UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549





FORM
      10-KSB








[xx]
            ANNUAL
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934
                FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2007





[   ]
            TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934
                FOR THE TRANSITION PERIOD FROM ____ TO ____








Commission
      file Number:  000-28053





INVESTMENT
      ASSOCIATES, INC.


(Name
      of
      small business issuer in its charter)





Nevada


(State
      or
      other jurisdiction of incorporation or organization)





98-0204280


(I.R.S.
      Employer Identification Number)





Suite
      700, 1620 Dickson Avenue


Kelowna,
      British Columbia, V1Y 9Y2


(Address
      of principal executive offices)





(250)
      868-8177


(Issuer's
      telephone number)





Securities
      registered under Section 12(b) of the Exchange
      Act:       None





Securities
      registered under Section 12(g) of the Exchange
      Act:       Common Shares





Check
      whether the Issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 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.  [ X ]
      Yes  [   ] No





Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B contained in this form, and no disclosure will be contained,
      to
      the best of Issuer's knowledge, in definitive proxy or information statements
      incorporated by reference in Part III of this Form 10-KSB or any amendment
      to
      this Form 10-KSB. [ X ]





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). (check
      one):  [ X ] Yes  [   ] No





The
      Issuer's revenues for its fiscal year ended September 30, 2007 were
      $0.





State
      the
      aggregate market value of the voting and non-voting common equity held by
      non-affiliates computed by reference to the price at which the common equity
      was
      sold, or the average bid and asked price of such common equity, as of a
      specified date within the past 60 days.  (See definition of affiliate
      in Rule 12b-2 of the Exchange
      Act.)     N/A





Note:  If
      determining whether a person is an affiliate will involve an unreasonable effort
      and expense, the issuer may calculate the aggregate market value of the common
      equity held by non-affiliates on the basis of reasonable assumptions, if the
      assumptions are stated.





On
      September 30, 2007, the number of shares outstanding of the registrant's Common
      Stock was 1,000,000.





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











PART
      I


BUSINESS





Item
      1.  Description of Business





Investment
      Associates, Inc. (the "Company") was incorporated on July 18, 1997, under the
      laws of the State of Nevada to engage in any lawful corporate undertaking,
      including, but not limited to, selected mergers and acquisitions.  The
      Company has been in the developmental stage since inception and has no
      operations to date.  Other than issuing shares to its original
      shareholders, the Company never commenced any operational
      activities.  As such, the Company can be defined as a "shell" company,
      whose sole purpose at this time is to locate and consummate a merger or
      acquisition with a private entity.





Many
      states have enacted statutes, rules and regulations limiting the sale of
      securities of "blank check" or "shell" companies in their respective
      jurisdictions.  Management does not intend to undertake any efforts to
      cause a market to develop in the Company's securities until such time as the
      Company has successfully implemented its business plan described
      herein.  Relevant thereto, each shareholder of the Company has
      executed and delivered a "lock-up" letter agreement, affirming that they shall
      not sell their respective shares of the Company's common stock until such time
      as the Company has successfully consummated a merger or acquisition and the
      Company is no longer classified as a "blank check" company.  In order
      to provide further assurances that no trading will occur in the Company's
      securities until a merger or acquisition has been consummated, each shareholder
      has agreed to place their respective stock certificate with the Company's legal
      counsel, who will not release these respective certificates until such time
      as
      legal counsel has confirmed that a merger or acquisition has been successfully
      consummated.  However, while management believes that the procedures
      established to preclude any sale of the Company's securities prior to closing
      of
      a merger or acquisition will be sufficient, there can be no assurances that
      the
      procedures established relevant herein will unequivocally limit any
      shareholder's ability to sell their respective securities before such
      closing.





Management
      has continued to review prospective merger or acquisition candidates during
      the
      past fiscal year, but as of the date of this report, there is no agreement
      between the Company and any third party providing for the Company to merge
      or
      acquire any assets.  Management of the Company is of the opinion that
      the business objectives of the Company remain viable, despite the Company's
      failure to merge with or acquire another business entity to
      date.  Management of the Company continues to review potential merger
      candidates and acquisition opportunities.





Employees





During
      the fiscal year ended September 30, 2007, the Company had no full time
      employees.  The Company's President and Secretary and Treasurer have
      agreed to allocate a portion of their time to the activities of the Company,
      without compensation.  These officers anticipate that the business
      plan of the Company can be implemented by their devoting minimal time per month
      to the business affairs of the Company and, consequently, conflicts of interest
      may arise with respect to the limited time commitment by such
      officers.





Item
      2.  Description of Property





Facilities.  The
      Company operates from its offices at Suite 700, 1620 Dickson Avenue, Kelowna,
      British Columbia, V1Y 9Y2, Canada.  This space is provided to the
      Company on a rent free basis by Robert Hemmerling, a director of the Company,
      and it is anticipated that this arrangement will remain until such time as
      the
      Company successfully consummates a merger or acquisition.  Management
      believes that this space will meet the Company's needs for the foreseeable
      future.





Other
      Property.  The Company has no properties and at this time has
      no agreements to acquire any properties.  The Company intends to
      attempt to acquire assets or a business in exchange for its securities which
      assets or business is determined to be desirable for its
      objectives.





-
            2 -





Item
      3.  Legal
      Proceedings





There
      are
      no material legal proceedings which are pending or have been threatened against
      the Company of which management is aware.





Item
      4.  Submission of Matters to a Vote of Security
      Holders





No
      matter
      was submitted to vote of security holders during the fourth quarter of the
      fiscal year covered by this report.





PART
      II





Item
      5.  Market
      for Common Equity and Related Stockholder Matters





(a)
            Market
                Information. There is presently no trading market for the common
                equity of
                the Company.





(b)          Holders.
      There are ten (10) holders of the Company's Common Stock.





As
      of the
      date of this report, all of the shares of the Company's Common Stock are
      eligible for sale under Rule 144 promulgated under the Securities Act of 1933,
      as amended, subject to certain limitations included in said Rule.  In
      general, under Rule 144, a person (or persons whose shares are aggregated),
      who
      has satisfied a one year holding period, under certain circumstances, may sell
      within any three month period a number of shares which does not exceed the
      greater of one percent of the then outstanding Common Stock or the average
      weekly trading volume during the four calendar weeks prior to such
      sale.  Rule 144 also permits, under certain circumstances, the sale of
      shares without any quantity limitation by a person who has satisfied a two
      year
      holding period and who is not, and has not been for the preceding three months,
      an affiliate of the Company.





(c)          Dividends.





(1)
            The
                Company has not paid any dividends on its Common Stock. The Company
                does
                not foresee that the Company will have the ability to pay a dividend
                on
                its Common Stock in the fiscal year ended September 30, 2007, unless
                the
                Company successfully consummates a merger or acquisition and the
                relevant
                candidate has sufficient assets available to undertake issuance of
                such a
                dividend and management elects to do so, of which there can be no
                assurance.





Item
      6.  Management's Discussion and Analysis of Financial Condition and
      Results in Operations





The
      following discussion should be read in conjunction with the Company's audited
      financial statements and notes thereto included herein.  In connection
      with, and because it desires to take advantage of, the "safe harbor" provisions
      of the Private Securities Litigation Reform Act of 1995, the Company cautions
      readers regarding certain forward looking statements in the following discussion
      and elsewhere in this report and in any other statement made by, or on the
      behalf of the Company, whether or not in future filings with the Securities
      and
      Exchange Commission.  Forward looking statements are statements not
      based on historical information and which relate to future operations,
      strategies, financial results or other developments. Forward looking statements
      are necessarily based upon estimates and assumptions that are inherently subject
      to significant business, economic and competitive uncertainties and
      contingencies, many of which are beyond the Company's control and many of which,
      with respect to future business decisions, are subject to
      change.  These uncertainties and contingencies can affect actual
      results and could cause actual results to differ materially from those expressed
      in any forward looking statements made by, or on behalf of, the
      Company.  The Company disclaims any obligation to update forward
      looking statements.








-
            3 -





(a)           
      Plan of
      Operation.





The
      Company intends to seek to acquire assets or shares of an entity actively
      engaged in business which generates revenues, in exchange for its
      securities.  The Company has no particular acquisitions in mind and
      has not entered into any negotiations regarding such an
      acquisition.  None of the Company's officers, directors, promoters or
      affiliates have engaged in any preliminary contact or discussions with any
      representative of any other company regarding the possibility of an acquisition
      or merger between the Company and such other company as of the date of this
      Form
      10-KSB.





The
      Company's Board of Directors intends to provide the Company's shareholders
      with
      complete disclosure documentation concerning a potential business opportunity
      and the structure of the proposed business combination prior to consummation
      of
      the same, which disclosure is intended to be in the form of a proxy
      statement.  While such disclosure may include audited financial
      statements of such a target entity, there is no assurance that such audited
      financial statements will be available.  The Board of Directors does
      intend to obtain certain assurances of value of the target entity assets prior
      to consummating such a transaction, with further assurances that an audited
      statement would be provided within sixty days after closing of such a
      transaction.  Closing documents relative thereto will include
      representations that the value of the assets conveyed to or otherwise so
      transferred will not materially differ from the representations included in
      such
      closing documents, or the transaction will be voidable.





Because
      the Company presently has nominal overhead or other material financial
      obligations, management of the Company believes that the Company's short term
      cash requirements can be satisfied by management injecting whatever nominal
      amounts of cash into the Company to cover these incidental
      expenses.  There are no assurances whatsoever that any additional cash
      will be made available to the Company through any means.





Item
      7.  Financial
      Statements





Our
      audited financial statements are stated in United States dollars (US$) and
      are
      prepared in accordance with United States Generally Accepted Accounting
      Principles.





The
      following audited financial statements are filed as part of this annual
      report:





Report
      of
      Independent Registered Public Accounting Firm





Balance
      Sheet as at September 30, 2007





Statements
      of Operations for the years ended September 30, 2007 and 2006





Statements
      of Changes in Shareholders’ Deficit for the period from October 1, 2001 through
      September 30, 2007





Statements
      of Cash Flows for the years ended September 30, 2007 and 2006





Notes
      to
      the Financial Statements








-
            4 -





INVESTMENT
      ASSOCIATES, INC.


(A
      development Stage Enterprise)





Financial
      Statements


(Expressed
      in U.S. Dollars)





(Audited)


September
      30, 2007













Index








Report
      of
      Independent Registered Public Accounting Firm





Balance
      Sheets





Statements
      of Operations





Statements
      of Stockholders’ Deficit





Statements
      of Cash Flows





Notes
      to
      Financial Statements








-
            5 -








-
          6 -








INVESTMENT
                ASSOCIATES, INC.(A
                Development Stage Enterprise)BALANCE
                SHEETSSeptember
                30,2007
            
            
            2006ASSETSCURRENT
                ASSETSCash
            
            $
            4,462
            
            
            $
            457Prepaid
                Expenses & Deposits
            
            
            -
            
            
            
            -TOTAL
                ASSETS
            
            $
            4,462
            
            
            $
            457LIABILITIES
                AND STOCKHOLDERS' DEFICITCURRENT
                LIABILITIESAccounts
                payable and accrued liabilities
            
            $
            1,979
            
            
            $
            1,079Indebtedness
                to related parties
            
            
            2,720
            
            
            
            24,720Loans
                payable
            
            
            -
            
            
            
            10,000TOTAL
                CURRENT LIABILITIES
            
            
            4,699
            
            
            
            35,799COMMITMENTS
                AND CONTINGENCIES
            
            
            10,000
            
            
            
            -STOCKHOLDERS'
                DEFICITCommon
                stock, 25,000,000 shares authorized; $0.001par
                value; 1,000,000 shares issued and outstanding
            
            
            1,000
            
            
            
            1,000Additional
                paid-in capital
            
            
            72,283
            
            
            
            29,283Accumulated
                deficit during development stage
            
            
            (83,520
            )
            
            
            (65,625
            )TOTAL
                STOCKHOLDERS'  DEFICIT
            
            
            (10,237
            )
            
            
            (35,342
            )TOTAL
                LIABILITIES AND STOCKHOLDERS' DEFICIT
            
            $
            4,462
            
            
            $
            457





The
      accompanying notes are an integral part of these financial
      statements.





-
            7 -







INVESTMENT
                ASSOCIATES, INC.(A
                Development Stage Enterprise)STATEMENTS
                OF OPERATIONSFrom
                Inception(July
                18, 1997)Year
                Ended
            
            
            throughSeptember
                30,
            
            
            September
                30,2007
            
            
            2006
            
            
            2007REVENUES
            
            $
            -
            
            
            $
            -
            
            
            $
            -EXPENSESSelling,
                general and administrative expenses
            
            
            17,895
            
            
            
            12,380
            
            
            
            87,298Loss
                on write-down of note receivable
            
            
            -
            
            
            
            -
            
            
            
            18,679Gain
                on forgiveness of note payable
            
            
            -
            
            
            
            -
            
            
            
            (22,500
            )Interest
                expense
            
            
            -
            
            
            
            -
            
            
            
            43TOTAL
                EXPENSES
            
            
            17,895
            
            
            
            12,380
            
            
            
            83,520LOSS
                FROM OPERATIONS
            
            
            (17,895
            )
            
            
            (12,380
            )
            
            
            (83,520
            )LOSS
                BEFORE TAXES
            
            
            (17,895
            )
            
            
            (12,380
            )
            
            
            (83,520
            )INCOME
                TAXES
            
            
            -
            
            
            
            -
            
            
            
            -NET
                LOSS
            
            $
            (17,895
            )
            
            $
            (12,380
            )
            
            $
            (83,520
            )NET
                LOSS PER COMMON SHARE,BASIC
                AND DILUTED
            
            $
            (0.02
            )
            
            $
            (0.01
            )WEIGHTED
                AVERAGE NUMBEROF
                COMMON SHARES OUTSTANDING,BASIC
                AND DILUTED
            
            
            1,000,000
            
            
            
            1,000,000




The
      accompanying notes are an integral part of these financial
      statements.








-
            8 -







INVESTMENT
                ASSOCIATES, INC.(A
                Development Stage Enterprise)STATEMENT
                OF STOCKHOLDERS' DEFICITDeficitAccumulatedCommon
                Stock
            
            
            Additional
            
            
            During
            
            
            TotalNumber
            
            
            
            
            
            Paid-In
            
            
            Development
            
            
            Stockholders'of
                Shares
            
            
            Amount
            
            
            Capital
            
            
            Stage
            
            
            DeficitBalance,
                July 18, 1997 (Inception)
            
            
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -Common
                stock issued in exchange for services
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            -
            
            
            
            -
            
            
            
            1,000Net
                loss for the year ended September 30, 1997
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (1,000
            )
            
            
            (1,000
            )Balance,
                September 30, 1997
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            -
            
            
            
            (1,000
            )
            
            
            -Net
                loss for the year ended September 30, 1998
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Balance,
                September 30, 1998
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            -
            
            
            
            (1,000
            )
            
            
            -Expenses
                paid by third partyon
                behalf of the Company
            
            
            -
            
            
            
            -
            
            
            
            335
            
            
            
            -
            
            
            
            335Net
                loss for the year ended September 30, 1999
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (335
            )
            
            
            (335
            )Balance,
                September 30, 1999
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            335
            
            
            
            (1,335
            )
            
            
            -Expenses
                paid by third partyon
                behalf of the Company
            
            
            -
            
            
            
            -
            
            
            
            13,870
            
            
            
            -
            
            
            
            13,870Net
                loss for the year ended September 30, 2000
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (15,370
            )
            
            
            (15,370
            )Balance,
                September 30, 2000
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            14,205
            
            
            
            (16,705
            )
            
            
            (1,500
            )Third
                party expenses paid by an affiliate onbehalf
                of the company
            
            
            -
            
            
            
            -
            
            
            
            4,898
            
            
            
            -
            
            
            
            4,898Net
                loss for the year ended September 30, 2001
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (7,618
            )
            
            
            (7,618
            )Balance,
                September 30, 2001
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            19,103
            
            
            
            (24,323
            )
            
            
            (4,220
            )Third
                party expenses paid by an affiliate onbehalf
                of the company
            
            
            -
            
            
            
            -
            
            
            
            898
            
            
            
            -
            
            
            
            898Net
                loss for the year ended September 30, 2002
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (6,790
            )
            
            
            (6,790
            )Balance,
                September 30, 2002
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            20,001
            
            
            
            (31,113
            )
            
            
            (10,112
            )Third
                party expenses paid by an affiliate onbehalf
                of the company
            
            
            -
            
            
            
            -
            
            
            
            3,190
            
            
            
            -
            
            
            
            3,190Net
                loss for the year ended September 30, 2003
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (7,960
            )
            
            
            (7,960
            )Balance,
                September 30, 2003
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            23,191
            
            
            
            (39,073
            )
            
            
            (14,882
            )Working
                capital contributions receivedfrom
                an affiliate
            
            
            -
            
            
            
            -
            
            
            
            6,092
            
            
            
            -
            
            
            
            6,092Net
                loss for the year ended September 30, 2004
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (5,837
            )
            
            
            (5,837
            )Balance,
                September 30, 2004
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            29,283
            
            
            
            (44,910
            )
            
            
            (14,627
            )Net
                loss for the year ended September 30, 2005
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (8,335
            )
            
            
            (8,335
            )Balance,
                September 30, 2005
            
            
            1,000,000
            
            
            
            1,000
            
            
            
            29,283
            
            
            
            (53,245
            )
            
            
            (22,962
            )Net
                loss for the year ended September 30, 2006
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (12,380
            )
            
            
            (12,380
            )Balance,
                September 30, 2006
            
            
            1,000,000
            
            
            $
            1,000
            
            
            $
            29,283
            
            
            $
            (65,625
            )
            
            $
            (35,342
            )Reclassification
                of related party debt
            
            
            
            
            
            
            
            
            
            
            32,000Cash
                contributions from related party
            
            
            
            
            
            
            
            
            
            
            11,000Net
                loss for the year ended September 30, 2007
            
            
            -
            
            
            
            -
            
            
            
            
            
            
            
            (17,895
            )
            
            
            (17,895
            )Balance,
                September 30, 2007
            
            
            1,000,000
            
            
            $
            1,000
            
            
            $
            72,283
            
            
            $
            (83,520
            )
            
            $
            (10,237
            )




The
      accompanying notes are an integral part of these financial
      statements.




-
            9 -








INVESTMENT
                ASSOCIATES, INC.(A
                Development Stage Enterprise)STATEMENTS
                OF CASH FLOWSFrom
                Inception(July
                18, 1997)Year
                Ended
            
            
            throughSeptember
                30,
            
            
            September
                30,2007
            
            
            2006
            
            
            2007CASH
                FLOWS FROM OPERATING ACTIVITIES:Net
                loss
            
            $
            (17,895
            )
            
            $
            (12,380
            )
            
            $
            (83,520
            )Adjustments
                to reconcile net loss to net cash used in operating
                activities:Loss
                on write-down of note receivable
            
            
            -
            
            
            
            -
            
            
            
            18,679Gain
                on forgiveness note payable
            
            
            -
            
            
            
            -
            
            
            
            (22,500
            )Increase
                in prepaid expenses and deposits
            
            
            -
            
            
            
            
            
            
            
            -Increase
                (decrease) in accounts payable and accrued liabilities
            
            
            900
            
            
            
            (2,421
            )
            
            
            1,979Net
                cash used by operating activities
            
            
            (16,995
            )
            
            
            (14,801
            )
            
            
            (85,362
            )CASH
                FLOWS PROVIDED BY INVESTING ACTIVITIES:Issuance
                of note receivable
            
            
            -
            
            
            
            -
            
            
            
            (18,679
            )Net
                cash used by investing activities
            
            
            -
            
            
            
            -
            
            
            
            (18,679
            )CASH
                FLOWS PROVIDED BY FINANCING ACTIVITIES:Issuance
                of common stock
            
            
            -
            
            
            
            -
            
            
            
            1,000Proceeds
                from issuance of loan payable
            
            
            -
            
            
            
            -
            
            
            
            10,000Proceeds
                from related party advances
            
            
            (22,000
            )
            
            
            13,000
            
            
            
            2,720Proceeds
                from issuance of note payable
            
            
            -
            
            
            
            -
            
            
            
            22,500Capital
                contributed by an affiliate
            
            
            43,000
            
            
            
            -
            
            
            
            72,283Net
                cash provided by financing activities
            
            
            21,000
            
            
            
            13,000
            
            
            
            108,503NET
                INCREASE (DECREASE) IN CASH
            
            
            4,005
            
            
            
            (1,801
            )
            
            
            4,462CASH,
                BEGINNING OF PERIOD
            
            
            457
            
            
            
            2,258
            
            
            
            -CASH,
                END OF PERIOD
            
            $
            4,462
            
            
            $
            457
            
            
            $
            4,462SUPPLEMENTAL
                CASH FLOW INFORMATION:Interest
                paid
            
            $
            -
            
            
            $
            -
            
            
            $
            43Income
                taxes paid
            
            $
            -
            
            
            $
            -
            
            
            $
            -NON-CASH
                TRANSACTIONS:Common
                stock issued for services
            
            $
            -
            
            
            $
            -
            
            
            $
            1,000




The
      accompanying notes are an integral part of these financial
      statements.








-
            10 -







INVESTMENTS
      ASSOCIATES, INC.


(A
      Development Stage Enterprise)


NOTES
      TO THE FINANCIAL STATEMENTS


September
      30, 2007








NOTE
      1 – ORGANIZATION AND DESCRIPTION OF BUSINESS





Investments
      Associates, Inc. (the “Company”) was incorporated, under the laws of Nevada on
      July 18, 1997 to engage in any lawful corporate undertaking, including, but
      not
      limited to, selected mergers and acquisitions.  The Company’s business
      plan is to evaluate, structure and complete a merger with, or acquisition of,
      a
      privately owned corporation.





The
      Company has been in a development stage since its inception on July 18, 1997
      and
      has not realized any revenues from its planned operations.  The
      Company’s year end is September30.








NOTE
      2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





This
      summary of significant accounting policies is presented to assist in
      understanding the Company’s financial statements. The financial statements and
      notes are representations of the Company’s management, which is responsible for
      their integrity and objectivity. These accounting policies conform to accounting
      principles generally accepted in the United States of America, and have been
      consistently applied in the preparation of the financial
      statements.





Accounting
      Method


The
      Company’s financial statements are prepared using the accrual basis of
      accounting in accordance with accounting principles generally accepted in the
      United States of America.





Basic
      and Diluted Net Loss
      Per Share


Loss
      per
      share was computed by dividing the net loss by the weighted average number
      of
      shares outstanding during the period. The weighted average number of shares
      was
      calculated by taking the number of shares outstanding and weighting them by
      the
      amount of time that they were outstanding. At September 30, 2007 and 2006,
      basic
      and diluted loss per share is the same, as there are no common stock equivalents
      outstanding.





Cash
      and Cash
      Equivalents


The
      Company considers all highly liquid investments with an original maturity of
      three months or less to be cash equivalents.





Concentration
      of
      Risk


The
      Company maintains its cash in primarily one business checking account, the
      funds
      of which are insured by the Federal Deposit Insurance Corporation.





Compensated
      Absences


Currently,
      the Company has no employees; therefore, no liability has been recorded in
      the
      accompanying financial statements. The Company’s policy will be to recognize the
      costs of compensated absences when there are employees who earn such
      benefits.





-
            11 -





INVESTMENTS
      ASSOCIATES, INC.


(A
      Development Stage Enterprise)


NOTES
      TO THE FINANCIAL STATEMENTS


September
      30, 2007











Deferred
      Offering
      Costs


Costs
      related to common stock offerings are recorded initially as a deferred asset
      until the offering is successfully completed, at which time they are recorded
      as
      a reduction of gross proceeds in shareholders’ equity. If an offering is not
      successful, the costs are charged to operations at that time.





Derivative
      Instruments


The
      Financial Accounting Standards Board issued Statement of Financial Accounting
      Standards (“SFAS”) No. 133, “Accounting for Derivative Instruments and Hedging
      Activities,” as amended by SFAS No. 137, “Accounting for Derivative Instruments
      and Hedging Activities – Deferral of the Effective Date of FASB No. 133”, SFAS
      No. 138, “Accounting for Certain Derivative Instruments and Certain Hedging
      Activities”, and SFAS No. 149, “Amendment of Statement 133 on Derivative
      Instruments and Hedging Activities”,  which is effective for the
      Company as of January 1, 2001.  These statements establish accounting
      and reporting standards for derivative instruments, including certain derivative
      instruments embedded in other contracts, and for hedging
      activities.  They require that an entity recognize all derivatives as
      either assets or liabilities in the balance sheet and measure those instruments
      at fair value.





If
      certain conditions are met, a derivative may be specifically designated as
      a
      hedge, the objective of which is to match the timing of gain or loss recognition
      on the hedging derivative with the recognition of (i) the changes in the fair
      value of the hedged asset or liability that are attributable to the hedged
      risk
      or (ii) the earnings effect of the hedged forecasted transaction. For a
      derivative not designated as a hedging instrument, the gain or loss is
      recognized in income in the period of change.  The Company has not
      entered into derivatives contracts to hedge existing risks or for speculative
      purposes.





For
      the
      years ended September 30, 2007 and 2006, the Company has not engaged in any
      transactions that would be considered derivative instrument or hedging
      activities.





Development
      Stage
      Activities


The
      Company has been in the development stage since its formation and has not
      realized any revenue from operations.  It will be primarily engaged in
      evaluating, structuring, and completing a merger with, or acquisition of, a
      privately owned corporation.





Fair
      Value of Financial
      Instruments


The
      Company's financial instruments as defined by Statement of Financial Accounting
      Standards


No.
      107,
      "Disclosures about Fair Value of Financial Instruments," may include cash,
      receivables,


advances,
      accounts payable and accrued expenses.  All such instruments are
      accounted for on a historical cost basis, which, due to the short maturity
      of
      these financial instruments, approximates fair value at September 30, 2007
      and
      2006.





-
            12 -





INVESTMENTS
      ASSOCIATES, INC.


(A
      Development Stage Enterprise)


NOTES
      TO THE FINANCIAL STATEMENTS


September
      30, 2007








Going
      Concern


The
      accompanying financial statements have been prepared on a going concern basis,
      which contemplates the realization of assets and the satisfaction of liabilities
      in the normal course of business.  As shown in the accompanying
      financial statements, the Company has no revenues, minimal cash, and recurring
      losses since inception.  These factors, among others, may indicate
      that the Company will be unable to continue as a going concern for a reasonable
      period of time.





The
      financial statements do not include any adjustments relating to the
      recoverability and classification of liabilities that might be necessary should
      the Company be unable to continue as a going concern.  Management’s
      plans are to engage in evaluating, structuring, and completing a merger with,
      or
      acquisition of, a privately owned corporation.  These plans, if
      successful, will mitigate the factors which raise substantial doubt about the
      Company’s ability to continue as a going concern.  The Company’s
      continuation as a going concern is dependent upon continuing capital
      contributions from an affiliate to meet its obligations on a timely basis,
      consummating a business combination with an operating company, and ultimately
      attaining profitability.  There is no assurance that the affiliate
      will continue to provide capital to the Company or that the Company can identify
      a target company and consummate a business combination.  The financial
      statements do not include any adjustments that might result from the outcome
      of
      this uncertainty.





Provision
      for
      Taxes


Income
      taxes are provided based upon the liability method of accounting pursuant to
      Statement of Financial Accounting Standards No. 109, “Accounting for Income
      Taxes” (“SFAS No. 109”).


Under
      this approach, deferred income taxes are recorded to reflect the tax
      consequences in future years of differences between the tax basis of assets
      and
      liabilities and their financial reporting amounts at each year-end. A valuation
      allowance is recorded against the deferred tax asset if management does not
      believe the Company has met the “more likely than not” standard imposed by SFAS
      No. 109 to allow recognition of such an asset.





Recent
      Accounting
      Pronouncements


In
      September 2006, the Financial Accounting Standards Board updated its Statement
      of Financial Accounting Standards No. 157, “Fair Value Measurements,”
(hereinafter "SFAS No. 157") which defines fair value, establishes a framework
      for measuring fair value in generally accepted accounting principles (GAAP),
      and
      expands disclosures about fair value measurements. Where applicable, SFAS No.
      157 simplifies and codifies related guidance within GAAP and does not require
      any new fair value measurements. SFAS No. 157 is effective for financial
      statements issued for fiscal years beginning after November 15, 2007, and
      interim periods within those fiscal years. Earlier adoption is encouraged.
      The
      Company does not expect the adoption of SFAS No. 157 to have a significant
      immediate effect on its financial position or results of operation








-
            13 -





INVESTMENTS
      ASSOCIATES, INC.


(A
      Development Stage Enterprise)


NOTES
      TO THE FINANCIAL STATEMENTS


September
      30, 2007








In
      June
      2006, the Financial Accounting Standards Board issued FASB Interpretation No.
      48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB
      Statement No. 109” (hereinafter "FIN 48"), which prescribes a recognition
      threshold and measurement attribute for the financial statement recognition
      and
      measurement of a tax position taken or expected to be taken in a tax return.
      FIN
      48 also provides guidance on de-recognition, classification, interest and
      penalties, accounting in interim periods, disclosure and transition. FIN 48
      is
      effective for fiscal years beginning after December 15, 2006. The Company does
      not expect the adoption of FIN 48 to have a material immediate impact on its
      financial reporting.  The Company is currently evaluating the impact,
      if any, the adoption of FIN 48 will have on its disclosure
      requirements.





In
      March
      2006, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards No. 156, “Accounting for Servicing of Financial Assets—an
      amendment of FASB Statement No. 140.” This statement requires an entity to
      recognize a servicing asset or servicing liability each time it undertakes
      an
      obligation to service a financial asset by entering into a servicing contract
      in
      any of the following situations: a transfer of the servicer’s financial assets
      that meets the requirements for sale accounting; a transfer of the servicer’s
      financial assets to a qualifying special-purpose entity in a guaranteed mortgage
      securitization in which the transferor retains all of the resulting securities
      and classifies them as either available-for-sale securities or trading
      securities; or an acquisition or assumption of an obligation to service a
      financial asset that does not relate to financial assets of the servicer or
      its
      consolidated affiliates. The statement also requires all separately recognized
      servicing assets and servicing liabilities to be initially measured at fair
      value, if practicable, and permits an entity to choose either the amortization
      or fair value method for subsequent measurement of each class of servicing
      assets and liabilities. The statement further permits, at its initial adoption,
      a one-time reclassification of available for sale securities to trading
      securities by entities with recognized servicing rights, without calling into
      question the treatment of other available for sale securities under Statement
      115, provided that the available for sale securities are identified in some
      manner as offsetting the entity’s exposure to changes in fair value of servicing
      assets or servicing liabilities that a servicer elects to subsequently measure
      at fair value and requires separate presentation of servicing assets and
      servicing liabilities subsequently measured at fair value in the statement
      of
      financial position and additional disclosures for all separately recognized
      servicing assets and servicing liabilities. This statement is effective for
      fiscal years beginning after September 15, 2006, with early adoption permitted
      as of the beginning of an entity’s fiscal year. Management believes the adoption
      of this statement will have no immediate impact on the Company’s financial
      condition or results of operations.








-
            14 -





INVESTMENTS
      ASSOCIATES, INC.


(A
      Development Stage Enterprise)


NOTES
      TO THE FINANCIAL STATEMENTS


September
      30, 2007








In
      February 2006, the Financial Accounting Standards Board issued Statement of
      Financial Accounting Standards No. 155, “Accounting for Certain Hybrid Financial
      Instruments, an Amendment of FASB Standards No. 133 and 140” (hereinafter “SFAS
      No. 155”). This statement established the accounting for certain derivatives
      embedded in other instruments. It simplifies accounting for certain hybrid
      financial instruments by permitting fair value remeasurement for any hybrid
      instrument that contains an embedded derivative that otherwise would require
      bifurcation under SFAS No. 133 as well as eliminating a restriction on the
      passive derivative instruments that a qualifying special-purpose entity (“SPE”)
      may hold under SFAS No. 140. This statement allows a public entity to
      irrevocably elect to initially and subsequently measure a hybrid instrument
      that
      would be required to be separated into a host contract and derivative in its
      entirety at fair value (with changes in fair value recognized in earnings)
      so
      long as that instrument is not designated as a hedging instrument pursuant
      to
      the statement. SFAS No. 140 previously prohibited a qualifying special-purpose
      entity from holding a derivative financial instrument that pertains to a
      beneficial interest other than another derivative financial instrument. This
      statement is effective for fiscal years beginning after September 15, 2006,
      with
      early adoption permitted as of the beginning of an entity’s fiscal year.
      Management believes the adoption of this statement will have no immediate impact
      on the Company’s financial condition or results of operations.





Use
      of
      Estimates


The
      process of preparing financial statements in conformity with accounting
      principles generally accepted in the United States of America requires the
      use
      of estimates and assumptions regarding certain types of assets, liabilities,
      revenues, and expenses. Such estimates primarily relate to unsettled
      transactions and events as of the date of the financial
      statements.  Accordingly, upon settlement, actual results may differ
      from estimated amounts.





NOTE
      3 – INCOME
      TAXES





Years
                Ended September 30,2006
            
            
            2006Net
                operating loss carryforward
            
            $
            83,500
            
            
            $
            65,600Deferred
                tax asset
            
            $
            28,400
            
            
            $
            22,300Deferred
                tax asset valuation allowance
            
            
            (28,400
            )
            
            
            (22,300
            )$
            -
            
            
            $
            -





At
      September 30, 2007, the Company had deferred tax assets before offsetting
      valuation allowance calculated at an expected rate of 34% of approximately
      $28,400.  At September 30, 2006, the Company had deferred tax assets
      before offsetting valuation allowance calculated at an expected rate of 34%
      of
      approximately $22,300.





-
            15 -





INVESTMENTS
      ASSOCIATES, INC.


(A
      Development Stage Enterprise)


NOTES
      TO THE FINANCIAL STATEMENTS


September
      30, 2007








As
      management of the Company cannot determine that it is more likely than not
      that
      the Company will realize the benefit of the its deferred tax assets, a valuation
      allowance equal to the deferred tax assets was recorded at the Company’s
      year-end financial reporting dates.





At
      September 30, 2007 and 2006, the Company has net operating loss carryforwards
      of
      approximately $83,500 and $65,600, respectively, which will expire through
      the
      year 2027.  The change in valuation allowance from September 30, 2006
      to September 30, 2007 is approximately  $5,100.  This change
      is primarily due to the change in the Company’s net operating loss
      carryforwards.





The
      valuation allowance will be evaluated at the end of each year, considering
      positive and negative evidence about whether the asset will be
      realized.  At that time, the allowance will either be increased or
      reduced.  Reduction could result in the complete elimination of the
      allowance if positive evidence indicates that the value of the deferred tax
      asset is no longer impaired and the allowance is no longer
      required.





Should
      the Company undergo an ownership change, as defined in Section 382 of the
      Internal Revenue Code, the Company’s tax net operating loss carryforwards
      generated prior to the ownership change will be subject to an annual limitation
      which could reduce or defer the utilization of those losses.





NOTE
      4 – LOAN PAYABLE





During
      the year ended September 30, 2002, an unrelated third party made an unsecured,
      non-interest bearing loan to the Company for working capital.  The
      loan remains unpaid at September 30, 2007 and is due on demand.  See Note
      7.








NOTE
      5 – RELATED PARTY
      TRANSACTIONS





The
      Company maintains a mailing address at the offices of RD Capital, Inc. (“RD
      Capital”), an affiliate under common control.  At this time, the
      Company has no need for an office.





RD
      Capital has assumed responsibility for funding the Company’s limited
      operations.  The Company accounts for such proceeds as contributed
      capital or as indebtedness to a related party.  During the year ended
      September 30, 2004, RD Capital made contributions to the Company totaling
      $6,092.  No capital contributions were made during the years ended
      September 30, 2006 and September 30, 2005.  During the year ended
      September 30, 2007, RD Capital contributed an additional $11,000. Through
      September 30, 2007, RD Capital has contributed a total of $72,283 on behalf
      of
      the stockholders, which is included in the accompanying financial statements
      as
“additional paid-in capital”.  RD Capital does not expect to be repaid
      for its capital contributions to the Company.





-
            16 -





INVESTMENTS
      ASSOCIATES, INC.


(A
      Development Stage Enterprise)


NOTES
      TO THE FINANCIAL STATEMENTS


September
      30, 2007








During
      the year ended September 30, 2001, Strathmore Minerals Corp, an affiliate
      corporation under common control, loaned $2,720 to the Company. The loan remains
      unpaid at September 30, 2007 and is due on demand.








NOTE
      6 – COMMON
      STOCK





During
      the year ended September 30, 1997, the Company issued 1,000,000 shares of common
      stock in exchange for services.  There have been no issuances of the
      Company’s common stock after September 30, 1997.





NOTE
      7 – COMMITMENTS AND CONTINEGINCIES





During
      the year ended September 30, 2007 the Company reclassified $10,000 from Loans
      Payable to Commitments and Contingencies.  The amount in question was
      from a loan made through a verbal contract in 2002. The Company has been unable
      to ascertain if the company who issued the loan is still in operation and will
      thus be unable to make payment.  The Company believes the loan has now
      exceeded the statute of limitations for loan collections in Nevada and plans
      to
      write off the amount in fiscal 2008.








-
            17 -







Item
      8.  Changes
      in and Disagreements With Accountants on Accounting and Financial
      Disclosure





There
      were no other changes or disagreements with Accountants or Auditors during
      the
      fiscal year ended September 30, 2007 except as noted below.





We
      have
      engaged new auditors as our independent accountants to audit our financial
      statements.  The former auditors, Cordovano & Honeck, LLP resigned
      as our auditors on December 5, 2005 and on December 5, 2005, our board of
      directors approved the change of independent accountants and appointed Williams
      & Webster, P.S. as our independent accountants.





During
      the years ended September 30,
      2003 and September 30, 2004, there were no disagreements with our former
      accountants, Cordovano & Honeck, LLP, on any matter of accounting principles
      or practices, financial statement disclosure, or auditing scope or
      procedure.





During
      the years ended September 30,
      2003 and September 30, 2004, our former accountant’s report on our financial
      statements contained the qualification that our financial statements were
      prepared assuming that we will continue as a going concern.  Given
      that we have suffered losses from operations and the satisfaction of liabilities
      and commitments are dependent upon our ability to meet our future financing
      requirements and the success of its future operations, there is substantial
      doubt about our ability to continue as a going concern.  Our financial
      statements do not include any adjustments that might result from the outcome
      of
      this uncertainty.  Other than the qualification regarding uncertainty
      of our ability to continue as a going concern, our former accountant’s report on
      our financial statements did not contain an adverse opinion, a disclaimer of
      opinion or qualification or modification as to uncertainty, audit scope or
      accounting principles.





We
      have engaged the firm of Williams
& Webster, P.S. as of December 5, 2005.  During the years ended
      September 30, 2003 and September 30, 2004, Williams & Webster, P.S. was not
      consulted on any matter relating to accounting principles to a specific
      completed or proposed transaction or the type of audit opinion that might be
      rendered on our financial statements.  During the years ended
      September 30, 2003 and September 30, 2004, Williams & Webster, P.S. did not
      provide any written or oral advice that was an important factor considered
      by it
      in reaching any decision as to accounting, auditing or financial reporting
      issues.





Item
      8A.  Controls
      and Procedures





(a)           
      Evaluation of disclosure
      controls and procedures.





As
      required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended
      (the "Exchange Act"), the Company carried out an evaluation under the
      supervision and with the participation of the Company's management, including
      the President and Chief Executive Officer and the Chief Financial Officer,
      of
      the effectiveness of the Company's disclosure controls and procedures as of
      September 30, 2007.  In designing and evaluating the Company's
      disclosure controls and procedures, the Company and its management recognize
      that there are inherent limitations to the effectiveness of any system of
      disclosure controls and procedures, including the possibility of human error
      and
      the circumvention or overriding of the controls and
      procedures.  Accordingly, even effective disclosure controls and
      procedures can only provide reasonable assurance of achieving their desired
      control objectives.  Additionally, in evaluating and implementing
      possible controls and procedures, the Company's management was required to
      apply
      its reasonable judgment.  Furthermore, in the course of this
      evaluation, management considered certain internal control areas, in which
      we
      have made and are continuing to make changes to improve and enhance
      controls.  Based upon the required evaluation, the Chief Executive
      Officer and the Chief Financial Officer concluded that as of September 30,
      2007,
      the Company's disclosure controls and procedures were effective (at the
      "reasonable assurance" level mentioned above) to ensure that information
      required to be disclosed by the Company in the reports it files or submits
      under
      the Exchange Act is recorded, processed, summarized and reported within the
      time
      periods specified in the Securities and Exchange Commission's rules and
      forms.





-
            18 -








From
      time-to-time, the Company and its management have conducted and will continue
      to
      conduct further reviews and, from time to time put in place additional
      documentation, of the Company's disclosure controls and procedures, as well
      as
      its internal control over financial reporting.  The Company may from
      time to time make changes aimed at enhancing their effectiveness, as well as
      changes aimed at ensuring that the Company's systems evolve with, and meet
      the
      needs of, the Company's business.  These changes may include changes
      necessary or desirable to address recommendations of the Company's management,
      its counsel and/or its independent auditors, including any recommendations
      of
      its independent auditors arising out of their audits and reviews of the
      Company's financial statements.  These changes may include changes to
      the Company's own systems, as well as to the systems of businesses that the
      Company has acquired or that the Company may acquire in the future and will,
      if
      made, be intended to enhance the effectiveness of the Company's controls and
      procedures.  The Company is also continually striving to improve its
      management and operational efficiency and the Company expects that its efforts
      in that regard will from time to time directly or indirectly affect the
      Company's disclosure controls and procedures, as well as the Company's internal
      control over financial reporting.





(b)           
      Changes in internal
      controls.





There
      were no significant changes in the Company's internal controls or other factors
      that could significantly affect the Company's internal controls subsequent
      to
      the date of their evaluation.





PART
      III





Item
      9.  Directors, Executive Officers, Promoters and Control
      Persons; Compliance
      with Section 16(a) of
      the Exchange
      Act.





Directors
      are elected for one-year terms or until the next annual meeting of shareholders
      and until their successors are duly elected and qualified.  Officers
      continue in office at the pleasure of the Board of Directors.





The
      Directors and Officers of the Company as of the date of this report are as
      follows:





Name
            Age
            PositionSteven
                N. Khan
            51
            President
                and DirectorRobert
                Hemmerling
            45
            Secretary,
                Treasurer and Director





All
      Directors of the Company will hold office until the next annual meeting of
      the
      shareholders and until successors have been elected and
      qualified.  Officers of the Company are elected by the Board of
      Directors and hold office until their death or until they resign or are removed
      from office.





There
      are
      no family relationships among the officers and directors.  There is no
      arrangement or understanding between the Company (or any of its directors or
      officers) and any other person pursuant to which such person was or is to be
      selected as a director or officer.





Business
      Experience





The
      following is a brief account of the education and business experience during
      at
      least the past five years of each director, executive officer and key employee,
      indicating the principal occupation during that period, and the name and
      principal business of the organization in which such occupation and employment
      were carried out.








-
            19 -





Resumes





Steven
      N.
      Khan, President and a director of the Company, was appointed to his positions
      with the Company on February 24, 2004.  Mr. Steven Khan currently
      consults for private and public early stage growth companies in all sectors
      of
      industry.  He spent close to twenty years in all aspects of the
      investment industry, including retail, institutional, corporate finance, capital
      markets, and investment banking areas.  Mr. Khan has held senior
      management roles including serving as President, Chief Executive Officer, and
      Chairman of a number of regional and national Canadian investment brokerage
      houses. Mr. Khan is currently a consultant or officer of a number of private
      and
      public companies and has raised funds for a variety of companies, with a focus
      on the natural resource sector.





Mr.
      Khan
      completed his Bachelor of Science and Master of Business degrees at the
      University of British Columbia before entering the investment
      industry.  He is a Fellow of the Canadian Securities Institute, holds
      a Chartered Financial Analyst designation, and is a member of the CFA
      Institute.  He devotes only such time as necessary to the business of
      the Company, which time is expected to be nominal.





Robert
      Hemmerling, Secretary, Treasurer and a director, was appointed to his positions
      with the Company in July 1997.  In addition to his positions with the
      Company, since September, 1996, Mr. Hemmerling has been employed with Strathmore
      Minerals Corp., Kelowna, British Columbia, in the investor relations
      department.  Strathmore Minerals Corp. is engaged in the business of
      acquiring and developing uranium properties. Prior, from January 1996 through
      August 1996, Mr. Hemmerling was unemployed.  From January 1992 through
      December 1995, Mr. Hemmerling was an electrician with Concord Electric, Kelowna,
      British Columbia.  He devotes only such time as necessary to the
      business of the Company, which time is expected to be nominal.





Section
      16(a) of the Securities Exchange Act of 1934 requires the Company's officers,
      directors and person who own more than 10% of the Company's Common Stock to
      file
      reports of ownership and changes in ownership with the Securities and Exchange
      Commission, provided that there were any changes to such persons respective
      stock holdings in the Company during the previous fiscal year.  Based
      upon information provided to the Company, there have been no changes in the
      securities holdings of any person during the past fiscal year.





Family
      Relationships





There
      are
      no family relationships among our directors and officers.





Board
      and Committee Meetings





The
      Board
      of Directors of the Company held no formal meetings during the year ended
      September 30, 2007.  All proceedings of the Board of Directors were
      conducted by resolutions consented to in writing by all the directors and filed
      with the minutes of the proceedings of the directors.  Such
      resolutions consented to in writing by the directors entitled to vote on that
      resolution at a meeting of the directors are, according to the Nevada General
      Corporate Law and the By-laws of the Company, as valid and effective as if
      they
      had been passed at a meeting of the directors duly called and held.





For
      the
      year ended September 30, 2007 our only standing committee of the Board of
      Directors was our audit committee.








-
            20 -





Audit
      Committee





Currently
      our audit committee consists of our entire Board of Directors.  We
      currently do not have nominating, compensation committees or committees
      performing similar functions.  There has not been any defined policy
      or procedure requirements for shareholders to submit recommendations or
      nomination for directors.





During
      fiscal 2006/2007, there were informal meetings held by this
      Committee.  The business of the Audit Committee was conducted by
      resolutions consented to in writing by all the members and filed with the
      minutes of the proceedings of the Audit Committee.





Audit
      Committee Financial Expert





Our
      board
      of directors has determined that it does not have a member of its audit
      committee that qualifies as an "audit committee financial expert" as defined
      in
      Item 401(e) of Regulation S-B, and is "independent" as the term is used in
      Item
      7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as
      amended.





We
      believe that the members of our board of directors are collectively capable
      of
      analyzing and evaluating our financial statements and understanding internal
      controls and procedures for financial reporting.  In addition, we
      believe that retaining an independent director who would qualify as an "audit
      committee financial expert" would be overly costly and burdensome and is not
      warranted in our circumstances given the early stages of our development and
      the
      fact that we have not generated any material revenues to date.





Involvement
      in Certain Legal Proceedings





Our
      directors, executive officers and control persons have not been involved in
      any
      of the following events during the past five years:





1.
            any
                bankruptcy petition filed by or against any business of which such
                person
                was a general partner or executive officer either at the time of
                the
                bankruptcy or within two years prior to that time;





2.
            any
                conviction in a criminal proceeding or being subject to a pending
                criminal
                proceeding (excluding traffic violations and other minor offences);





3.
            being
                subject to any order, judgment, or decree, not subsequently reversed,
                suspended or vacated, of any court of competent jurisdiction, permanently
                or temporarily enjoining, barring, suspending or otherwise limiting
                his
                involvement in any type of business, securities or banking activities;
                or





4.
            being
                found by a court of competent jurisdiction (in a civil action), the
                Commission or the Commodity Futures Trading Commission to have violated
                a
                federal or state securities or commodities law, and the judgment
                has not
                been reversed, suspended, or vacated.





Section
      16(a) Beneficial Ownership Compliance





Section
      16(a) of the Securities Exchange Act requires our executive officers and
      directors, and persons who own more than 10% of our common stock, to file
      reports regarding ownership of, and transactions in, our securities with the
      Securities and Exchange Commission and to provide us with copies of those
      filings.  Based solely on our review of the copies of such forms
      received by us, or written representations from certain reporting persons,
      we
      believe that during fiscal year ended September 30, 2007, all filing
      requirements applicable to its officers, directors and greater than 10% percent
      beneficial owners were complied with.








-
            21 -





Code
      of Ethics





Effective
      December 1, 2005, our company's board of directors adopted a Code of Business
      Conduct and Ethics that applies to, among other persons, our company's President
      and Secretary (being our principal executive officer, principal financial
      officer and principal accounting officer), as well as persons performing similar
      functions.  As adopted, our Code of Business Conduct and Ethics sets
      forth written standards that are designed to deter wrongdoing and to
      promote:





1.
            honest
                and ethical conduct, including the ethical handling of actual or
                apparent
                conflicts of interest between personal and professional relationships;





2.
            full,
                fair, accurate, timely, and understandable disclosure in reports
                and
                documents that we file with, or submit to, the Securities and Exchange
                Commission and in other public communications made by us;





3.
            compliance
                with applicable governmental laws, rules and regulations;





4.
            the
                prompt internal reporting of violations of the Code of Business Conduct
                and Ethics to an appropriate person or persons identified in the
                Code of
                Business Conduct and Ethics; and





5.
            accountability
                for adherence to the Code of Business Conduct and Ethics.





Our
      Code
      of Business Conduct and Ethics requires, among other things, that all of our
      company's Senior Officers commit to timely, accurate and consistent disclosure
      of information; that they maintain confidential information; and that they
      act
      with honesty and integrity.





In
      addition, our Code of Business Conduct and Ethics emphasizes that all employees,
      and particularly Senior Officers, have a responsibility for maintaining
      financial integrity within our company, consistent with generally accepted
      accounting principles, and federal and state securities laws.  Any
      Senior Officer who becomes aware of any incidents involving financial or
      accounting manipulation or other irregularities, whether by witnessing the
      incident or being told of it, must report it to our company.  Any
      failure to report such inappropriate or irregular conduct of others is to be
      treated as a severe disciplinary matter. It is against our company policy to
      retaliate against any individual who reports in good faith the violation or
      potential violation of our company's Code of Business Conduct and Ethics by
      another.





Our
      Code
      of Business Conduct and Ethics was filed with the Securities and Exchange
      Commission as Exhibit 14.1 to our annual report for the year ended September
      30,
      2005.  We will provide a copy of the Code of Business Conduct and
      Ethics to any person without charge, upon request.  Requests can be
      sent to:  Investment Associates Inc., Suite 700, 1620 Dickson Avenue,
      Kelowna, British Columbia, V1Y 9Y2.





Item
      10.  Executive Compensation





None
      of
      the Company's officers and/or directors receive any compensation for their
      respective services rendered unto the Company, nor have they received such
      compensation in the past.  They all have agreed to act without
      compensation until authorized by the Board of Directors, which is not expected
      to occur until the Company has generated revenues from operations after
      consummation of a merger or acquisition.  As of the date of this Form
      10-KSB, the Company has no funds available to pay directors.  Further,
      none of the directors are accruing any compensation pursuant to any agreement
      with the Company.








-
            22 -





It
      is
      possible that, after the Company successfully consummates a merger or
      acquisition with an unaffiliated entity, that entity may desire to employ or
      retain one or a number of members of the Company's management for the purposes
      of providing services to the surviving entity, or otherwise provide other
      compensation to such persons.  However, the Company has adopted a
      policy whereby the offer of any post-transaction remuneration to members of
      management will not be a consideration in the Company's decision to undertake
      any proposed transaction.  Each member of management has agreed to
      disclose to the Company's Board of Directors any discussions concerning possible
      compensation to be paid to them by any entity which proposes to undertake a
      transaction with the Company and further, to abstain from voting on such
      transaction.  Therefore, as a practical matter, if each member of the
      Company's Board of Directors is offered compensation in any form from any
      prospective merger or acquisition candidate, the proposed transaction will
      not
      be approved by the Company's Board of Directors as a result of the inability
      of
      the Board to affirmatively approve such a transaction.





It
      is
      possible that persons associated with management may refer a prospective merger
      or acquisition candidate to the Company.  In the event the Company
      consummates a transaction with any entity referred by associates of management,
      it is possible that such an associate will be compensated for their referral
      in
      the form of a finder's fee.  It is anticipated that this fee will be
      either in the form of restricted common stock issued by the Company as part
      of
      the terms of the proposed transaction, or will be in the form of cash
      consideration.  However, if such compensation is in the form of cash,
      such payment will be tendered by the acquisition or merger candidate, because
      the Company has insufficient cash available.  The amount of such
      finder's fee cannot be determined as of the date of this Form 10-KSB, but is
      expected to be comparable to consideration normally paid in like
      transactions.  No member of management of the Company will receive any
      finder’s fee, either directly or indirectly, as a result of their respective
      efforts to implement the Company's business plan outlined herein.





No
      retirement, pension, profit sharing, stock option or insurance programs or
      other
      similar programs have been adopted by the Company for the benefit of its
      employees.





The
      Company maintains a policy whereby the directors of the Company may be
      compensated for out of pocket expenses incurred by each of them in the
      performance of their relevant duties.  The Company did not reimburse
      any director for such expenses during the fiscal year ended September 30,
      2007.





There
      are
      no bonus or incentive plans in effect, nor are there any understandings in
      place
      concerning additional compensation to the Company's officers.





SUMMARY
                COMPENSATION TABLELong
                Term CompensationAnnual
                Compensation
            Awards
            Payouts(a)
            (b)
            (c)
            (d)
            (e)
            (f)
            (g)
            (h)
            (i)Name
                and Principle Position
            Year
            Salary
              ($)
            Bonus
              ($)
            Other
              Annual
                Comp-
              ensation
              ($)
            Restricted
              Stock
              Award(s)
              ($)
            Securities
              Underlying
              Option/SARs
              (#)
            LTIP
              Payouts
              ($)
            All
              Other
              Comp-
              ensation
              ($)Robert
                Hemmerling,
              Secretary,
                Treasurer and Director
            2006/
              2007
            $0.00
              $0.00
            $0.00
              $0.00
            $0.00
              $0.00
            $0.00
              $0.00
            0
              0
            $0.00
              $0.00
            $0.00
              $0.00Steven
                N. Khan,
              President
                and Director
            2006/
              2007
            $0.00
              $0.00
            $0.00
              $0.00
            $0.00
              $0.00
            $0.00
              $0.00
            0
              0
            $0.00
              $0.00
            $0.00
              $0.00








-
            23 -





Long-Term
      Incentive Plans





There
      are
      no arrangements or plans in which we provide pension, retirement or similar
      benefits for directors or executive officers, except that our directors and
      executive officers may receive stock options at the discretion of our board
      of
      directors.  We do not have any material bonus or profit sharing plans
      pursuant to which cash or non-cash compensation is or may be paid to our
      directors or executive officers, except that stock options may be granted at
      the
      discretion of our board of directors.





We
      have
      no plans or arrangements in respect of remuneration received or that may be
      received by our executive officers to compensate such officers in the event
      of
      termination of employment (as a result of resignation, retirement, change of
      control) or a change of responsibilities following a change of control, where
      the value of such compensation exceeds $60,000 per executive
      officer.





Compensation
      Of Directors





We
      reimburse our directors for expenses incurred in connection with attending
      board
      meetings.  We did not pay director's fees or other cash compensation
      for services rendered as a director in the year ended September 30,
      2007.





We
      have
      no formal plan for compensating our directors for their service in their
      capacity as directors, although such directors are expected in the future to
      receive stock options to purchase common shares as awarded by our board of
      directors or (as to future stock options) a compensation committee which may
      be
      established.  Directors are entitled to reimbursement for reasonable
      travel and other out-of-pocket expenses incurred in connection with attendance
      at meetings of our board of directors.  Our board of directors may
      award special remuneration to any director undertaking any special services
      on
      our behalf other than services ordinarily required of a director.  No
      director received and/or accrued any compensation for their services as a
      director, including committee participation and/or special
      assignments.





Employment
      Contracts





There
      are
      no arrangements or plans in which we provide pension, retirement or similar
      benefits for directors or executive officers.  Our directors and
      executive officers may receive stock options at the discretion of our board
      of
      directors in the future.  We do not have any material bonus or profit
      sharing plans pursuant to which cash or non-cash compensation is or may be
      paid
      to our directors or executive officers, except that stock options may be granted
      at the discretion of our board of directors.





We
      have
      no plans or arrangements in respect of remuneration received or that may be
      received by our executive officers to compensate such officers in the event
      of
      termination of employment (as a result of resignation, retirement, change of
      control) or a change of responsibilities following a change of control, where
      the value of such compensation exceeds $60,000 per executive
      officer.





Item
      11.  Security
      Ownership of Certain Beneficial Owners and Management and Related Stockholder
      Matters





The
      following table provides information regarding the beneficial ownership of
      our
      common stock as of September 30, 2007 by:





-
            24 -











*
            each
                person or entity known by us to be the beneficial owner of more than
                5% of
                the outstanding shares of common stock,*
            each
                of our directors and named executive officers, and*
            all
                of our directors and executive officers as a
                group.




Title
                of Class
            Name
                and Address
              of
                Beneficial Owner
            Amount
                and Nature
              of
                Beneficial Owner
            Percent
              of
                ClassCommon
                Stock
            David
                Ward
              4531
                Granville Avenue
              Richmond,
                B. C.
              V7C
                1E3
            304,000
                common shares
              Direct
                Ownership
            30.4%Common
                Stock
            Robert
                Hemmerling (1)
              Suite
                810
              1708
                Dolphin Avenue
              Kelowna,
                B.C.
              V1Y
                9S4
            304,000
                common shares
              Direct
                Ownership
            30.4%Common
                Stock
            Steven
                N. Khan (1)
              Director
              Suite
                810
              1708
                Dolphin Avenue
              Kelowna,
                B.C.
              V1Y
                9S4
            No
                Shares Held
            0%Common
                Stock
            All
                Officers and Directors
              as
                a Group (2 persons)
            304,000
                common shares
            30.4%





(1) Officer
      and
      Director.





The
      balance of our outstanding common stock is held by eight persons, none of whom
      hold 5% or more of our outstanding common stock.





Changes
      in Control





We
      are
      unaware of any contract or other arrangement the operation of which may at
      a
      subsequent date result in a change in control of our company.





Item
      12.  Certain
      Relationships and Related Transactions





There
      have been no related party transactions or any other transactions or
      relationships required to be disclosed pursuant to item 404 of Regulation
      S-B.








-
            25 -





Item
      13.  Exhibits, List and Reports on Form 8-K.





(A)           
      Exhibits





Exhibit
              Number
            Description3.1
            Articles
                of Incorporation and amendments thereto, as filed with the Issuer's
                Form
                10-SB (file no. 000-28053) filed on November 12, 1999 incorporated
                herein
                by reference.3.3
            Bylaws
                as filed with the Issuer's Form 10-SB (file no. 000-28053) on November
                12,
                1999 incorporated herein by reference.4.1
            Form
                of Lock Up Agreement Executed by the Issuer's Shareholders as filed
                with
                the Issuer's Form 10-SB (file no.000-28053) filed on November 12,
                1999,
                incorporated herein by reference.13.1
            Form
                10QSB for the Period ended December 31, 2006, filed on February 8,
                2007,
                incorporated herein by reference.13.2
            Form
                10QSB for the Period ended March 31, 2007, filed on May 15, 2007,
                incorporated herein by reference.13.3
            Form
                10QSB for the Period ended June 30, 2007, filed on August 14, 2007,
                incorporated herein by reference.31.1
            Section
                302 Certification of Chief Executive Officer31.2
            Section
                302 Certification of Chief Financial Officer32
            Section
                906 Certification





(B)           
      Reports on Form 8-K





None





Item
      14.  Principal Accountant Fees and Services





Audit
      Fees





For
      the
      fiscal year ended September 30, 2007, the aggregate fees billed by Williams
      & Webster, P.S. for professional services rendered for the audit of our
      annual financial statements included in our annual report on Form 10-KSB were
      $19,363.  For the period ended September 30, 2006, the aggregate fees
      billed by Williams & Webster, P.S. for professional services rendered for
      the audit of our annual financial statements included in our annual report
      on
      Form 10-KSB were $5,954.





Audit
      Related Fees





For
      the
      period ended September 30, 2007, the aggregate fees billed for assurance and
      related services by Williams & Webster, P.S. relating to the performance of
      the audit of our financial statements which are not reported under the caption
      "Audit Fees" above, was $-0-.  For the period ended September 30,
      2006, the





-
            26 -




Tax
      Fees





For
      the
      period ended September 30, 2007, the aggregate fees billed by Williams &
Webster, P.S. for other non-audit professional services, other than those
      services listed above, totalled $-0-.  For the period ended September
      30, 2006, the aggregate fees billed by Williams & Webster, P.S. for other
      non-audit professional services, other than those services listed above,
      totalled $0.





We
      do not
      use Williams & Webster, P.S. for financial information system design and
      implementation.  These services, which include designing or
      implementing a system that aggregates source data underlying the financial
      statements or generates information that is significant to our financial
      statements, are provided internally or by other service providers.  We
      do not engage Williams & Webster, P.S. to provide compliance outsourcing
      services.





Effective
      May 6, 2003, the Securities and Exchange Commission adopted rules that require
      that before Williams & Webster, P.S. is engaged by us to render any auditing
      or permitted non-audit related service, the engagement be:





-
            approved
                by our audit committee (which consists of our entire board of directors);
                or





-
            entered
                into pursuant to pre-approval policies and procedures established
                by the
                board of directors, provided the policies and procedures are detailed
                as
                to the particular service, the board of directors is informed of
                each
                service, and such policies and procedures do not include delegation
                of the
                board of directors' responsibilities to management.





The
      board
      of directors pre-approves all services provided by our independent
      auditors.  All of the above services and fees were reviewed and
      approved by the board of directors either before or after the respective
      services were rendered.





The
      board
      of directors has considered the nature and amount of fees billed by Williams
      & Webster, P.S. and believes that the provision of services for activities
      unrelated to the audit is compatible with maintaining Williams & Webster,
      P.S.’s independence.








-
            27 -





SIGNATURES





In
      accordance with Section 13 or 15(d) of the Exchange Act, the Registrant caused
      this report to be signed on its behalf by the undersigned, thereunto duly
      authorized.




INVESTMENT
                  ASSOCIATES, INC.Dated:
                  January 14, 2008
              Per:
              /s/ Steven
                N. KhanSteven
                  N. Khan,
                C.E.O.,
                  President and Director


In
      accordance with the Exchange Act, this report has been signed below by the
      following person on behalf of the Registrant and in the capacities and on the
      dates indicated.




/s/ Steven
                  N. KhanSteven
                    N. Khan,
                  C.E.O.,
                    President and DirectorJanuary
                    14, 2008
                  Date


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      28
      -