
              
              
              (3,498
              )
              
              -Net
                  cash provided by (used in) financing activities
              
              
              21,597
              
              
              (18,270
              )
              
              31,911NET
                  DECREASE IN CASH & CASH EQUIVALENTS
              
              
              (354
              )
              
              (5,330
              )
              
              (417
              )**CASH
                  & CASH EQUIVALENTS, BEGINNING BALANCE**
              
              
              1,118
              
              
              6,448
              
              
              6,865**CASH
                  & CASH EQUIVALENTS, ENDING BALANCE**
              
              
              765
              
              $
              1,118
              
              $
              6,448**SUPPLEMENTARY
                  DISCLOSURES OF CASH FLOW INFORMATION:**Interest
                  paid during the year
              
              $
              -
              
              $
              -
              
              $
              -Taxes
                  paid during the year
              
              $
              -
              
              $
              -
              
              $
              -
 
 *The
        accompanying notes are an integral part of these financial
        statements*
  F-5
 
 **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 **NOTE
        1**  **ORGANIZATION**
 
 On
        April
        1, 1998, Morris Business Development Company (MBDV) was incorporated in
        California as Electronic Media Central Corporation (the Company or EMC)
        (formerly a division of Internet Infinity, Inc. (III)). The Company is engaged
        in providing services for the development and growth of both American public
        and
        private stock companies. The Company is also engaged in providing services
        for
        duplication, replication and packaging of DVDs and CDs.
 
 On
        March
        29, 2007 the Company registered a name change to Morris Business Development
        Company with the California Secretary of State.
 
 As
        of May
        12, 2006 the Company filed Form N-54A with the United States Securities Exchange
        Commission to become a business development company by certifying that it
        is a
        closed-end company (mutual fund) organized and operated for the purpose of
        making investments in securities described in section 55 (a)(1) through (3)
        of
        the Investment Company Act of 1940; and that it will make available significant
        managerial assistance to American companies with respect to issuers of such
        securities to the extent required by the act.
 
 The
        Company has commenced the development of new management consulting services
        to
        assist American client companies in complying with the reporting requirements
        to
        the government and in communicating with shareholders, customers and the
        public
        and the accessing of needed growth capital. The Company has received 2.5
        million
        shares from its first client for financial consulting work completed in the
        fiscal year ended March 31, 2008.
 
 **NOTE
        2**  **SUMMARIES
        OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF
        ASSETS**
 
 **Use
        of estimates**
 
 The
        preparation of financial statements in conformity with generally accepted
        accounting principles 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.
 
 **Cash
        and cash equivalents**
 
 The
        Company considers all liquid investments with a maturity of three months
        or less
        from the date of purchase that are readily convertible into cash to be cash
        equivalents.
 
 **Accounts
        Receivable**
 
 The
        Company maintains reserves for potential credit losses on accounts receivable.
        Management reviews the composition of accounts receivable and analyzes
        historical bad debts, customer concentrations, customer credit worthiness,
        current economic trends and changes in customer payment patterns to evaluate
        the
        adequacy of these reserves. Reserves are recorded primarily on a specific
        identification basis. Accounts receivable amounted to $10,855 and $14,688
        and
        allowance for doubtful accounts amounted to $4,200 and $3,700 as of March
        31,2008 and 2007, respectively.
  F-6
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 **Marketable
        securities**
 
 The
        Company’s investments in securities are classified as available-for-sale and, as
        such, are carried at fair value based on quoted market prices. Securities
        classified as available-for-sale may be sold in response to changes in interest
        rates, liquidity needs, and for other purposes.
 
 Unrealized
        holding gains and losses for available-for-sale securities are excluded from
        earnings and reported as a separate component of stockholder’s equity. Realized
        and unrealized gains and losses for securities classified as available-for-sale
        are included in the statement of operations and comprehensive gain,
        respectively. On March 31, 2008, marketable securities have been recorded
        at
        $37,500 based upon the fair value of the marketable securities.
 
 **Equity Securities Name**
                **and Symbol**
              
              **Number of****Shares**
                **Held**
              
              **Cost**
              
              **Market**
                **Value**
              
              **Accumulated**
                **Unrealized**
                **Gain**
              
              **Traded on**
                **Pink Sheets**
                **(PK)**
                **or Bulletin**
                **Board (BB)**Leep,
                  Inc (LPPI)
              
              
              2,500,000
              
              
              21,250
              
              
              37,500
              
              
              16,250
              
              
              PK
 
 **Long-lived
        assets**
 
 Effective
        January 1, 2002, the Company adopted Statement of Financial Accounting Standards
        No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets"
        ("SFAS
        144"), which addresses financial accounting and reporting for the impairment
        or
        disposal of long-lived assets and supersedes SFAS No. 121, "Accounting for
        the
        Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
        Of,"
        and the accounting and reporting provisions of APB Opinion No. 30, "Reporting
        the Results of Operations for a Disposal of a Segment of a Business." The
        Company periodically evaluates the carrying value of long-lived assets to
        be
        held and used in accordance with SFAS 144. SFAS 144 requires impairment losses
        to be recorded on long-lived assets used in operations when indicators of
        impairment are present and the undiscounted cash flows estimated to be generated
        by those assets are less than the assets' carrying amounts. In that event,
        a
        loss is recognized based on the amount by which the carrying amount exceeds
        the
        fair market value of the long-lived assets. Loss on long-lived assets to
        be
        disposed of is determined in a similar manner, except that fair market values
        are reduced for the cost of disposal.
  F-7
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 **Accounts
        Payable and Accrued Expenses**
 
 Accrued
        expenses consisted of the following at March 31, 2008 and 2007:
  **2008**
              
              **2007**Account
                  payable
              
              $
              43,860
              
              $
              25,605Accrued
                  state tax
              
              
              3,157
              
              
              2,357Accrued
                  interest
              
              
              46,779
              
              
              37,462Accrued
                  accounting
              
              
              12,500
              
              
              12,500Total
              
              $
              106,296
              
              $
              77,924
 
 **Income
        taxes**
 
 The
        Company utilizes SFAS No. 109, "Accounting for Income Taxes," which requires
        the
        recognition of deferred tax assets and liabilities for the expected future
        tax
        consequences of events that have been included in the financial statements
        or
        tax returns. Under this method, deferred income taxes are recognized for
        the tax
        consequences in future years of differences between the tax bases of assets
        and
        liabilities and their financial reporting amounts at each period end based
        on
        enacted tax laws and statutory tax rates applicable to the periods in which
        the
        differences are expected to affect taxable income. Valuation allowances are
        established, when necessary, to reduce deferred tax assets to the amount
        expected to be realized.
 
 The
        Company accounts for income taxes in accordance with SFAS No. 109, "Accounting
        for Income Taxes." Deferred taxes are provided on the liability method whereby
        deferred tax assets are recognized for deductible temporary differences,
        and
        deferred tax liabilities are recognized for taxable temporary differences.
        Temporary differences are the differences between the reported amounts of
        assets
        and liabilities and their tax bases. Deferred tax assets are reduced by a
        valuation allowance when, in the opinion of management, it is more likely
        than
        not that some portion or all of the deferred tax assets will not be realized.
        Deferred tax assets and liabilities are adjusted for the effects of changes
        in
        tax laws and rates on the date of enactment. . For the years ended March
        31,
        2008 and 2007, such differences were insignificant.
 
 **Stock-based
        compensation**
 
 The
        Company adopted SFAS No. 123 (Revised 2004), Share Based Payment (“SFAS
        No. 123R”), under the modified-prospective transition method on
        January 1, 2006. SFAS No. 123R requires companies to measure and
        recognize the cost of employee services received in exchange for an award
        of
        equity instruments based on the grant-date fair value. Share-based compensation
        recognized under the modified-prospective transition method of SFAS
        No. 123R includes share-based compensation based on the grant-date fair
        value determined in accordance with the original provisions of SFAS
        No. 123, Accounting for Stock-Based Compensation, for all share-based
        payments granted prior to and not yet vested as of January 1, 2006 and
        share-based compensation based on the grant-date fair-value determined in
        accordance with SFAS No. 123R for all share-based payments granted after
        January 1, 2006. SFAS No. 123R eliminates the ability to account for
        the award of these instruments under the intrinsic value method prescribed
        by
        Accounting Principles Board (“APB”) Opinion No. 25, Accounting for Stock
        Issued to Employees, and allowed under the original provisions of SFAS
        No. 123. Prior to the adoption of SFAS No. 123R, the Company accounted
        for our stock option plans using the intrinsic value method in accordance
        with
        the provisions of APB Opinion No. 25 and related interpretations. The
        company did not have any warrants outstanding as at March 2008 and
        2007.
  F-8
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 **Stock
        Split**
 
 Effective
        May 30, 2008, we effected a ten-for-one stock split. All per share amounts
        and
        share numbers presented herein have been retroactively restated for this
        adjustment.
 
 **Fair
        value of financial instruments**
 
 Statement
        of financial accounting standard No. 107, Disclosures about fair value of
        financial instruments, requires that the Company disclose estimated fair
        values
        of financial instruments. The carrying amounts reported in the statements
        of
        financial position for current assets and current liabilities qualifying
        as
        financial instruments are a reasonable estimate of fair value.
 
 **Revenue
        Recognition**
 
 The
        Company's revenue recognition policies are in compliance with Staff accounting
        bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to
        customers when a formal arrangement exists, the price is fixed or determinable,
        the delivery is completed, no other significant obligations of the Company
        exist
        and collectibility is reasonably assured. The Company recognizes consulting
        fee
        revenue when the transaction is complete and the fee has been
        earned.
 
 **Advertising
        and Marketing Costs**
 
 The
        Company expenses costs of advertising and marketing as incurred. Advertising
        and
        marketing expense for the years ended March 2008, 2007 and 2006 were
        insignificant.
 
 **Segment
        Reporting**
 
 Statement
        of Financial Accounting Standards No. 131 ("SFAS 131"), "Disclosure about
        Segments of an Enterprise and Related Information" requires use of the
        "management approach" model for segment reporting. The management approach
        model
        is based on the way a company's management organizes segments within the
        company
        for making operating decisions and assessing performance. Reportable segments
        are based on products and services, geography, legal structure, management
        structure, or any other manner in which management disaggregates a company.
        SFAS
        131 has no effect on the Company’s financial statements as substantially all of
        the Company's operations are conducted in one industry segment.
  F-9
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 **Basic
        and Diluted Earnings Per Share**
 
 Earnings
        per share is calculated in accordance with the Statement of financial accounting
        standards No. 128 (SFAS No. 128), “Earnings per share”. SFAS No. 128 superseded
        Accounting Principles Board Opinion No.15 (APB 15). Net loss per share for
        all
        periods presented has been restated to reflect the adoption of SFAS No. 128.
        Basic net loss per share is based upon the weighted average number of common
        shares outstanding. Diluted net loss per share is based on the assumption
        that
        all dilutive convertible shares and stock options were converted or exercised.
        Dilution is computed by applying the treasury stock method. Under this method,
        options and warrants are assumed to be exercised at the beginning of the
        period
        (or at the time of issuance, if later), and as if funds obtained thereby
        were
        used to purchase common stock at the average market price during the period.
 
 **Reclassifications**
 
 Certain
        comparative amounts have been reclassified to conform to the current year's
        presentation.
 
 **Recent
        Pronouncements**
  In
        September 2006, FASB issued SFAS No. 157 “Fair Value Measurements”. This
        Statement defines fair value, establishes a framework for measuring fair
        value
        in generally accepted accounting principles (GAAP), and expands disclosures
        about fair value measurements. This Statement applies under other accounting
        pronouncements that require or permit fair value measurements, FASB having
        previously concluded in those accounting pronouncements that fair value is
        the
        relevant measurement attribute. Accordingly, this Statement does not require
        any
        new fair value measurements. However, for some entities, the application
        of this
        Statement will change current practice. This Statement is effective for
        financial statements issued for fiscal years beginning after November 15,
        2007,
        and interim periods within those fiscal years. Management believes that this
        Statement will not have a significant impact on the consolidated financial
        statements.
  In
        September 2006, FASB issued SFAS No. 158 “Employers Accounting for Defined
        Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements
        No. 87, 88, 106, and 132(R)”. This Statement improves financial reporting by
        requiring an employer to recognize the over funded or under funded status
        of a
        defined benefit postretirement plan (other than a multiemployer plan) as
        an
        asset or liability in its statement of financial position and to recognize
        changes in that funded status in the year in which the changes occur through
        comprehensive income of a business entity or changes in unrestricted net
        assets
        of a not-for-profit organization. This Statement also improves financial
        reporting by requiring an employer to measure the funded status of a plan
        as of
        the date of its year-end statement of financial position, with limited
        exceptions. An employer with publicly traded equity securities is required
        to
        initially recognize the funded status of a defined benefit postretirement
        plan
        and to provide the required disclosures as of the end of the fiscal year
        ending
        after December 15, 2006. An employer without publicly traded equity securities
        is required to recognize the funded status of a defined benefit postretirement
        plan and to provide the required disclosures as of the end of the fiscal
        year
        ending after June 15, 2007. However, an employer without publicly traded
        equity
        securities is required to disclose the following information in the notes
        to
        financial statements for a fiscal year ending after December 15, 2006, but
        before June 16, 2007, unless it has applied the recognition provisions of
        this
        Statement in preparing those financial statements:
  F-10
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 a)
              A
                  brief description of the provisions of this Statement;b)
              The
                  date that adoption is required; andc)
              The
                  date the employer plans to adopt the recognition provisions of
                  this
                  Statement, if earlier.
  The
        requirement to measure plan assets and benefit obligations as of the date
        of the
        employer’s fiscal year-end statement of financial position is effective for
        fiscal years ending after December 15, 2008. We are currently evaluating
        the
        effect of this pronouncement on our consolidated financial statements.
  In
        February 2007, FASB issued SFAS No. 159, “The Fair Value Option for Financial
        Assets and Financial Liabilities”. SFAS No. 159 is effective for fiscal years
        beginning after November 15, 2007. This Statement allows entities to choose,
        at
        specified election dates, to measure eligible financial assets and liabilities
        at fair value that are not otherwise required to be measured at fair value.
        If a
        company elects the fair value option for an eligible item, changes in that
        item's fair value in subsequent reporting periods must be recognized in current
        earnings. SFAS No. 159 also establishes presentation and disclosure requirements
        designed to draw comparison between entities that elect different measurement
        attributes for similar assets and liabilities. Management does not believe
        SFAS
        No. 159 will have a material impact on our consolidated financial position,
        results of operations or cash flows, as the Company has elected not to apply
        the
        fair value option for any of its eligible financial instruments and other
        items.
  In
        December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in
        Consolidated Financial Statements”. This Statement amends ARB 51 to establish
        accounting and reporting standards for the noncontrolling (minority) interest
        in
        a subsidiary and for the deconsolidation of a subsidiary. It clarifies that
        a
        noncontrolling interest in a subsidiary is an ownership interest in the
        consolidated entity that should be reported as equity in the consolidated
        financial statements. SFAS No. 160 is effective for the fiscal years, and
        interim periods within those fiscal years, beginning on or after December
        15,
        2008. Based on current conditions, management does not expect the adoption
        of
        SFAS No. 160 to have a significant impact on the Company’s results of operations
        or financial position.
  In
        December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”. This
        Statement replaces SFAS No. 141, “Business Combinations”. This Statement retains
        the fundamental requirements in SFAS No. 141 that the acquisition method
        of
        accounting (which Statement 141 called the purchase method) be used for all
        business combinations and for an acquirer to be identified for each business
        combination. This Statement also establishes principles and requirements
        for how
        the acquirer: a) recognizes and measures in its financial statements the
        identifiable assets acquired, the liabilities assumed, and any noncontrolling
        interest in the acquiree; b) recognizes and measures the goodwill acquired
        in
        the business combination or a gain from a bargain purchase and c) determines
        what information to disclose to enable users of the financial statements
        to
        evaluate the nature and financial effects of the business combination. SFAS
        No.
        141(R) will apply 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. Management does not expect
        the
        adoption of SFAS No. 141(R) to have a significant impact on its financial
        position or results of operations.
  F-11
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
  In
        March
        2008, FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and
        Hedging Activities”. The new standard is intended to improve financial reporting
        about derivative instruments and hedging activities by requiring enhanced
        disclosures to enable investors to better understand their effects on an
        entity’s financial position, financial performance, and cash flows. This
        Statement is effective for financial statements issued for fiscal years and
        interim periods beginning after November 15, 2008, with early application
        encouraged. The Standard also improves transparency about the location and
        amounts of derivative instruments in an entity’s financial statements; how
        derivative instruments and related hedged items are accounted for under SFAS
        No.
        133; and how derivative instruments and related hedged items affect its
        financial position, financial performance, and cash flows. SFAS No. 161 achieves
        these improvements by requiring disclosure of the fair values of derivative
        instruments and their gains and losses in a tabular format. It also provides
        more information about an entity’s liquidity by requiring disclosure of
        derivative features that are credit risk-related. Management does not expect
        this Statement to have an impact on its financial condition or results of
        operations.
  In
        May of
        2008, FASB issued SFASB No.162, “The Hierarchy of Generally Accepted Accounting
        Principles”. The pronouncement mandates the GAAP hierarchy reside in the
        accounting literature as opposed to the audit literature. This has the practical
        impact of elevating FASB Statements of Financial Accounting Concepts in the
        GAAP
        hierarchy. This pronouncement will become effective 60 days following SEC
        approval. We do not believe this pronouncement will impact our financial
        statements.
  In
        May of
        2008, FASB issued SFASB No. 163, “Accounting for Financial Guarantee Insurance
        Contracts-an interpretation of FASB Statement No. 60”. The scope of the
        statement is limited to financial guarantee insurance (and reinsurance)
        contracts. The pronouncement is effective for fiscal years beginning after
        December 31, 2008. We do not believe this pronouncement will impact our
        financial statements.
 
 **NOTE
        3**  **UNCERTAINTY
        OF ABILITY TO CONTINUE AS A GOING CONCERN**
 
 The
        Company's financial statements are prepared using the generally accepted
        accounting principles applicable to a going concern, which contemplates the
        realization of assets and liquidation of liabilities in the normal course
        of
        business. However, the Company has accumulated deficit of $356,205 at March
        31,
        2008, and its total liabilities exceeds its total assets by $268,869.
 
 In
        view
        of the matters described above, recoverability of a major portion of the
        recorded asset amounts shown in the accompanying balance sheets is dependent
        upon continued operations of the Company, which in turn is dependent upon
        the
        Company’s ability to raise additional capital, obtain financing and to succeed
        in its future operations. The financial statements do not include any
        adjustments relating to the recoverability and classification of recorded
        asset
        amounts or amounts and classification of liabilities that might be necessary
        should the Company be unable to continue as a going concern.
  F-12
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 Management
        has taken the following steps to revise its operating and financial
        requirements, which it believes are sufficient to provide the Company with
        the
        ability to continue as a going concern. The Company is actively pursuing
        the new
        business development company activities and additional funding from strategic
        partners, which would enhance stockholders’ investment. Management believes that
        the above actions will allow the Company to continue operations through the
        next
        fiscal year.
 
 **NOTE
        4**  **STOCKHOLDERS’
        DEFICIT**
 
 During
        the year ended March 31, 2006, the Company issued 300,000 shares of its common
        stock to its Chairman for cash amounting $45,000, which was the market value
        at
        the date the board authorized the issuance. All these shares were issued
        in
        reliance upon the exemption from registration provided by Regulation D, Rule
        506
        of the Securities and Exchange Commission and Section 4(2) of the Securities
        Act. No underwriters were used for the sales.
 
 During
        the year ended March 31, 2008, the company did not issue any
        shares.
 
 During
        the fiscal quarter ended March 31, 2008, the Company’s officers and directors
        did not charge the Company for their services. Such contributed services
        were
        recorded as capital contribution in the amount of $2,667 as of March 31,
        2008,
        which was determined based on the fair value of the services
        provided.
 
 **NOTE
        5**  **RELATED
        PARTY TRANSACTIONS**
 
 The
        Company has a receivable of $102,433 and $76,037 from and a payable of $9,530
        and $7,850 to parties related through common shareholder and officer of the
        Company as of March 31, 2008 and 2007, respectively. The amounts are temporary
        loan in normal course of business, interest free, unsecured and due on demand.
 
 The
        Company has a note payable to a related party through common shareholder
        and
        officer. The note amounts to Apple Realty, Inc. of $115,200 and $114,000
        as of
        March 31, 2008 and 2007, respectively, due on demand, and is secured by assets
        of EMC. Interest shall accrue at 6% per annum, due and payable upon demand.
        This
        note is the remaining unpaid consulting fees and office expense provided
        by the
        related party. During the twelve month periods ended March 31, 2008, $1,200
        of
        unpaid office expense was added to the note. The interest payable amounting
        to
        $46,779 and $37,462 at March 31, 2008 and 2007, respectively, is included
        in the
        accompanying financial statements.
  F-13
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 The
        Company has a payable to the Company’s chairman. The loan amounting $159,720 and
        $122,899 at March 31, 2008 and 2007, respectively, carries an interest rate
        of
        6% per annum, is unsecured and due on March 31, 2009. The company recorded
        interest of $9,491, $6,419, and $3,925 for the twelve month periods ended
        March
        31, 2008, 2007 and 2006, respectively. The total interest payable on the
        loan
        amounted to $25,296 and $15,805 at March 31, 2008 and 2007, respectively,
        and
        has been included in due to officer in the accompanying financial statements.
 
 George
        Morris is the chairman of MBDV. As of March 31, 2008, Mr. Morris’ beneficial
        ownership percentages of related companies’ common stock is as
        follows:
 
 Morris
                  Business Development Company)
              
              
              82.87
              %Internet
                  Infinity, Inc.
              
              
              85.1
              %Morris
                  & Associates, Inc.
              
              
              71.30
              %Apple
                  Realty, Inc.
              
              
              100.00
              %
 
 **NOTE
        6**  **CONCENTRATION
        OF CREDIT RISK**
 
 For
        the
        year ended March 31, 2008, 2007 and 2006, revenue from the top two customers
        represents 73%, 58% and 8% of the Company’s total revenue, respectively.
        Accounts receivable balance outstanding from these customers was $4,226,
        $2,917
        and $115,601 as of March 31, 2008, 2007 and 2006, respectively. For total
        purchases for the twelve month periods ended March 31, 2008 and 2007 the
        Company
        had two top vendors who represent 72% and 23%, of the Company’s total purchases.
        Accounts payable balance outstanding for these vendors was $14,283 and $12,540
        as of March 31, 2008 and 2007, respectively.
 
 **NOTE
        7**  **INCOME
        TAXES**
 
 No
        provision was made for federal income tax for the year ended March 31, 2008,
        2007 and 2006, since the Company had significant net operating loss. The
        net
        operating loss carryforwards may be used to reduce taxable income through
        the
        year 2026. The availability of the Company’s net operating loss carryforwards
        are subject to limitation if there is a 50% or more positive change in the
        ownership of the Company’s stock. The provision for income taxes consists of the
        state minimum tax imposed on corporations.
 
 The
        net
        operating loss carryforward for federal and state income tax purposes was
        approximately $347,338 as of March 31, 2008.
 
 The
        Company has recorded a 100% valuation allowance for the deferred tax asset
        due
        to the uncertainty of its realization.
  F-14
  **MORRIS
        BUSINESS DEVELOPMENT COMPANY**
 **NOTES
        TO UNAUDITED FINANCIAL STATEMENTS**
 
 The
        components of the net deferred tax asset are summarized below:
 
 2008
              
              2007
              
              2006Deferred
                  tax asset – net operating loss
              
              $
              139,402
              
              $
              124,694
              
              $
              104,916Less
                  valuation allowance
              
              
              (139,402
              )
              
              (124,694
              )
              
              (104,916
              )Net
                  deferred tax asset
              
              $
              -
              
              $
              -
              
              $
              -
 
 The
        following is a reconciliation of the provision for income taxes at the U.S.
        federal income tax rate to the income taxes reflected in the Statement of
        Operations:
 
 March 31, 2008
              
              March 31, 2007
              
              March 31, 2006Tax
                  expense (credit) at statutory rate-federal
              
              
              (34
              )%
              
              (34
              )%
              
              (34
              )%State
                  tax expense net of federal tax
              
              
              (6
              )
              
              (6
              )
              
              (6
              )Changes
                  in valuation allowance
              
              
              40
              
              
              40
              
              
              40Tax
                  expense at actual rate
              
              
              -
              
              
              
              
              
              -
 Income
        tax expense consisted of the following:
 
 2008
              
              2007
              
              2006Current
                  tax expense:Federal
              
              $
              -
              
              
              -
              
              
              -State
              
              
              800
              
              
              800
              
              
              800Total
                  current
              
              $
              800
              
              
              800
              
              
              800Deferred
                  tax credit:Federal
              
              $
              12,502
              
              
              16,811
              
              
              8,840State
              
              
              2,206
              
              
              2,967
              
              
              1,560Total
                  deferred
              
              $
              14,908
              
              
              19,778
              
              
              10,400Less:
                  valuation allowance
              
              
              (14,708
              )
              
              (19,778
              )
              
              (10,400
              )Net
                  deferred tax credit
              
              
              -
              
              
              -
              
              
              -Tax
                  expense
              
              $
              800
              
              
              800
              
              
              800
 
 **NOTE
        8**  **SUBSEQUENT
        EVENT**
 
 On
        May
        30, 2008, the Company announced a 10-for-one stock split that became effective
        immediately at the opening of business on that day. All per share amounts
        and
        share numbers presented have been retroactively restated for this
        adjustment.
  F-15




**ITEM
      9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
      FINANCIAL DISCLOSURE**





There
      have been no events required to be reported by this Item 9.





**ITEM
      9A – CONTROLS AND PROCEDURES**





Evaluation
      of Disclosure Controls and Procedures





We
      conducted an evaluation, with the participation of our Chief Executive Officer
      and Chief Financial Officer, of the effectiveness of the design and operation
      of
      our disclosure controls and procedures, as defined in Rules 13a-15(e) and
      15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange
      Act, as of March 31, 2008, to ensure that information required to be disclosed
      by us in the reports filed or submitted by us under the Exchange Act is
      recorded, processed, summarized and reported, within the time periods specified
      in the Securities Exchange Commission’s rules and forms, including to ensure
      that information required to be disclosed by us in the reports filed or
      submitted by us under the Exchange Act is accumulated and communicated to our
      management, including our principal executive and principal financial officers,
      or persons performing similar functions, as appropriate to allow timely
      decisions regarding required disclosure. Based on that evaluation, our Chief
      Executive Officer and Chief Financial Officer have concluded that as of March
      31, 2008, our disclosure controls and procedures were not effective at the
      reasonable assurance level due to the material weaknesses described
      below.





In
      light
      of the material weaknesses described below, we performed additional analysis
      and
      other post-closing procedures to ensure our consolidated financial statements
      were prepared in accordance with generally accepted accounting principles.
      Accordingly, we believe that the consolidated financial statements included
      in
      this report fairly present, in all material respects, our financial condition,
      results of operations and cash flows for the periods presented.





A
      material weakness is a control deficiency (within the meaning of the Public
      Company Accounting Oversight Board (PCAOB) Auditing Standard No. 2) or
      combination of control deficiencies, that results in more than a remote
      likelihood that a material misstatement of the annual or interim financial
      statements will not be prevented or detected. Management has identified the
      following three material weaknesses which have caused management to conclude
      that, as of March 31, 2008, our disclosure controls and procedures were not
      effective at the reasonable assurance level:





1.  We
      do not
      have written documentation of our internal control policies and procedures.
      Written documentation of key internal controls over financial reporting is
      a
      requirement of Section 404 of the Sarbanes-Oxley Act and will be applicable
      to
      us for the year ending December 31, 2008. Management evaluated the impact of
      our
      failure to have written documentation of our internal controls and procedures
      on
      our assessment of our disclosure controls and procedures and has concluded
      that
      the control deficiency that resulted represented a material
      weakness.


27


2.  We
      do not
      have sufficient segregation of duties within accounting functions, which is
      a
      basic internal control. Due to our size and nature, segregation of all
      conflicting duties may not always be possible and may not be economically
      feasible. However, to the extent possible, the initiation of transactions,
      the
      custody of assets and the recording of transactions should be performed by
      separate individuals. Management evaluated the impact of our failure to have
      segregation of duties on our assessment of our disclosure controls and
      procedures and has concluded that the control deficiency that resulted
      represented a material weakness.





3.  We
      have
      had, and continue to have, a significant number of audit adjustments. Audit
      adjustments are the result of a failure of the internal controls to prevent
      or
      detect misstatements of accounting information. The failure could be due to
      inadequate design of the internal controls or to a misapplication or override
      of
      controls. Management evaluated the impact of our significant number of audit
      adjustments and has concluded that the control deficiency that resulted
      represented a material weakness.





To
      address these material weaknesses, management performed additional analyses
      and
      other procedures to ensure that the financial statements included herein fairly
      present, in all material respects, our financial position, results of operations
      and cash flows for the periods presented.





Remediation
      of Material Weaknesses





We
      have
      attempted to remediate the material weaknesses in our disclosure controls and
      procedures identified above by working with our independent registered public
      accounting firm and refining our internal procedures. To date, we have not
      been
      successful in reducing the number of audit adjustments, but will continue our
      efforts in the coming fiscal year.





**Internal
      control over financial reporting.**





Management’s
      annual report on internal control over financial reporting .
      The
      registrant’s management recognizes its responsibility for establishing and
      maintaining adequate internal control over financial reporting for the
      registrant. Currently, the registrant is operating as a caretaker entity,
      keeping the corporation alive and in good standing with the Commission. All
      debit and credit transactions with the company’s bank accounts are reviewed by
      the officers as well as all communications with the company’s creditors. The
      directors meet frequently - as often as weekly - to discuss and review the
      financial status of the company and all developments regarding its search for
      a
      reverse merger partner. All filings of reports with the Commission are reviewed
      before filing by all directors.





Management
      assesses the company’s control over financial reporting at the end of its most
      recent fiscal year to be effective. It detects no material weaknesses in the
      company’s internal control over financial reporting.





This
      annual report does not include an attestation report of the company’s registered
      public accounting firm regarding internal control over financial reporting.
      Management’s report was not subject to attestation by the company’s registered
      public accounting firm pursuant to temporary rules of the Securities and
      Exchange Commission that permit the company to provide only management’s report
      in this annual report.


28


There
      has
      been no change in our internal control over financial reporting identified
      in
      connection with the evaluation required by Commission rules that occurred during
      our last fiscal quarter that has materially affected, or is reasonably likely
      to
      materially affect, our internal control over financial reporting.





**ITEM
      9B – OTHER INFORMATION**





All
      information required to be filed on a Form 8-K during the three months ended
      March 31, 2008 was filed with the Commission on a Form 8-K.





**PART
      III**





**ITEM
      10 – DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
      GOVERNANCE**





The
      following table sets forth the names and ages of the current directors and
      executive officers of the Company, the principal offices and positions with
      the
      Company held by each person and the date such person became a director or
      executive officer of the Company. The executive officers of the Company are
      elected annually by the Board of Directors. The directors serve one-year terms
      until their successors are elected. The executive officers serve terms of one
      year or until their death, resignation or removal by the Board of Directors.
      Unless described below, there are no family relationships among any of the
      directors and officers.





Name
            
            Age
            
            Position(s)George
                Morris, Ph.D.
            
            68
            
            Chairman
                of the Board (1998); President (2007); Chief Executive Officer (2007);James
                Herbert
            
            68
            
            Director
                (2006)William
                Nordstrom
            
            64
            
            Director
                (2006)





**GEORGE
      MORRIS, Ph.D.** Dr.
      Morris has been the Chairman of the Board of Directors, principal shareholder,
      Chief Financial Officer and Secretary of Morris Business Development Company
      since we were incorporated on March 10, 1998. Dr. Morris has also been the
      Chairman and Vice President of Internet Infinity, Inc., the parent company
      and
      owner of 100% of our shares. Dr Morris assumed the duties of President in 2006
      to operate the Business Development Company. Dr. Morris is also the President
      of
      Apple Realty, Inc. doing business as Hollywood Riviera Studios since 1974 and
      the Chairman of the Board of Directors of L&M Media, Inc. since 1990. Dr.
      Morris is also the Founder and has been the President, Chairman of the Board
      of
      Directors and principal of Morris Financial, Inc., a NASD member broker-dealer
      firm, since its inception in 1987. He has been active in designing, negotiation
      and acquiring all equipment, facilities and systems for manufacturing,
      accounting and operations of Morris Business Development Company and its
      affiliates. Dr. Morris has produced over 20 computer-training programs in video
      and interactive hypertext multimedia CD-ROM versions, as well as negotiating
      Morris Business Development Company and its affiliate distribution and supplier
      agreements. Dr. Morris earned a Bachelor of Business Administration and Masters
      of Business Administration from the University of Toledo, and a Ph.D.
      (Doctorate) in Marketing and Finance and Educational Psychology from the
      University of Texas. Prior to founding Morris Business Development Company
      and
      its affiliates, Dr. Morris had 20 years of academic experience as a professor
      of
      Management, Marketing, Finance and Real Estate at the University of Southern
      California (1969 - 1971) and the California State University (1971 - 1999).
      During this period Dr. Morris served a Department Chairman for the Management
      and Marketing Departments. He has since retired from teaching at the University.
      Dr. Morris was the West Coast Regional Director of the American Society for
      Training and Development, a Director of the South Bay Business Roundtable and
      a
      speaker on a number of topics relating to business, training and education.
      He
      most recently taught University courses about Internet Marketing for domestic
      and foreign markets and Sales Force Management.


29


**JAMES
      HERBERT.** Mr.
      Herbert was appointed as an independent director of our company on May 10,
      2006.
      He is a professional consultant and businessman with more than forty years’
experience in Canada, Texas and California, in real estate development and
      business financing. Mr. Herbert also has 24 years’ experience in oil and gas
      investments and partnerships as a business/financial consultant. For the last
      five years, he has been a financial consultant to the California Clean Air
      Technologies and Recat Company in Riverside, California.





**WILLIAM
      NORDSTROM.** Mr.
      Nordstrom was appointed as an independent director of our company on May 10,
      2006. He
      is
      currently Chairman and CEO of Wall Street University, Inc., an Internet-based
      investor education firm he co-founded in 2004. From 1990 to 2004 he also
      formerly owned National Investor’s Council, Inc., which published *The
      High Growth Newsletter* ,
      reporting on small, publicly held growth companies. From 1984-1990 he was Senior
      Vice President of Corporate Capital Resources, Inc., a Westlake Village,
      CA-based registered Business Development Company (BDC). Also, he was Chief
      Financial Officer of Easyriders, Inc., which at the time was an American Stock
      Exchange listed company. Mr. Nordstrom is a graduate of Michigan State
      University with a Bachelor’s degree in Business Administration and is active in
      his community as a member of the Executive Board of American Legion Post 291
      in
      Newport Beach, California, and also serves on the Board of Directors of the
      Michigan State Alumni Club of Orange County, CA.





Audit
      Committee





Our
      Directors serve as our audit committee. There is no audit committee financial
      expert. However, the audit committee has the authority to hire a financial
      expert any time it has the need for expert financial advice.


30


Compliance
      with Section 16(a) of the Securities Exchange Act of 1934





Section
      16(a) of the Securities Exchange Act of 1934 requires our directors and
      executive officers and persons who own more than 10 percent of a registered
      class of our equity securities to file with the SEC initial reports of ownership
      and reports of changes in ownership of Common Stock and other equity securities
      of the Company. Officers, directors and greater than 10 percent shareholders
      are
      required by SEC regulations to furnish us with copies of all Section 16(a)
      forms
      they file.





To
      our
      knowledge, none of the required parties are delinquent in their 16(a)
      filings.





Code
      of Ethics





We
      have
      adopted a Code of Ethics that applies to our Chief Executive Officer, Chief
      Financial Officer, and - should we acquire such - principal accounting officer
      or controller or persons performing similar functions. A copy of the Code of
      Ethics was filed as an exhibit to the Form 10-KSB Annual Report for the fiscal
      year ended March 31, 2004.





**ITEM
      11 – EXECUTIVE COMPENSATION**





The
      following tables set forth certain information about compensation paid, earned
      or accrued for services by (i) our Chief Executive Officer and (ii) all other
      executive officers who earned in excess of $100,000 in the fiscal year ended
      March 31, 2008 (“Named Executive Officers”):





SUMMARY
      COMPENSATION TABLE





**Name
                and Principal Position**
            
            **Fiscal**
              **Year**
            
            **Salary**
            
            **Bonus**
            
            **Stock Awards***
            
            **Total**George
                Morris, Chairman, CEO,
            
            
            2008
            
            $
            2,000
            
            $
            0
            
            
            0
            
            $
            2,0002007
            
            $
            2,400
            
            $
            0
            
            
            0
            
            $
            2,400





*
            Based
                upon the aggregate grant date fair value calculated in accordance
                with the
                Financial Accounting Standards Board (“FASB”) Statement of Financial
                Accounting Standard (“FAS”) No. 123R, Share Based Payment. Our policy and
                assumptions made in valuation of share based payments are contained
                in
                Note 2 to our December 31, 2006 financial
                statements.





Employment
      Contracts





We
      currently do not have any employment agreements with our officers.





Other
      Compensation





There
      are
      no annuity, pension or retirement benefits proposed to be paid to our officers,
      directors, or employees in the event of retirement at normal retirement date
      as
      there was no existing plan as of March 31, 2008, provided for or contributed
      to
      by us.


31


Director
      Compensation





The
      following table sets forth director compensation as of March 31,
      2008:





DIRECTOR
      COMPENSATION





**Name**
            
            **Fees**
              **Earned**
              **or Paid**
              **in Cash**
              **($)**
            
            **Stock**
              **Awards**
              **($)**
            
            **Option**
              **Awards**
              **($)**
            
            **Non-Equity**
              **Incentive**
              **Plan**
              **Compensa-**
              **tion ($)**
            
            **Nonqualified**
              **Deferred**
              **Compensation**
              **Earnings ($)**
            
            **All Other**
              **Compensa-**
              **tion ($)**
            
            **Total**
              **($)**George
                Morris
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0James
                Herbert.
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0William
                Nordstrom
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0





*
            Based
                upon the aggregate grant date fair value calculated in accordance
                with the
                Financial Accounting Standards Board (“FASB”) Statement of Financial
                Accounting Standard (“FAS”) No. 123R, Share Based Payment. Our policy and
                assumptions made in valuation of share based payments are contained
                in
                Note 2 to our December 31, 2006 financial
                statements.





The
      compensation of each of our directors is fully furnished in the Summary
      Compensation Table above.





Directors
      of the Company who are also employees do not receive cash compensation for
      their
      services as directors or members of the committees of the board of directors.
      All directors may be reimbursed for their reasonable expenses incurred in
      connection with attending meetings of the board of directors or management
      committees.





Outstanding
      Equity Awards at Fiscal Year-End





The
      following table sets forth certain information concerning outstanding stock
      awards held by the Named Executive Officers as of March 31, 2008:





OUTSTANDING
      EQUITY AWARDS AT FISCAL YEAR-END





**Option
                Awards****Name**
            
            **Number of**
              **Securities**
              **Underlying**
              **Unexercised**
              **Options (#)**
              **Exercisable**
            
            **Number of**
              **Securities**
              **Underlying**
              **Unexercised**
              **Options (#)**
              **Unexercisable**
            
            **Equity**
              **Incentive**
              **Plan**
              **Awards:**
              **Number of**
              **Securities**
              **Underlying**
              **Unexercised**
              **Unearned**
              **Options (#)**
            
            **Option**
              **Exercise**
              **Price ($)**
            
            **Option**
              **Expiration**
              **Date**George
                Morris
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0


32


**ITEM
      12 – SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
      RELATED STOCKHOLDER MATTERS**





The
      following table sets forth, as of March 31, 2008, certain information with
      respect to our equity securities owned of record or beneficially by (i) each
      Officer and Director of the Company; (ii) each person who owns beneficially
      more
      than 5% of each class of the Company’s outstanding equity securities; and (iii)
      all Directors and Executive Officers as a group.





**Name and Address****(1)**
            
            **Nature of**
              **Affiliation**
            
            **Common Stock**
              **Ownership**
            
            **Percentage of**
              **Common Stock**
              **Ownership****(2)**George
                Morris(3)
            
            
            Director
            
            
            808,630
            
            
            62.2
            %L&M
                Media, Inc.(3)
            
            
            >10%
                Owner
            
            
            267,369
            
            
            20.6
            %James
                Herbert
              2175
                Pacific Avenue #2
              Costa
                Mesa, CA 92627
            
            
            Director
            
            
            0
            
            
            0
            %William
                Nordstrom
              4853
                East 17thStreet
              Costa
                Mesa, CA 92627
            
            
            Director
            
            
            0
            
            
            0
            %All
                Officers and Directors as a
              Group
                (3 persons)
            
            
            
            
            
            1,075,999
            
            
            82.8
            %










(1)
            Unless
                stated otherwise, the address of each beneficial owner is c/o 413
                Avenue
                G, #1, Redondo Beach, CA 90277.





(2)
            Unless
                otherwise indicated, based on 1,300,000 shares of common stock issued
                and
                outstanding. Shares of common stock subject to options or warrants
                currently exercisable, or exercisable within 60 days, are deemed
                outstanding for purposes of computing the percentage of the person
                holding
                such options or warrants, but are not deemed outstanding for purposes
                of
                computing the percentage of any other
                person.





(3)
            Mr.
                Morris is the registered holder of 808,630 shares of our common stock
                but
                is attributed the combined shares of 267,369 held by Hollywood Riviera
                Studios (49,655 shares) and L&M Media, Inc. (217,714 shares), because
                he exercises voting and/or dispositive power over the securities
                held by
                Hollywood Riviera Studios and L&M Media,
                Inc.





The
      issuer is not aware of any person who owns of record, or is known to own
      beneficially, five percent or more of the outstanding securities of any class
      of
      the issuer, other than as set forth above. The issuer is not aware of any person
      who controls the issuer as specified in section 2(a)(1) of the Investment
      Company Act of 1940. There are no classes of stock other than common stock
      issued or outstanding. Other than as set forth herein, there are no options,
      warrants, or other rights to acquire common stock outstanding. We do not have
      an
      investment advisor.


33


**ITEM
      13 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
      INDEPENDENCE**





We
      are
      under the control of George Morris, our Chairman and Chief Financial Officer,
      who beneficially owns 82.8% of our issued and outstanding common
      stock.





The
      basis
      of his control is set forth below:





·
            Mr.
                Morris directly owns 62.3% of our issued and outstanding common
                stock;





·
            Mr.
                Morris owns 100% of Hollywood Riviera Studios which owns 3.82% of
                our
                issued and outstanding common stock;
                and





·
            Mr.
                Morris owns 100% of L&M Media, Inc. which owns 16.75% of our issued
                and outstanding common stock.





We
      had
      been either a division or a wholly-owned subsidiary of Internet Infinity, Inc.,
      since incorporating our business in 1998. Our shares previously owned by
      Internet Infinity were distributed on September 28, 2001 to the Internet
      Infinity shareholders of record on September 18, 2001. We now operate
      independently of Internet Infinity but we share in common the office facilities,
      and officers and directors George Paul Morris, Roger Casas and Shirlene
      Bradshaw.





We
      have a
      receivable of $102,433 from Internet Infinity, Inc. for temporary loans in
      the
      normal course of business, interest free, unsecured and due on demand. Internet
      Infinity is a party related through a common controlling shareholder. George
      Morris is our Chief Financial Officer, Vice President, Chairman of the Board
      of
      Directors and our controlling shareholder. As of March 31, 2008, his beneficial
      ownership of the percentages of the outstanding voting shares of the related
      parties is listed below:




·
            
            
            Morris
                  Business Development Company
            
            
            82.87
            %·
            
            
            Internet
                  Infinity, Inc.
            
            
            85.1
            %·
            
            
            Morris
                  & Associates, Inc.
            
            
            71.30
            %·
            
            
            Apple
                  Realty, Inc.
            
            
            100.00
            %





We
      have a
      loan payable of $115,200 to Apple Realty, Inc., a party related through a common
      controlling shareholder. The loan is secured by our assets. Interest accrues
      at
      6% per annum, due and payable upon demand. This loan is the remaining unpaid
      consulting fees and office expense provided by Apple Realty, Inc. For the year
      ended March 31, 2008, $1,200 and for March 31, 2007, $1,200 of unpaid office
      expense was added to the loan.





We
      recorded interest to Apple Realty, Inc. of $8,718, $8,107 and $7,507 for the
      years ended March 31, 2008, 2007, and 2006, respectively. The interest payable
      amounting to $46,779 for March 31, 2008 is included in account payable and
      accrued expense in the accompanying financial statements.


34


During
      the year ended March 31, 2008, we incurred no consulting fees to Apple Realty,
      Inc.





We
      have a
      payable of $9,530 as of March 31, 2008 to Morris & Associates, Inc., a party
      related through a common controlling shareholder. The amounts are temporary
      loans in the normal course of business, interest free, unsecured and due on
      demand.





We
      have a
      payable to George Morris. The loan, amounting $159,720 at March 31, 2008,
      carries an interest rate of 6% per annum, is unsecured, and due on October
      1,
      2008. We recorded interest of $0 for the year ended March 31, 2008. The total
      interest payable on officer's loan amounted to $25,296 at March 31, 2008 and
      is
      included in due to officer in the accompanying financial statements.





During
      the year ended March 31, 2006, we issued 300,000 shares of our common stock
      to
      George Morris for cash consideration of $45,000, which was the market value
      on
      the date the board of directors authorized the issuance.





**ITEM
      14 – PRINCIPAL ACCOUNTING FEES AND SERVICES**





**Audit
      Fees**





During
      the fiscal years ended March 31, 2008 and 2007, Kabani & Company, Inc.
      billed us $25,500 and $21,500, respectively, in fees for professional services
      for the audit of our annual financial statements and review of financial
      statements included in our Forms 10-K and 10-Q.





**Audit
      – Related Fees**





During
      the fiscal years ended March 31, 2008 and 2007, Kabani & Company, Inc.
      billed us $zero and $zero, respectively, in fees for assurance and related
      services related to the performance of the audit and review of our financial
      statements.





**Tax
      Fees**





During
      the fiscal years ended March 31, 2008 and 2007, Kabani & Company, Inc.
      billed us $zero and $zero respectively, in fees for professional services for
      tax planning and preparation.





**All
      Other Fees**





During
      the fiscal years ended March 31, 2008 and 2007, Kabani & Company, Inc. did
      not bill us for any other fees.





35


**PART
      IV**





**ITEM
      15 – EXHIBITS, FINANCIAL STATEMENT SCHEDULES**





**(a)(1)**  **Financial
      Statements**





The
                following financial statements are filed as part of this
                report:Report
                of Independent Certified Public Accountants
            F-1Balance
                Sheet as of March 31, 2008 and 2007
            F-2Statement
                of Operations for the fiscal years ended March 31, 2008, 2007 and
                2006
            F-3Statement
                of Changes in Stockholders’ Equity for the fiscal years ended March 31,
                2008, 2007 and 2006
            F-4Statements
                of Cash Flows for the fiscal years ended March 31, 2008, 2007 and
                2006
            F-5Notes
                to Financial Statements
            F-6
                - F-15





**(a)(2)**  **Financial
      Statement Schedules**





We
      do not
      have any financial statement schedules required to be supplied under this
      Item.





**(a)(3)**  **Exhibits**





Refer
      to
      (b) below.





**(b)**  **Exhibits**





3.1
            Articles
                of Incorporation
            (1)3.2
            Articles
                of Amendment to Articles of Incorporation
            (4)3.3
            Bylaws
            (1)10.1
            Distribution
                Agreement Between Electronic Media Central and L&M Media, Inc., dba
                Apple Media
            (2)14.1
            Code
                of Ethics
            (3)31.1
            Rule
                13a-14(a)/15d-14(a) Certification of Chief Executive
                Officer


36





31.2
            Rule
                13a-14(a)/15d-14(a) Certification of Chief Financial
                Officer32.1
            Chief
                Executive Officer Certification Pursuant to 18 USC, Section 1350,
                as
                Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
                200232.2
            Chief
                Financial Officer Certification Pursuant to 18 USC, Section 1350,
                as
                Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002





(1)
            Incorporated
                by reference to the Registrant’s Registration Statement on Form 10-SB,
                filed on February 13, 2001.





(2)
            Incorporated
                by reference to the Registrant’s Registration Statement on Form 10-SB/A,
                filed on April 13, 2001.





(3)
            Incorporated
                by reference to the Registrant’s Annual Report on Form 10-KSB, filed on
                July 13, 2004.





(4)
            Incorporated
                by reference to the Registrant’s Annual Report on Form 10-K, filed on July
                3, 2007.





37





**SIGNATURES**





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





Morris
                Business Development CompanyBy
            */s/George
                Morris*George
                Morris, Chief Executive Officer





Dated:
      July 14, 2008





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





Dated:
                July 14, 2008*/s/
                George Morris*George
                Morris, CEO, CFO and DirectorDated:
                July 14, 2008*/s/
                James Herbert*James
                Herbert, DirectorDated:
                July 14, 2008*/s/
                William Nordstrom*William
                Nordstrom, Director


38