| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

|   | For the quarterly period ended June 30, 2009 |
|--------|----------------------------------------------|

| o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------|

| Wisconsin                                                      |   | 39-1924096                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 16901 West Glendale Drive, New Berlin, Wisconsin 53151         |
| (Address of principal executive offices)                       |
|                                                           |   |                                 |
| (262) 780-3640                                                 |
| (Registrant’s telephone number, including area code)     |
|                                                           |   |                                 |

| Large Accelerated Filer  o | Accelerated Filer  o | Non-Accelerated Filer  o            | Smaller Reporting Company  T |
|--------------------------------------|--------------------------------|-----------------------------------------------|----------------------------------------|
|                                 |                           | (Do not check if a smaller reporting company) |                                   |

----

|                |   |                                                                                        |                                                                                                                                                                                                  |          |
|---------------------|--------|---------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|                |   |                                                                                        |                                                                                                                                                                                             | Page No. |
| Part I.        |   | FINANCIAL INFORMATION                                                                       |                                                                                                                                                                                             |          |
|                |   |                                                                                        |
| Item 1 -  |   | Financial Statements (June 30, 2009 - Unaudited)                                            |                                                                                                                                                                                             |          |
|                |   |                                                                                        |
|                |   |                                                                                        | Condensed Consolidated Balance Sheets – June 30, 2009 and December 31, 2008                                                                                                                     |     | 2 |
|                |   |                                                                                        |
|                |   |                                                                                        |      Condensed Consolidated Statements of Operations - Three  Months Ended June 30, 2009 and 2008;     Six Months Ended June 30, 2009 and 2008 |     | 4 |
|                |   |                                                                                        |
|                |   |                                                                                        |     Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2009 and 2008                                                                                          |     | 5 |
|                |   |                                                                                        |
|                |   |                                                                                        | Condensed Consolidated Statement of Changes in Stockholders Equity - Six Months Ended June 30, 2009                                                                                              |     | 7 |
|                |   |                                                                                        |
|                |   |                                                                                        | Notes to Condensed Consolidated Financial Statements                                                                                                                                                  |     | 8 |
|                |   |                                                                                        |
| Item 2 -  |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations |                                                                                                                                                                                             | 15            |
|                |   |                                                                                        |
| Item 3 -  |   | Quantitative and Qualitative Disclosures about Market Risk                                  |                                                                                                                                                                                             | 19            |
|                |   |                                                                                        |
| Item 4 -  |   | Controls and Procedures                                                                     |                                                                                                                                                                                             | 19            |
|                |   |                                                                                        |                                                                                                                                                                                                  |          |
| Part II.       |   | Other Information                                                                           |                                                                                                                                                                                             | 20            |
|                |   |                                                                                        |
| Item 1A - |   | Risk Factors                                                                                |                                                                                                                                                                                             |          |
|                |   |                                                                                        |
| Item 2 -  |   | Unregistered Sales of Equity Securities and Use of Proceeds                                 |                                                                                                                                                                                             |          |
|                |   |                                                                                        |
| Item 3 -       |   | Defaults on Upon Senior Securities                                                          |                                                                                                                                                                                                  |          |
|                |   |                                                                                        |                                                                                                                                                                                                  |          |
| Item 4 -  |   | Submission of Matters to a Vote of Security Holders                                         |                                                                                                                                                                                             |          |
|                |   |                                                                                        |
| Item 5 -       |   | Other Information                                                                           |                                                                                                                                                                                                  |          |
|                |   |                                                                                        |
| Item 6 -  |   | Exhibits                                                                                    |                                                                                                                                                                                             |          |
|                |   |                                                                                        |                                                                                                                                                                                                  |          |

----

|                                                                                    |   | June 30, 2009 |       |   | December 31, 2008 |   |
|-----------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                                                    |   | (UNAUDITED)   |       |   |              |   |
|                                                                                    |   |          |       |   |              |   |
| ASSETS                                                                                  |   |          |       |   |              |   |
| Current assets                                                                          |   |          |       |   |              |   |
|     Cash                                                            |   | $             | 403,437    |   |              | $      | 279,227 |   |
|     Restricted cash                                                 |   |          | 98,544     |   |              |   | 495,803 |   |
|     Marketable securities                                           |   |          | 92,975     |   |              |   | 84,808 |   |
|     Accounts receivable, net                                        |   |          | 1,213,000  |   |              |   | 1,401,383 |   |
|     Refundable income taxes                                         |   |          | 48,500     |   |              |   | 48,500 |   |
|     Earned trade account                                            |   |          | 108,160    |   |              |   | 6,991 |   |
|     Prepaid expenses                                                |   |          | 145,813    |   |              |   | 109,710 |   |
|     Inventory                                                       |   |          | -          |   |              |   | 33,839 |   |
|                                                                                    |   |          |       |   |              |   |   |   |
|           Total current assets        |   |          | 2,110,429  |   |              |   | 2,460,261 |   |
|                                                                                    |   |          |       |   |              |   |   |   |
|           Net furniture and equipment |   |          | 905,937    |   |              |   | 1,056,526 |   |
|                                                                                    |   |          |       |   |              |   |   |   |
| Other assets                                                                            |   |          |       |   |              |   |   |   |
|                                                                                    |   |          |       |   |              |   |   |   |
|     Membership lists, net                                           |   |          | 8,905,360  |   |              |   | 9,577,257 |   |
|     Goodwill                                                        |   |          | 3,435,479  |   |              |   | 3,435,479 |   |
|     Deferred tax asset                                              |   |          | -          |   |              |   | 75,000 |   |
|     Assets held for investment                                      |   |          | 99,298     |   |              |   | 99,298 |   |
|     Investment in real estate                                       |   |          | 26,000     |   |              |   | 26,000 |   |
|     Cash surrender value                                            |   |          | 45,925     |   |              |   | 43,125 |   |
|                                                                                    |   |          |       |   |              |   |   |   |
|           Total other assets          |   |          | 12,512,062 |   |              |   | 13,256,159 |   |
|                                                                                    |   |          |       |   |              |   |   |   |
|           Total assets                |   | $             | 15,528,428 |   |              | $      | 16,772,946 |   |

----

|                                                                                                 |   | June 30, 2009 |       |   | December 31, 2008 |   |
|------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                                                                 |   | (UNAUDITED)   |       |   |              |   |
| LIABILITIES                                                                                          |   |          |       |   |              |   |
| Current liabilities                                                                                  |   |          |       |   |              |   |
|     Accounts payable and accrued expenses                                        |   | $             | 904,309    |   |              | $      | 1,010,374 |   |
|     Credit lines                                                                 |   |          | 308,992    |   |              |   | 340,746 |   |
|     Current portion of notes payable                                             |   |          | 440,131    |   |              |   | 838,982 |   |
|     Current portion of convertible notes payable                                 |   |          | 415,177    |   |              |   | 175,466 |   |
|     Current portion of common stock subject to guarantee                         |   |          | 771,000    |   |              |   | 1,268,500 |   |
|                                                                                                 |   |          |       |   |              |   |   |   |
|           Total current liabilities                |   |          | 2,839,609  |   |              |   | 3,634,068 |   |
|                                                                                                 |   |          |       |   |              |   |   |   |
| Long-term liabilities                                                                                |   |          |       |   |              |   |   |   |
|     Notes payable, less current portion                                          |   |          | 64,811     |   |              |   | 154,334 |   |
|     Convertible notes payable, less current portion                              |   |          | 1,346,166  |   |              |   | 1,306,813 |   |
|     Convertible notes payable, related parties                                   |   |          | 100,000    |   |              |   | - |   |
|     Common stock subject to guarantee, less current portion                      |   |          | 876,500    |   |              |   | 1,359,500 |   |
|     Deferred compensation                                                        |   |          | 267,500    |   |              |   | 260,000 |   |
|     Deferred income taxes                                                        |   |          | 1,848,300  |   |              |   | 2,039,000 |   |
|                                                                                                 |   |          |       |   |              |   |   |   |
|           Total long-term liabilities              |   |          | 4,503,277  |   |              |   | 5,119,647 |   |
|                                                                                                 |   |          |       |   |              |   |   |   |
|           Total liabilities                        |   |          | 7,342,886  |   |              |   | 8,753,715 |   |
|                                                                                                 |   |          |       |   |              |   |   |   |
| STOCKHOLDER EQUITY                                                                                   |   |          |       |   |              |   |   |   |
| Preferred stock, $.0001 par value                                                                    |   |          |       |   |              |   |   |   |
|    20,000,000 authorized, 0 outstanding                                               |   |          | -          |   |              |   | - |   |
| Common stock, $.0001 par value 280,000,000                                                           |   |          |       |   |              |   |   |   |
|   authorized, 10,270,906 and 10,270,906                                                    |   |          |       |   |              |   |   |   |
|   issued and outstanding June 30, 2009                                                     |   |          |       |   |              |   |   |   |
|   and December 31, 2008 respectively                                                       |   |          | 6,163      |   |              |   | 6,163 |   |
| Paid in capital                                                                                      |   |          | 12,401,538 |   |              |   | 11,697,038 |   |
| Treasury stock, 547,763 and 387,091                                                                  |   |          |       |   |              |   |   |   |
|    shares outstanding, respectively                                                   |   |          | (2,086,919 | )      |              |   | (1,403,216 | ) |
| Deferred compensation                                                                                |   |          | (16,000    | )      |              |   | (25,467 | ) |
| Accumulated other comprehensive loss                                                                 |   |          | (40,375    | )      |              |   | (50,840 | ) |
| Accumulated deficit                                                                                  |   |          | (2,078,865 | )      |              |   | (2,204,447 | ) |
|                                                                                                 |   |          |       |   |              |   |   |   |
|           Total stockholder equity                 |   |          | 8,185,542  |   |              |   | 8,019,231 |   |
|                                                                                                 |   |          |       |   |              |   |   |   |
|           Total liabilities and stockholder equity |   | $             | 15,528,428 |   |              | $      | 16,772,946 |   |
|                                                                                                 |   |          |       |   |              |   |   |   |

----

|                                                                                                                                                                                                       |   | Three Months Ended |       |   | Six Months Ended |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-----------------------|--------|
|                                                                                                                                                                                                       |   | June 30,           |       |   | June 30,              |   |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |
|                                                                                                                                                                                                       |   | 2009               |       |   | 2008                  |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |
|   Gross revenue                                                                                                                                                                                  |   | $                  | 3,481,819  |   |                  | $      | 3,539,434 |   |   | $ | 6,833,043 |   |   | $ | 7,058,273 |   |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|   Expenses                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|    Payroll, related taxes                                                                                                                                                                   |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|      and employee benefits                                                                                                                                                        |   |               | 1,940,741  |   |                  |   | 2,347,310 |   |   |   | 3,984,990 |   |   |   | 4,902,690 |   |
|    General and administrative                                                                                                                                                               |   |               | 408,830    |   |                  |   | 515,496 |   |   |   | 850,592 |   |   |   | 960,697 |   |
|    Occupancy                                                                                                                                                                                |   |               | 315,905    |   |                  |   | 261,468 |   |   |   | 621,152 |   |   |   | 520,138 |   |
|    Selling                                                                                                                                                                                  |   |               | 117,138    |   |                  |   | 141,152 |   |   |   | 203,829 |   |   |   | 256,563 |   |
|    Depreciation                                                                                                                                                                             |   |               | 76,764     |   |                  |   | 71,934 |   |   |   | 153,388 |   |   |   | 146,803 |   |
|    Amortization                                                                                                                                                                             |   |               | 335,949    |   |                  |   | 338,493 |   |   |   | 671,897 |   |   |   | 660,818 |   |
|    Provision for bad debt                                                                                                                                                                   |   |               | (4,389     | )      |                  |   | 24,601 |   |   |   | - |   |   |   | 80,853 |   |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|      Total expenses                                                                                                                                                               |   |               | 3,190,938  |   |                  |   | 3,700,454 |   |   |   | 6,485,848 |   |   |   | 7,528,562 |   |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|      Net income (loss) from operations                                                                                                                                            |   |               | 290,881    |   |                  |   | (161,020 | ) |   |   | 347,195 |   |   |   | (470,289 | ) |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|    Other income (expense)                                                                                                                                                                   |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|      Interest income                                                                                                                                                              |   |               | 121        |   |                  |   | 2,806 |   |   |   | 496 |   |   |   | 7,555 |   |
|      Interest expense                                                                                                                                                             |   |               | (66,932    | )      |                  |   | (61,479 | ) |   |   | (124,990 | ) |   |   | (128,366 | ) |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|      Total other income (expense)                                                                                                                                                 |   |               | (66,811    | )      |                  |   | (58,673 | ) |   |   | (124,494 | ) |   |   | (120,811 | ) |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|      Income (loss) before income taxes                                                                                                                                            |   |               | 224,070    |   |                  |   | (219,693 | ) |   |   | 222,701 |   |   |   | (591,100 | ) |
|      Income tax expense (benefit)                                                                                                                                                 |   |               | 44,119     |   |                  |   | (155,500 | ) |   |   | 97,119 |   |   |   | (296,000 | ) |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|      Net income (loss)                                                                                                                                                            |   | $                  | 179,951    |   |                  | $      | (64,193 | ) |   | $ | 125,582 |   |   | $ | (295,100 | ) |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|      Net income (loss) per                                                                                                                                                        |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|       common share - basic                                                                                                                                                   |   | $                  | .02        |   |                  | $      | (.01 | ) |   | $ | .01 |   |   | $ | (.03 | ) |
|                                - dilutive       |   | $                  | .02        |   |                  | $      | (.01 | ) |   | $ | .01 |   |   | $ | (.03 | ) |
|  Weighted average common                                                                                                                                                                              |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|   shares outstanding - basic                                                                                                                                                                     |   |               | 10,254,608 |   |                  |   | 10,192,217 |   |   |   | 10,254,608 |   |   |   | 10,144,728 |   |
|                                 - dilutive |   |               | 10,254,608 |   |                  |   | 10,195,217 |   |   |   | 10,524,608 |   |   |   | 10,144,728 |   |
|                                                                                                                                                                                                       |   |               |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                            |   | Six Months Ended June 30, |     |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------|----------|
|                                                                                                            |   | 2009                      |     |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                           |   |                      |     |   |   |   |
|     Net income (loss)                                                                       |   | $                         | 125,582  |   |   | $ | (295,100 | ) |
|     Adjustments to reconcile net loss to net cash                                           |   |                      |     |   |   |   |   |   |
|       provided by operating activities:                                           |   |                      |     |   |   |   |   |   |
|        Depreciation and amortization                                         |   |                      | 825,285  |   |   |   | 807,621 |   |
|        Provision for bad debts                                               |   |                      |     |   |   |   | 80,853 |   |
|        Stock issued for services                                             |   |                      | 33,467   |   |   |   | 29,000 |   |
|        Loss on disposal of fixed assets                                      |   |                      |     |   |   |   | 23,786 |   |
|        Accretion of discount on notes payable                                |   |                      |     |   |   |   | 4,723 |   |
|        Deferred compensation                                                 |   |                      | 7,500    |   |   |   | 7,500 |   |
|        Interest on subscription receivable                                   |   |                      |     |   |   |   | (873 | ) |
|      Changes in assets and liabilities                                                 |   |                      |     |   |   |   |   |   |
|         Accounts receivable                                             |   |                      | 188,383  |   |   |   | 260,082 |   |
|         Earned trade account                                            |   |                      | (101,169 | ) |   |   | (262,149 | ) |
|         Deferred tax benefit                                            |   |                      | 75,000   |   |   |   | - |   |
|         Inventory                                                       |   |                      | 33,839   |   |   |   | - |   |
|         Prepaid expense                                                 |   |                      | (36,103  | ) |   |   | 6,863 |   |
|         Accounts payable                                                |   |                      | (35,830  | ) |   |   | (123,302 | ) |
|         Accrued compensation & payroll taxes                        |   |                      | 73,417   |   |   |   | 112,962 |   |
|         Accrued sales tax                                               |   |                      | (26,276  | ) |   |   | (41,501 | ) |
|         Accrued income taxes                                            |   |                      | 204,100  |   |   |   | (135,396 | ) |
|         Deferred tax liability                                          |   |                      | (190,700 | ) |   |   | (311,000 | ) |
|         Trade payable                                                   |   |                      | (321,476 | ) |   |   | - |   |
|                                                                                                            |   |                      |     |   |   |   |   |   |
|           Net cash provided by operating activities           |   |                      | 855,019  |   |   |   | 164,069 |   |
|                                                                                                            |   |                      |     |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                           |   |                      |     |   |   |   |   |   |
|     (Increase) decrease in restricted cash                                                  |   |                      | (240,241 | ) |   |   | (70,376 | ) |
|     Capital expenditures                                                                    |   |                      | (2,799   | ) |   |   | (52,730 | ) |
|     Increase in marketable securities                                                       |   |                      | (4,500   | ) |   |   | (4,500 | ) |
|     Proceeds from sale of real estate                                                       |   |                      | -        |   |   |   | 2,695 |   |
|     Cash payments on business acquisitions                                                  |   |                      | -        |   |   |   | (320,000 | ) |
|     Increase in cash surrender value                                                        |   |                      | (2,800   | ) |   |   | (2,800 | ) |
|                                                                                                            |   |                      |     |   |   |   |   |   |
|           Net cash provided by (used in) investing activities |   |                      | (250,340 | ) |   |   | (447,711 | ) |

----

|                                                                                                                            |   | Six Months Ended June 30, |     |
|---------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|----------|
|                                                                                                                            |   | 2009                      |     |   | 2008 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                           |   |                      |     |   |   |   |
|     Proceeds from credit lines and notes payable                                                            |   |                      | 25,000   |   |   |   | 410,000 |   |
|     Proceeds from convertible notes payable, related parties                                                |   |                      | 100,000  |   |   |   | - |   |
|     Payments on credit lines                                                                                |   |                      | (56,744  | ) |   |   | - |   |
|     Payments on notes payable                                                                               |   |                      | (509,321 | ) |   |   | (496,724 | ) |
|     Purchase of treasury stock                                                                              |   |                      | (46,203  | ) |   |   | (172,000 | ) |
|     Proceeds from subscription receivable                                                                   |   |                      | -        |   |   |   | 5,000 |   |
|     Proceeds related to issuance of stock                                                                   |   |                      | -        |   |   |   | 302,500 |   |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
|         Net cash provided by (used in) financing activities                             |   |                      | (487,268 | ) |   |   | 48,776 |   |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
| Foreign currency translation adjustment                                                                                         |   |                      | 6,799    |   |   |   | (4,478 | ) |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
|         Net increase (decrease) in cash                                                 |   |                      | 124,210  |   |   |   | (239,344 | ) |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
| Cash at beginning of period                                                                                                     |   |                      | 279,227  |   |   |   | 812,365 |   |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
| Cash at end of period                                                                                                           |   | $                         | 403,437  |   |   | $ | 573,021 |   |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES                                                                                                        |   |                      |     |   |   |   |   |   |
|     Cash paid for interest                                                                                  |   | $                         | 124,990  |   |   | $ | 128,366 |   |
|     Cash paid for income taxes                                                                              |   | $                         | 8,719    |   |   | $ | 150,396 |   |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
| SCHEDULE OF NONCASH INVESTING AND                                                                                               |   |                      |     |   |   |   |   |   |
|    FINANCING ACTIVITIES:                                                                                         |   |                      |     |   |   |   |   |   |
|     Business acquisitions                                                                                   |   |                      |     |   |   |   |   |   |
|         Fair value of assets acquired                                                   |   |                      | -        |   |   | $ | 805,424 |   |
|         Less: Stock issued                                                              |   |                      | -        |   |   |   | (100,000 | ) |
|                  Purchase option           |   |                      | -        |   |   |   | (112,500 | ) |
|                  Issuance of notes payable |   |                      | -        |   |   |   | (272,924 | ) |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
|         Net cash paid for acquisitions                                                  |   |                      | -        |   |   | $ | 320,000 |   |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
|    Unrealized net loss on equity investments                                                                     |   | $                         | 3,667    |   |   | $ | - |   |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
|    Release of stock guarantees                                                                                   |   | $                         | 637,500  |   |   | $ | 307,000 |   |
|                                                                                                                            |   |                      |     |   |   |   |   |   |
|    Treasury stock acquired with long-term debt                                                                   |   | $                         | 300,000  |   |   | $ | - |   |

----

|                                     |   | Preferred Stock |   |   | Common Stock |   |   |   |   |   | Treasury Stock |   |   |    |   |
|------------------------------------------|--------|-----------------|--------|--------|--------------|--------|--------|--------|--------|--------|----------------|--------|--------|---------|--------|
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   | Total   |   |
|                                     |   |            |   |   | Par          |   |   |   |   |   | Par            |   |   | Paid in |   |   | Deferred. |   |   | Other |   |   | Accum. |   |   |   |   |   | Par |   |   | Stockholder |   |
|                                     |   | Shares          |   |   | Value        |   |   | Shares |   |   | Value          |   |   | Capital |   |   | Comp |   |   | Income |   |   | Deficit |   |   | Shares |   |   | Value |   |   | Equity |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                              |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    December 31, 2008      |   |            | -      |   |         |   | -      |   |   |   | 10,270,906     |   |   | $       | 6,163  |   |   | $ | 11,697,038 |   |   | $ | (25,467 | ) |   | $ | (50,840 | ) |   | $ | (2,204,447 | ) |   |   | (387,091 | ) |   | $ | (1,403,216 | ) |   | $ | 8,019,231 |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency                         |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    translation adjustment |   |            | -      |   |         |   | -      |   |   |   | -              |   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | 3,667 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,667 |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain on                       |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    available for sale     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    securities             |   |            | -      |   |         |   | -      |   |   |   | -              |   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | 6,798 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,798 |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income Six                           |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Months Ended                 |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   June 30, 2009                |   |            | -      |   |         |   | -      |   |   |   | -              |   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 125,582 |   |   |   | - |   |   |   | - |   |   |   | 125,582 |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net comprehensive                        |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   income                       |   |            | -      |   |         |   | -      |   |   |   | -              |   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 136,047 |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury stock                           |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    purchases              |   |            | -      |   |         |   | -      |   |   |   | -              |   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (19,006 | ) |   |   | (46,203 | ) |   |   | (46,203 | ) |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock issued for                         |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    services               |   |            | -      |   |         |   | -      |   |   |   | 50,000         |   |   |    | 30     |   |   |   | 23,970 |   |   |   | (24,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred comp                            |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   expensed                     |   |            | -      |   |         |   | -      |   |   |   | -              |   |   |    | -      |   |   |   | - |   |   |   | 33,467 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 33,467 |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock converted                          |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to notes               |   |            | -      |   |         |   | -      |   |   |   | (50,000        | )      |   |    | (30    | ) |   |   | (299,970 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (300,000 | ) |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Guaranteed stock                         |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   returned for                 |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   restricted cash              |   |            | -      |   |         |   | -      |   |   |   | -              |   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (141,666 | ) |   |   | (637,500 | ) |   |   | (637,500 | ) |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of                      |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   shares issued at             |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   guaranteed prices            |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to liabilities         |   |            | -      |   |         |   | -      |   |   |   | -              |   |   |    | -      |   |   |   | 980,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 980,500 |   |
|                                     |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                              |   |            |   |   |         |   |   |   |   |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    June 30, 2009          |   |            | -      |   |         |   | -      |   |   |   | 10,270,906     |   |   | $       | 6,163  |   |   | $ | 12,401,538 |   |   | $ | (16,000 | ) |   | $ | (40,375 | ) |   | $ | (2,078,865 | ) |   |   | (547,763 | ) |   | $ | (2,086,919 | ) |   | $ | 8,185,542 |   |

----

----

----

----

----

|                                  |   | June 30, 2009 |     |
|---------------------------------------|--------|---------------|----------|
|                                  |   |          |     |   | Weighted Average |   |
| Fixed Options                         |   | Shares        |     |   | Exercise Price |   |
|                                  |   |          |     |   |   |   |
| Outstanding at                        |   |          |     |   |   |   |
|    beginning of period |   |          | 110,000  |   |   | $ | 0.96 |   |
| Granted                               |   |          | -        |   |   |   | - |   |
| Forfeited                             |   |          | -        |   |   |   | - |   |
| Expired                               |   |          | (106,667 | ) |   |   | - |   |
| Exercised                             |   |          | -        |   |   |   |   |   |
|                                  |   |          |     |   |   |   |   |   |
| Outstanding at end of period          |   |          | 3,333    |   |   | $ | 1.80 |   |
|                                  |   |          |     |   |   |   |   |   |
| Options exercisable at                |   |          |     |   |   |   |   |   |
|    period end          |   |          | 3,333    |   |   |   |   |   |
|                                  |   |          |     |   |   |   |   |   |
| Weighted average fair value           |   |          |     |   |   |   |   |   |
|   of options granted to     |   |          |     |   |   |   |   |   |
|   employees during the year |   | $             | -        |   |   |   |   |   |

----

|                                                    |   | Six Months    |    |   | Six Months    |   |
|---------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|
|                                                    |   | Ended         |    |   | Ended         |   |
|                                                    |   | June 30, 2009 |    |   | June 30, 2008 |   |
|                                                    |   |          |    |   |          |   |
| Net income (loss)                                       |   | $             | 125,582 |   |          | $      | (295,100 | ) |
| Foreign currency translation adjustment                 |   |          | 6.798   |   |          |   | (4,479 | ) |
| Unrealized gain (loss) on available for sale securities |   |          | 3,667   |   |          |   | (14,530 | ) |
| Comprehensive gain (loss)                               |   | $             | 136,047 |   |          | $      | (314,109 | ) |

----

----

| ·   | Employee costs for year-to-date June 30, 2009 compared to June 30, 2008 have been reduced by more than $900,000. |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | Net income from operations for year-to-date June 30, 2009 compared to June 30, 2008 has improved by more than $800,000. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | Total Liabilities for the current year-to-date have been reduced by more than $1.4 million compared to December 31, 2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | The unrestricted cash balance has increased by 44.8% since December 31, 2008. |
|--------------------|-------------------------------------------------------------------------------|

| ·   | 160,672 shares of IMS common stock were repurchased and added to treasury since December 31, 2008. |
|--------------------|----------------------------------------------------------------------------------------------------|

|                         |   |          |    |   |           |   |    |          |   |
|------------------------------|--------|---------------|---------|--------|----------------|--------|---------|---------------|--------|
|                         |   | Three Months  |    |   | Three Months   |   |    | Three Months  |   |
|                         |   | Ended         |    |   | Ended          |   |    | Ended         |   |
|                         |   | June 30, 2009 |    |   | March 31, 2009 |   |    | June 30, 2008 |   |
|                         |   |          |    |   |           |   |    |          |   |
| Net income (loss)            |   | $             | 179,951 |   |           | $      | (54,369 | )             |   | $ | (64,193 | ) |
| Interest expense             |   |          | 66,932  |   |           |   | 58,058  |          |   |   | 61,479 |   |
| Income tax expense (benefit) |   |          | 44,119  |   |           |   | 53,000  |          |   |   | (155,500 | ) |
| Depreciation                 |   |          | 76,764  |   |           |   | 76,624  |          |   |   | 71,934 |   |
| Amortization                 |   |          | 335,949 |   |           |   | 335,948 |          |   |   | 338,493 |   |
|                         |   |          |    |   |           |   |    |          |   |   |   |   |
|                         |   | $             | 703,715 |   |           | $      | 469,261 |          |   | $ | 252,213 |   |

----

|                         |   | Six Months    |      |   | Six Months    |   |
|------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                         |   | Ended         |      |   | Ended         |   |
|                         |   | June 30, 2009 |      |   | June 30, 2008 |   |
|                         |   |          |      |   |          |   |
| Net income (loss)            |   | $             | 125,582   |   |          | $      | (295,100 | ) |
| Interest expense             |   |          | 124,990   |   |          |   | 128,366 |   |
| Income tax expense (benefit) |   |          | 97,119    |   |          |   | (296,000 | ) |
| Depreciation                 |   |          | 153,388   |   |          |   | 146,803 |   |
| Amortization                 |   |          | 671,897   |   |          |   | 660,818 |   |
|                         |   |          |      |   |          |   |   |   |
|                         |   | $             | 1,172,976 |   |          | $      | 344,887 |   |

----

----

----

----

----

----