UNITED
        STATES
 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 November 30, 2007
  
  ̈
        TRANSITIONAL REPORT
        UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE
        REQUIRED)
 
 For
        the
        transitional period from ______ to ______
 
 
 Commission
        File No. 0-32923
 
 
 
 (Exact
        Name of Small Business Issuer in its Charter)
 
 
 NEVADA
              
              33-0198542(State
                  or other jurisdiction of incorporation of organization)
              
              (I.R.S.
                  Employer Identification Number)
 
 
 2355
        Main Street, Suite 120, Irvine, CA 92614
 (Address
        of principal executive office)
 
 
 (949)
        486-3990
 (Issuer's
        telephone number)
 
 
 Check
        whether the issuer has (1) filed all reports required by Section 12 or 5(d)
        of
        the Exchange Act during the past 12 months, and (2) been subject to such
        filing
        requirements for the past ninety (90) days. Yesx   No
         ̈
  As
        of
        January 8, 2008, the Company had 39,517,590 shares of Common Stock issued
        and
        outstanding.
 
  
  FINANCIAL
        MEDIA GROUP, INC.
 
 TABLE
        OF CONTENTS
 
 Report
        on
        Form 10-QSB
 for
        the
        quarter ended November 30, 2007
 
 PagePART
                  I FINANCIAL INFORMATIONItem
                  1. Financial StatementsConsolidated
                  Balance Sheet at November 30, 2007 (Unaudited)
              3Consolidated
                  Statements of Operations for the Three Month Periods ended November
                  30,
                  2007 and 2006 (Unaudited)
              4Consolidated
                  Statements of Cash Flows for the Three Month Periods ended November
                  30,
                  2007 and 2006 (Unaudited)
              5Notes
                  to the Consolidated Financial Statements (Unaudited)
              6
–
                  14Item
                  2. Management's Discussion and Analysis of Financial Condition
                  and Results
                  of Operations
              15Item
                  3. Controls and Procedures
              19PART
                  II OTHER INFORMATIONItem
                  1. Legal Proceedings
              19Item
                  2. Changes in Securities
              19Item
                  3. Defaults upon Senior Securities
              19Item
                  4. Submission of Matters to Vote of Security Holders
              19Item
                  5. Other Information
              19Item
                  6. Exhibits and Reports on Form 8-K
              19Signatures
                  and Certifications
              20
 
  -
            2
            -
  PART
        I
 
 Item
        1. Consolidated Financial Statements
  FINANCIAL
        MEDIA GROUP, INC. AND SUBSIDIARIES
 CONSOLIDATED
        BALANCE SHEET
 NOVEMBER
        30, 2007
 (UNAUDITED)
 
 ASSETSCURRENT
                  ASSETS:Cash
                  & cash equivalents
              
              $
              161,348Accounts
                  receivable, net
              
              
              52,304Marketable
                  securities
              
              
              2,956,965Other
                  current assets
              
              
              267,596Total
                  current assets
              
              
              3,438,213PROPERTY
                  & EQUIPMENT, Net
              
              
              86,097DEPOSIT
              
              
              26,521Total
                  assets
              
              $
              3,550,831LIABILITIES
                  AND STOCKHOLDERS' DEFICITCURRENT
                  LIABILITIES:Accounts
                  payable
              
              $
              399,958Accrued
                  expenses
              
              
              1,312,302Deferred
                  revenue
              
              
              1,490,446Due
                  to officers
              
              
              706,070Notes
                  payable
              
              
              100,000Shares
                  to be issued
              
              
              50,000Current
                  portion of note payable - officer
              
              
              7,500Total
                  current liabilities
              
              
              4,066,277Long
                  term debt – officer
              
              
              3,000,000Commitment
                  & contingencies
              
              
              --STOCKHOLDERS'
                  DEFICIT:Common
                  stock, $0.001 par value, 300,000,000 shares authorized, 38,633,987
                  shares
                  issued and outstanding
              
              
              38,634Paid
                  in capital
              
              
              6,583,222Unrealized
                  gain on marketable securities
              
              
              166,195Accumulated
                  deficit
              
              
              (10,303,497
              )Total
                  stockholders' deficit
              
              
              (3,515,446
              )Total
                  liabilities and stockholders' deficit
              
              $
              3,550,831
 
  The
        accompanying notes are an integral part of these unaudited consolidated
        financial statements.
 
  -
            3
            -
  FINANCIAL
        MEDIA GROUP, INC. AND SUBSIDIARIES
 CONSOLIDATED
        STATEMENTS OF OPERATIONS
 NOVEMBER
        30, 2007
 (UNAUDITED)
 
 For
                  the three month periods endedNovember
                  30,2007
              
              
              2006Net
                  revenues
              
              $
              1,878,893
              
              
              $
              1,641,225Operating
                  expensesSelling,
                  general & administrative
              
              
              1,583,629
              
              
              
              1,274,910Depreciation
              
              
              10,616
              
              
              
              8,826Impairments
              
              
              861,903
              
              
              
              1,103,020Total
                  operating expenses
              
              
              2,456,148
              
              
              
              2,386,756Loss
                  from operations
              
              
              (577,255
              )
              
              
              (745,529
              )Non-Operating
                  Income (Expense):Interest
                  expense
              
              
              (47,540
              )
              
              
              (49,070
              )Loss
                  on sale of marketable securities
              
              
              (1,725
              )
              
              
              (64,681
              )Total
                  non-operating expense
              
              
              (49,265
              )
              
              
              (113,751
              )Loss
                  from operations before income taxes
              
              
              (626,519
              )
              
              
              (859,281
              )Provision
                  for income tax
              
              
              4,800
              
              
              
              12,524Net
                  Loss
              
              
              (631,319
              )
              
              
              (871,805
              )Other
                  comprehensive gain (loss):Unrealized
                  (loss) gain on marketable securities
              
              
              (63,523
              )
              
              
              730,942Reclassification
                  Adjustment
              
              
              (25,203
              )
              
              
              106,468Comprehensive
                  gain (loss)
              
              $
              (720,045
              )
              
              $
              (34,395
              )Basic
                  & diluted net loss per share
              
              $
              (0.02
              )
              
              $
              (0.03
              )Weighted
                  average shares of share capital outstanding  - basic &
                  diluted
              
              
              35,052,538
              
              
              
              25,854,728
 
  The
        accompanying notes are an integral part of these unaudited consolidated
        financial statements.
 
  -
            4
            -
  FINANCIAL
        MEDIA GROUP, INC. AND SUBSIDIARIES
 CONSOLIDATED
        STATEMENT OF CASH FLOWS
 NOVEMBER
        30, 2007
 (UNAUDITED)
 
 For
                  the three month periods endedNovember
                  30,2007
              
              
              2006CASH
                  FLOWS FROM OPERATING ACTIVITIES:Net loss
              
              $
              (631,319
              )
              
              $
              (871,805
              )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Bad debts
              
              
              35,215
              
              
              
              25,475Depreciation and amortization
              
              
              10,616
              
              
              
              8,826Revenues in form of marketable securities
              
              
              (1,312,153
              )
              
              
              (1,488,861
              )Impairment of marketable securities
              
              
              861,903
              
              
              
              1,103,020Loss on sale of marketable securities
              
              
              1,725
              
              
              
              64,681Issuance of warrants for services
              
              
              13,674
              
              
              
              -(Increase)
                  decrease in current assets:Receivables
              
              
              (17,335
              )
              
              
              (5,188
              )Other
                  current assets
              
              
              (200,185
              )
              
              
              -Advances
                  from third party
              
              
              -
              
              
              
              (8,810
              )Increase
                  (decrease) in current liabilities:Accounts
                  payable
              
              
              73,417
              
              
              
              46,349Accrued
                  expenses and other liabilities
              
              
              194,329
              
              
              
              134,928Deferred
                  Revenue
              
              
              (200,586
              )
              
              
              -Net
                  cash used in operating activities
              
              
              (1,170,699
              )
              
              
              (991,386
              )CASH
                  FLOWS FROM INVESTING ACTIVITIES:Acquisition of property & equipment
              
              
              (17,976
              )
              
              
              (9,760
              )Cash received from sale marketable securities
              
              
              537,750
              
              
              
              204,940Net
                  cash provided by investing activities
              
              
              519,773
              
              
              
              195,180CASH
                  FLOWS FROM FINANCING ACTIVITIES:Cash receipts from loans payable
              
              
              -
              
              
              
              83,400Proceeds from loan from related parties
              
              
              -
              
              
              
              187,000Proceeds from sale of common stock
              
              
              640,261
              
              
              
              493,500Net
                  cash provided by financing activities
              
              
              640,261
              
              
              
              763,900NET
                  DECREASE IN CASH & CASH EQUIVALENTS
              
              
              (10,665
              )
              
              
              (32,304
              )CASH
                  & CASH EQUIVALENTS, BEGINNING BALANCE
              
              
              172,013
              
              
              
              56,830CASH
                  & CASH EQUIVALENTS, ENDING BALANCE
              
              $
              161,348
              
              
              $
              24,526
 
 
 The
        accompanying notes are an integral part of these unaudited consolidated
        financial statements.
 
  -
            5
            -
  FINANCIAL
        MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 
 NOTE
        1    NATURE
        OF BUSINESS AND BASIS
        OF PRESENTATION
 
 Financial
        Media Group, Inc. (the “Company,” "We," or "FMG") is a full service financial
        media company focused on applications that enables the retail investment
        and
        financial communities to collaborate directly with publicly traded companies.
        The Company provides Internet based media and advertising services through
        its
        financial website and the Company’s newspaper “WallSt.net Digest.” The Company
        provides full array of customized investor awareness programs such as audio
        and
        video of senior management interviews, press releases, newsletter and
        editorials, small cap conferences and seminars, email mailings and
        forums.
 
 WallStreet
        Direct, Inc. (“WallStreet”), a wholly-owned subsidiary of Financial Media Group,
        Inc. was incorporated in the State of Nevada on January 5, 2005 as a financial
        holding company specializing as a provider of financial news, tools and content
        for the global investment community. On January 15, 2005, WallStreet acquired
        100% of the assets and outstanding shares of Digital WallStreet, Inc. which
        was
        100% owned by the majority shareholder (86%) of the Company, in exchange
        for two
        promissory notes of $1,500,000 each, carrying interest at 6% per annum, due
        and
        payable on January 31, 2007 and January 31, 2010. As this merger is between
        entities under the common control, the issuance of the promissory notes to
        the
        majority shareholder has been recorded as a distribution to the majority
        shareholder. The merger has been accounted for on historical cost
        basis.
 
 Digital
        WallStreet, Inc. was incorporated in Nevada on June 12, 2002, and commenced
        its
        operations during the first quarter of 2003. WallStreet is a full service
        financial media company focused on applications that enables the retail
        investors and financial communities to collaborate directly with publicly
        traded
        companies. The company provides internet based media and advertising services
        through its financial website “Wallst.net” and the through its business
        newspaper “WallSt.net Digest.”
 
 On
        January 6, 2006, Financial Media Group, Inc. acquired 100% of the equity
        in
        WallStreet pursuant to an Agreement and Plan of Reorganization dated September
        19, 2005 by and between WallStreet and the Company. Financial Media Group,
        Inc.,
        formerly known as Giant Jr. Investments Corp., was incorporated in Nevada
        in
        1984 as Business Development Company, Inc. Pursuant to the acquisition of
        WallStreet, it became the wholly owned subsidiary of Financial Media Group,
        Inc.
        The former shareholders of WallStreet received 19,998,707 shares or 82% of
        the
        issued and outstanding shares of the Company’s common stock in exchange for all
        the issued and outstanding shares of WallStreet.
 
 The
        acquisition of WallStreet is accounted for as a reverse acquisition under
        the
        purchase method of accounting since the shareholders of WallStreet obtained
        control of the consolidated entity. Accordingly, the reorganization of the
        two companies is recorded as a recapitalization of WallStreet, with WallStreet
        being treated as the continuing operating entity. The historical financial
        statements presented herein will be those of WallStreet. The continuing entity
        retained August 31 as its fiscal year end.
 
 On
        February 10, 2006, Financial Media Group, Inc. established a 100% wholly
        owned
        subsidiary Financial Filings Corp. This business unit focuses on providing
        edgarization and newswire services to small and mid-sized public companies.
        These compliance services provide formatting of pertinent SEC filings and
        distribution of news in more than 30 languages to media outlets in more than
        135
        countries.
 
 On
        June
        13, 2006, Financial Media Group, Inc. established another wholly owned
        subsidiary MyWallStreet, Inc. MyWallStreet, Inc. is presently in the development
        stage and will offer a social networking platform that allows members to
        collaborate with one another, build personalized web-pages, exchange ideas,
        access financial content, and build social networks comprised of other
        members, targeted to the financial community.
 
 In
        January 2007, the Company acquired the trade name “The Wealth Expo” and formed a
        wholly owned subsidiary The Wealth Expo Inc. on June 12, 2007. The Wealth
        Expo
        provides a broad range of information on investing techniques, and tools
        to
        investors through workshops and exhibits held throughout the United
        States.
 
 NOTE
        2     SUMMARY
        OF SIGNIFICANT
        ACCOUNTING POLICIES
 
 Basis
        of Presentation
 
 The
        accompanying unaudited consolidated financial statements have been prepared
        in
        accordance with the rules and regulations of the Securities and Exchange
        Commission for the presentation of interim financial information, but do
        not
        include all the information and footnotes required by generally accepted
        accounting principles for complete financial statements. The audited financial
        statements for the year ended August 31, 2007 were filed on December 7, 2007
        with the Securities and Exchange Commission and is hereby incorporated by
        reference. In the opinion of management, all adjustments considered necessary
        for a fair presentation have been included. Operating results for the three
        months period ended November 30, 2007 are not necessarily indicative of the
        results that may be expected for the year ended August 31, 2008.
 
 Principles
        of Consolidation
 
 The
        consolidated financial statements include the accounts of the Company, its
        wholly-owned subsidiaries WallStreet Direct, Inc., Digital Wall Street, Inc.,
        Financial Filings, Corp., My WallStreet, Inc. and Wealth Expo Inc. All
        significant inter-company accounts and transactions have been
        eliminated.
 -
              6
              -
  FINANCIAL
          MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 Use
        of Estimates
 
 In
        preparation of financial statements in conformity with generally accepted
        accounting principles management is required to make estimates and assumptions
        that affect the reported amounts of assets and liabilities and the disclosure
        of
        contingent assets and liabilities at the date of the financial statements
        and
        revenues and expenses during the reported period. Actual results could differ
        from those estimates.
 
 Marketable
        Securities
 
 The
        Company’s investments in securities are classified as available-for-sale and, as
        such, are carried at fair value based on quoted market prices. Securities
        classified as available-for-sale may be sold in response to changes in interest
        rates, liquidity needs, and for other purposes.
 
 Unrealized
        holding gains and losses for available-for-sale securities are excluded from
        earnings and reported as a separate component of stockholder’s equity. Realized
        and unrealized gains and losses for securities classified as available-for-sale
        are included in the statement of operations and comprehensive gain,
        respectively. On November 30, 2007, marketable securities have been recorded
        at
        $2,956,965 based upon the fair value of the marketable securities.
 
 Revenue
        Recognition
 
 The
        Company generates its revenues from awareness products and advertising
        promotions related to marketing public companies and professional investment
        concerns. This is facilitated through the Company’s financial website,
        investment conferences and printing of publications and newspaper.
 
 All
        sources of revenue are recorded pursuant to Staff Accounting Bulletin (SAB)
        104
        Revenue Recognition, when persuasive evidence of arrangement exists, delivery
        of
        services has occurred, the fee is fixed or determinable and collectibility
        is
        reasonable assured.
 
 The
        Company recognizes revenue on marketable securities and cash received for
        services which is to be provided in future periods, on a pro-rata basis over
        the
        term of the agreement. Payments received in advance of services provided
        are
        recorded as deferred revenue.
 
 Fair
        Value of Financial Instruments
 
 Statement
        of financial accounting standard No. 107, Disclosures about fair value of
        financial instruments, requires that the Company disclose estimated fair
        values
        of financial instruments. The carrying amounts reported in the statements
        of
        financial position for assets and liabilities qualifying, as financial
        instruments are a reasonable estimate of fair value.
 
 Reporting
        Segments
 
 Statement
        of financial accounting standards No. 131, Disclosures about segments of
        an
        enterprise and related information (SFAS No. 131), which superseded statement
        of
        financial accounting standards No. 14, Financial reporting for segments of
        a
        business enterprise, establishes standards for the way that public enterprises
        report information about operating segments in annual financial statements.
        The
        Company has determined it has only one segment.
 
 Stock-Based
        Compensation
 
 The
        Company adopted SFAS No. 123 (Revised 2004), Share Based Payment(“SFAS
        No. 123R”), under the modified-prospective transition method on January 1, 2006.
        SFAS No. 123R requires companies to measure and recognize the cost of
        employee services received in exchange for an award of equity instruments
        based
        on the grant-date fair value. Share-based compensation recognized under the
        modified-prospective transition method of SFAS No. 123R includes share-based
        compensation based on the grant-date fair value determined in accordance
        with
        the original provisions of SFAS No. 123, Accounting for Stock-Based
        Compensation,for all share-based payments granted prior to and not yet
        vested as of January 1, 2006 and share-based compensation based on the
        grant-date fair-value determined in accordance with SFAS No. 123R for all
        share-based payments granted after January 1, 2006. SFAS No. 123R
        eliminates the ability to account for the award of these instruments under
        the
        intrinsic value method prescribed by Accounting Principles Board (“APB”) Opinion
        No. 25, Accounting for Stock
        Issued to Employees, and allowed under the original provisions of SFAS
        No. 123. Prior to the adoption of SFAS No. 123R, the Company accounted for
        our
        stock option plans using the intrinsic value method in accordance with the
        provisions of APB Opinion No. 25 and related interpretations.
 
 Comprehensive
        Income
  Statement
        of financial accounting standards No. 130, Reporting comprehensive income
        (SFAS
        No. 130), establishes standards for reporting and display of comprehensive
        income, its components and accumulated balances. Comprehensive income is
        defined
        to include all changes in equity, except those resulting from investments
        by
        owners and distributions to owners. Among other disclosures, SFAS No. 130
        requires that all items that are required to be recognized under current
        accounting standards as components of comprehensive income be reported in
        financial statements that are displayed with the same prominence as other
        financial statements.
 -
              7
              -
  FINANCIAL
          MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 Reclassifications
 
 Certain
        comparative amounts have been reclassified to conform to the current period’s
        presentation.
 
 Recent
        Accounting Pronouncements
 
 In
        March
        2006, FASB issued SFAS 156 ‘Accounting for Servicing of Financial Assets’ this
        Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing
        of Financial Assets and Extinguishments of Liabilities, with respect to the
        accounting for separately recognized servicing assets and servicing liabilities.
        This Statement:
 
 1.
              Requires
                  an entity to recognize a servicing asset or servicing liability
                  each time
                  it undertakes an obligation to service a financial asset by entering
                  into
                  a servicing contract.2.
              Requires
                  all separately recognized servicing assets and servicing liabilities
                  to be
                  initially measured at fair value, if practicable.3.
              Permits
                  an entity to choose ‘Amortization method’ or ‘Fair value measurement
                  method’ for each class of separately recognized servicing assets and
                  servicing liabilities:4.
              At
                  its initial adoption, permits a one-time reclassification of
                  available-for-sale securities to trading securities by entities
                  with
                  recognized servicing rights, without calling into question the
                  treatment
                  of other available-for-sale securities under Statement 115, provided
                  that
                  the available-for-sale securities are identified in some manner
                  as
                  offsetting the entity’s exposure to changes in fair value of servicing
                  assets or servicing liabilities that a servicer elects to subsequently
                  measure at fair value.5.
              Requires
                  separate presentation of servicing assets and servicing liabilities
                  subsequently measured at fair value in the statement of financial
                  position
                  and additional disclosures for all separately recognized servicing
                  assets
                  and servicing liabilities.
 
 This
        Statement is effective as of the beginning of the Company’s first fiscal year
        that begins after September 15, 2006.  Management is currently
        evaluating the effect of this pronouncement on financial
        statements.
 
 In
        September 2006, FASB issued SFAS 157 ‘Fair Value Measurements.’ This Statement
        defines fair value, establishes a framework for measuring fair value in
        generally accepted accounting principles (GAAP), and expands disclosures
        about
        fair value measurements. This Statement applies under other accounting
        pronouncements that require or permit fair value measurements, the Board
        having
        previously concluded in those accounting pronouncements that fair value is
        the
        relevant measurement attribute. Accordingly, this Statement does not require
        any
        new fair value measurements. However, for some entities, the application
        of this
        Statement will change current practice. This Statement is effective for
        financial statements issued for fiscal years beginning after November 15,
        2007,
        and interim periods within those fiscal years. Management is currently
        evaluating the effect of this pronouncement on financial
        statements.
 
 In
        September 2006, FASB issued SFAS 158 “Employers Accounting for Defined Benefit
        Pension and Other Postretirement Plans” - an amendment of FASB Statements No.
        87, 88, 106, and 132(R)’ This Statement improves financial reporting by
        requiring an employer to recognize the over funded or under funded status
        of a
        defined benefit postretirement plan (other than a multiemployer plan) as
        an
        asset or liability in its statement of financial position and to recognize
        changes in that funded status in the year in which the changes occur through
        comprehensive income of a business entity or changes in unrestricted net
        assets
        of a not-for-profit organization. This Statement also improves financial
        reporting by requiring an employer to measure the funded status of a plan
        as of
        the date of its year-end statement of financial position, with limited
        exceptions. An employer with publicly traded equity securities is required
        to
        initially recognize the funded status of a defined benefit postretirement
        plan
        and to provide the required disclosures as of the end of the fiscal year
        ending
        after December 15, 2006. An employer without publicly traded equity securities
        is required to recognize the funded status of a defined benefit postretirement
        plan and to provide the required disclosures as of the end of the fiscal
        year
        ending after June 15, 2007. However, an employer without publicly traded
        equity
        securities is required to disclose the following information in the notes
        to
        financial statements for a fiscal year ending after December 15, 2006, but
        before June 16, 2007, unless it has applied the recognition provisions of
        this
        Statement in preparing those financial statements:
 
 a)
              A
                  brief description of the provisions of this Statementb)
              The
                  date that adoption is requiredc)
              The
                  date the employer plans to adopt the recognition provisions of
                  this
                  Statement, if earlier.
 
 The
        requirement to measure plan assets and benefit obligations as of the date
        of the
        employer’s fiscal year-end statement of financial position is effective for
        fiscal years ending after December 15, 2008. Management is currently evaluating
        the effect of this pronouncement on financial statements.
 
 In
        February 2007, FASB issued FASB Statement No. 159, The Fair Value Option
        for
        Financial Assets and Financial Liabilities. FASB 159 is effective for fiscal
        years beginning after November 15, 2007. Early adoption is permitted subject
        to
        specific requirements outlined in the new Statement. Therefore, calendar-year
        companies may be able to adopt FASB 159 for their first quarter 2007 financial
        statements.
  -
            8
            -
 FINANCIAL
          MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 The
        new
        Statement allows entities to choose, at specified election dates, to measure
        eligible financial assets and liabilities at fair value that are not otherwise
        required to be measured at fair value. If a company elects the fair value
        option
        for an eligible item, changes in that item's fair value in subsequent reporting
        periods must be recognized in current earnings. FASB 159 also establishes
        presentation and disclosure requirements designed to draw comparison between
        entities that elect different measurement attributes for similar assets and
        liabilities. Management is currently evaluating the effect of this pronouncement
        on financial statements.
 
 In
        December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in
        Consolidated Financial Statements”. This Statement amends ARB 51 to establish
        accounting and reporting standards for the noncontrolling (minority) interest
        in
        a subsidiary and for the deconsolidation of a subsidiary. It clarifies that
        a
        noncontrolling interest in a subsidiary is an ownership interest in the
        consolidated entity that should be reported as equity in the consolidated
        financial statements. SFAS No. 160 is effective for the Company’s fiscal year
        beginning October 1, 2009. Management is currently evaluating the effect
        of this
        pronouncement on financial statements.
 
 In
        December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”. This
        Statement replaces SFAS No. 141, Business Combinations. This Statement retains
        the fundamental requirements in Statement 141 that the acquisition method
        of
        accounting (which Statement 141 called the purchase method) be used for all
        business combinations and for an acquirer to be identified for each business
        combination. This Statement also establishes principles and requirements
        for how
        the acquirer: a) recognizes and measures in its financial statements the
        identifiable assets acquired, the liabilities assumed, and any noncontrolling
        interest in the acquiree; b) recognizes and measures the goodwill acquired
        in
        the business combination or a gain from a bargain purchase and c) determines
        what information to disclose to enable users of the financial statements
        to
        evaluate the nature and financial effects of the business combination. SFAS
        No.
        141(R) will apply prospectively to business combinations for which the
        acquisition date is on or after Company’s fiscal year beginning October 1, 2009.
        While the Company has not yet evaluated this statement for the impact, if
        any,
        that SFAS No. 141(R) will have on its consolidated financial statements,
        the
        Company will be required to expense costs related to any acquisitions after
        September 30, 2009.
 
 FASB
        Staff Position on FAS No. 115-1 and FAS No. 124-1 (“the FSP”), “The Meaning of
        Other-Than-Temporary Impairment and Its Application to Certain Investments,” was
        issued in November 2005 and addresses the determination of when an investment
        is
        considered impaired, whether the impairment on an investment is
        other-than-temporary and how to measure an impairment loss. The FSP also
        addresses accounting considerations subsequent to the recognition of
        other-than-temporary impairments on a debt security, and requires certain
        disclosures about unrealized losses that have not been recognized as
        other-than-temporary impairments. The FSP replaces the impairment guidance
        on
        Emerging Issues Task Force (EITF) Issue No. 03-1 with references to
        existing authoritative literature concerning other-than-temporary
        determinations. Under the FSP, losses arising from impairment deemed to be
        other-than-temporary, must be recognized in earnings at an amount equal to
        the
        entire difference between the securities cost and its fair value at the
        financial statement date, without considering partial recoveries subsequent
        to
        that date. The FSP also required that an investor recognize other-than-temporary
        impairment losses when a decision to sell a security has been made and the
        investor does not expect the fair value of the security to fully recover
        prior
        to the expected time of sale. The FSP is effective for reporting periods
        beginning after December 15, 2005. The adoption of this statement will not
        have
        a material impact on our consolidated financial statements.
 
 NOTE
        3     MARKETABLE
        SECURITIES
 
 The
        Company receives securities of client companies as payment in full for services
        rendered. The numbers of shares the Company receives is based on contracts
        and
        the value is determined based on the bid price at the time of signing the
        agreement. The Company’s securities are classified as available-for-sale and, as
        such, are carried at fair value. The securities comprised of shares of common
        stock of third party customers and securities purchased. Securities classified
        as available-for-sale may be sold in response to changes in interest rates,
        liquidity needs, and for other purposes. The Company does not currently have
        any
        held-to-maturity or trading securities.
 
 Unrealized
        holding gains and losses for available-for-sale securities are excluded from
        earnings and reported as a separate component of stockholder’s equity. Realized
        gains and losses for securities classified as available-for-sale are reported
        in
        earnings based upon the adjusted cost of the specific security
        sold.
 
 The
        Company sold marketable securities during the three months ended November
        30,
        2007 and recorded a realized loss of $1,725 compared to a loss of $64,681
        for
        the three months ended November 30, 2006.
 
 It
        is the Company’s policy to assess its marketable securities for
        impairment on a quarterly basis, or more frequently if warranted by
        circumstances. The Company recognized an impairment loss on the marketable
        securities of $861,903 and $1,103,020 during the three months ended November
        30,
        2007 and 2006, respectively.
 
 Marketable
        securities classified as available for sale consisted of the following as
        of
        November 30, 2007:
 
 Marketable
                  Securities
              
              Cost
              
              Market
                  Value at November 30, 2007
              
              Accumulated
                  Unrealized GainVarious
              
              $2,790,770
              
              $2,956,965
              
              $166,195
 
 As
        of
        November 30, 2007, the Company evaluated its marketable securities holdings
        by
        valuing the securities according to the quoted price of the securities on
        the
        stock exchange.
 -
              9
              -
  FINANCIAL
          MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 NOTE
        4    PROPERTY
        AND
        EQUIPMENT
 
 Property
        and equipment at November 30, 2007 consist of the following:
 
 Office
                  and computer equipment
              
              $
              156,046Less
                  accumulated depreciation:
              
              
              (69,949
              )$
              86,097
 
 Depreciation
        expense for the three months ended November 30, 2007 and 2006 was $10,616
        and
        $8,826, respectively.
 
 NOTE
        5     OTHER
        ASSETS
 
 Other
        assets as of November 30, 2007 comprise of the following:
 
 Other
                  Current Assets:Receivable
                  against marketable securities sold to a third party
              
              $
              220,000Rent
                  deposit
              
              
              11,000Prepaid
                  expenses
              
              
              9,996Employee
                  advances
              
              
              1,600Advances
                  to third parties (interest free, unsecured and due on
                  demand)
              
              
              25,000Total
                  Other Current Assets
              
              $
              267,596Other
                  Assets:Rent
                  deposit
              
              $
              26,521Total
                  Other Assets
              
              $
              26,521
 
 NOTE
        6    DEFERRED
        REVENUES
 
 The
        Company receives marketable securities and cash for services to be provided
        in
        future periods. The Company recognizes revenue on a pro-rata basis over the
        term
        of the agreement. The Company recorded $1,490,446 in deferred revenues at
        November 30, 2007 which will be recognized over the next 12
        months.
  NOTE
        7    ACCRUED
        EXPENSES
 
 Accrued
        expenses consist of the following at November 30, 2007:
 
 Accrued
                  consulting fees
              
              $
              638,904Accrued
                  interest
              
              
              29,706Accrued
                  salaries and payroll taxes
              
              
              636,942Other
              
              
              6,750$
              1,312,302
  -
            10
            -
 FINANCIAL
          MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 
 NOTE
        8    DUE TO
        OFFICERS
 
 Due
        to
        officers consist of the following at November 30, 2007:
 
 Accrued
                  officer’s compensation
              
              $
              440,315Accrued
                  consulting fees
              
              
              32,382Accrued
                  interest
              
              
              233,373$
              706,070
 
 The
        Company recorded an expense of $92,188 and $92,188 for the three months ended
        November 30, 2007 and 2006 for compensation and benefits provided to the
        Chief
        Executive Officer of the Company.
 
 NOTE
        9    NOTE
        PAYABLE
 
 In
        August
        2004, the Company executed a promissory note of $100,000 from a third party,
        unsecured, interest at 9% per annum and due on demand. The Company recorded
        an
        interest expense of $2,250 and $2,250 in the accompanying financial statements
        for the three months ended November 30, 2007 and 2006,
        respectively.
  NOTE
        10    NOTES PAYABLE
        OFFICERS
 
 Notes
                  payable to an officer, due January 31, 2010, interest rate 6%,
                  secured
              
              $
              3,000,000Note
                  payable to an officer, due on demand, interest rate 8%,
                  unsecured
              
              
              7,5003,007,500Less
                  current portion
              
              
              (7,500
              )Long
                  term debt – Officer
              
              $
              3,000,000
 
 On
        January 15, 2005, the Company acquired 100% of the assets and outstanding
        shares
        of Digital WallStreet, Inc. which is 100% owned by the majority shareholder
        (86%) of the Company in exchange for two $1,500,000 promissory notes, carrying
        interest at 6% per annum, notes are due and payable on January 31, 2007 and
        January 31, 2010. As this merger is between entities under the common control,
        the issuance of the two $1,500,000 promissory notes to the majority shareholder
        has been recorded as a distribution to the majority shareholder. On December
        11,
        2006, the Company and the officer agreed to extend the payment due date of
        the
        promissory note due January 31, 2007 to January 31, 2010.
 
 Should
        the total annual billings made by Digital WallStreet, Inc., for the calendar
        years ending December 31, 2005 or December 31, 2006 equals or exceeds
        $2,000,000, the full principal balance of the second $1,500,000 note will
        be due
        on or before January 31, 2010. If the annual billing is less than the sum
        of
        $2,000,000, the principal balance of the second note shall be reduced by
        the
        difference between $2,000,000 and the actual annual billings achieved. Digital
        WallStreet, Inc. achieved total annual billings of $2,905,897 for the calendar
        year ended December 31, 2005 and $4,250,750 for the calendar year ended December
        31, 2006. The total billings for both these years exceeded $2,000,000 and
        hence,
        the principal of the Note was not reduced as of November 30, 2007.
 
 The
        Company recorded interest expense of $45,150 and $45,150 on the above notes
        to
        the officers for the three months ended November 30, 2007 and 2006,
        respectively.
   -
            11
            -
 FINANCIAL
          MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 NOTE
        11     EQUITY
        TRANSACTIONS
 
 Common
        Stock
 
 The
        Company initiated a private placement on September 1, 2006, offering 335
        units
        to accredited investors through its placement agent, Westcap Securities,
        Inc., a
        NASD member. The minimum subscription was $15,000 for each unit. Each unit
        consisted of 10,000 shares of Common Stock, par value $0.001 per share, a
        redeemable Class A1 Warrant and a redeemable Class A2 Warrant of the
        Company's common stock. Each Class A1 and A2 Warrant entitles the
        registered holder thereof to purchase, at any time until the September 1,
        2007
        and September 1, 2008 respectively, 5,000 shares of Common Stock at an exercise
        price of $2.50 and $3.50, respectively, subject to adjustment. The Class
        A1 and
        A2 Warrants are redeemable by the Company, at a redemption price of $0.05
        per
        share, upon at least 30 days’ prior written notice, commencing on the completion
        of an effective Registration Statement of the said securities or after September
        1, 2007, whichever is earlier, if the average of the closing bid price of
        the
        common stock, for 20 consecutive business days exceeds $3.50 per share for
        the
        Class A1Warrants, and $4.50 per share for the Class A2 Warrants. The exercise
        prices and the number of shares issuable upon the exercise of Warrants are
        subject to adjustment in certain circumstances.  The Company closed
        the private placement on February 23, 2007. During the year ended August
        31,
        2007, the Company received a cash consideration of $648,500 from the sale
        of
        432,333 shares of Common Stock under this private placement. Class A1 Warrants
        expired on August 31, 2007 and Class A2 Warrants expire on August 31, 2008,
        respectively.
 
 Through
        a
        private placement memorandum of My WallStreet dated March 20, 2007, MyWallStreet
        offered to sell to accredited investors 6,400,000 units at $0.25 per unit,
        with
        each unit consisting of one share of Common Stock, par value $0.001 per share
        and a redeemable Class A Warrant of My WallStreet, Inc. Each Class A Warrant
        entitles the registered holder to purchase, at any time until the second
        anniversary of the date of this memorandum, one share of Common Stock at
        an
        exercise price of $0.25. As of November 30, 2007, the Company received $50,000
        under this private placement and has not issued the 200,000 shares of Common
        Stock of My WallStreet, Inc. Class A warrant holders did not exercise their
        warrants as of November 30, 2007.
 
 On
        June
        28, 2007, the Company entered into a Stock Purchase Agreement with an investor
        for private placement of shares under Regulation S as promulgated by the
        Securities and Exchange Commission under the Securities Act of 1933, as amended.
        As of November 30, 2007, the Company sold 4,734,761 shares of its common
        stock
        under Regulation S to the investors and received cash proceeds of $579,627
        which
        amounted to approximately 35% of the total proceeds from such sale of its
        shares.
 
 On
        June
        29, 2007, the Company entered into a Regulation S Distribution Agreement
        to sell
        up to $3,000,000 worth of common shares through private placement of shares
        under Regulation S as promulgated by the Securities and Exchange Commission
        under the Securities Act of 1933, as amended. The term of the Distribution
        Agreement expired on November 29, 2007. During the three months ended November
        30, 2007, the Company issued 816,569 shares of common stock for cash
        proceeds of $123,087. Out of these, the Company had received cash consideration
        of $62,453 for which the Company had not issued 290,218 shares of common
        stock
        as of August 31, 2007.  As of November 30, 2007, the Company issued
        906,080 shares of its common stock under Regulation S to the investors and
        received cash proceeds of $141,320 which amounted to approximately 33.5%
        of the
        total proceeds from the sale of its shares. These shares were sold at a price
        equal to the previous day's last bid price as traded on the Over the Counter
        Bulletin Board Exchange.
 
 Outstanding
        Warrants:
 
 Number
                  of
                Warrants
              
              
              Weighted
                Average
                Exercise
                  Price
              
              
              Aggregate
                Intrinsic
                ValueOutstanding
                  August 31, 2007
              
              
              774,667
              
              
              $
              2.64
              
              
              $
              -Issued
                  during the period
              
              
              -
              
              
              
              -Expired
              
              
              -
              
              
              
              -Exercised
              
              
              -
              
              
              
              -Outstanding
                  November 30, 2007
              
              
              774,667
              
              
              $
              2.64
              
              
              $
              -
 
 Following
        is a summary of the status of warrants outstanding at November 30,
        2007:
 
 Range
                  of Exercise Prices
              
              
              Total
                  Warrants Outstanding
              
              
              Weighted
                  Average Remaining Life (Years)
              
              
              Weighted
                  Average Exercise Price
              
              
              Warrants
                Exercisable
              
              
              Weighted
                  Average Exercise Price of Exercisable Warrants$1.00
                  - $3.75
              
              
              
              774,667
              
              
              
              0.85
              
              
              $
              2.64
              
              
              
              774,667
              
              
              $
              2.64774,667
              
              
              
              0.85
              
              
              $
              2.64
              
              
              
              774,667
              
              
              $
              2.64
  -
              12
              -
  FINANCIAL
          MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
 Outstanding
        Stock
        Options:
 
 The
        number and weighted average exercise prices of options granted by the Company
        are as follows:
 
 Options
                Outstanding
              
              
              Weighted
                  Average Exercise Price
              
              
              Aggregate
                  Intrinsic ValueOutstanding
                  August 31, 2007
              
              
              750,000
              
              
              $
              1.05
              
              
              $
              -Granted
              
              
              -
              
              
              
              -
              
              
              
              -Exercised
              
              
              -
              
              
              
              -
              
              
              
              -Expired/forfeited
              
              
              -
              
              
              
              -Outstanding
                  November 30, 2007
              
              
              750,000
              
              
              $
              1.05
              
              
              $
              -
  Following
        is a summary of the status of stock options outstanding at November 30,
        2007:
  Range
                    of
                  Exercise
                    Prices
                
                
                Total
                    Options Outstanding
                
                
                Weighted
                    Average Remaining Life (Years)
                
                
                Total
                    Weighted Average Exercise Price
                
                
                Options
                  Exercisable
                
                
                Weighted
                    Average Exercise Price$0.01
                    - $1.25
                
                
                
                750,000
                
                
                
                7.13
                
                
                $
                1.05
                
                
                
                100,000
                
                
                $
                0.46750,000
                
                
                
                7.13
                
                
                $
                1.05
                
                
                
                100,000
                
                
                $
                0.46
 NOTE
        12    BASIC AND
        DILUTED NET LOSS
        PER SHARE
 
 Net
        loss
        per share is calculated in accordance with the Statement of financial accounting
        standards No. 128 (SFAS No. 128), “Earnings per share.” SFAS No. 128 superseded
        Accounting Principles Board Opinion No.15 (APB 15). Net loss per share for
        all
        periods presented has been restated to reflect the adoption of SFAS No. 128.
        Basic net loss per share is based upon the weighted average number of common
        shares outstanding. Diluted net loss per share is based on the assumption
        that
        all dilutive convertible shares and stock options were converted or exercised.
        Dilution is computed by applying the treasury stock method. Under this method,
        options and warrants are assumed to be exercised at the beginning of the
        period
        (or at the time of issuance, if later), and as if funds obtained thereby
        were
        used to purchase common stock at the average market price during the
        period.
 
 Weighted
        average number of shares used to compute basic and diluted loss per share
        is the
        same since the effect of dilutive securities is anti-dilutive.
 
 NOTE
        13    SUPPLEMENTAL
        DISCLOSURES OF
        CASH FLOWS
 
 The
        Company prepares its statements of cash flows using the indirect method as
        defined under the Financial Accounting Standard No. 95. The Company paid
        $140
        for interest and $0 for income taxes during the three months ended November
        30,
        2007. The Company paid $0 for interest and $3,483 for income taxes during
        the
        three months ended November 30, 2006.
 
 NOTE
        14    COMMITMENTS
 
 Operating
        Lease
 
 The
        Company leases its corporate office facilities in California from a third
        party
        under an operating lease that terminates on February 28, 2010. The office
        facility in New York is leased on a month-to-month basis starting June 1,
        2007.
        Rent expense under the operating lease for the three months ended November
        30,
        2007 and 2006 was $122,105 and $83,240, respectively. The Company has future
        minimum lease obligations as follows:
 
 Twelve
                  months ending November 30,
              
              Amount2008
              
              $
              309,6072009
              
              
              316,5262010
              
              
              106,085$
              732,218
 -
              13
              -
  FINANCIAL
          MEDIA GROUP, INC. AND SUBSIDIARIES
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 (UNAUDITED)
   Employment
        Agreement
 
 On
        January 26, 2007, the Company entered into an employment agreement with its
        Chief Financial Officer for a three year period, to provide salary, bonuses,
        and
        other fringe benefits. The Company recorded a compensation expense of
        $37,500 in general and administrative expenses for the three months ended
        November 30, 2007. The Company has future minimum salary commitments as
        follows:
 
 Twelve
                  months ending November 30,
              
              Amount2008
              
              $
              168,7502009
              
              
              194,0632010
              
              
              33,063$
              395,876
 
 Contingencies
 
 From
        time
        to time, the Company may be involved in various claims, lawsuits, and disputes
        with third parties, actions involving allegations of discrimination or breach
        of
        contract actions incidental to the normal operations of the business. Other
        than
        as disclosed herein, the Company is not currently involved in any litigation
        which it believes could have a material adverse effect on its financial position
        or results of operations.
 
 NOTE
        15GOING
        CONCERN
 
 The
        accompanying financial statements have been prepared in conformity with
        generally accepted accounting principles, which contemplate continuation
        of the
        Company as a going concern. This basis of accounting contemplates the recovery
        of the Company's assets and the satisfaction of its liabilities in the normal
        course of business. The Company had an accumulated deficit of $10,303,497
        as of November 30, 2007 and has incurred net loss of $631,319 for the three
        months ended November 30, 2007. In view of the matters described in the
        preceding paragraph, recoverability of a major portion of the recorded asset
        amounts shown in the accompanying balance sheet is dependent upon continued
        operations of the Company, which in turn is dependent upon the Company's
        ability
        to raise additional capital, obtain financing and to succeed in its future
        operations. The financial statements do not include any adjustments relating
        to
        the recoverability and classification of recorded asset amounts or amounts
        and
        classification of liabilities that might be necessary should the Company
        be
        unable to continue as a going concern.
 
 Management
        has taken the following steps to revise its operating and financial
        requirements, which it believes are sufficient to provide the Company with
        the
        ability to continue as a going concern. Management devoted considerable effort
        during the period ended August 31, 2007 towards (i) obtaining additional
        equity
        financing, (ii) evaluation of its distribution and marketing methods, and
        (iii)
        further streamlining and reducing costs.
 
 NOTE
        16    SUBSEQUENT
        EVENTS
 
 On
        December 20, 2007, the Company issued 2,825,000 stock options to certain
        employees and officers of the Company under the 2007 Incentive Stock Option
        Plan. The options were granted at the exercise price of $0.30 per share which
        equaled the closing share price of the stock $0.30 per share on December
        20,
        2007.
 
 On
        January 4, 2008, the Company agreed to issue 15,000,000 shares of its common
        stock to AMC Capital Group, Inc., a corporation which the Chief Executive
        Officer of the Company is a principal shareholder, officer and director,
        in
        exchange for a cancellation of $3,000,000 debt owed to the Chief Executive
        Officer of the Company.
 
 As
        of
        January 8, 2008, the Company received a cash consideration of $110,485 from
        sale
        of 883,603 shares of common stock under the June 28, 2007 private placement
        of
        shares under Regulation S as promulgated by the Securities and Exchange
        Commission under the Securities Act of 1933, as amended. The Company has
        issued
        883,603 shares of common stock to the investors.
 
  -
            14
            -
   Item
        2. Management’s Discussion and Analysis of Financial Condition
 
 Description
        of Business
 
 Financial
        Media Group, Inc. is a full service financial media company focused on
        applications that enables the retail investment and financial communities
        to
        collaborate directly with publicly traded companies. The Company provides
        Internet based media and advertising services through its financial website
        and
        the Company’s newspaper “WallSt.net Digest.” The Company provides full array of
        customized investor awareness programs such as audio and video of senior
        management interviews; press releases; newsletter and editorials; small cap
        conferences and seminars; email mailings and forums.
 
 WallStreet
        Direct, Inc. (“WallStreet”), a wholly-owned subsidiary of Financial Media Group,
        Inc. (the “Company”), was incorporated in the State of Nevada on January 5, 2005
        as a financial holding company specializing in a premier provider of financial
        news, tools and content for the global investment community. On January 15,
        2005, WallStreet acquired 100% of the assets and outstanding shares of Digital
        WallStreet, Inc. in exchange for two promissory notes of $1,500,000 each,
        carrying interest at 6% per annum, due and payable on January 31, 2007 and
        January 31, 2010. As this merger is between entities under the common control,
        the issuance of the promissory notes to the majority shareholder has been
        recorded as a distribution to the majority shareholder. The merger has been
        accounted for on historical cost basis.
 
 Digital
        WallStreet, Inc. was incorporated in Nevada on June 12, 2002 and commenced
        its
        operations during the first quarter of 2003. The company is a full service
        financial media company focused on applications that enables the retail
        investors and financial communities to collaborate directly with publicly
        traded
        companies. The company provides internet based media and advertising services
        through its financial website “Wallst.net” and the company’s business newspaper
“WallSt.net Digest.”
 
 On
        January 6, 2006, Financial Media Group, Inc. acquired 100% of the equity
        in
        WallStreet pursuant to an Agreement and Plan of Reorganization dated September
        19, 2005 by and between WallStreet and the Company. Financial Media Group,
        Inc.,
        formerly known as Giant Jr. Investments Corp. was incorporated in Nevada
        in 1984
        as Southern Development Company, Inc. Pursuant to the acquisition of WallStreet,
        WallStreet became the wholly owned subsidiary of Financial Media Group, Inc.
        and
        both entities continued as the surviving companies. The former shareholders
        of
        WallStreet received 19,998,707 shares or 82% of the issued and outstanding
        shares of the Company’s common stock in exchange for all the issued and
        outstanding shares of WallStreet.
 
 The
        acquisition of WallStreet is accounted for as a reverse acquisition under
        the
        purchase method of accounting since the shareholders of WallStreet obtained
        control of the consolidated entity. Accordingly, the merger of the two companies
        is recorded as a recapitalization of WallStreet, with WallStreet being treated
        as the continuing operating entity. The historical financial statements
        presented herein will be those of WallStreet. The continuing entity retained
        August 31 as its fiscal year end.
 
 On
        February 10, 2006, Financial Media Group, Inc. established a 100% wholly
        owned
        subsidiary Financial Filings Corp. This business unit focuses on providing
        Edgarization and newswire services to small and mid-sized public companies.
        These compliance services provide formatting of pertinent SEC filings and
        distribution of news in more than 30 languages to media outlets in more than
        135
        countries.
 
 On
        June
        13, 2006, Financial Media Group, Inc. established another wholly owned
        subsidiary MyWallStreet, Inc. MyWallst.net is presently in the development
        stage
        and will offer a social networking platform that allows members to collaborate
        with one another, build personalized WebPages, exchange ideas, access premium
        content, and build social networks comprised of other members, targeted to
        the
        financial community.
 
 On
        January 30, 2007, Financial Media Group, Inc. completed the acquisition of
        the
        brand “Wealth Expo” from a third party for a consideration valued at $139,000.
        The acquisition included rights to the web site and series of investor
        expositions which are designed to provide information on investing techniques
        and tools to investors, through workshops and exhibits throughout the United
        States. Wealth Expo has provided a broad range of information to thousands
        of
        individual investors on various types of investments, trading, portfolio
        management, retirement planning and personal finance.
 
 Corporate
        History
 
 The
        Company was incorporated in Nevada in 1984 as Southern Development Company,
        Inc.
        ("SDC"). In December 1994, SDC merged with Integrated Communications Access
        Network, Inc. ("ICAN"). In March 1996, the Company was renamed SDC, and in
        September 1998, the Company changed its name to EssxSport Corp. At that time,
        the Company had no assets and no liabilities. From September 1998 until August
        31, 2004, the Company was primarily engaged in the manufacture and distribution
        of athletic equipment, primarily for pole vaulting and other track and field
        activities. The Company sold, transferred and delivered all of its assets
        relating to its pole vault and sports business to its former President and
        director. The assets sold included names, logos, trademarks, and endorsements
        relating to name "EssxSport," all the equipment, tools, inventory at the
        Texas
        location and 100% ownership stock certificates for Eonlinesports.com,
        Inc.
 
 On
        May
        20, 2004, the Company's shareholders approved amending the Articles of
        Incorporation to change name to "Giant Jr. Investments Corp."
 
 On
        June
        30, 2004, the Company filed with the Securities and Exchange Commission ("SEC")
        to become a Business Development Company (BDC) under the 1940 Act and on
        September 1, 2004 it began its BDC operations.
 
 -
            15
            -
   On
        April
        11, 2005, the Company entered into a share exchange agreement, to acquire
        16
        million shares of WallStreet representing approximately 40% of the issued
        and
        outstanding common shares of WallStreet, in exchange for 7 million common
        shares
        of the Company. On May 25, 2005, the Company and WallStreet mutually agreed
        to
        terminate the agreement citing the timing of merger was not right for both
        the
        companies.
 
 On
        June
        1, 2005, the Company’s Board of Directors and the shareholders owning
        approximately 52% of the Company’s common stock consented in writing and
        terminated the Company’s status as a Business Development Company. After the
        termination, the Company is governed by the rules and regulations promulgated
        under the Securities Act of 1933 and the Securities and Exchange Act of
        1934.
 
 On
        September 19, 2005, the Company entered into an Agreement and Plan of
        Reorganization, as amended on September 21, 2005 (the “Agreement”), pursuant to
        which the Company agreed to acquire all of the issued and outstanding common
        stock of WallStreet in exchange for up to 20,000,000 shares of the Company’s
        common stock.
 
 On
        January 6, 2006, the acquisition of WallStreet transaction was completed
        and
        WallStreet became a wholly-owned subsidiary of the Company. The current Company
        shareholders owned 4,394,530 shares or 18% of the issued and outstanding
        shares
        of the Company’s common stock, and the former shareholders of WallStreet owned
        19,998,707 shares or 82% of the issued and outstanding shares of the Company’s
        common stock.
 
 Plan
        of Operations
 
 Since
        the
        termination of its BDC status in June 2005, the Company's objective has been
        to
        acquire business entities that will have experienced management and
        opportunities for growth in exchange for its securities. The Company completed
        its acquisition of WallStreet in January 2006 and WallStreet became a
        wholly-owned subsidiary of the Company.
 
 The
        Company’s current operations consist of the operations of WallStreet, a
        financial media and advertising company that provides various financial Internet
        solutions, tools, content and services to individual investors, media,
        corporate, and financial services companies. WallStreet also provides
        Internet-based media and advertising services through its www.wallst.net
        (WallSt.net) financial Web site, investor conferences, and print publications
        that are distributed to investment professionals across North
        America.
 
 Advertising
        on WallSt.net consists of continuous or rotating client profiles on various
        Web
        pages within WallSt.net. Delivery of these profiles is based on a certain
        number
        of impressions on WallSt.net depending on our client agreements. An impression
        is defined as a single instance of an advertisement being displayed. WallStreet
        also provides E-mail services to its clients, which are mailings sent to
        a
        targeted list of e-mail addresses, with delivery consisting solely of
        transmitting the mailing to the e-mail targets. E-mail services may be purchased
        on a per-transmittal basis, for which revenue is recorded when the transmittal
        occurs, or on a fixed-fee basis in which the client receives access to a
        fixed
        number of transmittals per-month. The Company records the revenue on the
        fixed-fee basis pro rated over the term of the client agreement.
 
 Results
        of Operations
 
 The
        consolidated results of operations of the Company for the three months ended
        November 30, 2007 consisted of the operations of the Company, its wholly-owned
        subsidiary WallStreet Direct, Inc., its wholly-owned subsidiary Financial
        Filings Corp., its wholly-owned subsidiary My WallStreet, Inc. and its
        wholly-owned subsidiary Wealth Expo Inc., compared to the consolidated results
        of operations of the Company, its wholly-owned subsidiary WallStreet Direct,
        Inc., its wholly-owned subsidiary Financial Filings Corp., and its wholly-owned
        subsidiary My WallStreet, Inc. for the same periods in 2006. The acquisition
        of
        WallStreet is accounted for as a reverse acquisition under the purchase method
        of accounting since the shareholders of WallStreet obtained control of the
        consolidated entity. Accordingly, the merger of the two companies is recorded
        as
        a recapitalization of WallStreet, with WallStreet being treated as the
        continuing entity. The historical financial statements to be presented will
        be
        those of WallStreet.
 
 The
        Company reported a net loss of $631,319 for the three months ended November
        30,
        2007 compared to net loss of $871,805 for the same period in 2006.
 
 Revenues
 
 Revenues
        for the three months period ended November 30, 2007 were $1,878,893 compared
        to
        $1,641,225 for the same period in 2006. Revenues increased by $237,668 (14.5%)
        during the three months ended November 30, 2007 when compared to the same
        period
        in 2006 due to the Company’s expanded effort in marketing its services and
        gaining clients.
 
 Operating
        Expenses
 
 Selling,
        general and administrative expenses (S,G&A) for the three months
        ended  November 30, 2007 were $1,583,629 compared to $1,274,910 for
        the same period in 2006. S,G&A expenses increased by $308,719 (24.2%) during
        the three months ended November 30, 2007 as compared to the same period in
        2006,
        primarily due to increase in payroll costs, and increase in administrative,
        sales and marketing costs.
 
 Impairment
        of marketable securities for the three months ended November 30, 2007 was
        $861,903 compared to $1,103,020 for the same period in 2006. Impairment expense
        was recorded because the market value of certain securities received by the
        Company as compensation for services declined more than 50% of their market
        value. The Company took a conservative approach of recording the increased
        impairment expense. Depreciation expense for the three months ended November
        30,
        2007 was $10,616 compared to $8,826 for the same period in 2006.
 
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            16
            -
   Interest
        expense for the three months ended November
        30, 2007 was $47,540 compared to $49,070 for the same period in 2006. Interest
        expense remained relatively the same due to the interest charged on the $3.0
        million promissory notes executed by the Company in January 2005. Realized
        loss
        on sale of marketable securities for the three months ended November 30,
        2007
        was $1,725 compared to $64,681 for the same period in 2006. The Company sold
        certain marketable securities held in its possession to better manage its
        portfolio and realized a reduced loss during the three months ended November
        30,
        2007. Unrealized loss for the three months ended November 30, 2007 was $63,523
        compared to unrealized gain of $730,942 for the same period in 2006. Unrealized
        gain or loss resulted due to the increase or decrease in market value of
        the
        marketable securities held at November 30, 2007 and 2006,
        respectively.
  Liquidity
        and Capital Resources
 
 Cash
        and
        cash equivalents at November 30, 2007 were $161,348 compared to $24,526 at
        November 30, 2006. No assurance can be made that the Company will have access
        to
        the capital markets in future, or that financing will be available on acceptable
        terms to satisfy the Company’s cash requirements needed to implement its
        business strategies. The Company’s inability to access the capital markets or
        obtain acceptable financing could have a material adverse affect on its results
        of operations and financial condition, and could severely threaten the Company’s
        ability as a going concern.
 
 As
        shown
        in the accompanying consolidated financial statements, the Company recorded
        a
        loss of $631,319 for the three months ended November 30, 2007 compared to
        a loss
        of $871,805 for the same period in 2006. The Company’s current liabilities
        exceeded its current assets by $628,064 at November 30, 2007, and net cash
        used
        in operating activities for the three months ended November 30, 2007 was
        $1,170,699. These factors and the Company’s ability to meet its debt obligations
        from current operations, and the need to raise additional capital to accomplish
        its objectives create a substantial doubt about the Company’s ability to
        continue as a going concern.
 
 Operating
        Activities
 
 Net
        cash
        used in operating activities for the three months ended November 30, 2007
        was
        $1,170,699. The increase in net cash used in operating activities resulted
        due
        to an increase in receivables of $17,335, increase in other current assets
        of
        $200,185, an increase in accounts payable of $73,417, an increase in accrued
        expenses and other liabilities of $194,329, and decrease in deferred revenues
        of
        $200,586.
 
 Investing
        Activities
 
 Net
        cash
        provided by investing activities for the three months ended November 30,
        2007
        was $519,773. The Company received $537,750 in cash proceeds from sale of
        marketable securities and expended cash of $17,976 for purchase of property
        and
        equipment.
 
 Financing
        Activities
 
 Net
        cash
        provided by financing activities for the three months ended November 30,
        2007
        was $640,261 due to cash received from sale of common stock amounting to
        $640,261.
 
 As
        a
        result of the above activities, the Company experienced a net decrease in
        cash
        of $10,665 for the three months ended November 30, 2007. The ability of the
        Company to continue as a going concern is still dependent on its success
        in
        obtaining additional financing from investors through the sale of its
        securities.
 
 Application
        of Critical Accounting Policies and Estimates
  Revenue
        recognition - The Company’s revenue recognition policies are in compliance with
        Staff Accounting Bulletin (SAB) 104 Revenue Recognition, when persuasive
        evidence of arrangement exists, delivery of services has occurred, the fee
        is
        fixed or determinable and collectibility is reasonable assured.
 
 The
        Company generates its revenues from awareness products and advertising
        promotions related to marketing public companies and professional investment
        concerns. This is facilitated through the Company’s financial website,
        investment conferences and printing of publications and newspaper.
 
 Marketable
        Securities - The Company’s investment in securities is classified as
        available-for-sale and, as such, is carried at fair value. All of the securities
        comprised of shares of common stock of its customers. Securities classified
        as
        available-for-sale may be sold in response to changes in interest rates,
        liquidity needs, and for other purposes.
 
 Impact
        of Accounting Pronouncements
 
 In
        September 2006, FASB issued SFAS 157 ‘Fair Value Measurements’. This Statement
        defines fair value, establishes a framework for measuring fair value in
        generally accepted accounting principles (GAAP), and expands disclosures
        about
        fair value measurements. This Statement applies under other accounting
        pronouncements that require or permit fair value measurements, the Board
        having
        previously concluded in those accounting pronouncements that fair value is
        the
        relevant measurement attribute. Accordingly, this Statement does not require
        any
        new fair value measurements. However, for some entities, the application
        of this
        Statement will change current practice. This Statement is effective for
        financial statements issued for fiscal years beginning after November 15,
        2007,
        and interim periods within those fiscal years. The management is currently
        evaluating the effect of this pronouncement on financial
        statements.
 
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            17
            -
   In
        September 2006, FASB issued SFAS 158 ‘Employers’ Accounting for Defined Benefit
        Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87,
        88, 106, and 132(R)’ This Statement improves financial reporting by requiring an
        employer to recognize the over funded or under funded status of a defined
        benefit postretirement plan (other than a multiemployer plan) as an asset
        or
        liability in its statement of financial position and to recognize changes
        in
        that funded status in the year in which the changes occur through comprehensive
        income of a business entity or changes in unrestricted net assets of a
        not-for-profit organization. This Statement also improves financial reporting
        by
        requiring an employer to measure the funded status of a plan as of the date
        of
        its year-end statement of financial position, with limited exceptions. An
        employer with publicly traded equity securities is required to initially
        recognize the funded status of a defined benefit postretirement plan and
        to
        provide the required disclosures as of the end of the fiscal year ending
        after
        December 15, 2006. An employer without publicly traded equity securities
        is
        required to recognize the funded status of a defined benefit postretirement
        plan
        and to provide the required disclosures as of the end of the fiscal year
        ending
        after June 15, 2007. However, an employer without publicly traded equity
        securities is required to disclose the following information in the notes
        to
        financial statements for a fiscal year ending after December 15, 2006, but
        before June 16, 2007, unless it has applied the recognition provisions of
        this
        Statement in preparing those financial statements:
 
 a)
              A
                  brief description of the provisions of this
                  Statement
 b)
              The
                  date that adoption is required
 c)
              The
                  date the employer plans to adopt the recognition provisions of
                  this
                  Statement, if earlier.
 
 The
        requirement to measure plan assets and benefit obligations as of the date
        of the
        employer’s fiscal year-end statement of financial position is effective for
        fiscal years ending after December 15, 2008. The management is currently
        evaluating the effect of this pronouncement on financial
        statements.
 
 In
        February 2007, FASB issued FASB Statement No. 159 “The Fair Value Option for
        Financial Assets and Financial Liabilities”. FASB 159 is effective for fiscal
        years beginning after November 15, 2007. Early adoption is permitted subject to
        specific requirements outlined in the new Statement. Therefore, calendar-year
        companies may be able to adopt FASB 159 for their first quarter 2007 financial
        statements.
 
 The
        new
        Statement allows entities to choose, at specified election dates, to measure
        eligible financial assets and liabilities at fair value that are not otherwise
        required to be measured at fair value. If a company elects the fair value
        option
        for an eligible item, changes in that item's fair value in subsequent reporting
        periods must be recognized in current earnings. FASB 159 also establishes
        presentation and disclosure requirements designed to draw comparison between
        entities that elect different measurement attributes for similar assets and
        liabilities.
 
 In
        December 2007, the FASB issued SFAS No. 160, “Non-controlling Interests in
        Consolidated Financial Statements”. This Statement amends ARB 51 to establish
        accounting and reporting standards for the non-controlling (minority) interest
        in a subsidiary and for the deconsolidation of a subsidiary. It clarifies
        that a
        non-controlling interest in a subsidiary is an ownership interest in the
        consolidated entity that should be reported as equity in the consolidated
        financial statements. SFAS No. 160 is effective for the Company’s fiscal year
        beginning October 1, 2009. Management is currently evaluating the effect
        of this
        pronouncement on financial statements.
 
 In
        December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”. This
        Statement replaces SFAS No. 141, Business Combinations. This Statement retains
        the fundamental requirements in Statement 141 that the acquisition method
        of
        accounting (which Statement 141 called the purchase method) be used for all
        business combinations and for an acquirer to be identified for each business
        combination. This Statement also establishes principles and requirements
        for how
        the acquirer: a) recognizes and measures in its financial statements the
        identifiable assets acquired, the liabilities assumed, and any non-controlling
        interest in the acquiree; b) recognizes and measures the goodwill acquired
        in
        the business combination or a gain from a bargain purchase and c) determines
        what information to disclose to enable users of the financial statements
        to
        evaluate the nature and financial effects of the business combination. SFAS
        No.
        141(R) will apply prospectively to business combinations for which the
        acquisition date is on or after Company’s fiscal year beginning October 1, 2009.
        While the Company has not yet evaluated this statement for the impact, if
        any,
        that SFAS No. 141(R) will have on its consolidated financial statements,
        the
        Company will be required to expense costs related to any acquisitions after
        September 30, 2009.
 
 FASB
        Staff Position on FAS No. 115-1 and FAS No. 124-1 (“the FSP”), “The Meaning of
        Other-Than-Temporary Impairment and Its Application to Certain Investments,” was
        issued in November 2005 and addresses the determination of when an investment
        is
        considered impaired, whether the impairment on an investment is
        other-than-temporary and how to measure an impairment loss. The FSP also
        addresses accounting considerations subsequent to the recognition of
        other-than-temporary impairments on a debt security, and requires certain
        disclosures about unrealized losses that have not been recognized as
        other-than-temporary impairments. The FSP replaces the impairment guidance
        on
        Emerging Issues Task Force (EITF) Issue No. 03-1 with references to
        existing authoritative literature concerning other-than-temporary
        determinations. Under the FSP, losses arising from impairment deemed to be
        other-than-temporary, must be recognized in earnings at an amount equal to
        the
        entire difference between the securities cost and its fair value at the
        financial statement date, without considering partial recoveries subsequent
        to
        that date. The FSP also required that an investor recognize other-than-temporary
        impairment losses when a decision to sell a security has been made and the
        investor does not expect the fair value of the security to fully recover
        prior
        to the expected time of sale. The FSP is effective for reporting periods
        beginning after December 15, 2005. The adoption of this statement will not
        have
        a material impact on our consolidated financial statements.
 
 Caution
        Regarding Forward-Looking Statements
 
 The
        Company occasionally makes forward-looking statements concerning its plans,
        goals, product and service offerings, and anticipated financial performance.
        These forward-looking statements may generally be identified by introductions
        such as "outlook" for an upcoming period of time, or words and phrases such
        as
        "should," "expect," "hope," "plans," "projected," "believes," "forward-looking"
        (or variants of those words and phrases) or similar language indicating the
        expression of an opinion or view concerning the future.
 
 -
            18
            -
   These
        forward-looking statements are subject to risks and uncertainties based on
        a
        number of factors and actual results or events may differ materially from
        those
        anticipated by such forward-looking statements. These factors include, but
        are
        not limited to: the growth rate of the Company's revenue and market share;
        the
        consummation of new, and the non-termination of, existing contracts; new
        competitors entering the Company's business, the Company's ability to
        effectively manage its business functions while growing its business in a
        rapidly changing environment; the Company's ability to adapt and expand its
        services in such an environment; the Company's ability to successfully refinance
        or extend its line of credit or obtain alternative sources of financing;
        the
        effective and efficient management of the Company's inventory levels and
        processing of sales orders; the quality of the Company's plans and strategies;
        and the Company's ability to execute such plans and strategies.
 
 In
        addition, forward-looking statements concerning the Company's expected revenue
        or earnings levels are subject to many additional uncertainties applicable
        to
        competitors generally and to general economic conditions over which the Company
        has no control. The Company does not plan to generally publicly update prior
        forward-looking statements for unanticipated events or otherwise and,
        accordingly, prior forward-looking statements should not be considered to
        be
        "fresh" simply because the Company has not made additional comments on those
        forward-looking statements.
 
 Item
        3. Controls and Procedures
 
 Evaluation
        of disclosure controls and procedures: The Company maintains controls and
        procedures designed to ensure that information required to be disclosed in
        this
        report is recorded, processed, accumulated and communicated to our management,
        including our chief executive officer and principal accounting officer, to
        allow
        timely decisions regarding the required disclosure. Within the 90 days prior
        to
        the filing date of this report, our management, with the participation of
        our
        chief executive officer and principal accounting officer, carried out an
        evaluation of the effectiveness of the design and operation of these disclosure
        controls and procedures. Our chief executive officer and principal accounting
        officer concluded, as of fifteen days prior to the filing date of this report,
        that these disclosure controls and procedures are effective.
 
 Changes
        in internal controls: Subsequent to the date of the above evaluation, the
        Company made no significant changes in its internal controls or in other
        factors
        that could significantly affect these controls, nor did it take any corrective
        action, as the evaluation revealed no significant deficiencies or material
        weaknesses.
 
  PART
        II - OTHER INFORMATION
 
 Item
        1. Legal Proceedings
 
 None.
 
 Item
        2. Changes in Securities
 
 During
        the three months ended November 30, 2007, the Company sold 5,261,202 shares
        of
        restricted common stock to investors pursuant to an exemption from registration
        under Regulation S. The shares were sold to investors at a price ranging
        from
        $0.30 to $0.39 per share for total proceeds of $640,258 after issuing
        expenses.
 
 Item
        3. Defaults Upon Senior
        Securities
 
 None.
 
 Item
        4. Submission of Matters to a Vote of
        Securities Holders
 
 None.
 
 Item
        5. Other Information
 
 None.
 
 Item
        6. Exhibits and Reports on Form
        8-K
 
 a)
              Form
                  8-K -- Filed on November 28, 2007 – SEC Film No. 071272275, Incorporated
                  by reference
 
 b)
              Exhibits
 
 Exhibit
                  Number
              
              Description31.1
              
              Section
                  302 Certification31.2
              
              Section
                  302 Certification32.1
              
              Section
                  906 Certification
 
 
 -
            19
            -
 
   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.
 
 
 Dated:
                  January 14, 2008
              Financial
                  Media Group, Inc.By:
                  /s/ Albert AimersAlbert
                  AimersChief
                  Executive Officer


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