**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM        10-KSB/A**

|   | **x                ANNUAL REPORT PURSUANT TO                SECTION 13 OR 15(d)                OF** |
|--------|-----------------------------------------------------------------------------------------------------|

|   | **THE                SECURITIES EXCHANGE ACT OF                1934** |
|--------|-----------------------------------------------------------------------|

**FOR      FISCAL YEAR ENDED DECEMBER 31, 2006**

|   | **HEARTLAND,                  INC.**                            |   |
|--------|-----------------------------------------------------------------|--------|
|   | (Name                  of small business issuer in its charter) |   |

| **Maryland**                                                                                |   | **36-4286069**                                         |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|
| (State                or other jurisdictionof                incorporation or organization) |   | (I.R.S.                Employer Identification Number) |

|  |  **982A                  Airport Road******Destin,                  Florida 32541**** |   |
|--|--------------------------------------------------------------------------------------------|--------|
|  |  (Address                  of principal executive offices) (Zip Code)                 |        |

|  | **850.837.0025**                                          |   |
|--|-----------------------------------------------------------|--------|
|  |  (Issuer’s                      telephone no.) |        |

----

**HEARTLAND,      INC.**

**FORM      10-KSB**

**TABLE      OF CONTENTS**

| **Item                #** |   | **Description**                                                                                                                                              |   | **                        Page Numbers** |
|---------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                         |   |                                                                             |   |
|                      |   | PART                I                                                                                                                                        |   |                                                                             |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                1.    |   | Business                of the Company                                                                                                                       |   |                  1                                                          |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                2.    |   | Properties                                                                                                                                                   |   |                  6                                                          |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                3.    |   | Legal                Proceedings                                                                                                                             |   |                  6                                                          |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                4.    |   | Submissions                of Matters to a Vote of Security                Holders                                                                           |   |                  6                                                          |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
|                      |   | PART                II                                                                                                                                       |   |                                                                             |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                5.    |   | Market                for Registrant’s Common Equity, Related Stockholder                Matters, and Issuer Purchases of Equity Securities            |   |                  7                                                          |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                6.    |   | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations                                    |   | 10                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                7.    |   | Financial                Statements and Supplementary                Data                                                                                    |   | 13                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                8.    |   | Changes                in and Disagreements with Accountants on Accounting                and Financial Disclosure                                           |   | 32                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                8A.   |   | Controls                and Procedures                                                                                                                       |   | 32                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                8B.   |   | Other                Information                                                                                                                             |   | 33                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
|                      |   | PART                III                                                                                                                                      |   |                                                                             |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                9.    |   | Directors,                Executive Officers, Promoters and Control                Persons: Compliance with Section 16(A) of the Exchange                Act |   | 33                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                10.   |   | Executive                Compensation                                                                                                                        |   | 34                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                11.   |   | Security                Ownership of Certain Beneficial Owners and                Management.                                                                |   | 35                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                12.   |   | Certain                Relationships and Related                Transactions                                                                                 |   | 36                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                13.   |   | Exhibits                and Reports on Form 8-K                                                                                                              |   | 37                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
| ITEM                14.   |   | Principal                Accountant Fees and Services                                                                                                        |   | 37                                                                               |   |
|                      |   |                                                                                                                                                         |   |                                                                             |   |
|                      |   | Signatures                                                                                                                                                   |   | 38                                                                               |   |

----

**PART      I**

**ITEM      1           DESCRIPTION      OF BUSINESS**

**INTRODUCTION**

**(A)           THE      COMPANY**

----

**(B)           BUSINESS      DEVELOPMENT**

----

**Subsequent      Events**

**(C)           BUSINESS**

**STEEL      FABRICATION**

----

**Competition      and Other Factors**

**Raw      Materials**

----

**UNFAIR      TRADE PRACTICES AND TRADE REMEDIES**

**SECTION      201 TARIFFS**

**ENVIRONMENTAL      MATTERS**

**CONSTRUCTION**

**Karkala      Construction, Inc.**

----

**Competition      and Other Factors**

**GENERAL**

**Employees**

----

**Customers**

**ITEM      2           DESCRIPTION      OF PROPERTY**

| **Months** |   | **Monthly                          Payment** |
|------------|--------|----------------------------------------------|
|       |   |                                         |   |
| 1-12       |   | $                                            | 3,272 |   |
|       |   |                                         |   |   |
| 13-24      |   | $                                            | 3,403 |   |
|       |   |                                         |   |   |
| 25-36      |   | $                                            | 3,573 |   |
|       |   |                                         |   |   |
| 37-48      |   | $                                            | 3,752 |   |
|       |   |                                         |   |   |
| 49-60      |   | $                                            | 3,938 |   |
|       |   |                                         |   |   |
| 61-63      |   | $                                            | 4,136 |   |

**ITEM      3            LEGAL      PROCEEDINGS**

----

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

**PART      II**

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

|                                                   |   | **HIGH** |   | **LOW** |   |
|--------------------------------------------------------|--------|----------|--------|---------|--------|
|                                                   |   |     |   |    |   |
| **FISCAL                YEAR ENDED DECEMBER 31, 2006** |   |     |   |    |   |
|                                                   |   |     |   |    |   |
| First                Quarter                           |   | 0.82     |   | 0.33    |   |
| Second                Quarter                          |   | 0.50     |   | 0.50    |   |
| Third                Quarter                           |   | 0.25     |   | 0.25    |   |
| Fourth                Quarter                          |   | 0.40     |   | 0.40    |   |
|                                                   |   |     |   |    |   |
| **FISCAL                YEAR ENDED DECEMBER 31, 2005** |   |     |   |    |   |
|                                                   |   |     |   |    |   |
| First                Quarter                           |   | 1.00     |   | 0.30    |   |
| Second                Quarter                          |   | 0.90     |   | 0.90    |   |
| Third                Quarter                           |   | 0.65     |   | 0.65    |   |
| Fourth                Quarter                          |   | 1.60     |   | 1.60    |   |
|                                                   |   |     |   |    |   |

**Preferred      Stock**

----

**Transfer      Agent**

**Warrants**

**Options**

**Penny      Stock Considerations**

|   | * | Deliver,                prior to any transaction involving a penny stock, a disclosure schedule                prepared by the Securities and Exchange Commissions relating to the                penny                stock market, unless the broker-dealer or the transaction is otherwise                exempt; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * | Disclose                commissions payable to the broker-dealer and our registered                representatives and current bid and offer quotations for the                securities; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * | Send                monthly statements disclosing recent price information pertaining                to the                penny stock held in a customer’s account, the account’s value and                information regarding the limited market in penny stocks;                and |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * | Make                a special written determination that the penny stock is a suitable                investment for the purchaser and receive the purchaser’s written agreement                to the transaction, prior to conducting any penny stock transaction                in the                customer’s account. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Dividends**

----

**Recent      Sales of Unregistered Securities**

----

|   | * | None                of these issuances involved underwriters, underwriting discounts                or                commissions; |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------|

|   | * | Sales                were made only to accredited investors or investors who were sophisticated                enough to evaluate the risks of the                investment. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * | The                opportunity to obtain any additional information, to the extent we                possessed such information, necessary to verify the accuracy of the                information to which the investors were given                access. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM      6          MANAGEMENT'S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS**

**Overview**

----

|   | * | a                promissory note of $1,305,000 payable on or before March 31, 2005                which,                if not paid by that date, interest is due from December 31, 2004                to actual                payment at 8%, simple interest, compounded annually                and |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Subsequent      Events**

**RESULTS      OF OPERATIONS FOR THE FISCAL YEARS ENDED DECEMBER 31, 2006 AND      2005**

**OVERVIEW**

----

|                                                                                                                              |   | ** ** | **12-31-2006** |   |   | ** **   | **12-31-2005** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------|----------------|--------|--------|--------------|----------------|--------|
|                                                                                                                              |   |       |           |   |   | **Restated** |           |
| Revenues                  - Sales                                                                                                 |   | $          | 20,224,267     |   |   | $            | 16,392,662     |   |
| Cost                  and expenses                                                                                                |   |       |           |   |   |         |           |   |
|                     Cost of good sold                                                                                   |   |       | 17,194,150     |   |   |         | 15,085,572     |   |
|                     Selling, general and administrative expense                                                         |   |       | 5,447,485      |   |   |         | 4,303,093      |   |
|    Adjustment                  of value of securities issued in connection with 2004                  acquisitions |   |       |           |   |   |         | 1,792,000      |   |
|                     Depreciation and amortization                                                                       |   |       | 65,785         |   |   |         | 75,169         |   |
|                                                                                                                              |   |       |           |   |   |         |           |   |
|                        Total costs and expenses                                                          |   |       | 22,707,420     |   |   |         | 21,255,834     |   |
|                                                                                                                              |   |       |           |   |   |         |           |   |
| Net                  operating loss                                                                                               |   |       | (2,483,153     | )      |   |         | (4,863,172     | )      |
| Net                  other income (expenses)                                                                                      |   |       | (300,611       | )      |   |         | (499,389       | )      |
|                                                                                                                              |   |       |           |   |   |         |           |   |
| Loss                  from continued operations before income taxes                                                               |   |       | (2,783,764     | )      |   |         | (5,362,561     | )      |
| Federal                  and state income tax benefit                                                                             |   |       | --             |   |   |         | 58,754         |   |
|  Loss                from continued operations                                                                               |   |       | (2,783,764     | )      |   |         | (5,303,807     | )      |
|  Gain                on disposition of discontinued operations                                                               |   |       | 6,886,897      |   |   |         | (8,231,282     | )      |
| Net                  Income (Loss)                                                                                                |   | $          | 4,103,133      |   |   | $            | (13,535,089    | )      |

**SALES**

**INCOME      BEFORE INCOME TAXES AND EXTRAORDINARY ITEM**

**INTEREST      EXPENSE**

**LIQUIDITY      AND CAPITAL RESOURCES**

----

|   | * | Trading                activities in non-exchange traded contracts;                or |
|--------|---|---------------------------------------------------------------------------------------|

|   | * | Transactions                with persons or entities that benefit from their non-independent                relationship with the Company. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------|

**Inflation**

**Critical      Accounting Policies and Estimates**

----

**ITEM      7.          FINANCIAL      STATEMENTS**

----

**CONTENTS**

|                                                                           |   |                  |   |
|--------------------------------------------------------------------------------|--------|-----------------------|--------|
| Report                of Independent Registered Public Accounting Firm         | Page   | F  1        |   |
|                                                                           |   |                  |   |
| Consolidated                Balance Sheets                                     |   | F  2        |   |
|                                                                           |   |                  |   |
| Consolidated                Statements of Operations                           |   | F  4        |   |
|                                                                           |   |                  |   |
| Consolidated                Statements of Cash Flows                           |   | F  5        |   |
|                                                                           |   |                  |   |
| Consolidated                Statements of Stockholders’ Equity (Deficit) |   | F  9        |   |
|                                                                           |   |                  |   |
| Notes                to Consolidated Financial Statements                      |   |  F  11 |   |
|                                                                           |   |                  |   |

----

**MEYLER      & COMPANY, LLC**

**CERTIFIED      PUBLIC ACCOUNTANTS**

**ONE      ARIN PARK**

**1715      HIGHWAY 35**

**MIDDLETOWN,      NJ 07748**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

**ASSETS**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | **December                31,** |          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | **2006**                        |          | **2005** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                            |          |  **(Restated)** |   |
| **CURRENT                ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                            |          |   |   |   |   |
| Cash                                                                                                           |   | $                               | 641,608       |   | $ | 232,902 |   |
|                  Accounts              receivable net of allowance for doubtful accounts of $196,376 and              $219,663, respectively                                                                                                                                                                                                                                                                                                                                                                                   |   |                            | 3,601,477     |   |   | 2,946,562 |   |
| Costs                in excess of billings on uncompleted contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                            | 634,687       |   |   | 332,396 |   |
| Inventory                                                                                                      |   |                            | 858,191       |   |   | 686,511 |   |
| Prepaid                expenses and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                            | 18,309        |   |   | 167,688 |   |
| Total                current                assets                                                                                                     |   |                            | 5,754,272     |   |   | 4,366,059 |   |
| **PROPERTY,              PLANT AND EQUIPMENT**, net of accumulated depreciation of $584,309              and $521,735, respectively                                                                                                                                                                                                                                                                                                                                                                                                           |   |                            |  944,370 |   |   |  963,537 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                            |          |   |   |   |   |
| **OTHER                ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                            |          |   |   |   |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                            | 1,291,390     |   |   | 1,291,390 |   |
| Other                intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            | 16,876        |   |   | 19,688 |   |
| Acquisition                deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                            | --            |   |   |  50,000 |   |
| Other                Assets                                                                                    |   |                            | 62,239        |   |   | 19,896 |   |
|                      Total other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                            | 1,370,505     |   |   | 1,380,974 |   |
| Total                assets                                                                                                                            |   | $                               | 8,069,147     |   | $ | 6,710,570 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

**LIABILITIES      AND STOCKHOLDERS’ EQUITY (DEFICIT)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **December                31,** |         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **2006**                        |         | **2005** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                            |         |  **(Restated)** |   |
| **CURRENT                LIABILITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                            |         |   |   |   |   |
| Convertible                promissory notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                               | 63,450       |   | $ | 1,680,700 |   |
| Current                portion of notes                payable                                                                                    |   |                            | 39,471       |   |   | 37,349 |   |
| Current                portion of notes payable to related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            | 87,903       |   |   |  66,787 |   |
| Accounts                payable                                                                                                                   |   |                            | 2,951,930    |   |   | 2,326,055 |   |
| Acquisition                notes payable to related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                            | 1,350,000    |   |   | 1,350,000 |   |
| Obligations                to related                parties                                                                                      |   |                            | 50,000       |   |   | -- |   |
|                      Accrued payroll and related taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                            | 699,917      |   |   | 602,201 |   |
| Accrued                interest                                                                                                                   |   |                            | 388,778      |   |   | 260,377 |   |
| Accrued                expenses                                                                                                                   |   |                            | 251,967      |   |   | 289,885 |   |
| Billings                in excess of costs on uncompleted contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                            | 376,372      |   |   | 521,952 |   |
| Net                liabilities of entities                discontinued                                                                            |   |                            | --           |   |   | 546,896 |   |
| Total                Current                Liabilities                                                                                                                         |   |                            | 6,259,788    |   |   | 7,682,202 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                            |         |   |   |   |   |
| **LONG-TERM                OBLIGATIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                            |         |   |   |   |   |
| Notes                payable, less current                portion                                                                                 |   |                            | 428,501      |   |   | 467,321 |   |
| Notes                payable to related parties, less current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                            | 475,005      |   |   |  545,158 |   |
| Total                Long Term                Liabilities                                                                                                                       |   |                            | 903,506      |   |   | 1,012,479 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                            |         |   |   |   |   |
| **STOCKHOLDERS’                EQUITY (DEFICIT)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                            |         |   |   |   |   |
|                      Preferred              stock $0.001 par value 5,000,000 shares authorized, none issued and              outstanding                                                                                                                                                                                                                                                                                                                                                              |   |                            |         |   |   |   |   |
|                      Common              stock, $0.001 par value 100,000,000 shares authorized; issued and              outstanding 32,303,105 and 23,746,024 shares at December 31, 2006 and              2005, respectively                                                                                                                                                                                                                                                                         |   |                            |  32,303 |   |   |  23,746 |   |
| Additional                paid-in                capital                                                                                          |   |                            | 14,832,175   |   |   | 16,053,901 |   |
| Accumulated                deficit                                                                                                                |   |                            | (13,958,625  | ) |   | (18,061,758 | ) |
| Total                Stockholders’ Equity                (Deficit)                                                                                                        |   |                            | 905,853      |   |   | (1,984,111 | ) |
| Total                Liabilities and Stockholders’ Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                               | 8,069,147    |   | $ | 6,710,570 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | **For                the Year Ended December 31,** |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | **2006**                                           |       | **2005** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       | **  (Restated)** |   |
| REVENUE                -                SALES                                                                                                                       |   | $                                                  | 20,224,267 |   | $ | 16,392,662 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
| COSTS                AND EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                               |       |   |   |   |   |
| Cost                of goods                sold                                                                                                                                   |   |                                               | 17,194,150 |   |   | 15,085,572 |   |
| Selling,                general and administrative                expenses                                                                                                         |   |                                               | 5,447,485  |   |   | 4,303,093 |   |
|                    Adjustment of value of securities issued in connection                with 2004 acquisitions                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                               | --         |   |   |  1,792,000 |   |
| Depreciation                and                amortization                                                                                                                        |   |                                               | 65,785     |   |   | 75,169 |   |
| Total                Costs and                Expenses                                                                                                                                                                     |   |                                               | 22,707,420 |   |   | 21,255,834 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
| NET                OPERATING                LOSS                                                                                                                    |   |                                               | (2,483,153 | ) |   | (4,863,172 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
| OTHER                INCOME (EXPENSE)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                               |       |   |   |   |   |
| Rental                income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                               | 71,436     |   |   | 101,204 |   |
| Other                income                                                                                                                                                        |   |                                               | 51,342     |   |   | 24,885 |   |
| Loss                on disposal of property, plant and                equipment                                                                                                                        |   |                                               | (3,540     | ) |   | (100,634 | ) |
| Interest                expense                                                                                                                                                    |   |                                               | (419,849   | ) |   | (524,844 | ) |
| Total                Other Income                (Expense)                                                                                                                                                                 |   |                                               | (300,611   | ) |   | (499,389 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
| LOSS                FROM CONTINUING OPERATIONS BEFORE INCOME                TAXES                                                                                   |   |                                               | (2,783,764 | ) |   | (5,362,561 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
| FEDERAL                AND STATE INCOME TAX BENEFIT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                               | --         |   |   |  58,,754 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
|  LOSS              FROM CONTINUING OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                               | (2,783,764 | ) |   | (5,303,807 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
|  DISCONTINUED              OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                               |       |   |   |   |   |
|                        Income (loss) from discontinued operations (less applicable income              tax              expense of $0)                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                               | 792        |   |   | (5,875,880 | ) |
|                        Gain on disposal of discontinued operations (less applicable income              tax              expense of $0)                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               | 4,004,060  |   |   | --  |   |
|                        Loss from discontinued operations of VIEs (less applicable income tax              expense of $0)                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                               | (12,692    | ) |   | (2,355,402 | ) |
|                        Gain on disposal of discontinued operations of VIEs (less applicable              income tax expense of $0)                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               | 2,894,737  |   |   | --  |   |
|                                     Total discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                               | 6,886,897  |   |   | (8,231,282 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
| NET                INCOME (LOSS)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                                  | 4,103,133  |   | $ | (13,535,089 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
| EARNINGS (LOSS)                PER COMMON SHARE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
|                          Continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                               |       |   |   |   |   |
|                           Basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                  | (0.11      | ) | $ | (0.25 | ) |
|                           Net income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                               |       |   |   |   |   |
|                    Basic              and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                               |  0.16 |   |   | (0.64 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               |       |   |   |   |   |
| WEIGHTED                AVERAGE COMMON SHARES OUTSTANDING                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                               |       |   |   |   |   |
|       Basic                and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                               | 24,923,495 |   |   | 21,158,951 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENT OF CASH FLOWS**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **For                the Year Ended December 31** |             |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |  **2006**                                    |             |  **2005** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |                  |   | **  (Restated)** |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              |             |   |   |   |   |
|                    Continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                              |             |   |   |   |   |
|                      Loss before income                taxes                                                                                        |   | $                                                 | (2,783,764       | ) | $ | (5,303,807 | ) |
|                     Adjustments to reconcile net loss to cash flows used                in operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |             |   |   |   |   |
| Stock                issued for services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | 2,982,278        |   |   | 1,652,985 |   |
| Adjustment                of value of securities issued in connection with                2004 acquisitions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                              | --               |   |   |  1,792,000 |   |
| Loss                on disposal of property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | 3,540            |   |   | 100,634 |   |
| Depreciation                and                amortization                                                                                                                                                          |   |                                              | 65,785           |   |   | 75,169 |   |
| Acquisition                deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              | 50,000           |   |   |  -- |   |
|             Deferred              income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                              | --          |   |   |  (79,763 | ) |
|                     Changes in assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                              |             |   |   |   |   |
| Increase                in accounts                receivable                                                                                                                                                        |   |                                              | (654,915         | ) |   | (132,652 | ) |
| Increase                in costs in excess of billings on uncompleted contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                              | (302,291         | ) |   | (144,775 | ) |
| Increase in                inventory                                                                                                                                                                            |   |                                              | (171,680         | ) |   | (177,214 | ) |
| Decrease                (Increase) in prepaids and                other                                                                                                                                              |   |                                              | 149,379          |   |   | (92,660 | ) |
| Increase                in other                assets                                                                                                                                                               |   |                                              | (42,343          | ) |   | -- |   |
| Increase in                accounts                payable                                                                                                                                                      |   |                                              | 625,875          |   |   | 49,991 |   |
| (Decrease)                increase in accrued payroll                taxes                                                                                                                                           |   |                                              | 97,716           |   |   | (91,429 | ) |
| Increase                in accrued                interest                                                                                                                                                           |   |                                              | 307,839          |   |   | 243,567 |   |
| (Decrease)                in accrued                expenses                                                                                                                                                         |   |                                              | (37,918          | ) |   | (159,752 | ) |
| Increase                (decrease) in billings in excess of costs on uncompleted                contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              | (145,580         | ) |   | 368,573 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |             |   |   |   |   |
|                          Cash provided by (used in) continuing operations before income              taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                              | 143,921          |   |   | (1,899,133 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |             |   |   |   |   |
|                    Discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              |             |   |   |   |   |
|             Income              (loss) before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              |  6,886,897  |   |   |  (8,231,282 | ) |
|             (Decrease)              increase in net liabilities of entities discontinued                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |  (546,896   | ) |   |  8,597,844 |   |
|             Gain              on rescission of acquisitions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              |  (6,335,000 | ) |   |  -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |             |   |   |   |   |
|                           Cash provided by discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                              |  5,001      |   |   |  366,562 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |             |   |   |   |   |
|                                   NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              |  148,922    |   |   | (1,532,571 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |             |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              |             |   |   |   |   |
| Proceeds                from disposition of property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              | --               |   |   | 21,000 |   |
| Payments                for property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              | (47,346          | ) |   |  (49,614 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |             |   |   |   |   |
| NET                CASH USED IN INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              | (47,346          | ) |   | (28,614 | ) |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENT OF CASH FLOWS (CONTINUED)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | **For                the Year Ended December 31** |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |  **2006**                                    |     |  **2005** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                              |     |   **(Restated)** |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |     |   |   |   |   |
|                          Proceeds              from issuance of promissory convertible notes              payable                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                                 | --  |   | $ |  734,150 |   |
| Payment                on convertible promissory notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              | (166,985 | ) |   |  -- |   |
| Payment                on acquisition note payable to related party                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | --       |   |   | (50,000 | )  |
| Payments                on notes                payable                                                                                                     |   |                                              | (36,698  | ) |   | (35,269 | ) |
| Payments                on notes payable to related                parties                                                                                  |   |                                              | (49,037  | ) |   |  (53,867 | ) |
| Payments                on obligations to related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              | --       |   |   | (150,000 | ) |
|                          Payments              on obligations to related party                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                              | 50,000   |   |   | --  |   |
| Proceeds                from issuance of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                              | 509,850  |   |   | 1,035,731 |   |
| NET                CASH FLOWS PROVIDED BY FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | 307,130  |   |   | 1,480,745 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                              |     |   |   |   |   |
| INCREASE                IN                CASH                                                                                          |   |                                              | 408,706  |   |   | (80,440 | ) |
| CASH,                BEGINNING                OF YEAR                                                                                   |   |                                              | 232,902  |   |   | 313,342 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                              |     |   |   |   |   |
| CASH,                END                OF YEAR                                                                                    |   | $                                                 | 641,608  |   | $ | 232,902 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENT OF CASH FLOWS (CONTINUED)**

|                                                                                                                                            |   | **For                the Year Ended December 31,** |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|-----------|
|                                                                                                                                            |   | **2006**                                           |      | **2005** |   |
|                                                                                                                                            |   |                                               |      |  **(Restated)** |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION                                                                                |   |                                               |      |   |   |   |   |
| Interest                paid                                                                                                                    |   | $                                                  | 112,010   |   | $ | 409,743 |   |
| Taxes                paid                                                                                                                       |   |                                               | --        |   |   |  76,930 |   |
|                                                                                                                                            |   |                                               |      |   |   |   |   |
| NON-CASH                INVESTING AND FINANCING ACTIVITIES                                                                                      |   |                                               |      |   |   |   |   |
| Disposal                of property, plant and equipment with related note payable                                                              |   |                                               | --        |   |   |  150,000 |   |
| Issuance                of common stock for services                                                                                            |   |                                               | 2,982,278 |   |   | 1,652,985 |   |
| Issuance                of common stock for acquisition deposit                                                                                 |   |                                               | --        |   |   |  50,000 |   |
| Issuance                of common stock in payment of accounts payable                                                                          |   |                                               | --        |   |   |  77,190 |   |
| Issuance                of common stock in payment of convertible promissory notes                payable                                       |   |                                               | 1,450,265 |   |   |  80,000 |   |
| Issuance                of common stock in payment of accrued interest                                                                          |   |                                               | 179,438   |   |   |  2,076 |   |
| Obligations                to related parties reclassified to notes payable to related parties                on                signing of note |   |                                               | --        |   |   |  470,907 |   |
| Accrued                interest reclassified to notes payable to related parties                                                                |   |                                               | --        |   |   |  205,907 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)**

**For      the Years Ended December 31, 2006 and 2005 (Restated)**

|                                                                                                                                               |   |                                            |       |   | **Additional**                   |   |     |              |   |   |              |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|--------|----------------------------------|--------|----------|-------------------|--------|--------|-------------------|---------|
|                                                                                                                                               |   |   **Common                    Stock** |       |   | **Paid                    - In** |   |     | **Accumulated**   |   |   |              |    |
|                                                                                                                                               |   | **Shares**                                      |       |   | **Capital**                      |   |     |  **Capital** |   |   |  **Deficit** |    |   | **Total** |   |
|                                                                                                                                               |   |                                            |       |   |                             |   |     |              |   |   |              |    |   |   |   |
| Balance,                    December 31, 2004                                                                                                      |   |                                            | 18,244,801 |   |                             | $      | 18,244   |              |   | $      | 13,161,421        |    |   | $ | (4,526,669 | ) |   | $ | (8,652,996 | ) |
|                                                                                                                                               |   |                                            |       |   |                             |   |     |              |   |   |              |    |   |   |   |   |   |   |   |   |
| Issuance                    of common stock to Executive Officer at $0.46 per share                                                                |   |                                            | 1,500,000  |   |                             |   | 1,500    |              |   |   | 688,500           |    |   |   | --  |   |   |   | 690,000 |   |
| Issuance                    of common stock for cash at $0.50 to $1.00 per share                                                                   |   |                                            | 1,696,236  |   |                             |   | 1,696    |              |   |   | 1,034,035         |    |   |   | --  |   |   |   | 1,035,731 |   |
| Issuance                    of common stock for conversion of convertible notes at $0.50                    and $1.00 per                    share |   |                                            | 100,000    |   |                             |   | 100      |              |   |   | 79,900            |    |   |   | --  |   |   |   | 80,000 |   |
|  Issuance                  of common stock for settlement of accounts payable obligation                  at $1.03 per share             |   |                                            | 75,000     |   |                             |   | 75       |              |   |   | 77,115            |    |   |   | --  |   |   |   | 77,190 |   |
|  Issuance                  of common stock for services rendered to the Company at $0.50 to                  $1.00 per share             |   |                                            | 875,770    |   |                             |   | 876      |              |   |   | 650,452           |    |   |   | --  |   |   |   | 651,328 |   |
|  Issuance                  of common stock for deposit on potential acquisition                  at $0.50 per share                 |   |                                            | 100,000    |   |                             |   | 100      |              |   |   | 49,900            |    |   |   | --  |   |   |   | 50,000 |   |
|  Issuance                  of common stock as contingent consideration for 2004 acquisition                  at                  par          |   |                                            | 683,000    |   |                             |   | 683      |              |   |   | (683              | )  |   |   | --  |   |   |   | --  |   |
|  Issuance                  of common stock to settle various legal disputes at $0.50 to $1.00                  per share                 |   |                                            | 467,064    |   |                             |   | 467      |              |   |   | 311,190           |    |   |   | --  |   |   |   | 311,657 |   |
|  Issuance                  of common stock for interest payment at $0.50 per share                                                       |   |                                            | 4,153      |   |                             |   | 5        |              |   |   | 2,071             |    |   |   | --  |   |   |   | 2,076 |   |
|  Net                  loss for year ended December 31, 2005                                                                                   |   |                                            | --    |   |                             |   | --  |              |   |   | --           |    |   |   | (13,535,089 | ) |   |   | (13,535,089 | ) |
|                                                                                                                                               |   |                                            |       |   |                             |   |     |              |   |   |              |    |   |   |   |   |   |   |   |   |
|  Balance,                  December 31, 2005                                                                                                  |   |                                            | 23,746,024 |   |                             | $      | 23,746   |              |   | $      | 16,053,901        |    |   | $ | (18,061,758 | )  |   |   | (1,984,111 | )  |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) (CONTINUED)**

|                                                                                                                                     |   |                                              |       |   | **Additional**                     |   |     |              |   |   |              |    |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|------------|--------|------------------------------------|--------|----------|-------------------|--------|--------|-------------------|---------|
|                                                                                                                                     |   |   **Common                      Stock** |       |   | **Paid                      - In** |   |     | **Accumulated**   |   |   |              |    |
|                                                                                                                                     |   | **Shares**                                        |       |   | **Capital**                        |   |     |  **Capital** |   |   |  **Deficit** |    |   | **Total** |   |
|                                                                                                                                     |   |                                              |       |   |                               |   |     |              |   |   |              |    |   |   |   |
| Balance,                      December 31, 2005                                                                                          |   |                                              | 23,746,024 |   |                               | $      | 23,746   |              |   | $      | 16,053,901        |    |   | $ | (18,061,758 | ) |   | $ | (1,984,111 | ) |
|                                                                                                                                     |   |                                              |       |   |                               |   |     |              |   |   |              |    |   |   |   |   |   |   |   |   |
| Issuance                      of common stock for conversion of convertible notes at $0.50 per                      share           |   |                                              | 2,900,530  |   |                               |   | 2,900    |              |   |   | 1,447,365         |    |   |   | --  |   |   |   | 1,450,265 |   |
| Issuance                      of common stock for cash at $0.17 to $0.38 per share                                                       |   |                                              | 1,666,940  |   |                               |   | 1,667    |              |   |   | 508,183           |    |   |   | --  |   |   |   | 509,850 |   |
| Issuance                      of common stock for services rendered to the Company at $0.25 to                      $0.75 per share |   |                                              | 5,230,735  |   |                               |   | 5,231    |              |   |   | 2,977,047         |    |   |   | --  |   |   |   | 2,982,278 |   |
|  Issuance                    of common stock for payments of interest on convertible                    notes                       |   |                                              | 358,876    |   |                               |   | 359      |              |   |   | 179,079           |    |   |   | --  |   |   |   | 179,438 |   |
|  Common                    stock cancelled upon rescission of certain acquisitions                                                  |   |                                              | (1,600,000 | )      |                               |   | (1,600   | )            |   |   | (6,333,400        | )  |   |   | --  |   |   |   | (6,335,000 | )  |
|  Net                    income for year ended December 31, 2006                                                                     |   |                                              | --    |   |                               |   | --  |              |   |   | --           |    |   |   | 4,103,133 |   |   |   | 4,103,133 |   |
|                                                                                                                                     |   |                                              |       |   |                               |   |     |              |   |   |              |    |   |   |   |   |   |   |   |   |
|  Balance,                    December 31, 2006                                                                                      |   |                                              | 32,303,105 |   |                               | $      | 32,303   |              |   | $      | 14,832,175        |    |   | $ | (13,958,625 | )  |   |   | 905,853 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      A - RESTATEMENTS**

|   | **2005** |
|--------|----------|

**NOTE        B - PRINCIPLES OF CONSOLIDATION AND NATURE OF        BUSINESS**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

|   | **NOTE                B - PRINCIPLES OF CONSOLIDATION AND NATURE OF BUSINESS                (CONTINUED)** |
|--------|-----------------------------------------------------------------------------------------------------------|

**Going      Concern Uncertainty and Management’s Plans**

**NOTE      C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Use      of Estimates**

**Cash      and Cash Equivalents**

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

**Business      Combinations**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**Goodwill and Other Intangible Assets**

**Property,      Plant and Equipment and Depreciation**

**Stock-Based      Compensation**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**Accounts      Receivable**

**Allowance      for Doubtful Accounts**

**Inventories**

**Fair      Values of Financial Instruments**

**Revenue      Recognition**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**Revenue      Recognition (Continued)**

**Impairment      of Long-Lived Assets**

**Reclassificaiton**

**Recent      Accounting Pronouncements**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**Recent      Accounting Pronouncements (Continued)**

*The Fair Value Option for        Financial Assets and Financial Liabilities*

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      D - ACQUISITIONS**

**2004**

**2005**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      D - ACQUISITIONS (CONTINUED)**

|                                                                          |   | **Persinger**                            |       |   | **Schultz** |   |       | **Ohio****Valley****Lumber** |   |   | **Ney                          Oil** |   |   | **Lee                          Oil** |       |
|-------------------------------------------------------------------------------|--------|------------------------------------------|------------|--------|-------------|--------|------------|------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------------|------------|
|                                                                          |   | (November                          2005) |       |   |        |   |       |                         |   |   |                                 |   |   |                                 |       |
|                                                                          |   |                                     |       |   |        |   |       |                         |   |   |                                 |   |   |                                 |       |
| Total                          current                          assets        |   | $                                        | 2,804,940  |   |        | $      | 1,185,690  |                         |   | $      | 6,421,756                            |   |   | $                                    | 2,850,748  |   |   | $ | 5,878,247 |   |
| Property                          plant and equipment, net                    |   |                                     | 38,718     |   |        |   | 646,573    |                         |   |   | 4,928,787                            |   |   |                                 | 2,794,917  |   |   |   | 5,347,498 |   |
| Other                          assets                                         |   |                                     | 212,737    |   |        |   | 329,811    |                         |   |   | 1,685,815                            |   |   |                                 | 554,362    |   |   |   | 44,467 |   |
| Total                          Assets                                         |   | $                                        | 3,056,395  |   |        | $      | 2,162,074  |                         |   | $      | 13,036,358                           |   |   | $                                    | 6,200,027  |   |   | $ | 11,270,212 |   |
|                                                                          |   |                                     |       |   |        |   |       |                         |   |   |                                 |   |   |                                 |       |   |   |   |   |   |
| Total                          Current Liabilities                            |   | $                                        | 1,896,118  |   |        | $      | 722,763    |                         |   | $      | 7,107,710                            |   |   | $                                    | 2,287,674  |   |   | $ | 2,743,822 |   |
| Total                          Long-Term                          Liabilities |   |                                     | 361,930    |   |        |   | 1,062,114  |                         |   |   | 3,655,382                            |   |   |                                 | 1,889,873  |   |   |   | 4,819,059 |   |
|                                                                          |   |                                     |       |   |        |   |       |                         |   |   |                                 |   |   |                                 |       |   |   |   |   |   |
| Stockholders’                          equity                           |   |                                     |       |   |        |   |       |                         |   |   |                                 |   |   |                                 |       |   |   |   |   |   |
| Common                          stock                                         |   |                                     | 40,000     |   |        |   | 22,831     |                         |   |   | 1,933                                |   |   |                                 | 120,000    |   |   |   | 1,000 |   |
| Additional                          paid-in capital                           |   |                                     | 105,000    |   |        |   |       |                         |   |   | 1,577,627                            |   |   |                                 |       |   |   |   | 57,708 |   |
| Treasury                          stock                                       |   |                                     | (600,000   | )      |        |   |       |                         |   |   |                                 |   |   |                                 |       |   |   |   |   |   |
| Accumulated                          earnings                                 |   |                                     | 1,253,347  |   |        |   | 354,366    |                         |   |   | 693,706                              |   |   |                                 | 1,902,480  |   |   |   | 3,648,623 |   |
|                                                                          |   |                                     |       |   |        |   |       |                         |   |   |                                 |   |   |                                 |       |   |   |   |   |   |
| Total                          Stockholders’ Equity                     |   |                                     | 798,347    |   |        |   | 377,197    |                         |   |   | 2,273,266                            |   |   |                                 | 2,022,480  |   |   |   | 3,707,331 |   |
|                                                                          |   |                                     |       |   |        |   |       |                         |   |   |                                 |   |   |                                 |       |   |   |   |   |   |
| Total                          Liabilities and Stockholders’ Equity     |   | $                                        | 3,056,395  |   |        | $      | 2,162,074  |                         |   | $      | 13,036,358                           |   |   | $                                    | 6,200,027  |   |   | $ | 11,270,212 |   |
|                                                                          |   |                                     |       |   |        |   |       |                         |   |   |                                 |   |   |                                 |       |   |   |   |   |   |
| Sales                                                                         |   | $                                        | 11,988,474 |   |        | $      | 17,268,691 |                         |   | $      | 14,298,809                           |   |   | $                                    | 54,480,538 |   |   | $ | 79,092,224 |   |
| Total                          costs and expenses                             |   |                                     | 11,850,756 |   |        |   | 17,144,723 |                         |   |   | 13,478,620                           |   |   |                                 | 54,410,701 |   |   |   | 78,357,415 |   |
| Net                          operating income                                 |   |                                     | 137,718    |   |        |   | 123,968    |                         |   |   | 820,189                              |   |   |                                 | 69,837     |   |   |   | 734,809 |   |
| Other                          income (expenses)                              |   |                                     | 38,151     |   |        |   | (64,601    | )                            |   |   | (521,354                             | )      |   |                                 | 293,284    |   |   |   | (15,784 | ) |
| Income                          before taxes                                  |   |                                     | 175,869    |   |        |   | 59,367     |                         |   |   | 298,835                              |   |   |                                 | 363,121    |   |   |   | 719,025 |   |
| Federal                          and State income taxes                       |   |                                     | 64,557     |   |        |   |       |                         |   |   | 54,384                               |   |   |                                 | 21,000     |   |   |   | 129,355 |   |
| Net                          income                                           |   | $                                        | 111,312    |   |        | $      | 59,367     |                         |   | $      | 244,451                              |   |   | $                                    | 342,121    |   |   | $ | 589,670 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      E - VARIABLE INTEREST ENTITIES**

**NOTE      F - INVENTORY**

| Inventory                        consists of the following at December 31, |   |     |    |   |     |   |
|----------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
|                                                                       |   | **2006** |    |   | **2005** |   |
|                                                                       |   |     |    |   |     |   |
| Raw                        material                                        |   | $        | 824,824 |   |     | $      | 665,510 |   |
| Work                        in process - manufacturing                     |   |     | 30,421  |   |     |   | 21,001 |   |
| Finished                        goods                                      |   |     | 2,946   |   |     |   | -- |   |
|                                                                       |   | $        | 858,191 |   |     | $      | 686,511 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      G – UNCOMPLETED CONTRACTS**

| Cost,                          estimated earnings, and billing on umcompleted contracts                          are summarized as                          follows:                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |      |   |     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|-----------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   December                          31, |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **2006**                                          |      |   | **2005** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |      |   |     |   |
| Cost                          incurred on uncompleted contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                 | 8,022,887 |   |     | $      | 4,591,447 |   |
| Estimated                          earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | 1,103,364 |   |     |   | 472,952 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              | 9,126,251 |   |     |   | 5,064,399 |   |
|  Billing                        to date                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                              | 8,867,936 |   |     |   | 5,253,955 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                 | 258,315   |   |     | $      | (189,556 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |      |   |     |   |   |   |
|  Included                        in balance sheet as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              |      |   |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |      |   |     |   |   |   |
|  Costs                        and estimated earnings in excess of billings                        on uncompleted contracts                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                                 | 634,687   |   |     | $      | 332,396 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |      |   |     |   |   |   |
|  Billings                        in excess of costs and estimated earnings                        on uncompleted                        contracts                                                               |   | $                                                 | (376,272  | )      |     | $      | (521,952 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |      |   |     |   |   |   |

**NOTE      H - PROPERTY, PLANT, AND EQUIPMENT**

| Property,                            plant, and equipment consists of the following at December                            31, |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                           |   | **2006** |   |   | **2005** |   |   | **Years                            of Average Useful Life** |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Land                                                                                                                           |   | $ | 73,400 |   |   | $ | 73,400 |   |   |   |   |
| Leasehold                            improvements                                                                              |   |   | 103,420 |   |   |   | 87,715 |   |   |   | 5 |   |
| Buildings                                                                                                                      |   |   | 762,600 |   |   |   | 762,600 |   |   |   | 30 |   |
| Furniture                            and fixtures                                                                              |   |   | 188,022 |   |   |   | 172,149 |   |   |   | 10 |   |
| Machinery                            and equipment                                                                             |   |   | 324,874 |   |   |   | 315,045 |   |   |   | 10-15 |   |
| Automotive                            equipment                                                                                |   |   | 76,363 |   |   |   | 74,363 |   |   |   | 7 |   |
|                                                                                                                           |   |   | 1,528,,679 |   |   |   | 1,485,272 |   |   |   |   |   |
| Less:                            accumulated depreciation                                                                      |   |   | 584,309 |   |   |   | 521,735 |   |   |   |   |   |
|                                                                                                                           |   | $ | 944,370 |   |   | $ | 963,537 |   |   |   |   |   |

**NOTE      I – OTHER INTANGABLE ASSETS**

| Other                          intangible assets consist of the following at December                          31, |   |     |   |   |     |   |
|--------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                                                                                               |   | **2006** |   |   | **2005** |   |
|                                                                                                               |   |     |   |   |     |   |
| Customer                          list                                                                        |   | $        | 22,500 |   |     | $      | 22,500 |   |
| Accumulated                          amortization and impairment                          loss                     |   |     | (5,624 | )      |     |   | (2,812 | ) |
|  Other                        intangible assets                                                               |   | $        | 16,876 |   |     | $      | 19,688 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      J - BANK LINES OF CREDIT (CONTINUED)**

**NOTE      K - CONVERTIBLE PROMISSORY NOTES PAYABLE**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      L - NOTES PAYABLE**

| Notes                          payable consist of the following:                                                                                                                                                                                                                                                                                                            |   |                                                             |    |   |     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                        |   | **    December                          31** |    |
|                                                                                                                                                                                                                                                                                                                                                                        |   | **2006**                                                         |    |   | **2005** |   |
| Notes                          payable to banks due February 2010 and March                          2010, payable in 72 monthly installments of $734 and $284                          including  interest at 6.17% and 6.27%, respectively. The notes                          are collateralized by transportation equipment.                                  |   | $                                                                | 35,937  |   |     | $      | 45,555 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                             |    |   |     |   |   |   |
| Mortgage                          notes payable to a bank due March 2017 and May 2017, payable                          in 180                          monthly installments of $2,260 and $2,739 including interest                          at 7.50% and                          7.25%, respectively. The notes are collateralized by                          buildings |   |                                                             | 432,035 |   |     |   | 459,115 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                             | 467,972 |   |     |   | 504,670 |   |
| Less:                          current portion                                                                                                                                                                                                                                                                                                                              |   |                                                             | 39,471  |   |     |   | 37,349 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                             |    |   |     |   |   |   |
| Long-term                          portion                                                                                                                                                                                                                                                                                                                                  |   | $                                                                | 428,501 |   |     | $      | 467,321 |   |

| Year       |   | Amount |    |
|------------|--------|--------|---------|
|       |   |   |    |
| 2007       |   | $      | 39,471  |   |
| 2008       |   |   | 42,301  |   |
| 2009       |   |   | 46,837  |   |
| 2010       |   |   | 37,901  |   |
|  2011 |   |   | 39,086  |   |
| Thereafter |   |   | 262,376 |   |
| Total      |   | $      | 467,972 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      M - RELATED PARTY TRANSACTIONS**

**Obligations      to Related Parties**

| **Notes                          payable consist of the following:**                                                                                                                                                                                                                                                                                                                                                                                          |   |     |    |   |     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | **2006** |    |   | **2005** |   |
| During                          2005, obligations to a related party and                          accrued rent in the amounts of $45,907 and $205,907, respectively                          were                          converted to a note payable.  The note is payable in 120 monthly                          installments in the amount of $2,796 and bears interest                          at the rate of                          6.00% |   | $        | 227,405 |   |     | $      | 246,549 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |    |   |     |   |   |   |
| During                          2005, obligations to related party in the amount of $425,000                          was converted                          to a note payable.  The note is payable in 90 monthly                          installments in the amount of $4,152 and is non-interest                          bearing                                                                                                               |   |     | 335,503 |   |     |   | 365,396 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |    |   |     |   |   |   |
|  Total                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | 562,908 |   |     |   | 611,945 |   |
| Less:                          current maturities                                                                                                                                                                                                                                                                                                                                                                                                             |   |     | 87,903  |   |     |   | 66,787 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |    |   |     |   |   |   |
| Long-term                          portion                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $        | 475,005 |   |     | $      | 545,158 |   |

| Year       |   | Amount |    |
|------------|--------|--------|---------|
|       |   |   |    |
| 2007       |   | $      | 87,903  |   |
| 2008       |   |   | 71,406  |   |
| 2009       |   |   | 72,737  |   |
| 2010       |   |   | 74,150  |   |
|  2011 |   |   | 75,650  |   |
| Thereafter |   |   | 181,062 |   |
| Total      |   | $      | 562,908 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      M - RELATED PARTY TRANSACTIONS (CONTINUED**

**NOTE      N - STOCKHOLDERS’ EQUITY (DEFICIT)**

**2006**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      N - STOCKHOLDERS’ EQUITY (DEFICIT) (CONTINUED)**

**2005**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      O - INCOME TAXES**

|                                                          |   | **2006** |   |   | **2005** |   |
|---------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
| Current:                                                      |   |     |   |   |     |   |
| Federal                                                       |   | $        | --     |   |     | $      | 13,836 |   |
| State                                                         |   |     | --     |   |     |   | 7,173 |   |
| Total                          Current Expense                |   |     | --     |   |     |   | 21,009 |   |
| Deferred:                                                     |   |     |   |   |     |   |   |   |
| Federal                                                       |   |     | --     |   |     |   | (68,854 | ) |
| State                                                         |   |     | --     |   |     |   | (10,909 | ) |
| Total                          Deferred Benefit:              |   |     | --     |   |     |   | (79,763 | ) |
|                                                          |   |     |   |   |     |   |   |   |
| Federal                          and State income tax benefit |   | $        | --     |   |     | $      | (58,754 | ) |

|                                                                      |   | **2006** |       |   | **2005** |   |
|---------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
|                                                                      |   |     |       |   |     |   |
| Allowance                          for doubtful accounts                  |   | $        | 78,550     |   |     | $      | 87,865 |   |
| Deferred                          revenues                                |   |     | (441,346   | )      |     |   | (189,181 | ) |
| Vacation                        accrual                              |   |     | 6,149      |   |     |   | 5,514 |   |
| Net                            operating losses                      |   |     | 1,785,000  |   |     |   | 1,608,400 |   |
|                                                                      |   |     |       |   |     |   |   |   |
| Net                          deferred tax assets                     |   |     | 1,428,353  |   |     |   | 1,512,598 |   |
| Less:  Valuation                          allowance   |   |     | (1,428,353 | )      |     |   | (1,512,598 | ) |
| Net                                                                       |   | $        | --         |   |     | $      | -- |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      P - OPERATING SEGMENTS**

| **Year                              ended December 31, 2006:**                           |   | **Parent                              Company**                                                                                                                                                                                                                             |       | **Steel                              Fabrication** |       |   | **Construction** |   |      | **Total** |      |
|------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|----------------------------------------------------|------------|--------|------------------|--------|-----------|-----------|-----------|
| Revenues                                                                                 |   | $                                            -- |       | $                                                  | 11,921,907 |   |             | $      | 8,302,360 |      |      | $ | 20,224,267 |   |
| NET                              INCOME (LOSS)                                           |   |                                                                                                                                                                                                                                                                        | (3,933,215 | )                                                  |       |   | 1,069,278        |   |      |      | 80,173    |   |   |   | (2,783,764 | ) |
| Total                              Assets                                                |   |                                                                                                                                                                                                                                                                        | 10,081     |                                               |       |   | 4,730,507        |   |      |      | 3,328,559 |   |   |   | 8,069,147 |   |
| OTHER                              SIGNIFICANT ITEMS                                     |   |                                                                                                                                                                                                                                                                        |       |                                               |       |   |             |   |      |      |      |   |   |   |   |   |
|                                  Depreciation  and amortization |   |                                                                                                                                                                                                                                                                        | --         |                                               |       |   | 39,528           |   |      |      | 26,257    |   |   |   | 65,785 |   |
| Interest                                                                                 |   |                                                                                                                                                                                                                                                                        | 300,253    |                                               |       |   | 86,698           |   |      |      | 32,898    |   |   |   | 419,849 |   |
| Expenditures                              for assets                                     |   |                                                                                                                                                                                                                                                                        | --         |                                               |       |   | 43,336           |   |      |      | 3,010     |   |   |   | 47,346 |   |

| **Year                          ended December 31, 2005:** |   | **Parent                          Company**                                                                                                                                                                                                                                 |       |   | **Steel                          Fabrication** |      |      | **Construction** |                                                                                                                                                                                                                   |   | **Total**  |   |
|------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|------------------------------------------------|-----------|-----------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|
| Revenues                                                   |   | $                                            -- |       |   | $                                              | 7,764,997 |      |             |  $                                                     8,627,665 |   |       | $      | 16,392,662 |   |
| NET                          INCOME (LOSS)                 |   |                                                                                                                                                                                                                                                                        | (3,828,741 | )      |                                           |      | 608,956   |             |                                                                                                                                                                                                                   |   | (2,084,022 | )      |   |   | (5,303,807 | ) |
| Total                          Assets                      |   |                                                                                                                                                                                                                                                                        | 82,504     |   |                                           |      | 2,718,196 |             |                                                                                                                                                                                                                   |   | 3,909,870  |   |   |   | 6,710,570 |   |
| OTHER                          SIGNIFICANT ITEMS           |   |                                                                                                                                                                                                                                                                        |       |   |                                           |      |      |             |                                                                                                                                                                                                                   |   |       |   |   |   |   |   |
| Depreciation                          and amortization     |   |                                                                                                                                                                                                                                                                        | 398   |   |                                           |      | 33,407    |             |                                                                                                                                                                                                                   |   | 41,364     |   |   |   | 75,169 |   |
| Interest                                                   |   |                                                                                                                                                                                                                                                                        | 483,707    |   |                                           |      | 6,661     |             |                                                                                                                                                                                                                   |   | 34,476     |   |   |   | 524,844 |   |
| Expenditures                          for assets           |   |                                                                                                                                                                                                                                                                        | --    |   |                                           |      | ---       |             |                                                                                                                                                                                                                   |   | 49,614     |   |   |   | 49,614 |   |

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      Q - COMMITMENTS AND CONTINGENCIES**

**Leases**

| For                            the Years                            Ended December                            31, |   | Unrelated |    |   | Related                            Party |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|------------------------------------------|--------|
|                                                                                                              |   |      |    |   |                                     |   |
| 2007                                                                                                              |   |      | 27,648  |   |                                     |   | 237,876 |   |
| 2008                                                                                                              |   |      | 28,160  |   |                                     |   | 240,024 |   |
| 2009                                                                                                              |   |      | 28,672  |   |                                     |   | 242,268 |   |
| 2010                                                                                                              |   |      | 142,408 |   |                                     |   | 142,408 |   |
| Total                                                                                                             |   | $         | 84,480  |   |                                     | $      | 862,576 |   |

**Issuance      of Common Stock**

----

**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      R - CONCENTRATION OF CREDIT RISK**

**NOTE      S – DISCONTINUED OPERATIONS**

|  **2006**                                                                     |   | **Evans** |      |   | **Monarch** |   |      | **PAR** |   |   | **Wyncrest** |    |   | **Mondus** |   |
|------------------------------------------------------------------------------------|--------|-----------|-----------|--------|-------------|--------|-----------|---------|--------|--------|--------------|---------|--------|------------|--------|
|                                                                               |   |      |      |   |        |   |      |    |   |   |         |    |   |       |   |
|                                                                               |   |      |      |   |        |   |      |    |   |   |         |    |   |       |   |
| Revenues                                                                           |   | $         | 2,416,738 |   |        | $      | 1,844,709 |    |   | $      | --           |    |   | $          | --     |   |   | $ | -- |   |
| Pre                            tax profit (loss)                                   |   |      | 792       |   |        |   | --        |    |   |   | (12,692      | )  |   |       | --     |   |   |   | -- |   |
| Net                              assets                              (liabilities) |   |      | --        |   |        |   | --        |    |   |   | --           |    |   |       | --     |   |   |   | -- |   |

|  **2005**                                                                         |   | **Evans** |       |    | **Monarch** |   |       | **PAR** |   |   | **Wyncrest** |    |   | **Mondus** |     |
|----------------------------------------------------------------------------------------|--------|-----------|------------|---------|-------------|--------|------------|---------|--------|--------|--------------|---------|--------|------------|----------|
|                                                                                   |   |      |       |    |        |   |       |    |   |   |         |    |   |       |     |
|                                                                                   |   |      |       |    |        |   |       |    |   |   |         |    |   |       |     |
| Revenues                                                                               |   | $         | 9,384,126  |    |        | $      | 14,897,825 |    |   | $      | --           |    |   | $          | --       |   |   | $ | -- |   |
| Pre                              tax profit (loss)                                     |   |      | (2,359,569 | )  |        |   | (3,440,629 | )       |   |   | (161,779     | )  |   |       | (325,758 | )  |   |   | (2,107,872 | )  |
| Net                                assets                                (liabilities) |   |      | (2,353,438 | )  |        |   | 1,703,055  |    |   |   | 291,635      |    |   |       | (668,203 | )  |   |   | 480,055 |   |

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**HEARTLAND,      INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**NOTE      T – SUBSEQUENT EVENTS**

|   | (1) | On                January 10, 2007, the Company abandoned its intent to Ney Oil                Company  and Schultz Oil Company.  See Note D,                2005. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | On                February 26, 2007, the Company notified NKR, Inc. that the Letter                of                Intent to acquire NKR, Inc. entered into on September 12, 2005, has                been                terminated.  See Note D,                2005. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | In                April 2007, the Company entered into an agreement to purchase the                property                where the Mound Facilities are located from the current owner who                is a                stockholder of the Company. In consideration of the purchase, the                Company                will assume all the outstanding debts secured by the property including                any liens for real estate taxes and                assessments. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | In                February 2007, the company issued 1,965,000 shares of its common                stock                valued at approximately $666,000 to individuals for services, including                650,000 shares valued at approximately $211,000 issued to members                of its                Board of Directors. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ITEM        8.           **CHANGES        IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL        DISCLOSURE****

**Item      8A.          CONTROL AND      PROCEDURES**

|   | * | subscribe                to accounting journals and have the Company’s accounting personnel attend                accounting seminars; and |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | engage                additional accounting personnel to assist in the preparation of the                Company’s financial statements. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      8B.          OTHER      INFORMATION**

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**PART      III**

**ITEM        9.          **DIRECTORS,        EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS: COMPLIANCE WITH SECTION        16(A)        OF THE EXCHANGE ACT****

| **Name**                                        |   | **Age** |   | **With                Company****Since** |   | **Director/Position**                                                                                         |   |
|-------------------------------------------------|--------|---------|--------|------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|
| Trent                Sommerville                |   | 39      |   | 12/2003                                  |   | Chief                Executive Officer, Chairman                of the Board, and                Director     |   |
|                                            |   |    |   |                                     |   |                                                                                                          |   |
| Thomas                C. Miller                 |   | 51      |   | 12/2003                                  |   | Chief                Operating Officer and                Director                                            |   |
|                                            |   |    |   |                                     |   |                                                                                                          |   |
| Jerry                Gruenbaum                  |   | 51      |   | 01/2001                                  |   | Chief                Financial Officer, Secretary,                General Counsel and                Director |   |
|                                            |   |    |   |                                     |   |                                                                                                          |   |
| Kenneth                B.                Farris |   | 46      |   | 01/2004                                  |   | Director                                                                                                      |   |

**MR.      TRENT SOMMERVILLE - CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THE      BOARD**

**MR.      THOMAS C. MILLER - CHIEF OPERATING OFFICER AND DIRECTOR**

----

**JERRY      GRUENBAUM –CHIEF FINANCIAL OFFICER, CORPRATE SECRETARY, GENERAL COUNSEL AND      DIRECTOR**

**DR.      KENNETH B. FARRIS – DIRECTOR**

**FAMILY      RELATIONSHIPS**

**BOARD      COMMITTEES**

**LEGAL      PROCEEDINGS**

----

**Compliance      with Section 16(a) of the Exchange Act**

**CODE      OF ETHICS**

**ITEM      10.        EXECUTIVE      COMPENSATION**

**SUMMARY      COMPENSATION TABLE**

| **Name/                          Position**                                                     | **Year** |   | **Salary** |    |   | **Bonus** |   |   | **Stock** |   |   | **Other** |   |   | **Total** |   |
|-------------------------------------------------------------------------------------------------|----------|--------|------------|---------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
| Trent                          Sommerville - CEO                          and Chairman          | 2006     |   | $          | 155,500 |   |      | $      | 0      |      |   | $      | 50,000    |   |   | $         | 0      |   |   | $ | 205,500 |   |
|                                                                                            | 2005     |   | $          | 205,000 |   |      | $      | 0      |      |   | $      | 690,000   |   |   | $         | 0      |   |   | $ | 895,000 |   |
|                                                                                            | 2004     |   | $          | 164,976 |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |   | $ | 164,976 |   |
| Jerry                          Gruenbaum - CFO,                          Secretary and Director | 2006     |   | $          | 88,000  |   |      | $      | 0      |      |   | $      | 50,000    |   |   | $         | 0      |   |   | $ | 132,000 |   |
|                                                                                            | 2005     |   | $          | 25,000  |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |   | $ | 25,000 |   |
|                                                                                            | 2004     |   | $          | 109,500 |   |      | $      | 0      |      |   | $      | 25,000    |   |   | $         | 0      |   |   | $ | 134,500 |   |
| Thomas                          C. Miller - COO                          and Director           | 2006     |   | $          | 71,220  |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |   | $ | 71,220 |   |
|                                                                                            | 2005     |   | $          | 71,220  |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |   | $ | 71,220 |   |
|                                                                                            | 2004     |   | $          | 71,220  |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |   | $ | 71,220 |   |

**COMPENSATION      AGREEMENTS**

**BOARD      COMPENSATION**

**STOCK      OPTION PLAN**

----

**WARRANTS**

**ITEM      11.          SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

**SECURITY      OWNERSHIP OF BENEFICIAL OWNERS**

| **Title                of Class** |   | **Name**                                      |   | **Shares** |   | **Percent** |   |
|-----------------------------------|--------|-----------------------------------------------|--------|------------|--------|-------------|--------|
|  Common                Stock |   | John                E. Gracik                 |   | 1,763,696  |   | 4.86        | %      |
|                              |   |                                          |   |       |   |        |   |
|                              |   | John                Zavoral                   |   | 1,125,000  |   | 3.10        | %      |
|                              |   |                                          |   |       |   |        |   |
|                              |   | First                Union Venture Group, LLC |   | 1,750,000  | (2)    | 5.23        | %      |

**SECURITY      OWNERSHIP OF MANAGEMENT**

| **Title                of Class**                                          |   | **Name**                         |   | **Shares** |   | **Percent** |   |
|----------------------------------------------------------------------------|--------|----------------------------------|--------|------------|--------|-------------|--------|
|                                                                       |   |                             |   |       |   |        |   |
| Common                Stock                                                |   | Trent                Sommerville |   | 3,300,000  |   | 9.08        | %      |
|                                                                       |   |                             |   |       |   |        |   |
|                                                                       |   | Jerry                Gruenbaum   |   | 1,250,000  | (3)    | 3.44        | %      |
|                                                                       |   |                             |   |       |   |        |   |
|                                                                       |   | Kenneth                B. Farris |   | 563,636    |   | 1.55        | %      |
|                                                                       |   |                             |   |       |   |        |   |
|                                                                       |   | Thomas                Miller     |   | 1,200,000  |   | 3.30        | %      |
|                                                                       |   |                             |   |       |   |        |   |
| All                Directors and Executive Officers as a group (5 persons) |   | 6,313,636                        |   | 17.38      | %      |
|                                                                       |   |                             |   |       |   |        |   |

----

| (1) | These                tables are based upon 36,326,040 shares outstanding as of April 17,                2007 and information derived from our stock records. Unless otherwise                indicated in the footnotes to these tables and subject to community                property laws where applicable, we believe unless otherwise noted                that                each of the shareholders named in this table has sole or shared voting                and                investment power with respect to the shares indicated as beneficially                owned. For purposes of this table, a person or group of persons is                deemed                to have "beneficial ownership" of any shares which such person has                the                right to acquire within 60 days as of April 17, 2007. For purposes                of                computing the percentage of outstanding shares held by each person                or                group of persons named above on March 20, 2007 any security which                such                person or group of persons has the right to acquire within 60 days                after                such date is deemed to be outstanding for the purpose of computing                the                percentage ownership for such person or persons, but is not deemed                to be                outstanding for the purpose of computing the percentage ownership                of any                other person. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | First                Union Venture Group, LLC which owns 1,000,000 shares is owned one                half by                Atty. Jerry Gruenbaum, Secretary, General Counsel and Director of                the                Company and one half by another individual who is not related to                Atty.                Gruenbaum or under his control. In addition Jerry Gruenbaum                owns 750,000 shares in his own                name. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Jerry                Gruenbaum holds 500,000 shares as a result of a 50% interest in First                Union Venture Group, LLC. and 750,000 directly in his own                name. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      12.           CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS.**

----

**ITEM      13.          EXHIBITS AND      REPORTS ON FORM 8-K**

| **Exhibit                Number** | **Document                Description** |
|-----------------------------------|-----------------------------------------|

| 3.1 | Certificate                of Incorporation of Origin Investment Group, Inc. as filed with the                Maryland Secretary of State on April 6, 1999, incorporated by reference                to                the Company’s Registration Statement on Form 10-KSB filed with the                Securities and Exchange Commission on August 16,                1999. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Amended                Certificate of Incorporation of International Wireless, Inc. as filed                with                the Maryland Secretary of State on June 12, 2003, incorporated by                reference to the Company’s Current Report on Form 8-K filed with the                Securities and Exchange Commission on June 12,                2003. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Amended                Certificate of Incorporation of International Wireless, Inc. to change                name to Heartland, Inc. as filed with the Maryland Secretary of State                on                June 12, 2003, incorporated by reference to the Company’s Current Report                on Form 8-K filed with the Securities and Exchange Commission on                June 15,                2004. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Bylaws                of Origin Investment Group, Inc., incorporated by reference to the                Company’s Registration Statement on Form 10-SB filed with the Securities                and Exchange Commission on August 16,                1999. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31 | Certification                of Chief Executive Officer and the Principal Financial Officer pursuant                to                Section 302 of the Sarbanes Oxley                Act. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32 | Certification                of Chief Executive Officer and the Principal Financial Officer Pursuant                to                18 U.S.C. Section 1350 as adopted Pursuant to Section 906 of the                Sarbanes                Oxley Act of 2002. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM      14.            PRINCIPAL      ACCOUNTANT FEES AND SERVICES**

| FIRM                                       |   | FISCAL                  YEAR 2006 |   | FISCAL                  YEAR 2005 |
|--------------------------------------------|--------|-----------------------------------|--------|-----------------------------------|
|                                       |   |                              |   |                              |
| Meyler                  & Company, LLC |   | $165,000                          |   | $                  190,000        |

**TOTAL      FEES**

| **FIRM**                                   |   | **FISCAL                  YEAR 2006** |   | **FISCAL                  YEAR 2005** |
|--------------------------------------------|--------|---------------------------------------|--------|---------------------------------------|
|                                       |   |                                  |   |                                  |
| Meyler                  & Company, LLC |   | $165,000.00                           |   | $                  190,000.00         |

| AUDITFEES. | Consists                of fees billed for professional services rendered for the audit of                our                consolidated financial statements and review of the interim consolidated                financial statements included in quarterly reports and services that                are                normally provided in connection with statutory and regulatory filings                or                engagements. |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| AUDIT-RELATED                FEES. | Consists                of fees billed for assurance and related services that are reasonably                related to the performance of the audit or review of our consolidated                financial statements and are not reported under “Audit Fees.” There were                no Audit-Related services provided in fiscal 2006 or                2005. |
|------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| TAX                FEES. | Consists                of fees billed for professional services for tax compliance, tax                advice                and tax planning. |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ALL                OTHER FEES. | Consists                of fees for products and services other than the services reported                above. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------|

**POLICY      ON AUDIT COMMITTEE PRE-APPROVAL OF AUDIT AND PERMISSIBLE NON-AUDIT SERVICES      OF      INDEPENDENT AUDITORS**

**SIGNATURES**

| Date:                  April 19, 2007 | By:                  /s/ Trent Sommerville |
|---------------------------------------|--------------------------------------------|

| Date:                  April 19, 2007 | By:                  /s/ Jerry Gruenbaum |
|---------------------------------------|------------------------------------------|

| **SIGNATURE**                          |   | **NAME**                           |   | **TITLE**                                                          |   | **DATE**                        |
|----------------------------------------|--------|------------------------------------|--------|--------------------------------------------------------------------|--------|---------------------------------|
|                                   |   |                               |   |                                                               |   |                            |
| /s/                  Trent Sommerville |   | Trent                  Sommerville |   | Chief                  Executive Officer, Chairman & Director  |   | April                  19, 2007 |
|                                   |   |                               |   |                                                               |   |                            |
| /s/                  Jerry Gruenbaum   |   | Jerry                  Gruenbaum   |   | Chief                  Financial Officer, Secretary & Director |   | April                  19, 2007 |
|                                   |   |                               |   |                                                               |   |                            |
| /s/                  Thomas C. Miller  |   | Thomas                  C. Miller  |   | Chief                  Operating Officer & Director            |   | April                  19, 2007 |
|                                   |   |                               |   |                                                               |   |                            |
| /s/                  Kenneth B. Farris |   | Kenneth                  B. Farris |   | Director                                                           |   | April                  19, 2007 |

----