SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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 June 30, 2007

Or

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

For the Transition Period from __________ to __________

COMMISSION FILE NUMBER: 0-25413

FIRST TRANSACTION MANAGEMENT, INC.(Exact Name of Small Business Issuer as Specified in its Charter)

|   | DELAWARE                          |   | 52-2158936          |   |
|--------|-----------------------------------|--------|---------------------|--------|
|   | (State or Other Jurisdiction      |   | (IRS Employer       |   |
|   | of Incorporation or Organization) |   | Identification No.) |   |

381 SE Crystal Creek Circle, Issaquah, WA 98027 (Address of Principal Executive Offices)

(206) 355-1467(Issuer’s Telephone Number, Including Area Code)

Check whether the Issuer (1) has filed all Reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such Reports), and (2) has been subject to such filing requirements for the past 90 days.

YES [X]   NO [   ]

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).

YES [X]   NO [   ]

State the number of shares outstanding of each of the Issuer’s classes of common equity as of the latest practicable date: As of September 14, 2007 the Registrant had 7,258,704 shares of common stock outstanding.

Transitional Small business Disclosure Format (Check one): Yes [   ]   No [X]

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FIRST TRANSACTION MANAGEMENT, INC.

FORM 10-QSB

For the quarterly period ended June 30, 2007

INDEX

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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      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| PART I  FINANCIAL INFORMATION |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      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| Item 1                                  |   | Balance Sheets at December 31, 2006 and June 30, 2007  (unaudited at June 30, 2007) 3       
Statements ofOperations for the three and six month Periods ended June 30, 2007 and 2006 (unaudited) 4       
Statement of Changes in Stockholders’ Equity for the six months ended June 30, 2007 (unaudited) 5       
Statements of Cash Flows for the six months ended June 30, 2007 and 2006 (unaudited) 6       
Notes to Financial Statements 7     Item 2 
Management’s Discussion and Analysis or Plan of Operation 12     Item 3 
Controls and Procedures 16     PART II  OTHER INFORMATION      Item 1 
Legal Proceedings 17     Item 2 
Unregistered Sales of Equity Securities and Use of Proceeds 17     Item 3 
Defaults Upon Senior Securities 17     Item 4 
Submission of Matters to a Vote of Security Holders 17     Item 5 
Other Information 17     Item 6 
Exhibits 17     Signatures   18     Certifications    
**Item 1.  Financial Statements**

**FIRST TRANSACTION MANAGEMENT, INC.(A Development Stage Company) BALANCE SHEET**
 **June 30,** **December 31,** **2007** **2006** **Unaudited** **Audited**  ASSETS         
Current Assets
         
Cash
 $58,103   $11,644 
Deposits
  —    —       
Total current assets
  58,103    11,644       
Long Term Assets
         
Intangible & other assets, net
  6,472    8,588       TOTAL ASSETS $64,575   $20,232       LIABILITIES & EQUITY         
Liabilities
         
Current Liabilities
         
Accounts payable & accrued expenses
 $95,000   $10,000 
Interest payable
  245,245    214,303       
Total current liabilities
  340,245    224,303       
Long Term Liabilities
         
Loan payable - stockholder
  773,541    773,541       
Total liabilities
  1,113,786    997,844       
Equity
         
Common stock; 15,000,000 shares authorized; 7,258,704 shares issued and outstanding, par value .01
  72,587    72,587 
Additional paid in capital
  1,303,145    1,303,145 
Deficit accumulated during the development stage
  (2,424,258)   (2,353,344)      
Total equity
  (1,048,526)   (977,612)      TOTAL LIABILITIES & EQUITY $65,260   $20,232       
**See Notes to Financial Statements.**

3

**FIRST TRANSACTION MANAGEMENT, INC.(A Development Stage Company)STATEMENT OF OPERATIONS**
  **For the Three Months Ended**  **For the Six Months Ended**  **June 30,**  **June 30,**  **2007**   **2006**   **2007**   **2006**             
INCOME
                   
Fees - consulting
 $38,934   $4,140   $55,960   $5,702             
Total income
  38,934    4,140    55,960    5,702             
EXPENSES
                   
Operating expense
  63,167    8,305    94,516    13,984 
Depreciation & Amortization
  716    1,334    1,432    2,669             
Total expenses
  63,883    9,639    95,948    16,653             
Net operating income
  (24,949)   (5,499)   (39,988)   (10,951)            
OTHER INCOME/EXPENSE
                   
Other income
  16    —    16    — 
Interest expense
  15,471    15,471    30,942    30,942             
Net other income/expense
  (15,455)   (15,471)   (30,926)   (30,942)            
Net income before taxes
  (40,404)   (20,970)   (70,914)   (41,893)
Provision for income taxes
  —    —    —    —             NET INCOME (LOSS) $(40,404)  $(20,970)  $(70,914)  $(41,893)            WEIGHTED AVERAGE COMMON SHARES OUTSTANDING  5,519,543    5,090,127    5,519,543    5,090,127             AVERAGE GAIN (LOSS) PER COMMON SHARE $(0.01)  $(0.00)  $(0.01)  $(0.01)            
**See Notes to Financial Statements.**

4

**FIRST TRANSACTION MANAGEMENT, INC.(A Development Stage Company)STATEMENTS OF STOCKHOLDERS’ EQUITYFor the Period Ended June 30, 2007**
                    **Deficit**           **Common Stock**       **Accumulated**             **Additional** **During the**       **Date of** **Number**  **Par**  **Paid-in** **Development**       **Transaction**   **of Shares**    **Value**    **Capital**   **Stage**    **Total**            Balance, December 31, 2006      7,258,704   $72,587   $1,303,145   $(2,353,344)  $(914,469)
Dividends paid on stock 
                            
Stock-based compensation
                            
Net income/(loss) for 2007
                     (70,914)   (70,914)                    
Balance June 30, 2007
      7,258,704   $72,587   $1,303,145   $(2,424,258)  $(985,383)                    
**See Notes to Financial Statements.**

5

**FIRST TRANSACTION MANAGEMENT, INC.(A Development Stage Company)** |