**Securities
      and Exchange Commission**


**Washington,
      D.C. 20549**





**FORM
      10-QSB**





x
            Quarterly
                Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange
                Act Of
                1934





For
      The
      Quarterly Period Ended January 31, 2008.





o
            Transition
                Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of
                1934





For
      The
      Transition Period From ______________To_________________





Commission
      File Number 333-31238




Superclick,
      Inc.





(Exact
      Name Of Registrant As Specified In Its Charter)








Washington
            
            52-2219677(State
                or Other Jurisdiction of
            
            (I.R.S.
                EmployerIncorporation
                or Organization)
            
            Identification
                No.)





10222
      St-Michel Blvd., Suite 300


Montreal,
      Quebec, H1H 5H1


(858)
      518-1387





(Address,
      Including Zip Code, And Telephone Number, Including


Area
      Code, Of Registrant's mailing address in Montreal, Canada)





Check
      whether the issuer: (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days.





Yes
x  No
o





The
      number of outstanding shares of the issuer's common stock, $0.0006 par value,
      as
      of February 19, 2008 was 43,719,870.










TABLE
      OF
      CONTENTS





PagePart
                IItem
                1.
            Financial
                StatementsConsolidated
                Balance Sheet as of January 31, 2008 (Unaudited)
            
            
            1Consolidated
                Statements of Operations for the three months ended January 31, 2008
                and
                2007 (Unaudited)
            
            
            2Consolidated
                Statements of Stockholders Equity for the years Ended October 31,
                2006 and
                the three months ended January 31, 2007 (unaudited)
            
            
            3Consolidated
                Statements of Comprehensive income (Loss) for the three months ended
                January 31, 2008 and 2007 (Unaudited)
            
            
            4Consolidated
                Statements of Cash Flows for the three months ended January 31, 2008
                and
                2007 (Unaudited)
            
            
            5Notes
                To Financial Statements (Unaudited)
            
            
            6Item
                2.
            Management's
                Discussion and Analysis
            
            
            22Item
                3.
            Controls
                and Procedures
            
            
            35Part
                II – Other InformationItem
                4.
            Exhibits
                and Reports on Form 8-K
            
            
            36Item
                5.
            Signatures
            
            
            36





2




**Item
      1 – Financial Statements**





**SUPERCLICK,
      INC.**


Consolidated
      Balance Sheet (Unaudited)


January
      31, 2008


ASSETSCURRENT
                  ASSETSCash
              
              $
              826,296Accounts
                  receivable, net (Notes A&B)
              
              
              567,512R&D
                  tax credits receivable (Note L)
              
              
              40,822Sales
                  Tax refund receivable
              
              
              28,808Inventory
              
              
              137,423Prepaid
                  expenses
              
              
              26,335TOTAL
                  CURRENT ASSETS
              
              
              1,627,196Fixed
                  assets, net (Note C)
              
              
              229,242Deferred
                  tax asset (Note L)
              
              
              69,846TOTAL
                  ASSETS
              
              $
              1,926,284LIABILITIES
                  AND STOCKHOLDERS' EQUITYCURRENT
                  LIABILITIESAccounts
                  payable and accrued expenses (Note D)
              
              $
              469,767Deferred
                  revenue (Note E)
              
              
              1,150,136Loans
                  current portion
              
              
              18,623Notes
                  payable (Note F)
              
              
              260,600Convertible
                  debentures, net (Note G)
              
              
              1,336,350Debenture
                  warrants (Note G)
              
              
              5,263TOTAL
                  CURRENT LIABILITIES
              
              
              3,240,739Loans
                  noncurrent portion
              
              
              13,140TOTAL
                  LIABILITIES
              
              
              3,253,879COMMITMENTS
                  (Note H)STOCKHOLDERS'
                  EQUITY (Note I)Common
                  stock, par value $.0006, 175,000,000 shares authorized; issued
                  and
                  outstanding 43,581,461 at January 31, 2008
              
              
              26,690Common
                  stock payable
              
              
              17,979Additional
                  paid-in capital
              
              
              5,911,382Accumulated
                  deficit
              
              
              (7,245,649
              )Accumulated
                  other comprehensive gain (loss)(Cumulative
                  translation adjustment)
              
              
              (22,857
              )Treasury
                  Stock
              
              
              (15,140
              )TOTAL
                  STOCKHOLDERS' EQUITY
              
              
              (1,327,595
              )TOTAL
                  LIABILITIES AND STOCKHOLDERS' EQUITY
              
              $
              1,926,284


SEE
      NOTES
      TO FINANCIAL STATEMENTS




1




**SUPERCLICK,
      INC.**


Consolidated
      Statements of Operations (Unaudited)


For
      the
      Three Months Ended January 31, 2008 and 2007


Three Months EndedJanuary 31,2008
              
              2007RevenueNet
                  Sales
              
              $
              731,617
              
              $
              237,785Services
              
              
              716,238
              
              
              523,850Net
                  revenue
              
              
              1,447,855
              
              
              761,635Cost
                  of goods sold
              
              
              801,121
              
              
              390,643Gross
                  profit
              
              
              646,734
              
              
              370,992Costs
                  and ExpensesSelling,
                  general & administrative
              
              
              375,607
              
              
              304,578Research
                  & development
              
              
              45,315
              
              
              37,684Depreciation
                  & amortization
              
              
              17,036
              
              
              16,314Total
                  costs and expenses
              
              
              437,958
              
              
              358,576Income
                  (loss) from operations
              
              
              208,776
              
              
              12,416Other
                  Income and (Expense)Interest
                  income
              
              
              4,752
              
              
              8,578Interest
                  expense
              
              
              (47,880
              )
              
              (82,367
              )Derivative
                  gain (loss)
              
              
              12,700
              
              
              (98
              )Total
                  other income and (expense)
              
              
              (30,428
              )
              
              (73,887
              )Net
                  income (loss)
              
              $
              178,348
              
              $
              (61,471
              )Net
                  earnings (loss) per common share basic
              
              $
              0.004
              
              $
              (0.002
              )Net
                  earnings (loss) per common share basic and fully diluted
              
              $
              0.002Weighted
                  average common shares outstanding basic
              
              
              42,255,740
              
              
              37,429,465Weighted
                  average common shares outstanding basic and fully diluted
              
              
              72,732,431
              
              
              n/aThe
                  average shares listed below were not included in the computation
                  of
                  diluted losses per share because to do so would have been antidilutive
                  for
                  the periods presented:Stock
                  options
              
              
              n/a
              
              
              16,694,648Warrants
              
              
              n/a
              
              
              3,065,996Convertible
                  debentures
              
              
              n/a
              
              
              56,149,981





SEE
      NOTES
      TO FINANCIAL STATEMENTS




2


**SUPERCLICK,
      INC.**


Consolidated
      Statement of Stockholder's Equity


For
      the
      Year Ended October 31, 2007 and the Three Months Ended January 31, 2008
      (Unaudited)





DeficitAccumulated
            
            AccumulatedCommon Stock
            
            Additional
            
            During the
            
            Other
            
            
            
            TotalNumber of
            
            
            
            
            
            Paid-in
            
            Developmental
            
            Comprehensive
            
            Treasury
            
            Stockholders'Shares
            
            Amount
            
            Payable
            
            Capital
            
            Stage
            
            Income (loss)
            
            Stock
            
            EquityBALANCES
                October 31, 2006
            
            
            35,612,756
            
            $
            21,315
            
            $
            -
            
            $
            5,442,229
            
            $
            (8,241,404
            )
            $
            88,183
            
            $
            (15,140
            )
            $
            (2,704,817
            )Shares
                issued during the period:Shares
                issued for services
            
            
            867,429
            
            
            520
            
            
            19,832
            
            
            89,186
            
            
            
            
            
            
            
            
            
            
            
            109,538.00Shares
                issued for interest payable
            
            
            2,094,503
            
            
            1,257
            
            
            
            
            
            86,255
            
            
            
            
            
            
            
            
            
            
            
            87,512.00Shares
                issued for retirementof
                convertible debentures
            
            
            2,751,856
            
            
            1,651
            
            
            
            
            
            113,349
            
            
            
            
            
            
            
            
            
            
            
            115,000.00Stock
                options exercised
            
            
            490,000
            
            
            888
            
            
            11,500
            
            
            23,612
            
            
            
            
            
            
            
            
            
            
            
            36,000.00Foreign
                Currency Translation Adjustment
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (120,085
            )
            
            
            
            
            (120,085.00
            )Net
                income (loss)
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            817,407
            
            
            
            
            
            
            
            
            817,407.02BALANCES
                October 31, 2007
            
            
            41,816,544
            
            $
            25,631
            
            $
            31,332
            
            $
            5,754,632
            
            $
            (7,423,997
            )
            $
            (31,902
            )
            $
            (15,140
            )
            $
            (1,659,444
            )Shares
                issued during the period:Shares
                issued for services
            
            
            141,656
            
            
            85
            
            
            (1,853
            )
            
            19,747
            
            
            
            
            
            
            
            
            
            
            
            17,979Shares
                issued for interest payable
            
            
            60,425
            
            
            36
            
            
            
            
            
            6,441
            
            
            
            
            
            
            
            
            
            
            
            6,477Shares
                issued for retirementof
                convertible debentures
            
            
            932,836
            
            
            560
            
            
            
            
            
            99,440
            
            
            
            
            
            
            
            
            
            
            
            100,000Stock
                options exercised
            
            
            630,000
            
            
            378
            
            
            (11,500
            )
            
            31,122
            
            
            
            
            
            
            
            
            
            
            
            20,000Foreign
                Currency Translation Adjustment
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            9,045
            
            
            
            
            
            9,045Net
                income (loss)
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            178,348
            
            
            
            
            
            
            
            
            178,348BALANCES
                January 31, 2008
            
            
            43,581,461
            
            $
            26,690
            
            $
            17,979
            
            $
            5,911,382
            
            $
            (7,245,649
            )
            $
            (22,857
            )
            $
            (15,140
            )
            $
            (1,327,595
            )




SEE
        NOTES
        TO FINANCIAL STATEMENTS
  3


**SUPERCLICK,
      INC.**


Consolidated
      Statements of Comprehensive Income (Loss) (Unaudited)


For
      the
      Three Months Ended January 31, 2008 and 2007


Three Months Ended
              January 31,2008
            
            2007Net
                earnings (loss)
            
            $
            178,348
            
            $
            (61,471
            )Other
                comprehensive income (loss)Foreign
                currency translation adjustment
            
            
            (9,045
            )
            
            (19,160
            )Net
                comprehensive earnings (loss)
            
            $
            169,303
            
            $
            (80,631
            )





SEE
      NOTES
      TO FINANCIAL STATEMENTS




4


**SUPERCLICK,
        INC.**
 Consolidated
        Statements of Cash Flows (Unaudited)
 For
        the
        Three Months Ended January 31, 2008 and 2007


Three Months Ended
                January 31,2008
              
              2007CASH
                  FLOWS FROM OPERATING ACTIVITIES:Net
                  Earnings <loss>
              
              $
              178,348
              
              $
              (61,471
              )Adjustments
                  to reconcile net earnings (loss)tonet
                  cash provided (used) by operating activities:Depreciation
              
              
              17,036
              
              
              16,314Stock
                  issued for services
              
              
              17,979
              
              
              -Derivative
                  gain on warrants issued with debentures
              
              
              (12,700
              )
              
              98Stock
                  issued for accrued interest
              
              
              6,476
              
              
              87,512CHANGES
                  IN CURRENT ASSETS AND LIABILITIES(Increase)
                  decrease in current assets:Accounts
                  receivable
              
              
              225,633
              
              
              138,048Other
                  receivables
              
              
              (28,106
              )
              
              (9,226
              )Prepaid
                  expenses
              
              
              (3,096
              )
              
              (2,441
              )Inventory
              
              
              31,211
              
              
              9,811Increase
                  (decrease) in current liabilities:Accounts
                  payable and accrued expenses
              
              
              (37,946
              )
              
              (127,080
              )Accrued
                  Payroll
              
              
              (18,406
              )
              
              (18,359
              )Deferred
                  revenue
              
              
              (226,988
              )
              
              (104,901
              )CASH
                  PROVIDED (USED) FOR OPERATING ACTIVITIES
              
              
              149,441
              
              
              (71,695
              )CASH
                  FLOWS FROM INVESTING ACTIVITIES:Acquisition
                  of furniture and equipment
              
              
              (10,897
              )
              
              (549
              )CASH
                  USED FOR INVESTING ACTIVITIES
              
              
              (10,897
              )
              
              (549
              )CASH
                  FLOWS FROM FINANCING ACTIVITIES:Repayment
                  of loans
              
              
              (24,989
              )
              
              (2,779
              )Repayment
                  of convertible debenture
              
              
              (85,297
              )
              
              -Stock
                  options exercised
              
              
              31,500
              
              
              -CASH
                  USED FOR FINANCING ACTIVITIES
              
              
              (78,786
              )
              
              (2,779
              )EFFECT
                  OF EXCHANGE RATE CHANGES ON CASH
              
              
              (23,053
              )
              
              (41,213
              )NET
                  INCREASE (DECREASE) IN CASH
              
              
              36,705
              
              
              (116,236
              )CASH,
                  beginning of period
              
              
              789,591
              
              
              919,920CASH,
                  end of period
              
              $
              826,296
              
              $
              803,684Interest
                  paid
              
              $
              29,129
              
              $
              1,603Taxes
                  paid
              
              $
              2,888Other
                  non-cash investing and financing activities:Shares
                  issued for services
              
              $
              17,979
              
              $
              17,000Shares
                  issued for accrued interest
              
              $
              6,476
              
              $
              87,512Shares
                  issued for debt
              
              $
              100,000
              
              $
              115,000
  SEE
                  NOTES TO FINANCIAL STATEMENTS




5




Superclick,
      Inc.


Notes
      to
      Consolidated Financial Statements (Unaudited)


For
      The
      Three Months Ended January 31, 2008 and 2007





NOTE
      A-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES




Basis
      of Presentation




The
      unaudited financial statements of Superclick, Inc. as of January 31, 2008 and
      for the three month periods ended January 31, 2008 and 2007 have been prepared
      in accordance with accounting principles generally accepted in the United States
      for interim financial reporting. Accordingly, they do not include all of the
      disclosures required by accounting principles generally accepted in the United
      States for complete financial statements and should be read in conjunction
      with
      the audited consolidated financial statements and notes thereto included in
      the
      Superclick, Inc's Form 10-KSB for the year ended October 31, 2007. In the
      opinion of management, all adjustments (consisting only of normal recurring
      adjustments) considered necessary for a fair presentation of the interim
      financial information have been included. The results of operations for any
      interim period are not necessarily indicative of the results of operations
      for
      the entire year.




Organization




In
      October, 2003, Superclick, Inc. (formerly Grand Prix Sports, Inc.) completed
      an
      acquisition of Superclick Networks, Inc. The acquisition was accounted for
      as a
      recapitalization effected by a reverse merger, wherein Superclick Networks,
      Inc.
      is considered the acquirer for accounting and financial reporting purposes
      (collectively, Superclick Inc. and Superclick Networks Inc. are referred to
      hereinafter as the “Company”). The pre-merger assets and liabilities of the
      acquired entity have been brought forward at their book value and no goodwill
      has been recognized. The accumulated deficit of Superclick Networks, Inc. has
      been brought forward, and common stock and additional paid-in-capital of the
      combined company have been retroactively restated to give effect to the exchange
      rates as set forth in the merger agreement.





Superclick
      Networks, Inc. was organized on August 24, 2000, in Montreal, Quebec, Canada.
      For purposes of the financial reporting of our reverse merger acquisition,
      the
      date of inception is considered to be August 24, 2000.





The
      Company is in the business of providing and installing broadband high speed
      Internet connection equipment and IP (“Internet Protocol”) infrastructure
      management systems with 24x7x365 help desk support to hotels, multi dwelling
      units (“MDU’s”) and universities on a worldwide basis. Superclick, Inc.
      commercialized its initial Internet access management products in
      2002.





On
      October 6, 2003 Superclick, Inc. amended its articles of incorporation by
      changing the name of the Company from Grand Prix Sports, Inc. to Superclick,
      Inc. to more accurately reflect the nature of its business after the
      recapitalization effected by the reverse merger.




6




Pursuant
      to a share purchase agreement dated October 7, 2003, Superclick, Inc. acquired
      100% of the issued and outstanding shares of Superclick Networks, Inc. from
      its
      shareholders. In consideration for acquiring all of Superclick Network’s shares
      Superclick, Inc. issued to its previous shareholders 14,025,800 shares of
      Superclick, Inc.’s common stock. As a result of the acquisition, the former
      shareholders of Superclick Networks, Inc. held immediately after the acquisition
      71.7% of the issued and outstanding shares of Superclick, Inc.’s common stock.
      The remaining 28.3% were held by Superclick, Inc.’s (formerly Grand Prix Sports,
      Inc.) shareholders.





Concurrent
      with the reverse merger of Superclick, Inc. with Superclick Networks, Inc,
      the
      Company retroactively affected a 6 for 1 common stock split and retroactively
      assigned $0.0006 par value to common stock where no value had been previously
      stated. All share and per share amounts shown in these financial statements
      reflect the stock split for all periods presented.





Pursuant
      to its reverse merger with Superclick Networks Inc., Superclick, Inc. changed
      its year-end to October 31 to coincide with the year-end of Superclick Networks,
      Inc. The Company emerged from the development stage during 2005 as its principal
      operations had commenced and its national rollout had been completed.
      Accordingly, the Company revised the presentation of its Consolidated Statements
      of Operations to reflect that of a commercial enterprise.





Superclick
      Inc’s plan of business is committed to the commercialization activities of
      Superclick Network, Inc.’s products, with an emphasis on broadening its market
      penetration and building product and brand awareness amongst its target customer
      base in the hospitality market. Superclick, Inc. intends to grow its revenue
      through expanding its sales of Superclick Network Inc.’s products and call
      center support services such that it can reasonably support its operating
      expenses through cashflow.





Summary
      of Significant Accounting Principles





Principles
      of consolidation





The
      consolidated financial statements include the accounts of Superclick, Inc.
      and
      its majority-owned subsidiary, Superclick Networks Inc. which is 100%
      consolidated in the financial statements. All material inter-company accounts
      and transactions have been eliminated.





Accounting
      estimates





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





Cash
      and cash equivalents





For
      purposes of the statement of cash flows, the Company considers all highly liquid
      debt instruments purchased with an original maturity of three months or less
      to
      be cash equivalents.




7




Accounts
      receivable





Accounts
      receivable are reported at the customers' outstanding balances less any
      allowance for doubtful accounts. Interest is not accrued on overdue accounts
      receivable. The Company evaluates receivables on a regular basis for potential
      reserve.





Inventories





Inventories
      are valued at the lower of cost or market. Cost is determined on a first-in,
      first-out method. Management performs periodic assessments to determine the
      existence of obsolete, slow moving and non-salable inventories, and records
      necessary provisions to reduce such inventories to net realizable
      value.





Property
      and equipment





Property
      and equipment are stated at cost. Major renewals and improvements are charged
      to
      the asset accounts while replacements, maintenance and repairs, which do not
      improve or extend the lives of the respective assets, are expensed. At the
      time
      property and equipment are retired or otherwise disposed of, the asset and
      related accumulated depreciation accounts are relieved of the applicable
      amounts. Gains or losses from retirements or sales are credited or charged
      to
      income.





The
      Company depreciates its property and equipment on a declining balance method
      at
      the following rates as applied to net depreciable value:


Furniture
                  and fixtures:
              
              
              20
              %Computer
                  equipment and software:
              
              
              30
              %Leasehold
                  improvements
              
              
              20
              %Fabrication
                  equipment
              
              
              20
              %





Long-lived
      assets





Statement
      of Financial Accounting Standards No. 144, "Accounting for the Impairment or
      Disposal of Long-Lived Assets," requires that long-lived assets be reviewed
      for
      impairment whenever events or changes in circumstances indicate that the
      historical cost-carrying value of an asset may not be recovered. The Company
      assesses recoverability of the carrying value of an asset by estimating the
      fair
      value of the asset. If the fair value is less than the carrying value of the
      asset, an impairment loss is recorded equal to the difference between the
      asset's carrying value and fair value.




Revenue
      recognition policy





Revenue
      from the sale of Internet high speed connection equipment and installation
      is
      recognized when the earning process is complete and the risk and rewards of
      ownership have transferred to the customer, which is considered to have occurred
      after the delivery and installation of the equipment to the
      customer.




8




Maintenance
      and support revenue is recognized ratably over the maintenance term. First-year
      maintenance typically is sold with the related software license and renewed
      on
      an annual basis thereafter. Estimated fair values of ongoing maintenance and
      support obligations are based on separate sales of renewals to other customers
      or upon renewal rates quoted in the contracts. For such arrangements with
      multiple obligations, we allocate revenue to each component of the arrangement
      based on the estimated fair value of the undelivered elements. Fair value of
      services, such as consulting or training, is based upon separate sales of these
      services. At times, we may enter into multiple-customer contracts in which
      we
      allocate revenue based on the number of specified users at each customer, and
      recognizes revenue upon customer acceptance and satisfying the other applicable
      conditions of the above described accounting policy.





Shipping
      and handling costs





The
      Company's policy is to classify shipping and handling costs as part of cost
      of
      goods sold in the statement of operations.





Advertising





The
      Company expenses all advertising as incurred. For the three months ended January
      31, 2008 and 2007, the Company incurred approximately $2,102 and $7,063,
      respectively in marketing and advertising expense.





Earnings
      (Loss) per common share





The
      Company follows Statement of Financial Accounting Standards No. 128 which
      requires the reporting of both basic and diluted earnings (loss) per share.
      Basic earnings (loss) per share is calculated using the weighted average number
      of common shares outstanding in the period. Fully diluted earnings (loss) per
      share includes potentially dilutive securities such as outstanding options
      and
      warrants, using the “treasury stock” method and convertible securities using the
      "if-converted" method. The assumed exercise of options and warrants and assumed
      conversion of convertible securities have not been included in the calculation
      of diluted loss per share as the effect would be anti-dilutive.





Issuance
      of common stock




The
      issuance of common stock for other than cash is recorded by the Company at
      management’s estimate of the fair value of the assets acquired or services
      rendered.





Income
      taxes





Provisions
      for income taxes are based on taxes payable or refundable for the current year
      and deferred taxes on temporary differences between the amount of taxable income
      and pretax financial income and between the tax bases of assets and liabilities
      and their reported amounts in the financial statements. Deferred tax assets
      and
      liabilities are included in the financial statements at currently enacted income
      tax rates applicable to the period in which the deferred tax assets and
      liabilities are expected to be realized or settled as prescribed in FASB
      Statement No. 109, Accounting for Income Taxes. As changes in tax laws or rates
      are enacted, deferred tax assets and liabilities are adjusted through the
      provision for income taxes. Valuation allowances are established when necessary
      to reduce deferred tax assets to the amount expected to be realized. The Company
      underwent a change of control for income tax purposes on October 8, 2003
      according to Section 381 of the Internal Revenue Code. The Company's utilization
      of U.S. Federal net operating losses will be limited in accordance to Section
      381 rules.




9




Impact
      of accounting standards





In
      May
      2005, the FASB issued SFAS No. 154 “Accounting Changes and Error
      Corrections – a replacement of APB Opinion No. 20 and FASB Statement No.
      3.” This Statement replaces APB Opinion No. 20, “Accounting Changes”, and FASB
      Statement No. 3, “Reporting Accounting Changes in Interim Financial Statements”
and changes the requirements for the accounting for and reporting of a change
      in
      accounting principle. This Statement applies to all voluntary changes in
      accounting principle.  It also applies to changes required by an accounting
      pronouncement in the unusual instance that the pronouncement does not include
      specific transition provision. When a pronouncement includes specific transition
      provisions, those provisions should be followed. The Company has no transactions
      that would be subject to SFAS 154.





In
      February 2006, the FASB issued SFAS 155 "Accounting for Certain Hybrid Financial
      Instruments, an amendment of FASB Statements No. 133 and 140. This Statement
      amends FASB Statements No. 133, Accounting for Derivative Instruments and
      Hedging Activities, and No. 140, Accounting for Transfers and Servicing of
      Financial Assets and Extinguishments of Liabilities. This Statement resolves
      issues addressed in Statement 133 Implementation Issue No. D1, Application
      of
      Statement 133 to Beneficial Interests in Securitized Financial Assets. This
      Statement:





a)
      Permits fair value re-measurement for any hybrid financial instrument that
      contains an embedded derivative that otherwise would require bifurcation; b)
      Clarifies which interest-only strips and principal-only strips are not subject
      to the requirements of Statement 133; c) Establishes a requirement to evaluate
      interests in securitized financial assets to identify interests that are
      freestanding derivatives or that are hybrid financial instruments that contain
      an embedded derivative requiring bifurcation; d) Clarifies that concentrations
      of credit risk in the form of subordination are not embedded derivatives; and
      e)
      Amends Statement 140 to eliminate the prohibition on a qualifying
      special-purpose entity from holding a derivative financial instrument that
      pertains to a beneficial interest other than another derivative financial
      instrument.





This
      Statement is effective for all financial instruments acquired or issued after
      the beginning of an entity's first fiscal year that begins after September
      15,
      2006. The fair value election provided for in paragraph 4 of this Statement
      may
      also be applied upon adoption of this Statement for hybrid financial instruments
      that had been bifurcated under paragraph 12 of Statement 133 prior to
      the
      adoption of this Statement. Earlier adoption is permitted as of the beginning
      of
      an entity's fiscal year, provided the entity has not yet issued financial
      statements, including financial statements for any interim period for that
      fiscal year. Provisions of this Statement may be applied to instruments that
      an
      entity holds at the date of adoption on an instrument-by-instrument basis.
      The
      Company does not believe that this accounting pronouncement will have a material
      impact on their financial position or results of operations.




10




In
      March
      2006, the FASB issued SFAS No. 156 ("FAS 156"), "Accounting for Servicing of
      Financial Assets—An Amendment of FASB Statement No. 140." Among other
      requirements, FAS 156 requires a company to recognize a servicing asset or
      servicing liability when it undertakes an obligation to service a financial
      asset by entering into a servicing contract under certain situations. Under
      FAS
      156 an election can also be made for subsequent fair value measurement of
      servicing assets and servicing liabilities by class, thus simplifying the
      accounting and provide for income statement recognition of potential offsetting
      changes in the fair value of servicing assets, servicing liabilities and related
      derivative instruments. The Statement will be effect beginning the first fiscal
      year that begins after September 15, 2006. The Company does not believe that
      this recent accounting pronouncement will have a material impact on their
      financial position or results of operations.





In
      September 2006, the FASB issued Statement of Financial Accounting Standards
      No.
      157, “Fair Value Measurements.” The standard provides guidance for using fair
      value to measure assets and liabilities. Under the standard, fair value refers
      to the price that would be received to sell an asset or paid to transfer a
      liability in an orderly transaction between market participants in the market
      in
      which the reporting entity transacts. The standard clarifies the principle
      that
      fair value should be based on the assumptions market participants would use
      when
      pricing the asset or liability. In support of this principle, the standard
      establishes a fair value hierarchy that prioritizes the information used to
      develop those assumptions. The Statement is effective for financial statements
      issued for fiscal years beginning after November15, 2007, and interim periods
      within those fiscal years. The Company is currently evaluating the Statement
      to
      determine what impact, if any, it will have on the Company.





In
      September 2006, the FASB issued Statement of Financial Accounting Standards
      No.
      158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement
      Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R)” (“SFAS 158”).
      This statement requires balance sheet recognition of the funded status, which
      is
      the difference between the fair value of plan assets and the benefit obligation,
      of pension and postretirement benefit plans as a net asset or liability, with
      an
      offsetting adjustment to the accumulated other comprehensive income in
      shareholders’ equity. In addition, the measurement date, the date at which plan
      assets and the benefit obligation are measured, is required to be the company’s
      fiscal year end. The Company currently is evaluating the Statement to determine
      what impact, if any, it will have on the Company.





In
      February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
      Financial Assets and Financial Liabilities-Including an amendment of FASB
      Statement No. 115" ("SFAS 159"). SFAS 159 expands the use of fair value
      accounting but does not affect existing standards which require assets or
      liabilities to be carried at fair value. Under SFAS 159, a company may elect
      to
      use fair value to measure accounts and loans receivable, available-for-sale
      and
      held-to-maturity securities, equity method investments, accounts payable,
      guarantees and issued debt. Other eligible items include firm commitments for
      financial instruments that otherwise would not be recognized at inception and
      non-cash warranty obligations where a warrantor is permitted to pay a third
      party to provide the warranty goods or services. If the use of fair value is
      elected, any upfront costs and fees related to the item must be recognized
      in
      earnings and cannot be deferred, e.g., debt issue costs. The fair value election
      is irrevocable and generally made on an instrument-by-instrument basis, even
      if
      a company has similar instruments that it elects not to measure based on fair
      value. At the adoption date, unrealized gains and losses on existing items
      for
      which fair value has been elected are reported as a cumulative adjustment to
      beginning retained earnings. Subsequent to the adoption of SFAS 159, changes
      in
      fair value are recognized in earnings. SFAS 159 is effective for fiscal years
      beginning after November 15, 2007 and is required to be adopted by the Company
      in the first quarter of fiscal 2009. The Company is currently is determining
      whether fair value accounting is appropriate for any of its eligible items
      and
      cannot estimate the impact, if any, which SFAS 159 will have on its consolidated
      results of operations and financial condition.




11




In
      December 2007, the FASB issued SFAS 141(revised 2007), Business
      Combinations (“SFAS 141R”). SFAS 141R will significantly change the
      accounting for business combinations in a number of areas including the
      treatment of contingent consideration, contingencies, acquisition costs,
      IPR&D and restructuring costs. In addition, under SFAS 141R, changes in
      deferred tax asset valuation allowances and acquired income tax uncertainties
      in
      a business combination after the measurement period will impact income tax
      expense. SFAS 141R is effective for fiscal years beginning after
      December 15, 2008 and, as such, the Company will adopt this standard in
      fiscal 2010. The Company has not yet determined the impact, if any, of
      SFAS 141R on its consolidated financial statements.




In
      December 2007, the FASB issued SFAS 160, Noncontrolling Interests in
      Consolidated Financial Statements, an amendment of ARB No. 51
      (“SFAS 160”). SFAS 160 will change the accounting and reporting for
      minority interests, which will be recharacterized as noncontrolling interests
      (NCI) and classified as a component of equity. This new consolidation method
      will significantly change the account with minority interest holders.
      SFAS 160 is effective for fiscal years beginning after December 15,
      2008 and, as such, the Company will adopt this standard in fiscal 2010. The
      Company has not yet determined the impact, if any, of SFAS 160 on its
      consolidated financial statements.





Concentrations
      of credit risk





The
      Company performs ongoing credit evaluations of its customers. For the three
      months ended January 31, 2008, two customers individually accounted for 34%
      (19%
      and 15%) of accounts receivable.





At
      January 31, 2007, two customers individually accounted for 23% (10% and 13%)
      of
      accounts receivable.





During
      the three months ended January 31, 2008, the Company’s three largest customers
      accounted for 36% (15%, 11% and 10%) of sales.





During
      the three months ended January 31, 2007, the Company’s largest customer
      accounted for 15% of sales.





For
      the
      three months ended January 31, 2008 and 2007, approximately 20% and 30% of
      the
      Company's net sales were made to customers outside the United
      States.





The
      Company has maintained balances in excess of federally insured limits from
      time
      to time during the fiscal year. Management periodically reviews the adequacy
      and
      strength of the financial institutions and deems this to be an acceptable risk.




12




Disclosure
      about Fair Value of Financial Instruments





The
      Company estimates that the fair value of all financial instruments at January
      31, 2008, as defined in FASB 107, does not differ materially from the aggregate
      carrying values of its financial instruments recorded in the accompanying
      balance sheet. The estimated fair value amounts have been determined by the
      Company using available market information and appropriate valuation
      methodologies. Considerable judgment is required in interpreting market data
      to
      develop the estimates of fair value, and accordingly, the estimates are not
      necessarily indicative of the amounts that the Company could realize in a
      current market exchange.





Accounting
      for Share-Based Compensation




The
      Company adopted the provisions of SFAS 123 (revised 2004), Share-Based
      Payment (SFAS 123(R), which requires the Company to recognize expense
      related to the fair value of share-based compensation awards as of the beginning
      of the second quarter in fiscal 2006. Management elected to use the modified
      prospective transition method as permitted by SFAS 123(R) and therefore has
      not restated the Company’s financial results for prior periods.





Foreign
      Currency Translation





The
      financial statements of the Canadian Parent are measured using the Canadian
      dollar as the functional currency. Assets, liabilities and equity accounts
      of
      the company are translated at exchange rates as of the balance sheet date or
      historical acquisition date, depending on the nature of the account. Revenues
      and expenses are translated at average rates of exchange in effect during the
      year. The resulting cumulative translation adjustments have been recorded as
      a
      separate component of stockholders' equity. The financial statements are
      presented in United States of America dollars.





Research
      and development





Expenses
      related to present and future products are expensed as incurred.





NOTE
      B – ACCOUNTS RECEIVABLE





The
      accounts receivable balance of $567,512 as of January 31, 2008 is reported
      net
      of an allowance for doubtful accounts of $53,881.





NOTE
      C - PROPERTY AND EQUIPMENT





Property
      and equipment consisted of the following at January 31, 2008:




13




Computer
                hardware
            
            $
            218,244Furniture
                & fixtures
            
            
            155,936Computer
                software
            
            
            105,054Leasehold
                improvements
            
            
            35,045Fabrication
                mold and dye
            
            
            22,700536,979Accumulated
                depreciation
            
            
            (307,737
            )Fixed
                assets, net
            
            $
            229,242




Depreciation
      expense for the three months ended January 31, 2008 and 2007 was $17,036 and
      $16,314, respectively.





NOTE
      D – ACCOUNTS PAYABLE





Accounts
      payable at January 31, 2008 consisted of $284,796 in trade payables, $34,729
      related to professional fees, $24,129 of accrued interest and $126,113 of
      accrued payroll.





NOTE
      E – DEFERRED REVENUE





Deferred
      revenue consists of funds received in advance of services being performed.
      As of
      January 31, 2008, the deferred revenue balance of $1,150,136 consisted of
      $1,028,363 related to support and maintenance and to the sale of a master
      license agreement which is amortized over its term of thirty six (36) months
      which commenced August 2007 and $121,773 related to customer deposits for future
      hardware installations.





Deferred
      revenue related to support and maintenance is recorded in a manner consistent
      with the Company’s revenue recognition policy. The Company generally enters into
      one-year upgrade and maintenance contracts with its customers. The upgrade
      and
      maintenance contracts are generally paid in advance. The Company defers such
      payment and recognizes revenue ratably over the contract period.





NOTEF –
      NOTES PAYABLE TO FORMER SHAREHOLDERS OF HOTEL NET, LLC





The
      Company currently has five notes outstanding to the former shareholders of
      Hotel
      Net LLC. Four of the notes have an original face amount of $70,000 payable
      quarterly through December 31, 2009 and do not accrue interest. The interest,
      if
      imputed, would immaterial to these financial statements taken as a whole.





The
      remaining note originally dated July 25, 2006 has a face amount of $74,200,
      accrues interest at the rate of nine percent (9%) per annum, is convertible
      into
      shares of common stock at a conversion price of $.03, matured on January 1,
      2007
      and is currently in default.





During
      the three months ended January 31, 2008, the Company recognized $1,683 of
      interest expense on these notes. The principle balance on these notes as at
      January 31, 2008 was $260,600.




14




NOTEG –
      CONVERTIBLE DEBENTURE





In
      August
      2005, the Company completed a private placement of convertible debentures
      generating gross proceeds of $2.25 million and the issuance of warrants to
      purchase 965,997 shares of the Company’s common stock. The convertible
      debentures matured in August 2006 and now bear interest of 12% payable quarterly
      at the option of the Company in cash or stock. The debentures and warrants
      are
      convertible into the Company's common stock at a conversion price equal to
      80%
      of the average closing bid price of the Company's common stock for the 45
      trading days preceding a conversion date.





Pursuant
      to Paragraph 14 of EITF 00-19, Accounting for Derivative Financial Instruments
      Indexed to, and Potentially Settled in, a Company's Own Stock, the warrants
      issued in connection with the convertible debentures meet the requirements
      of
      and are accounted for as a liability. Using the Black-Scholes option-pricing
      method, the value of the warrants is reassessed at each balance sheet date
      and
      marked to market as a derivative gain or loss until exercised or expiration.
      Upon exercise of each of the warrants, the related liability is removed by
      recording an adjustment to additional paid-in-capital. The warrants had a value
      of $193 at October 31, 2006. As of January 31, 2008, the value of the warrants
      was reassessed using the Black-Scholes option-pricing model using the following
      assumptions: expected term 2.5 years, exercise price $.30, volatility 31%,
      risk
      free rate 3.64%, and zero dividend yield. The warrants have a value of $5,263
      at
      January 31, 2008. For the three months ended January 31, 2008 and 2007, the
      Company recognized a derivative gain of $12,700 and loss of $98, respectively.





*Debenture
      Principle*





During
      the three months ended January 31, 2008, the Company retired a total of $185,297
      of debenture principle. Of the $185,297, $85,297 was paid with cash and $100,000
      was exchanged for the issuance of 932,836 shares of common stock.





*Debenture
      Interest*





During
      the three months ended January 31, 2008 and 2007, the Company incurred $44,067
      and $72,348 in interest expense related to the convertible debentures. During
      the three months ended January 31, 2008, the Company issued 60,425 shares of
      common stock in exchange for $6,477 of accrued interest. As of January 31,
      2008,
      the company had an accrued interest balance of $7,307 related to our
      debentures.





NOTE
      H - COMMITMENTS





On
      October 1, 2004 the Company began a lease for office space. The lease extends
      through September 30, 2009 at a rate of $5,699 per month. The Company financed
      computer equipment with a loan term which extends through September 28, 2009
      at
      a rate of $1,575 per month. At January 31, 2008, our contractual obligations
      under these commitments were as follows:




15




Rent
            
            Equipment
            
            Total2008
            
            $
            51,291
            
            $
            18,664
            
            $
            69,9552009
            
            
            68,388
            
            
            13,169
            
            
            81,557$
            119,679
            
            $
            31,833
            
            $
            151,512




During
      the three months ended January 31, 2008 and 2007, the Company incurred $17,875
      and $14,148, respectively in rent expense.





We
      do not
      maintain any long-term or exclusive commitments or arrangements to purchase
      merchandise from any single supplier.





NOTE
      I
      - PREFERRED AND COMMON STOCK





Preferred
      Stock





The
      Company has authorized 20,000,000 shares of $.0001 par value preferred stock
      available for issuance. No shares of preferred stock have been issued as of
      January 31, 2008.





Private
      Placement and Warrant Activity





During
      the year ended October 31, 2007, the Company issued 2,094,503 shares of common
      stock in exchange for $87,512 of interest payable and 2,751,856 shares of common
      stock in exchange for $115,000 of principle related to the convertible
      debentures.





During
      the three months ended January 31, 2008, the Company issued 932,836 shares
      of
      common stock in exchange for $100,000 of debenture principle and 60,425 shares
      of common stock in exchange for $6,477 of accrued interest of $7,307 related
      to
      our debentures.





Stock
      issued for Services





During
      the year ended October 31, 2007, the Company issued 867,429 shares for services
      with 380,122 to directors for services rendered valued at $39,472, 75,000 shares
      to outside advisors valued at $17,250, 412,307 shares to our Chairman, Todd
      Pitcher for services rendered valued at $32,984 and 141,656 shares issued in
      November 2008 for which the Company accrued $19,832 for director compensation
      as
      of October 31, 2007 as reflected in out statement of shareholder’s equity
      bringing the total value of stock issued and to be issued to $109,538 during
      2007. Value for shares issued for services is based on fair market value of
      our
      stock on the date of issuance.





During
      the three months ended January 31, 2008, the Company accrued $17,979 to common
      stock payable for director services performed during the quarter and we
      anticipate the issuance of 138,303 shares of common stock during our second
      fiscal quarter.




16




*Common
      Stock Options*





During
      the year ended October 31, 2006, 111,667 options were canceled due to employee
      terminations, 376,250 options were exchanged for new options, 15,523,750 shares
      were granted and no options were exercised. The balance of options outstanding
      at the end of the year was 16,732,148. The Company granted 15,900,000 fully
      vested options to employees on October 30, 2006. Of the 15,900,000 grants,
      376,250 represent new shares issued in place of previously granted shares.
      The
      Company recognized $285,078 of compensation expense related to the 15,900,000
      grants and $83,551 for previously granted options bringing the total recognized
      option related compensation expense for the fiscal year ended October 31, 2006
      to $368,629.





During
      the year ended October 31, 2007, 490,000 options were exercised resulting in
      $24,500 to the company and the issuance of 490,000 shares of common stock.
      An
      additional 230,000 options were exercised on October 31, 2007 with the exercise
      price of $11,500 received and shares issued in November 2007. Also, during
      the
      year, the Company canceled 1,549,792 options (874,792 options due to employee
      terminations and 675,000 voluntary cancellations from upper
      management).





During
      the three months ended January 31, 2008, 630,000 shares of common stock were
      issued pursuant to option exercises (see Note K). No other option activity
      occurred.





NOTE
      J
      - WARRANTS





At
      January 31, 2008 the Company had 200,000 "A" Warrants and 965,997 warrants
      related to convertible debentures outstanding entitling the holder thereof
      the
      right to purchase one common share for each warrant held as
      follows:


ExerciseWarrant
              
              Number
                  of
              
              Price
                  Per
              
              ExpirationClass
              
              Warrants
              
              Warrant
              
              DateA
              
              
              200,000
              
              $
              0.60
              
              
              3/30/08Subtotal
              
              
              200,000Debenture
              
              
              735,370
              
              
              >or=to $0.30
              
              
              7/31/2010Debenture
              
              
              230,627
              
              
              >or=to $0.30
              
              
              8/17/2010Subtotal
              
              
              965,997Total
              
              
              1,165,997


During
      the year ended October 31, 2007, no warrants were issued or exercised and
      1,899,999 warrants expired.





During
      the three months ended January 31, 2008, there was no warrant
      activity.




17




NOTE
      K – STOCK INCENTIVE PLANS





*The
      2004 Incentive Stock Option Plan*





On
      April
      8, 2004, the Board of Directors of the Company adopted the 2004 Incentive Stock
      Option Plan. This Plan is a plan for key Employees (including officers and
      employee directors) and Consultants of the Company and its Affiliates and is
      intended to advance the best interests of the Company, its Affiliates, and
      its
      stockholders by providing those persons who have substantial responsibility
      for
      the management and growth of the Company and its Affiliates with additional
      incentives and an opportunity to obtain or increase their proprietary interest
      in the Company, thereby encouraging them to continue in the employ of the
      Company or any of its Affiliates.





The
      Company may issue each of the following under this Plan: Incentive Option,
      Nonqualified Option, Stock Appreciation Right, Restricted Stock Award or
      Performance Stock Award The Plan was effective April 9, 2004 (the "Effective
      Date"), provided that within one year of the Effective Date, the Plan shall
      have
      been approved by at least a majority vote of stockholders. No Incentive Option,
      Nonqualified Option, Stock Appreciation Right, Restricted Stock Award or
      Performance Stock Award shall be granted pursuant to the Plan ten years after
      the Effective Date.





During
      the year ended October 31, 2007, 490,000 options were exercised resulting in
      $24,500 to the company and the issuance of 490,000 shares of common stock.
      An
      additional 230,000 options were exercised on October 31, 2007 with the exercise
      price of $11,500 received and shares issued during the three months ended
      January 31, 2008. Also, during the year, the Company canceled 1,549,792 options
      (874,792 options due to employee terminations and 675,000 voluntary
      cancellations from upper management).





During
      the three months ended January 31, 2008, 630,000 shares of common stock were
      issued pursuant to option exercises. 230,000 of the exercises were recorded
      as
      common stock payable as of October 31, 2007 and 400,000 options were exercised
      in exchange for $20,000.





The
      following table summarizes the Company's stock option activity for the three
      months ended January 31, 2008:





2008Weighted AverageShares
            
            Exercise
                PriceOutstanding
                at beginning of year
            
            
            14,462,356
            
            $
            0.070Granted
            
            
            -
            
            
            -Forfeited
            
            
            -
            
            
            -Exercised
            
            
            (400,000
            )
            
            0.050Outstanding
                at end of quarter
            
            
            14,062,356
            
            $
            0.075Options
                exerciseable at quarter end
            
            
            14,062,356




18




The
      following table summarizes information about the Company's stock options
      outstanding at January 31, 2008:




Options
                Outstanding
            
            Options
                ExercisableNumber
            
            Weighted
            
            Weighted
            
            
            
            WeightedRange
                of
            
            Outstanding
            
            Average
            
            Average
            
            
            
            AverageExercise
            
            At
                January 31,
            
            Contractural
            
            Exercise
            
            Number
            
            ExercisePrices
            
            2008
            
            Life
                (years)
            
            Price
            
            Outstanding
            
            Price$
            0.50
            
            
            589,856
            
            
            -
            
            $
            0.500
            
            
            589,856
            
            $
            0.5000.65
            
            
            137,500
            
            
            -
            
            
            0.650
            
            
            137,500
            
            
            0.6500.05
            
            
            13,335,000
            
            
            -
            
            
            0.050
            
            
            13,335,000
            
            
            0.050Total
            
            
            14,062,356
            
            
            -
            
            $
            0.075
            
            
            14,062,356
            
            $
            0.075




The
      Company adopted Statement of Financial Accounting Standards No. 123 (revised
      2004), Share-Based Payment (“SFAS 123r”) as of the beginning of the first
      interim or annual reporting period that begins after December 15, 2005. Under
      SFAS 123r, the Company measures the fair market value of stock options granted
      using the Black-Scholes Option Pricing Model on the date of grant and recognizes
      related compensation expense ratably over the options vesting period for all
      future grants. The Company also estimates the amount of forfeitures or the
      amount of options that will be canceled in the future. During the three months
      ended January 31, 2008 and 2007, the Company recognized no compensation expense.
      The Company has recorded compensation expense of $767,017 through January 31,
      2008.





*2004
      Superclick, Inc. Non-Employee Director's Stock Incentive
      Plan*





On
      December 31, 2003, the Board of Directors of the Company adopted the 2004
      Superclick, Inc. Non-Employee Director's Stock Incentive Plan (the "Stock
      Incentive Plan"). The Stock Incentive Plan provides for the issuance of Options,
      Restricted Stock, and/or Deferred Stock to an Awardee. The total number of
      shares of Common Stock which may be awarded under the Plan is 1,500,000. If
      any
      awarded shares are forfeited, they become available for future issuance. An
      annual aggregate limit of 300,000 shares (including Options, Restricted Stock,
      and Deferred Stock) is set for any individual Director.





The
      Stock
      Incentive Plan has a duration of ten years commencing on January 1, 2004.
      Awardees are defined as director to whom an award is made. An eligible director
      is any person who on the date of grant is a member of the Board of Directors
      of
      the Company and is not an employee of the Company or of any Subsidiary. Stock
      Options are non-qualified right-to-buy Options for the purchase of Common Stock
      of the Company. The term of each Option shall be ten years from the Date of
      Grant. The Option Price shall be the Fair Market Value of Superclick, Inc.
      Common Stock on the date the Option is granted. Under no circumstances shall
      any
      Option vest in less than one year from the date of grant. Shares purchased
      upon
      exercise of an Option must be paid for in full at the time of exercise either
      in
      cash or with currently owned shares. Neither the Committee on Directors and
      Governance nor the Board of Directors may re-price any Option that is less
      than
      the option exercise price. Restricted Stock is Common Stock of the Company
      restricted as to sale in such fashion as the Committee on Directors and
      Governance shall determine. Prior to the lifting of the restrictions, the
      Awardee will be entitled to receive dividends from and to vote the shares of
      Restricted Stock.





During
      the year ended October 31, 2007, the Company issued 380,122 shares to directors
      for services rendered valued at $39,472 and accrued an additional $19,832 which
      141,656 shares of common stock were issued in November 2007. Value for shares
      issued for services is based on fair market value of our stock on the date
      of
      issuance.




19




During
      the three months ended January 31, 2008, the Company accrued $17,979 to common
      stock payable for director services performed during the quarter and we
      anticipate the issuance of 138,303 shares of common stock during our second
      fiscal quarter.





NOTEL –
      NET OPERATING LOSS CARRY FORWARD





In
      assessing the realizability of deferred tax assets, management considers whether
      it is more likely than not that some portion or all of the deferred tax assets
      will not be realized. The ultimate realization of deferred tax assets is
      dependent upon the generation of future taxable income during the periods in
      which those temporary differences become deductible. Management considers the
      scheduled reversal of deferred tax liabilities, projected future taxable income
      and tax planning strategies in making this assessment.





At
      October 31, 2006 a valuation allowance for the full amount of the net deferred
      tax asset was recorded because of uncertainties as to the amount of taxable
      income that would be generated in future years. The valuation allowance
      increased by approximately $312,500 for the year ended October 31, 2006,
      assuming a tax rate of 40%.





During
      the year ended October 31, 2007, our U.S. based operation had net income of
      approximately $233,500. Upon application of the subsidiary’s NOL the remaining
      NOL is $5,748,198. If the Company did not have an NOL carry forward taxes
      payable of approximately $93,400, based on a 40% tax rate, would have been
      payable as of October 31, 2007 to the United States and state taxing
      authorities.





United
                States Corporation Income TaxesYear
                of Loss
            
            Amount
            
            Expiration
                DateOctober
                31, 2006
            
            $
            781,183
            
            
            October
                31, 2026October
                31, 2005
            
            
            3,969,331
            
            
            October
                31, 2025October
                31, 2004
            
            
            898,697
            
            
            October
                31, 2024October
                31, 2003
            
            
            53,638
            
            
            October
                31, 2023December
                31, 2002
            
            
            45,349
            
            
            December
                31, 2022$
            5,748,198





The
      expiration dates for U.S. net operating losses (NOL) may be extendable under
      Section 381 of the U.S. Internal Revenue Code.





During
      the year ended October 31, 2007, our wholly owned Canadian subsidiary generated
      net income for tax purposes of $948,000. However, application of the
      subsidiary’s NOL resulted in zero tax liability as of October 31, 2007. If the
      Canadian subsidiary did not have an NOL carry forward approximately $320,000
      would have been payable to the Federal and Provincial authorities based on
      a
      combined tax rate of approximately 32%. The subsidiary’s Federal and Provincial
      NOL carry forward balances as of November 1, 2007 are as follows:




20




Canadian
                Income Taxes (Stated in CAD)Year
                of Loss
            
            Federal
            
            Provincial
            
            Expiration
                DateOctober
                31, 2006
            
            $
            221,790
            
            $
            312,532
            
            
            October
                31, 2025October
                31, 2005
            
            
            -
            
            
            43,125
            
            
            October
                31, 2014$
            221,790
            
            $
            355,657





The
      Company receives tax credits for research and development activities from
      Revenue Canada, as illustrated below. Deferred tax credits from Revenue Canada
      associated with its research and development activities were fully allowed
      for
      in the fiscal year ended October 31, 2006 and prior. Given the results of
      operations during the year ended October 31, 2007, the Company determined that
      it was more likely than not that the credits would be available for use, thus
      no
      valuation allowance was made for the year ended October 31, 2007. As a result,
      the Company has reflected approximately $74,025 USD in tax credits available
      for
      future use in its balance sheet.





(Amounts
                in Canadian Dollars)
            
            **October
                31, 2007**Deferred
                tax asset
            
            
            245,467Less:
                Valuation allowance
            
            
            (175,151
            )Net
                deferred tax asset
            
            
            70,316





In
      addition, the Company receives reimbursement of research and development
      activities from the Province of Quebec beyond the tax credits described above.
      As of January 31, 2008, the Company recognized approximately $40,822 USD as
      a
      receivable for those research and development activities.





NOTE
      M – RELATED PARTY TRANSACTION





Mr.
      Pitcher, Chairman of the Company’s Board of Directors, provides consulting
      services to the Company in exchange for monthly compensation of $5,000 and
      related expenses. During the three months ended January 31, 2008 and 2007,
      Mr.
      Pitcher received $17,386 and $8,150, respectively. In addition Mr. Pitcher
      was
      awarded 33,333 shares of common stock for his services as Chairman valued at
      $.13 per share.




Mrs.
      Papapicco, Director of Operations, is the spouse of Mr. Natale, Chief Executive
      Officer of the Company. Mrs. Papapicco earns an annual salary of $80,000
      Canadian dollars. During the three months ended January 31, 2008 and 2007,
      she
      received $17,231 and $nil in Canadian dollars, respectively or approximately
      $17,193 and $nil in United Stated dollars.





NOTE
      N – GOING CONCERN AND MANAGEMENT’S PLANS





The
      Company has an accumulated capital deficit and significant debt that raise
      substantial doubt about its ability to continue as a going concern. The
      Company’s continued existence is dependent upon its ability to increase
      operating revenues and/or raise additional equity capital sufficient to generate
      enough cash flow to finance operations in future periods. Management is
      currently in the process of seeking additional equity financing with potential
      investors. There can be no assurance that such additional financing will be
      obtained. The financial statements do not include any adjustments that might
      result from the outcome of this uncertainty.





NOTE
      O - SUBSEQUENT EVENTS





On
      February 14, 2008, the Company issued 138,303 shares of restricted common stock
      to our directors as payment for services performed during the three months
      ended
      January 31, 2008. As of January 31, 2008 the Company had recorded $17,979 to
      common stock payable for these shares, which were valued using the closing
      price
      of the stock on the date of issuance.




21


**Item
      2 - Management's Discussion and Analysis of Financial Condition and Results
      of
      Operations**





We
      derive
      the majority of our revenue from the installation of our Superclick Internet
      Access Management System (SIMS) and from revenue generated from our call center.
      Support fees are tied to the number of rooms serviced in a client’s property.
      Due to our reliance on installations, variations in revenue levels may cause
      fluctuations in quarterly results. Factors such as a client's commitment to
      providing internet access to their guests, general economic and industry
      conditions and other issues could affect our revenue and earnings.





In
      addition to our North American operations, we have installations and contracts
      in Europe and the Caribbean. With the exception of Canadian operations, the
      majority of transactions in other regions are denominated using the United
      States dollar. However, our operations are located in Canada and a significant
      amount of our transactions are in Canadian dollars; therefore, we are exposed
      to
      currency fluctuation risks.





We
      continue to develop our product offering and IP management solutions, listening
      carefully to our customers to determine development paths that most directly
      meet their needs.





Superclick
      offers turnkey installations to hospitality customers, making more cost
      effective and efficient for them to purchase our SIMS platform. Our plan is
      to
      strengthen our sales and marketing efforts in order to more effectively brand
      our technology and increase our market share, and we believe that these efforts
      will result in greatly increased company and product recognition.





In
      recognition of the growing trend for hoteliers to offer Internet services free
      of charge, and in anticipation of the potential scenario where the model of
      free
      Internet service is ubiquitous, we have developed our IP infrastructure
      management system to allow the customer to leverage their investment by
      promoting a growing suite of revenue generating IP services which are provided
      by our SIMS platform.




***Critical
      Accounting Policies***





The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States requires management to make estimates
      and assumptions that affect the amounts of assets, liabilities, revenues and
      expenses reported in the accompanying financial statements and related
      footnotes. We base our estimates and assumptions on historical experience,
      observance of industry trends and various other sources of information and
      factors. Actual results may differ from these estimates. Critical accounting
      policies are defined as those that are reflective of significant judgments
      and
      uncertainties, and potentially could result in materially different results
      under different assumptions and conditions. In consultation with our Board
      of
      Directors, we have identified six  accounting
      principles that we believe are key to an understanding of our financial
      statements. These important accounting policies require management's most
      difficult, subjective judgments.




22




***Revenue
      Recognition***





Revenue
      from the sale of Internet high speed connection equipment and installation
      is
      recognized when the earning process is complete and the risk and rewards of
      ownership have transferred to the customer, which is considered to have occurred
      after the delivery and installation of the equipment to the
      customer.





Maintenance
      and support revenue is recognized ratably over the maintenance term. First-year
      maintenance typically is sold with the related software license and renewed
      on
      an annual basis thereafter. Estimated fair values of ongoing maintenance and
      support obligations are based on separate sales of renewals to other customers
      or upon renewal rates quoted in the contracts. For such arrangements with
      multiple obligations, we allocate revenue to each component of the arrangement
      based on the estimated fair value of the undelivered elements. Fair value of
      services, such as consulting or training, is based upon separate sales of these
      services. At times, we may enter into multiple-customer contracts in which
      we
      allocate revenue based on the number of specified users at each customer, and
      recognizes revenue upon customer acceptance and satisfying the other applicable
      conditions of the above described accounting policy.





During
      the year ended October 31, 2007 we entered into a license agreement with
      Swisscom Hospitality Service Plus AG. We are recognizing the entire amount
      ratably over the 36 month period of the agreement.





***Accounts
      receivable***





Accounts
      receivable are reported at the customers' outstanding balances less any
      allowance for doubtful accounts. Interest is not accrued on overdue accounts
      receivable. We evaluate receivables outstanding greater than ninety days on
      a
      regular basis for potential reserve.





***Inventories***





Inventories
      are valued at the lower of cost or market. Cost is determined on a first-in,
      first-out method or market. Management performs periodic assessments to
      determine the existence of obsolete, slow moving and non-salable inventories,
      such as discontinued products, and records necessary provisions to reduce such
      inventories to net realizable value.





***Income
      taxes***





Provisions
      for income taxes are based on taxes payable or refundable for the current period
      and deferred taxes on temporary differences between the amount of taxable income
      and pretax financial income and between the tax bases of assets and liabilities
      and their reported amounts in the financial statements. Deferred tax assets
      and
      liabilities are included in the financial statements at currently enacted income
      tax rates applicable to the period in which the deferred tax assets and
      liabilities are expected to be realized or settled as prescribed in FASB
      Statement No. 109, Accounting for Income Taxes. As changes in tax laws or rates
      are enacted, deferred tax assets and liabilities are adjusted through the
      provision for income taxes. Valuation allowances are established when necessary
      to reduce deferred tax assets to the amount expected to be
      realized.




23




***Foreign
      Currency Translation***





The
      financial statements of our Canadian subsidiary are measured using the Canadian
      dollar as the functional currency. Assets, liabilities and equity accounts
      of
      the Company are translated at exchange rates as of the balance sheet date or
      historical acquisition date, depending on the nature of the account. Revenues
      and expenses are translated at average rates of exchange in effect during the
      period. The resulting cumulative translation adjustment has been recorded as
      a
      separate component of stockholders' equity and is also reflected in the
      statement of comprehensive income (loss). The financial statements are presented
      in United States dollars.





***Deferred
      Taxes***





In
      assessing the realizability of deferred tax assets, management considers whether
      it is more likely than not that some portion or all of the deferred tax assets
      will not be realized. The ultimate realization of deferred tax assets is
      dependent upon the generation of future taxable income during the periods in
      which those temporary differences become deductible. Management considers the
      scheduled reversal of deferred tax liabilities, projected future taxable income
      and tax planning strategies in making this assessment.





During
      the year ended October 31, 2007, our U.S. based operation had net income of
      approximately $233,500. Upon application of the subsidiary’s NOL the remaining
      NOL is $5,748,198. If the Company did not have an NOL carry forward taxes
      payable of approximately $93,400, based on a 40% tax rate, would have been
      payable as of October 31, 2007.





United
                States Corporation Income TaxesYear
                of Loss
            
            Amount
            
            Expiration
                DateOctober
                31, 2006
            
            $
            781,283
            
            
            October
                31, 2026October
                31, 2005
            
            
            3,969,331
            
            
            October
                31, 2025October
                31, 2004
            
            
            898,697
            
            
            October
                31, 2024October
                31, 2003
            
            
            53,638
            
            
            October
                31, 2023December
                31, 2002
            
            
            45,349
            
            
            December
                31, 2022$
            5,748,298





The
      expiration dates for U.S. net operating losses (NOL) may be extendable under
      Section 381 of the U.S. Internal Revenue Code.





During
      the year ended October 31, 2007, our wholly owned Canadian subsidiary generated
      net income for tax purposes of approximately $948,000 CDN (approximately
      $997,900 USD). However, application of the subsidiary’s NOL resulted in zero tax
      liability as of October 31, 2007. If the Canadian subsidiary did not have an
      NOL
      carry forward, approximately $320,000 would have been payable to the Federal
      and
      Provincial authorities based on a combined tax rate of approximately 32%. The
      subsidiary’s Federal and Provincial NOL carry forward balances as of November 1,
      2007 are as follows:




24




Canadian
                Income Taxes (Stated in CAD)Year
                of Loss
            
            Federal
            
            Provincial
            
            Expiration
                DateOctober
                31, 2006
            
            $
            221,790
            
            $
            312,532
            
            
            October
                31, 2025October
                31, 2005
            
            
            -
            
            
            43,125
            
            
            October
                31, 2014$
            221,790
            
            $
            355,657




The
      Company receives reimbursement of research and development activities from
      Revenue Canada beyond the tax credits described above. As of October 31, 2007,
      the Company has recognized approximately $70,000 as a receivable for those
      research and development activities.





(Amounts
                in Canadian Dollars)
            
            **October
                31, 2007**Deferred
                tax asset
            
            
            245,467Less:
                Valuation allowance
            
            
            (175,151
            )Net
                deferred tax asset
            
            
            70,316




**Overview**





**Results
      of Operations**





THREE
      MONTHS ENDED JANUARY 31, 2008 AND 2007





***Revenue***





Net
      Revenue for the three months ended January 31, 2008 and 2007 was $1,477,855
      and
      $761,635, respectively. Compared to the same period last year, the three month
      favorable variance was $686,220, or 90.1%. The variance consisted of increased
      activity in deployment of our solutions of $493,832 or 207.7% and an increase
      in
      support revenue of $192,388 or 36.7% due to a greater number of rooms under
      support.





***Gross
      Profit***





Gross
      profit for the three months ended January 31, 2008 and 2007 was $646,734 or
      44.7% and $370,992 or 48.7%, respectively. The three month year-over-year
      increase in gross profit of $275,742 or 74.3% was mainly due to the growth
      in
      revenue activities. The three month year-over-year unfavorable gross margin
      variance of 4% was mainly due to the difference in sales mix when compared
      to
      the previous year.





***Selling,
      General and Administrative***





Selling,
      General and Administrative expenses for the three months ended January 31,
      2008
      and 2007 were $375,607 or 25.9% of net revenue and $304,578 or 40.0% of net
      revenue, respectively. The three month year-over-year increase of $71,029 or
      23.3% was mainly due to increases in travel of approximately $8,600,
      professional fees of approximately $9,000 and differences in foreign exchange
      of
      approximately $49,100.





25




***Research
      and Development***





Research
      and development expenses for the three months ended January 31, 2008 and 2007
      were $45,315 or 3.1% of revenue and $37,684 or 4.9% of revenue, respectively.
      The three month year-over-year increase of $7,631 or 20.2% was mainly due to
      the
      unfavorable foreign exchange effect as a result of the stronger Canadian dollar
      compared to the United States dollar.





***Income
      from Operations***





Income
      from Operations for the three months ended January 31, 2008 was $208,776 or
      14.4% of net revenue, compared to $12,416 or 1.6% of net revenue, respectively.





***Other
      Income and Expenses***





Interest
      expense for the three months ended January 31, 2008 and 2007 was $47,880 and
      $82,637, respectively. The three month year-over-year decrease of 34,487 or
      41.9% reflects the decrease in the principle balance of our debenture from
      which
      interest expense is derived.




Interest
      income for the three months ended January 31, 2008 and 2007 was $4,752 and
      $8,578, respectively. Interest income represents interest earned on the
      investing of the Company’s cash balance. The three month year-over-year decrease
      is as a result of lower interest rates.





The
      derivative gain for the three months ended January 31, 2008 and 2007 was $12,700
      and ($98), respectively. The derivative gain (loss) represents the change in
      the
      fair market value of warrants issued in conjunction with our debentures which
      are recorded as liabilities.





Total
      other income and expenses for the three months ended January 31, 2008 and 2007
      was ($30,428) and ($73,887), respectively.





***Net*** **Income
      (Loss)**





The
      Net
      Income for the three months ended January 31, 2008 was $178,348 or 12.3% of
      revenue compared to a loss of ($61,471) or (8.1%) of revenue for the same period
      last year.





***Net
      Income (Loss) Per Common Share***





For
      the
      three months ended January 31, 2008 and 2007, net income per share was $0.004
      compared to a net loss per share of ($0.002), respectively. The fully diluted
      income per share for the current quarter was $0.002.





The
      basic
      and fully diluted weighted average shares for the current quarter was 42,255,740
      and 77,687,808, respectively. The basic weighted average shares for the quarter
      ended January 31, 2007 was 37,429,465.





26




**Financial
      Condition**





From
      inception to January 31, 2008, we incurred an accumulated deficit of $7,245,649.
      This loss has been incurred through a combination of professional fees and
      expenses supporting our plans to acquire synergistic businesses as well as
      continued operating losses. However, in 2007 and through the first three months
      of our fiscal year 2008 we experienced notable organic growth resulting in
      a
      larger customer base.





We
      have
      financed our operations since inception primarily through equity and debt
      financing. During the three months ended January 31, 2008, we had a net increase
      in cash of $36,705. Total cash resources as of January 31, 2008 was $826,296
      compared with $789,591 at October 31, 2007.





Our
      available working capital and capital requirements will depend upon numerous
      factors, including the deployment and sale of Internet access management
      solutions, the timing and cost of expanding into new markets, the cost of
      developing competitive technologies, changes in our existing collaborative
      and
      licensing relationships, the resources that we devote to developing new products
      and commercializing capabilities, the status of our competitors, our ability
      to
      establish collaborative arrangements with other organizations, and our ability
      to attract and retain key employees.





***The
      Company's Liquidity Plan***





Recent
      operating results have slightly alleviated concerns about our ability to
      generate cash flow from operations. Net income for the three months ended
      January 31, 2008 was $178,348 compared to a net loss of $61,471 for the three
      months ended January 31, 2007 and the operations provided $149,441 of cash
      versus $71,695 used for operations for the three months ended January 31, 2007.





During
      the three months ended January 31, 2008, the Company has financed operations
      solely with cash generated through sales and the collection of its accounts
      receivable.





The
      Hotel
      Net LLC notes matured on January 1, 2007. Four of the five notes were canceled
      and replaced with new notes that do not accrue interest and mature December
      31,
      2009. The remaining note is anticipated to be renegotiated in the near future.
      The new balance for notes payable at January 31, 2008 is $260,600.





During
      the three months ended January 31, 2008, we issued 993,261 shares of Common
      Stock in exchange for $106,477 of principle debt and accrued interest of our
      convertible debentures.





During
      the three months ended January 31, 2008, we accrued $17,979 for the future
      issuance of 138,303 shares of Common Stock in exchange for director
      services.




27







Our
      independent registered public accountants, Bedinger and Company, have indicated
      that our financial statements have been prepared assuming our company will
      continue as a going concern. However, Bedinger and Company has noted that our
      company has suffered past recurring losses from operations resulting in an
      accumulated deficit and significant debt that raise doubt about our ability
      to
      continue as a going concern.





Our
      need
      to raise additional equity or debt financing and our ability to generate cash
      flow from operations will depend on its future performance and our ability
      to
      successfully implement business and growth strategies. Our performance will
      also
      be affected by prevailing economic conditions. Many of these factors are beyond
      our control. If future cash flows and capital resources are insufficient to
      meet
      our commitments, we may be forced to reduce or delay activities and capital
      expenditures or obtain additional equity capital. In the event that we are
      unable to do so, we may be left without sufficient liquidity.





***Off-Balance
      Sheet Arrangements***





At
      January 31, 2008 we had no obligations that would qualify to be disclosed as
      off-balance sheet arrangements.





***Contractual
      Obligations***





*Equipment
      loan obligation:* Loan
      obligation relates to computer equipment used in our Montreal office. The loan
      term extends through September 28, 2009 at a rate of $1,575 per month.





At
      January 31, 2008, our equipment loan obligation is as follows:


2008
              
              $
              18,6642009
              
              $
              13,169$
              31,833




*Operating
      lease obligations:* Operating
      lease obligations consist of office rental commitment for our offices in
      Montréal, Québec, Canada. On October 1, 2004 we began a lease for office space
      in Montréal. The lease extends through September 30, 2009 at a rate of $5,669
      per month.





At
      January 31, 2008, our contractual obligations under this lease were as follows:


2008
              
              $
              51,2912009
              
              $
              68,388$
              119,679





***Inflation***





Although
      our operations are influenced by general economic conditions, we do not believe
      inflation had a material effect on the results of operations during the three
      months ended January 31, 2008. However, there can be no assurance our business
      will not be affected by inflation in the future.


28




**RISK
      FACTORS**





Interested
      persons should carefully consider the risks described below in evaluating the
      Company. Additional risks and uncertainties not presently known to us, or that
      we currently consider immaterial, may also impair our business operations.
      If
      any of the following risks actually occur, our business, financial condition
      or
      results of operations could be materially adversely affected. In that case,
      the
      trading price of our common stock would likely decline.





**Our
      continued operations will depend on whether we are able to raise additional
      funds through various potential sources, such as equity and debt financing,
      other collaborative agreements, strategic alliances, and our ability to realize
      the full potential of our technology.**





Such
      additional funds may not become available on acceptable terms and there can
      be
      no assurance that any additional funding that we obtain will be sufficient
      to
      meet our needs in the long term. Through October 31, 2007, a significant portion
      of our financing has been through private placements of common stock warrants
      and convertible debt. Unless our operations continue to generate significant
      revenues, we will continue to fund operations from cash on hand and through
      similar sources of capital previously described. We can give no assurances
      that
      any additional capital that we are able to obtain will be sufficient to meet
      our
      needs. Although the Company was profitable in fiscal 2007, the need for
      additional equity, debt financing or the entering into a strategic alliance
      may
      be required in order to sustain operations.





**We
      have very limited assets upon which to rely for adjusting to business variations
      and for growing new businesses.**


If
      we are
      to grow and expand our operations, we will need to raise significant amounts
      of
      additional capital. There can be no assurance that we will be successful in
      raising a sufficient amount of additional capital, or if we are successful,
      that
      we will be able to raise capital on reasonable terms. If we do raise additional
      capital, our existing shareholders may incur substantial and immediate
      dilution.





**Risks
      Related To Our Business:**





**Our
      revenue and operating results may fluctuate significantly from quarter to
      quarter, and fluctuations in operating results could cause its stock price
      to
      decline.**





Our
      revenue and operating results may vary significantly from quarter-to-quarter
      due
      to a number of factors. In future quarters, operating results may be below
      the
      expectations of public market analysis or investors, and the price of its common
      stock may decline. Factors that could cause quarterly fluctuations include:





§
            the
                beginning and ending of significant contracts during a quarter;


§
            the
                number, size and scope of the installation contracts;


§
            maintenance
                contracts can create variations in revenue levels and may cause
                fluctuations in quarterly results;


§
            fluctuations
                in demand for services resulting from budget cuts, project delays,
                cyclical downturns or similar events, including the recent economic
                downturn;


29


§
            the
                possibility and subsequent duration of conflicts involving the United
                States military could cause delays in program operations related
                to our
                hospitality clients by reducing travel;


§
            clients'
                decisions to divert resources to other projects, which may limit
                clients'
                resources that would otherwise be allocated to solutions that we
                provide;


§
            recessionary
                pressures in the United States may reduce the level of travel for
                business
                and leisure, which may, in turn limit our clients’ resources that would
                otherwise be allocated to solutions that we provide;


§
            reductions
                in the prices of services offered by competitors; and


§
            because
                a significant portion of expenses are relatively fixed, a variation
                in the
                number of installations or the timing of the initiation or the completion
                of client contracts may cause significant variations in operating
                results
                from quarter-to-quarter and could result in losses.




**Any
      inability to adequately retain or protect our employees, customer relationships
      and proprietary technology could harm our ability to compete.**





Our
      future success and ability to compete depends in part upon our employees,
      customer relationships, proprietary technology and trademarks, which we attempt
      to protect with a combination of patent, copyright, trademark and trade secret
      claims, as well as with our confidentiality procedures and contractual
      provisions. These legal protections afford only limited protection and are
      time-consuming and expensive to obtain and/or maintain. Further, despite our
      efforts, we may be unable to prevent third parties from soliciting our employees
      or customers or infringing upon or misappropriating our intellectual property.





Our
      employees, customer relationships and intellectual property may not be adequate
      to provide us with a competitive advantage or to prevent competitors from
      entering the markets for our products and services. Additionally, our
      competitors could independently develop non-infringing technologies that are
      competitive with, and equivalent or superior to, our technology. Monitoring
      infringement and/or misappropriation of intellectual property can be difficult,
      and there is no guarantee that we would detect any infringement or
      misappropriation of our proprietary rights.


Even
      if
      we do detect infringement or misappropriation of our proprietary rights,
      litigation to enforce these rights could cause us to divert financial and other
      resources away from our business operations. The departure of certain key
      personnel could harm the financial condition of the Company.





Sandro
      Natale, one of our founders and our current CEO, is intimately involved in
      our
      business and has day-to-day relationships with critical customers. Mr Natale
      is
      also critical to our product development.





We
      may
      not be able to afford additional staff to supplement these key personnel.
      Competition for highly skilled business, product development, technical and
      other personnel is intense, and there can be no assurance that we will be
      successful in recruiting new personnel or in retaining our existing personnel.
      A
      failure on our part to retain the services of key personnel could have a
      material adverse effect on our operating results and financial condition. We
      do
      not maintain key man life insurance on any of our employees.





**The
      market in which we compete is intensely competitive and actions by competitors
      could render our services less competitive, causing revenue and income to
      decline.**


30





The
      ability to compete depends on a number of factors outside of our control,
      including:





§
            the
                prices at which others offer competitive systems, including aggressive
                price competition and discounting on individual contracts, which
                may
                become increasingly prevalent due to worsening economic conditions;


§
            the
                ability of competitors to undertake more extensive marketing campaigns;


§
            the
                extent, if any, to which competitors develop proprietary offerings
                that
                improve their ability to compete;


§
            the
                ability of our customers to supply the solutions themselves; and


§
            the
                extent of competitors' responsiveness to customer needs.





We
      may
      not be able to compete effectively on these or other factors. If we are unable
      to compete effectively, market position, and therefore revenue and
      profitability, would decline.





**International
      business exposes our company to various foreign requirements, which could
      interfere with business or operations and could result in increased expenses
      and
      declining profitability.**





International
      operations create special risks, including:





§
            statutory
                requirements, which may impair our ability to expatriate foreign
                profits
                to help fund domestic operations;


§
            greater
                difficulties in managing and supplying turnkey installation at foreign
                locations;


§
            cultural
                differences that adversely affect utilization;


§
            unexpected
                changes in trading policies, legal and regulatory requirements, tariffs
                and other foreign taxes;


§
            greater
                difficulties in enforcing agreements with clients and collecting
                accounts
                receivable;


§
            the
                tax system of foreign countries, which may tax our foreign income
                at
                higher rates than in the United States and may subject foreign earnings
                to
                withholding requirements or tariffs, exchange controls or other
                restrictions;


§
            legal
                requirements and regulations of various foreign countries, which
                may make
                compliance by us with such laws and regulations difficult and may
                make
                enforcement of our intellectual property rights more difficult; and


§
            fluctuations
                in currency exchange rates, which may affect demand for our products
                and
                services and may adversely affect the profitability in United States
                dollars of services provided by us in foreign markets where payment
                for
                its products and services is made in the local currency; and general
                economic conditions in the foreign countries into which we sell,
                which
                could have an adverse impact on its earnings from operations in those
                countries.





**If
      we and/or our product offerings fail to perform effectively, our reputation,
      and
      therefore our competitive position and financial performance, could be
      harmed.**





Many
      of
      our new installation opportunities come from existing clients or from referrals
      by existing clients. Therefore, growth is dependent on our reputation and on
      client satisfaction. The failure to provide solutions or perform services that
      meet a client's expectations may damage our reputation and harm its ability
      to
      attract new business. Damage to our reputation arising from client
      dissatisfaction could therefore harm financial performance.


31





**The
      inability to protect intellectual property could harm our competitive position
      and financial performance.**





Despite
      efforts to protect proprietary rights from unauthorized use or disclosure,
      parties, including former employees or consultants, may attempt to disclose,
      obtain or use our solutions or technologies. The steps we have taken may not
      prevent misappropriation of solutions or technologies, particularly in foreign
      countries where laws or law enforcement practices may not protect proprietary
      rights as fully as in the United States. Unauthorized disclosure of proprietary
      information could make our solutions and technologies available to others and
      harm our competitive position.





**There
      are risks associated with our planned growth.**





We
      have
      very limited assets upon which to rely for adjusting to business variations
      and
      for growing new businesses. Should we look for new funding to assist in the
      acquisition of other profitable businesses, it is uncertain whether such funds
      will be available. If we are to grow and expand our operations, we will need
      to
      raise significant amounts of additional capital. There can be no assurance
      that
      we will be successful in raising a sufficient amount of additional capital,
      or
      if we are successful, that we will be able to raise capital on reasonable terms.
      If we do raise additional capital, our existing shareholders may incur
      substantial and immediate dilution.





**The
      sales cycle for our products is lengthy and unpredictable.**





The
      sales
      cycle between an initial customer contact and execution of a contract or license
      agreement with a customer, or purchase of our products, can vary widely.
      Initially, we must educate our customers about the potential applications and
      benefits association with our products. In addition, changes in our customers’
budgets, or the priority they assign to control network administration and
      development could also affect the sales cycle.





**We
      may be unable to promote and expand acceptance to our Media Distribution System
      (MDS) application.**





We
      have
      invested significant resources, time and manpower into the development and
      commercialization of our MDS application. We do not believe that there are
      any
      directly competitive offerings in the market and as such, we are faced with
      a
      challenge to educate our clients’ to the benefits of MDS. Additionally, we are
      faced with the challenge of developing an attractive advertising and marketing
      model that for marketing firms and advertisers that will support our sales
      efforts into the hospitality market. Our MDS application may not be successful
      or we may not be able to establish a viable commercial sales model that can
      scale, which would have a material adverse affect on our revenues, results
      of
      operations and financial condition as we increase our investment in its
      development and commitment to is commercialization.


32




**Due
      to our foreign client installations in Canada, the Caribbean and Europe, we
      are
      exposed to transaction adjustments with respect to foreign currency.**





Our
      functional currency is the United States dollar. However, our operating
      functional currency is the Canadian Dollar. Under United States dollar
      functional currency, the financial statements of foreign subsidiaries are
      re-measured from the recording currency to the United States dollar. The
      resulting re-measurement adjustment has
      been
      recorded as separate component of stockholder’s equity. We
      believe that operating under United States dollar functional currency, combined
      with transacting business in countries with traditionally stable currencies
      mitigates the effect of any near-term foreign currency transaction adjustments
      on our financial position, results of operations and cash flows.





We
      have
      not engaged in foreign currency hedging transactions nor do we have any
      derivative financial instruments. However, going forward, we will assess the
      need to enter into hedging transactions to limit its risk due to fluctuations
      in
      exchange rates.





**Risks
      Relating To Our Common Stock:**





**There
      is a limited market for our common stock.**





Our
      common stock is traded in the Over-the-Counter Bulletin Board market. This
      may
      cause delays in the timing of transactions, reductions in the number and quality
      of securities analysts' reporting on us, and the extent of our coverage in
      the
      media. Trading in our common stock has been sporadic, and at present, there
      is a
      limited market for it. There can be no assurance that a stronger market will
      develop. Even if such a market does develop, it may not be sustained.





**Shareholders
      may suffer dilution upon the exercise of outstanding options and warrants and
      the conversion of convertible notes.**




As
      of
      October 31, 2007, we had exercisable stock options outstanding to purchase
      14,462,356 shares of common stock, warrants to purchase 1,165,997 shares of
      common stock, and convertible debentures convertible in accordance with a
      formula based on the 45 day trailing average price of our common stock. To
      the extent such options or warrants are exercised and convertible notes are
      converted, there will be further dilution. In addition, in the event that any
      future financing should be in the form of securities convertible into, or
      exchangeable for, equity securities, investors may experience additional
      dilution upon the conversion or exchange of such securities.




**Future
      sales of our common stock by existing shareholders under Rule 144 could decrease
      the trading price of our common stock.**





As
      of
      January 31, 2008, a total of 10,572,493 shares of our outstanding common stock
      were "restricted securities" and could be sold in the public markets only in
      compliance with Rule 144 adopted under the Securities Act of 1933 or other
      applicable exemptions from registration. As of February 15, 2008, Rule 144
      was
      amended to provide that a person who is not affiliated with the issuer, holding
      restricted securities for a period of six months may thereafter sell those
      securities, if the issuer is current with its reporting requirements. Persons
      who are not affiliated with the issuer and who have held their restricted
      securities for at least one year are not subject to any limitations. Possible
      or
      actual sales of our common stock by present shareholders under Rule 144 could
      have a depressive effect on the price of our common stock.


33




**Our
      common stock is subject to "penny stock" rules.**





Our
      common stock is classified as a penny stock by the Securities and Exchange
      Commission. This classification severely and adversely affects the market
      liquidity for our common stock. The Commission has adopted Rule 15g-9, which
      establishes the definition of a "penny stock," for the purposes relevant to
      us,
      as any equity security that has a market price of less than $5.00 per share
      or
      with an exercise price of less than $5.00 per share, subject to certain
      exceptions. For any transaction involving a penny stock, unless exempt, the
      rules require: (i) that a broker or dealer approve a person's account for
      transactions in penny stocks; and (ii) the broker or dealer receive from the
      investor a written agreement to the transaction, setting forth the identity
      and
      quantity of the penny stock to be purchased. In order to approve a person's
      account for transactions in penny stocks, the broker or dealer must (i) obtain
      financial information and investment experience objectives of the person; and
      (ii) make a reasonable determination that the transactions in penny stocks
      are
      suitable for that person and the person has sufficient knowledge and experience
      in financial matters to be capable of evaluating the risks of transactions
      in
      penny stocks. The broker or dealer must also deliver, prior to any transaction
      in a penny stock, a disclosure schedule prepared by the Commission relating
      to
      the penny stock market, which, in highlight form, sets forth (i) the basis
      on
      which the broker or dealer made the suitability determination and (ii) that
      the
      broker or dealer received a signed, written agreement from the investor prior
      to
      the transaction. Disclosure also has to be made about the risks of investing
      in
      penny stocks in public offerings and secondary trading and about the commissions
      payable to the broker-dealer and registered representative, current quotations
      for the securities and the rights and remedies available to an investor in
      cases
      of fraud in penny stock transactions. Finally, monthly statements have to be
      sent disclosing recent price information for the penny stock held in the account
      and information on the limited market in penny stocks.


34


ITEM
      3.
      CONTROLS AND PROCEDURES





(a)  Evaluation
      of disclosure controls and procedures





As
      required by Rule 13a-15(b) under the Exchange Act, we conducted an evaluation,
      under the supervision and participation of our management, including the
      Company’s President and Chief Financial Officer (who is the principal accounting
      officer). No weaknesses were noted and both the President and Chief Financial
      Officer concluded that the disclosure controls and procedures were effective
      as
      of the most recent fiscal quarter covered by this Form 10-QSB.





(b)
             Changes in internal controls




In
      accordance with Item 308 (c) of Regulation S-B, there were no changes in the
      Company’s internal control reporting in connection with the Company’s evaluation
      of its internal controls that occurred during the most recent fiscal quarter
      covered by this Form 10-QSB.


35





Part
      II





ITEM
      4.
      Exhibits and Reports On Form 8-K





(A)
      Reports on Form 8-K





20.1
      The
      retirement of 1,445,000 options previously issued to certain employees and
      consultants to the Company as filed on Form 8-K with the Securities and Exchange
      Commission on November 7, 2007 and incorporated herein by reference.





20.2
      Non-reliance on previously issued financial statements as filed on Form 8-K
      with
      the Securities and Exchange Commission on December 28, 2007 and incorporated
      herein by reference.





(B)
      Exhibits





31.1
      Certificate of Chief Executive Officer pursuant to Rule 13a-14(a)
      and


Rule
      15d-14(a) of the Securities Exchange Act of 1934*





31.2
      Certificate of Chief Financial Officer pursuant to Rule 13a-14(a)
      and


Rule
      15d-14(a) of the Securities Exchange Act of 1934*





32.1
      Certificate of Chief Executive Officer pursuant to 18 U.S.C.
      Section


1350*





32.2
      Certificate of Chief Financial Officer pursuant to 18 U.S.C.
      Section


1350*





*
      Filed
      herewith.




ITEM
      5.
      Signatures





In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.





Date:
                February 19, 2008
            Superclick,
                Inc./s/
                Sandro NataleName:
                Sandro NataleTitle:
                President & CEO




36