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| Minnesota(State      or other jurisdiction of incorporation or organization)                  |   | 41-1596056(IRS      Employer Identification No.) |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                                          |   |                                             |
| 3245 Hennepin Ave S Suite 1,      Minneapolis MN(Address      of Principal Executive Offices) |   | 55408(Zip      Code)                             |

| Large      accelerated filer £                |   | Accelerated      filer £         |
|----------------------------------------------------|--------|---------------------------------------|
| Non-accelerated      filer   £ |   | Smaller      reporting company £ |

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INDEX

|                                                                                                               |   | Page      Number |
|--------------------------------------------------------------------------------------------------------------------|--------|------------------|
| PART      I - FINANCIAL INFORMATION                                                                                |   |             |
|                                                                                                               |   |             |
| ITEM      1. FINANCIAL STATEMENTS                                                                                  |   |             |
|                                                                                                               |   |             |
| Balance Sheets as of June 30, 2008 (unaudited)and December 31,      2007 (audited)                                 |   | 3                |
|                                                                                                               |   |             |
| Statements of Operations for the Three and Six Months Ended      June 30, 2008 and June 30, 2007 (unaudited)       |   | 4                |
|                                                                                                               |   |             |
| Statements of Cash Flows for the Six Months Ended June 30,      2008 and June 30, 2007 (unaudited)                 |   | 5                |
|                                                                                                               |   |             |
| Notes to the Financial Statements                                                                                  |   | 6                |
|                                                                                                               |   |             |
| ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND      RESULTS OF OPERATIONS |   | 6                |
|                                                                                                               |   |             |
| ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK                                       |   | 9                |
|                                                                                                               |   |             |
| ITEM      4. CONTROLS AND PROCEDURES                                                                               |   | 9                |
|                                                                                                               |   |             |
| ITEM      4T. CONTROLS AND PROCEDURES                                                                              |   | 9                |
|                                                                                                               |   |             |
| PART      II – OTHER INFORMATION                                                                             |   | 9                |
|                                                                                                               |   |             |
| ITEM      1. LEGAL PROCEEDINGS                                                                                     |   | 10               |
|                                                                                                               |   |             |
| ITEM      2. CHANGE IN SECURITIES AND USE OF    PROCEEDS                                                           |   | 10               |
|                                                                                                               |   |             |
| ITEM      3. DEFAULTS UPON SENIOR SECURITIES                                                                       |   |        10   |
|                                                                                                               |   |             |
| ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS                                              |   |        10   |
|                                                                                                               |   |             |
| ITEM      5. OTHER INFORMATION                                                                                     |   |        11   |
|                                                                                                               |   |             |
| ITEM      6.  EXHIBITS AND REPORTS ON FORM      8-K                                                      |   |        11   |
|                                                                                                               |   |             |
| CERTIFICATION      PURSUANT TO SECTION 06 OF THE SARBANES-OXLEY ACT OF 2002                                        |   |             |
|                                                                                                               |   |             |
| CERTIFICATIONS                                                                                                     |   | 11               |
| SIGNATURES                                                                                                         |   |        12   |

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Index

SUBJEX 

|                                                                                                                                                                                            |   | June      30, |       |   | December      31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                                                                                                                                                            |   | 2008          |       |   | 2007              |   |
|                                                                                                                                                                                            |   | (Unaudited)   |       |   | (Audited)         |   |
| ASSETS                                                                                                                                                                                          |   |          |       |   |              |   |
| Current      Assets:                                                                                                                                                                            |   |          |       |   |              |   |
| Cash                                                                                                                                                                                            |   | $             | 7,107      |   |              | $      | 15,217 |   |
| Accounts      receivable                                                                                                                                                                        |   |          | 1,517      |   |              |   | 1,517 |   |
| Prepaid      expenses                                                                                                                                                                           |   |          | 18,750     |   |              |   | 37,500 |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Total      current assets                                                                                                                                                                       |   |          | 27,374     |   |              |   | 54,234 |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Property      and equipment, net                                                                                                                                                                |   |          | 1,792      |   |              |   | 5,017 |   |
| Other      assets, net                                                                                                                                                                          |   |          | 3,611      |   |              |   | 3,611 |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Total      assets                                                                                                                                                                               |   | $             | 32,777     |   |              | $      | 62,862 |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' DEFICIT                                                                                                                                                      |   |          |       |   |              |   |   |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Current      Liabilities:                                                                                                                                                                       |   |          |       |   |              |   |   |   |
| Short-term      notes payable                                                                                                                                                                   |   |          | 25,907     |   |              |   | 27,177 |   |
| Subordinated      convertible notes payable                                                                                                                                                     |   |          | 23,000     |   |              |   | 23,000 |   |
| Accounts      payable                                                                                                                                                                           |   |          | 157,662    |   |              |   | 160,632 |   |
| Accrued      expenses:                                                                                                                                                                          |   |          |       |   |              |   |   |   |
| Accrued      expenses-related party                                                                                                                                                             |   |          | 9,082      |   |              |   | 31,006 |   |
| Payroll      and payroll taxes                                                                                                                                                                  |   |          | 34,054     |   |              |   | 13,383 |   |
| Interest                                                                                                                                                                                        |   |          | 24,186     |   |              |   | 23,052 |   |
| Accrued      expenses                                                                                                                                                                           |   |          | 4,160      |   |              |   | 3,633 |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Total      current liabilities                                                                                                                                                                  |   |          | 278,051    |   |              |   | 281,883 |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Long-term      debt:                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Long-term      debt, less current portion                                                                                                                                                       |   |          | -          |   |              |   | - |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Total      liabilities                                                                                                                                                                          |   |          | 278,051    |   |              |   | 281,883 |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Stockholders'      deficit:                                                                                                                                                                     |   |          |       |   |              |   |   |   |
| Common      stock, no par or stated value;100,000,000 shares authorized: 96,351,834      and 85,434,166 shares issued and outstanding at June 30, 2008 and December      31, 2007, respectively |   |          | 6,570,208  |   |              |   | 6,462,408 |   |
| Subscription      received                                                                                                                                                                      |   |          | 5,000      |   |              |   | 10,000 |   |
| Accumulated      deficit                                                                                                                                                                        |   |          | (6,820,482 | )      |              |   | (6,691,429 | ) |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Stockholders'      deficit                                                                                                                                                                      |   |          | (245,274   | )      |              |   | (219,021 | ) |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
|                                                                                                                                                                                            |   |          |       |   |              |   |   |   |
| Total      liabilities and stockholders’ deficit                                                                                                                                          |   | $             | 32,777     |   |              | $      | 62,862 |   |

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Index

SUBJEX 

|                                                                |   | Three      Months Ended June 30, |       |   | Six      Months Ended June 30, |   |
|---------------------------------------------------------------------|--------|----------------------------------|------------|--------|--------------------------------|--------|
|                                                                |   | 2008                             |       |   | 2007                           |   |   | 2008 |   |   | 2007 |   |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |
| Revenues                                                            |   | $                                | -          |   |                           | $      | 40,746 |   |   | $ | - |   |   | $ | 81,120 |   |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                           |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative                            |   |                             | 59,000     |   |                           |   | 450,153 |   |   |   | 126,886 |   |   |   | 668,607 |   |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating expense                                        |   |                             | 59,000     |   |                           |   | 450,153 |   |   |   | 126,886 |   |   |   | 668,607 |   |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Operating      loss                                                 |   |                             | (59,000    | )      |                           |   | (409,407 | ) |   |   | (126,886 | ) |   |   | (587,487 | ) |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Other      income (expense)                                         |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                               |   |                             | (687       | )      |                           |   | (2,952 | ) |   |   | (2,166 | ) |   |   | (2,952 | ) |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                       |   | $                                | (59,687    | )      |                           | $      | (412,359 | ) |   | $ | (129,052 | ) |   | $ | (590,439 | ) |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss per basic and diluted common share                    |   | $                                | (0.001     | )      |                           | $      | (0.001 | ) |   | $ | (0.001 | ) |   | $ | (0.001 | ) |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average common shares outstanding - basic and diluted |   |                             | 96,351,834 |   |                           |   | 68,394,711 |   |   |   | 96,351,834 |   |   |   | 69,834,411 |   |

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Index

STATEMENTS 

|                                                                                        |   | Six      Months Ended June 30, |     |
|---------------------------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                                        |   | 2008                           |     |   | 2007 |   |
|                                                                                        |   |                           |     |   |   |   |
| Cash      flow from operating activities:                                                   |   |                           |     |   |   |   |
| Net      loss                                                                               |   | $                              | (129,052 | ) |   | $ | (590,440 | ) |
| Adjustments      to reconcile net loss to net cash flows used in operating      activities: |   |                           |     |   |   |   |   |   |
| Depreciation      and amortization                                                          |   |                           | 3,225    |   |   |   | 5,537 |   |
| Non      cash common stock issued for consulting services                                   |   |                           | 17,800   |   |   |   | 230,349 |   |
| Changes      in operating assets and liabilities:                                           |   |                           |     |   |   |   |   |   |
| Accounts      receivable                                                                    |   |                           | -        |   |   |   | (38,596 | ) |
| Prepaid      expenses                                                                       |   |                           | 18,750   |   |   |   | (39,355 | ) |
| Accounts      payable                                                                       |   |                           | (2,970   | ) |   |   | 13,397 |   |
| Payroll      and payroll taxes                                                              |   |                           | 20,671   |   |   |   | 2,251 |   |
| Refunds      payable                                                                        |   |                           | -        |   |   |   | (82,000 | ) |
| Advances                                                                                    |   |                           | -        |   |   |   | (22,778 | ) |
| Accrued      interest                                                                       |   |                           | 1,134    |   |   |   | 1,437 |   |
| Accrued      expenses-related party                                                         |   |                           | (22,668  | ) |   |   | 65,912 |   |
|                                                                                        |   |                           |     |   |   |   |   |   |
| Net      cash used in operating activities                                                  |   |                           | (93,110  | ) |   |   | (454,286 | ) |
|                                                                                        |   |                           |     |   |   |   |   |   |
|                                                                                        |   |                           |     |   |   |   |   |   |
| Cash      flow from investing activities:                                                   |   |                           |     |   |   |   |   |   |
| Purchase      of property and equipment                                                     |   |                           | -        |   |   |   | (17,083 | ) |
|                                                                                        |   |                           |     |   |   |   |   |   |
| Net      cash used in investing activities                                                  |   |                           | -        |   |   |   | (17,083 | ) |
|                                                                                        |   |                           |     |   |   |   |   |   |
|                                                                                        |   |                           |     |   |   |   |   |   |
| Cash      flow from financing activities:                                                   |   |                           |     |   |   |   |   |   |
| Proceeds      from issuance of capital stock                                                |   |                           | 90,000   |   |   |   | 355,750 |   |
| Proceeds      from stock subscriptions                                                      |   |                           | (5,000   | ) |   |   | 20,000 |   |
|                                                                                        |   |                           |     |   |   |   |   |   |
| Net      cash provided by financing activities                                              |   |                           | 85,000   |   |   |   | 375,750 |   |
|                                                                                        |   |                           |     |   |   |   |   |   |
|                                                                                        |   |                           |     |   |   |   |   |   |
| Decrease      in cash                                                                       |   |                           | (8,110   | ) |   |   | (95,619 | ) |
| Cash      at beginning of period                                                            |   |                           | 15,217   |   |   |   | 96,835 |   |
|                                                                                        |   |                           |     |   |   |   |   |   |
| Cash      at end of period                                                                  |   | $                              | 7,107    |   |   | $ | 1,216 |   |

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Index

Notes 

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SIGNATURES

| NAME                               |   | TITLE                                      |
|------------------------------------|--------|--------------------------------------------|
| /s/      Andrew D. Hyder |   | President      and Chief Executive Officer |

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