----

----

**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        DC 20549**

**FORM        10-QSB**

| [X] | QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

**For        the Quarterly Period Ended August 31, 2007**

| [   ] | TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                  EXCHANGE       ACT OF                  1934. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Trackpower,        Inc.**

**Wyoming                                                                                                                            **
**13-341116**

**3565        King Road, Suite 102**

**King        City, Ontario L7B 1M3**

**(905-833-9845)**

**67          Wall Street, Suite 2211**

**New          York, NY 10005**

----

**TrackPower,        Inc.**

**INDEX**

| **PART                  I.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Financial                  Information**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item                  1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Condensed                  Financial Statements (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   Condensed                  Balance                  Sheet                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 3      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Condensed                  Statements of                  Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 4      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Condensed                  Statements of                  Stockholders’ Deficiency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 5      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Condensed                  Statements of Cash                  Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 6      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Notes                  to Condensed Financial                  Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 7      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item                  2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Management's                  Discussion and Analysis or Plan of                  Operation                                                                                                            | 10     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item                  3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Controls                  and                  Procedures                                                                                                                                              | 14     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| **PART                  II.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **Other                  Information**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item                  2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Unregistered                  Sales of Equity                  Securities                                                                                                                         | 15     |
| Item                  3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Defaults                  Upon Senior                  Securities                                                                                                                                 | 15     |
| Item                  6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Exhibits                                                                                                                                                                                               | 15     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Signatures                  and                  Certifications                                                                                                                              | 16                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

**PART        I. Financial Information**

**Item        1.Condensed Financial        Statements.**

**TrackPower,        Inc.**

**Condensed        Balance Sheet**

**(UNAUDITED)**

|                                                                   |   |   |    |
|------------------------------------------------------------------------|--------|--------|---------|
|                                                                   |   |   |    |
| **ASSETS**                                                             |   |   |    |
| Current                  Assets:                                       |   |   |    |
| Cash                                                                   |   | $      | 12,007  |   |
| Due                  from related                  parties             |   |   | 44,367  |   |
| Prepaid                  expenses                                      |   |   | 13,440  |   |
| Total                  current assets                                  |   |   | 69,814  |   |
|                                                                   |   |   |    |   |
| Office                  equipment                                      |   |   | 21,913  |   |
| Less:    Accumulated                  depreciation |   |   | (16,796 | ) |
| Net                  office                  equipment                 |   |   | 5,117   |   |
|                                                                   |   |   |    |   |
| Investment                                                             |   |   | 700,000 |   |
|                                                                   |   |   |    |   |
| **TOTAL                  ASSETS**                                      |   | $      | 774,931 |   |
|                                                                   |   |   |    |   |

| **LIABILITIES                  AND SHAREHOLDERS' DEFICIENCY**                                                                                                                                                     |   |    |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------|
| Current                  Liabilities:                                                                                                                                                                             |   |    |        |
| Accounts                  payable                                                                                                                                                                                 |   | $       | 228,489     |   |
|      Due                  to related parties                                                                                                                                             |   |    | 381,856     |   |
| Preferred                  dividends                  payable                                                                                                                                                     |   |    | 320,164     |   |
| Accrued                  professional                  fees                                                                                                                                                       |   |    | 47,066      |   |
| Accrued                  interest                                                                                                                                                                                 |   |    | 68,096      |   |
|      Accrued                  directors’ fees                                                                                                                                      |   |    | 33,625      |   |
| Note                  payable                                                                                                                                                                                     |   |    | 21,000      |   |
| Total                  current liabilities                                                                                                                                                                        |   |  $ | 1,100,296   |   |
|                                                                                                                                                                                                              |   |    |        |   |
|      Notes                  payable                                                                                                                                                      |   |    | 700,000     |   |
|                                                                                                                                                                                                              |   |    |        |   |
| Total                  liTotal Liabilities                                                                                                                                                                        |   |  $ | 1,800,296   |   |
|                                                                                                                                                                                                              |   |    |        |   |
|                                                                                                                                                                                                              |   |    |        |   |
|                                                                                                                                                                                                              |   |    |        |   |
| Shareholders’                  deficiency:                                                                                                                                                                  |   |    |        |   |
| Series                  A 8% convertible                  preferred stock, $3,000 initial value, no par value, unlimited                  shares                  authorized, 1,000 shares issued and outstanding |   |  $ | 3,000,000   |   |
| Common                  stock, $.0001 par value;                  unlimited  shares authorized, 817,768,540 shares, issued and                  outstanding                                             |   |    | 81,777      |   |
| Additional                  paid in                  capital                                                                                                                                                      |   |    | 29,987,049  |   |
| Common                  stock                  subscribed                                                                                                                                                         |   |    | 120,000     |   |
| Accumulated                  deficit                                                                                                                                                                              |   |    | (34,214,191 | ) |
| Total                  shareholders’                  deficiency                                                                                                                                            |   |    | (1,025,365  | ) |
| **TOTAL                  LIABILITIES AND SHAREHOLDERS' DEFICIENCY**                                                                                                                                               |   | $       | 774,931     |   |

----

**TrackPower,        Inc.**

**Condensed        Statements of Operations**

**(UNAUDITED)**

|                                                                            |   | Three                  Months EndedAugust                  31, |        |   | Six                  Months EndedAugust                  31, |   |
|---------------------------------------------------------------------------------|--------|----------------------------------------------------------------|-------------|--------|--------------------------------------------------------------|--------|
|                                                                            |   | 2007                                                           |        |   | 2006                                                         |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                       |   | $                                                              | -           |   |                                                         | $      | - |   |   | $ | - |   |   | $ | - |   |
|                                                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Costs                  and expenses:                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Wages                  and consulting                  fees                     |   |                                                           | -           |   |                                                         |   | 66,238 |   |   |   | - |   |   |   | 224,969 |   |
| Management                  fees, related                  party                |   |                                                           | 67,500      |   |                                                         |   | 66,702 |   |   |   | 127,500 |   |   |   | 127,936 |   |
|       Professional                  fees          |   |                                                           | 3,778       |   |                                                         |   | 79,668 |   |   |   | 8,175 |   |   |   | 237,598 |   |
|       General                  and administrative |   |                                                           | 22,992      |   |                                                         |   | 64,242 |   |   |   | 42,981 |   |   |   | 136,260 |   |
| Interest                                                                        |   |                                                           | 31,249      |   |                                                         |   | 33,603 |   |   |   | 57,715 |   |   |   | 109,015 |   |
| Depreciation                  and                  amortization                 |   |                                                           | 382         |   |                                                         |   | 594 |   |   |   | 764 |   |   |   | 781 |   |
| Share                  of loss of equity                  accounted investment  |   |                                                           | -           |   |                                                         |   | 962,720 |   |   |   | - |   |   |   | 1,283,788 |   |
| Gain                  on disposal of marketable                  securities     |   |                                                           | -           |   |                                                         |   | (13,876 | ) |   |   | (7,550 | ) |   |   | (13,876 | ) |
| Total                  costs and                  expenses                      |   |                                                           | 125,901     |   |                                                         |   | 1,259,891 |   |   |   | 229,585 |   |   |   | 2,106,471 |   |
|                                                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                       |   |                                                           | (125,901    | )      |                                                         |   | (1,259,891 | ) |   |   | (229,585 | ) |   |   | (2,106,471 | ) |
|                                                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  dividends                                            |   |                                                           | 60,493      |   |                                                         |   | 60,493 |   |   |   | 120,986 |   |   |   | 120,986 |   |
|                                                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss applicable to common shareholders                     |   | $                                                              | (186,394    | )      |                                                         | $      | (1,320,384 | ) |   | $ | (350,571 | ) |   | $ | (2,227,457 | ) |
|                                                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  per share of common stock:                                |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of common shares outstanding           |   |                                                           | 779,851,873 |   |                                                         |   | 723,103,956 |   |   |   | 775,226,873 |   |   |   | 637,962,459 |   |
| Loss                  per share                                                 |   | $                                                              | (0.0002     | )      |                                                         | $      | (0.0018 | ) |   | $ | (0.0005 | ) |   | $ | (0.0035 | ) |
|                                                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | Comprehensive                  Income (Loss)                   |        |   |                                                         |   |   |   |   |   |   |
| Net                  loss                                                       |   | $                                                              | (186,394    | )      |                                                         | $      | (1,320,384 | ) |   | $ | (350,571 | ) |   | $ | (2,227,457 | ) |
| Unrealized                  holding gain on marketable securities               |   |                                                           | -           |   |                                                         |   | 90,627 |   |   |   | - |   |   |   | 90,627 |   |
| Comprehensive                  income (loss)                                    |   | $                                                              | (186,394    | )      |                                                         | $      | (1,229,757 | ) |   | $ | (350,571 | ) |   | $ | (2,136,830 | ) |
|                                                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |                                                           |        |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |

----

**TrackPower,        Inc.**

**Condensed        Statements of Stockholders’Deficiency**

**(UNAUDITED)**

|                                                                         |   | Preferred                    Stock |   |   | Common                    Stock |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |
|------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|---------------------------------|--------|-----------|--------|--------|--------|-------------|--------|--------|-----------------------|--------|--------|--------------------------|--------|----------|--------------------|--------|
|                                                                         |   | Shares                             |   |   | Amount                          |   |      | Shares |   |   | Amount      |   |   | CommonStockSubscribed |   |   | AdditionalPaid-inCapital |   |     | AccumulatedDeficit |   |   | Other                    Comprehensive Income |   |   | TotalStockholders’Equity |   |
| Balance,                    February 28, 2006                                |   |                               | 1,000  |   |                            | $      | 3,000,000 |   |   |   | 468,052,951 |   |   | $                     | 46,805 |   |                     | $      | 909,200  |               |   | $ | 26,866,267 |   |   | $ | (27,003,945 | ) |   |   | - |   |   | $ | 3,818,327 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued in connection with private placements |   |                               | -      |   |                            |   |      |   |   |   | 202,920,000 |   |   |                  | 20,292 |   |                     |   | (909,200 | )                  |   |   | 1,906,893 |   |   |   | - |   |   |   | - |   |   |   | 1,017,985 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued pursuant to compensation arrangement  |   |                               | -      |   |                            |   |      |   |   |   | 9,008,089   |   |   |                  | 901    |   |                     |   | -        |               |   |   | 242,318 |   |   |   | - |   |   |   | - |   |   |   | 243,218 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued for consulting services provided      |   |                               | -      |   |                            |   |      |   |   |   | 500,000     |   |   |                  | 50     |   |                     |   | -        |               |   |   | 17,950 |   |   |   | - |   |   |   | - |   |   |   | 18,000 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued in lawsuit settlement                 |   |                               | -      |   |                            |   |      |   |   |   | 4,500,000   |   |   |                  | 450    |   |                     |   | -        |               |   |   | 120,150 |   |   |   | - |   |   |   | - |   |   |   | 120,600 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock subscribed                                   |   |                               | -      |   |                            |   |      |   |   |   | -           |   |   |                  | -      |   |                     |   | 370,000  |               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 370,000 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                    for the three month period ended May 31, 2006        |   |                               | -      |   |                            |   |      |   |   |   | -           |   |   |                  | -      |   |                     |   | -        |               |   |   | - |   |   |   | (907,073 | ) |   |   | - |   |   |   | (907,073 | ) |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    May 31, 2006                                     |   |                               | 1,000  |   |                            | $      | 3,000,000 |   |   |   | 684,981,040 |   |   | $                     | 68,498 |   |                     | $      | 370,000  |               |   | $ | 29,153,578 |   |   | $ | (27,911,018 | ) |   | $ | - |   |   | $ | 4,681,058 |   |
| Common                    stock issued in connection with private placements |   |                               | -      |   |                            |   |      |   |   |   | 54,725,000  |   |   |                  | 5,473  |   |                     |   | (547,250 | )                  |   |   | 541,778 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued for consulting services provided      |   |                               | -      |   |                            |   |      |   |   |   | 4,562,500   |   |   |                  | 456    |   |                     |   | -        |               |   |   | 61,169 |   |   |   | - |   |   |   | - |   |   |   | 61,625 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock subscribed                                   |   |                               | -      |   |                            |   |      |   |   |   | -           |   |   |                  | -      |   |                     |   | 277,250  |               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 277,250 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                    for the three month period ended August 31, 2006     |   |                               | -      |   |                            |   |      |   |   |   | -           |   |   |                  | -      |   |                     |   | -        |               |   |   | - |   |   |   | (1,320,384 | ) |   |   | - |   |   |   | (1,320,384 | ) |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                    holding gain on marketable securities          |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   | 90,627 |   |   |   | 90,627 |   |
|                                                                         |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    August 31, 2006                                  |   |                               | 1,000  |   |                            | $      | 3,000,000 |   |   |   | 744,268,540 |   |   | $                     | 74,427 |   |                     | $      | 100,000  |               |   | $ | 29,756,524 |   |   | $ | (29,231,402 | ) |   | $ | 90,627 |   |   | $ | 3,790,176 |   |

|                                                                           |   | Preferred                    Stock |   |   | Common                    Stock |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |
|--------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|---------------------------------|--------|-----------|--------|--------|--------|-------------|--------|--------|-----------------------|--------|--------|--------------------------|--------|---------|--------------------|--------|
|                                                                           |   | Shares                             |   |   | Amount                          |   |      | Shares |   |   | Amount      |   |   | CommonStockSubscribed |   |   | AdditionalPaid-inCapital |   |    | AccumulatedDeficit |   |   | Other                    Comprehensive Income |   |   | TotalStockholders’Deficiency |   |
| Balance,                    February 28, 2007                                  |   |                               | 1,000  |   |                            | $      | 3,000,000 |   |   |   | 762,268,540 |   |   | $                     | 76,227 |   |                     | $      | 136,000 |               |   | $ | 29,911,099 |   |   | $ | (33,863,620 | ) |   | $ | 13,246 |   |   | $ | (727,048 | ) |
|                                                                           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued in connection with settlement agreement |   |                               | -      |   |                            |   |      |   |   |   | 10,000,000  |   |   |                  | 1,000  |   |                     |   | (36,000 | )                  |   |   | 35,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change                    in unrealized gain on marketable securities          |   |                               | -      |   |                            |   |      |   |   |   | -           |   |   |                  | -      |   |                     |   | -       |               |   |   | - |   |   |   | - |   |   |   | (13,246 | ) |   |   | (13,246 | ) |
|                                                                           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                    for the three month period ended May 31, 2007          |   |                               | -      |   |                            |   |      |   |   |   | -           |   |   |                  | -      |   |                     |   | -       |               |   |   | - |   |   |   | (164,177 | ) |   |   |   |   |   |   | (164,177 | ) |
|                                                                           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    May 31, 2007                                       |   |                               | 1,000  |   |                            | $      | 3,000,000 |   |   |   | 772,268,540 |   |   | $                     | 77,227 |   |                     | $      | 100,000 |               |   | $ | 29,946,099 |   |   | $ | (34,027,797 | ) |   | $ | - |   |   | $ | (904,471 | ) |
|                                                                           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock subscribed                                     |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   | 65,500  |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 65,500 |   |
|                                                                           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued in connection with private placements   |   |                               |   |   |                            |   |      |   |   |   | 45,500,000  |   |   |                  | 4,550  |   |                     |   | (45,500 | )                  |   |   | 40,950 |   |   |   |   |   |   |   |   |   |   |   | - |   |
|                                                                           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                    for three month period ended August 31, 2007           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   | -       |               |   |   |   |   |   |   | (186,394 | ) |   |   |   |   |   |   | (186,394 | ) |
|                                                                           |   |                               |   |   |                            |   |      |   |   |   |        |   |   |                  |   |   |                     |   |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    August  31, 2007                         |   |                               | 1,000  |   |                            | $      | 3,000,000 |   |   |   | 817,768,540 |   |   | $                     | 81,777 |   |                     | $      | 120,000 |               |   | $ | 29,987,049 |   |   | $ | (34,214,191 | ) |   | $ | - |   |   | $ | (1,025,365 | ) |

----

**TrackPower,          Inc.**

**Condensed        Statements of Cash Flows**

**(UNAUDITED)**

|                                                                                                                                             |   | Six                  Months EndedAugust                  31, |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|----------|
|                                                                                                                                             |   | 2007                                                         |     |   | 2006 |   |
| **Net                  cash from operations**                                                                                                    |   |                                                         |     |   |   |   |
| Net                  (loss)                                                                                                                      |   | $                                                            | (229,585 | ) |   | $ | (2,106,471 | ) |
| Adjustments                  to reconcile net                  (loss)to                  net cash used in operating                  activities: |   |                                                         |     |   |   |   |   |   |
| Depreciation                  and                  amortization                                                                                  |   |                                                         | 764      |   |   |   | 781 |   |
| Loss                  in equity accounted                  investment                                                                            |   |                                                         | -        |   |   |   | 1,283,788 |   |
| Gain                  on disposal of                  investment                                                                                 |   |                                                         | (7,550   | ) |   |   | (13,876 | ) |
| Common                  stock issued for                  consulting services provided                                                           |   |                                                         | -        |   |   |   | 79,625 |   |
| Amortization                  of deferred                  financing costs                                                                       |   |                                                         | -        |   |   |   | 8,100 |   |
|      Changes                  in:                                                                                       |   |                                                         |     |   |   |   |   |   |
| Prepaid                  expenses                                                                                                                |   |                                                         | (13,440  | ) |   |   | 36,660 |   |
| Due                  from/to related                  parties                                                                                    |   |                                                         | 243,208  |   |   |   | 141,307 |   |
| Accounts                  payable and accrued                  expenses                                                                          |   |                                                         | (95,823  | ) |   |   | (134,694 | ) |
| Net                  cash used in operating activities                                                                                           |   |                                                         | (102,426 | ) |   |   | (704,780 | ) |
|                                                                                                                                             |   |                                                         |     |   |   |   |   |   |
| **Cash                  flows from investing activities:**                                                                                       |   |                                                         |     |   |   |   |   |   |
|           Purchase                  of office equipment                                        |   |                                                         | -        |   |   |   | (4,826 | ) |
|           Proceeds                  on disposal of investment                                  |   |                                                         | 37,100   |   |   |   | 26,112 |   |
| Net                  cash provided by investing activities                                                                                       |   |                                                         | 37,100   |   |   |   | 21,286 |   |
|                                                                                                                                             |   |                                                         |     |   |   |   |   |   |
| **Cash                  flows from financing activities:**                                                                                       |   |                                                         |     |   |   |   |   |   |
|           Repayment                  of notes payable                                          |   |                                                         | -        |   |   |   | (1,486,616 | ) |
|           Payment                  of preferred dividends                                      |   |                                                         | -        |   |   |   | (100,000 | ) |
|           Proceeds                  on issuance of common stock                                |   |                                                         | -        |   |   |   | 1,565,236 |   |
|           Proceeds                  from common stock subscribed                               |   |                                                         | 65,500   |   |   |   | 100,000 |   |
| Net                  cash provided by financing activities                                                                                       |   |                                                         | 65,500   |   |   |   | 78,620 |   |
|                                                                                                                                             |   |                                                         |     |   |   |   |   |   |
| Increase                  (decrease) in cash                                                                                                     |   |                                                         | 174      |   |   |   | (604,874 | ) |
| **Cash**,  beginning                  of period                                                                                        |   | $                                                            | 11,833   |   |   | $ | 609,804 |   |
| **Cash,**  end                  of period                                                                                              |   | $                                                            | 12,007   |   |   | $ | 4,930 |   |

| 1.   | The                  Company issued a total of 5,062,500 shares of its common stock,                  valued at                  $79,625 for consulting services                  provided, |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The                  Company issued 9,008,089 common shares, valued at $243,218 to an                  officer                  pursuant to a compensation                  arrangement, |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The                  Company issued 4,500,000 common shares, valued at $120,600, as                  part of a                  lawsuit settlement. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

**TrackPower,        Inc.**

**Summary        of Significant Accounting Policies**

**Nature        of        Business**

**Basis        of        Presentation**

**Going        Concern**

**Use        of        Estimates**

**Reclassification        of 2007 Cash Flow Statement**

----

**Due        to/from Related Parties**

|                                             |   | August                  31, 2007 |   |
|--------------------------------------------------|--------|----------------------------------|--------|
|                                             |   |                             |   |
| Entity                  with common shareholders |   | $                                | 44,367 |   |
|                                             |   |                             |   |   |

|                                                    |   | August                  31, 2007 |    |
|---------------------------------------------------------|--------|----------------------------------|---------|
|                                                    |   |                             |    |
| Officers                  and directors                 |   | $                                | 62,438  |   |
| Entities                  with certain common directors |   |                             |    |   |
| and/or                  officers                        |   |                             | 90,463  |   |
| Former                  officers and directors          |   |                             | 228,955 |   |
|                                                    |   |                             |    |   |
| Total                                                   |   | $                                | 381,856 |   |
|                                                    |   |                             |    |   |

**Investment**

**Notes        Payable**

|                                                                                                                                                            |   | August                  31, 2007 |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                                                                                            |   |                             |    |
| SIG                  Communications Partnership 10% unsecured promissory note                                                                                   |   | $                                | 21,000  |   |
|                                                                                                                                                            |   |                             |    |   |
| Southern                  Tier Acquisition II, LLC and Oneida Entertainment Holdings Inc.,                  15% 5                  year secured promissory note |   |                             | 700,000 |   |
|                                                                                                                                                            |   |                             |    |   |
| Total                                                                                                                                                           |   | $                                | 721,000 |   |
|                                                                                                                                                            |   |                             |    |   |
| Less:                  current portion                                                                                                                          |   |                             | 21,000  |   |
|                                                                                                                                                            |   |                             |    |   |
| Long                  term portion                                                                                                                              |   | $                                | 700,000 |   |
|                                                                                                                                                       |   |                             |    |   |

----

**Loss        per        Share**

**Related        Party        Transactions**

**Recent        Accounting Pronouncements**

----

**Item        2.**
** **
**Management’s Discussion and        Analysis or Plan of Operation**

**Forward        Looking        Statements**

**Plan        of Operations**

**,**
**,**

----

**Results        of        Operations**

**For        the three month period ended August        31, 2007**

----

**For        the six month period ended August        31, 2007**

----

**Critical        Accounting Policies and Estimates**

----

**Financial          Condition**

** **

**Liquidity        and Capital Resources**

**c**

**Off-balance        sheet arrangements.**

**Item        3. Controls and Procedures**

----

**PART        II. Other Information**

**Item        2.Unregistered Sales of Equity        Securities.**

|                   |   |                                      |   |                   | **Number                  of** |   |   |
|------------------------|--------|-------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------------------------------|--------|--------|
| **Date**               |   | **Securities                  issued to** |   | **Shares**                                                                                             |                           |   |
|                   |   |                                      |   |                                                                                                   |                           |   |   |
| August  2007 |   | Northmount                  Capital       |   | 25,000,000                                                                                             |                           |   |
| August  2007 |   | Stephen                  Dulmage          |   |                      20,000,000                                                         |                           |   |
| August  2007 |   | Virgil                  Perry             |   |                           500,000                              |                           |   |

**Item        3. Defaults Upon Senior Securities**

**Item        6.Exhibits**

| **Exhibit** | **                                                                          Document** |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                           |
| 31.1        | Certification                  pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                |
| 31.2        |   Certification                  pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                    |
| 32.1        |   Certification                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002. *                                                                                                                                                                                  |
| 32.2        | Certification                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002. *                                                                                                                                                                                                   |

**(Remainder        of page left intentionally        blank)**

----

**SIGNATURES**

----

**Exhibit        Index**

| **Exhibit** |   | **Document**                                                                                                                                                                       |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                               |
| 31.1        |   | Certification                  pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                    |
| 31.2        |   | Certification                  pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                    |
| 32.1        |   | Certification                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002. *  |
| 32.2        |   | Certification                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002. *       |

**(Remainder        of page left intentionally blank)**

----