----

| Wisconsin                                        | 39-1924096                           |
|--------------------------------------------------|--------------------------------------|
| (State                  or other jurisdiction of | (I.R.S.                  Employer    |
| incorporation                  or organization)  | Identification                  No.) |

----

| Part                  I.  Financial Information                                                                                                                                      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                           |   |
|          Item                  1.  Financial Statements (September 30, 2007 -                  Unaudited)                               |   |
|                                                                                                                                                                                           |   |
|                   Condensed                  consolidated balance sheets - September 30, 2007        | 2      |
|                     and                  December 31, 2006                                 |   |
|                                                                                                                                                                                           |   |
|                   Condensed                  consolidated statements of operations - Three           |   |
|                     months                  ended September 30, 2007 and 2006; Nine months |   |
|                     ended                  September 30, 2007 and 2006                     | 4      |
|                                                                                                                                                                                           |   |
|                   Condensed                  consolidated statements of cash flows - Nine            |   |
|                     months                  ended September 30, 2007 and 2006              | 5      |
|                                                                                                                                                                                           |   |
|                   Condensed                  consolidated statement of changes in stockholders       |   |
|                     equity                  - Nine months ended September 30, 2007         | 7      |
|                                                                                                                                                                                           |   |
|                   Notes                  to condensed consolidated financial statements -            |   |
|                     September                  30, 2007                                    | 8      |
|                                                                                                                                                                                           |   |
|         Item                  2.   Management's Discussion and Analysis of Financial                  Condition                         |   |
|                     and                  Results of Operations                             | 16     |
|                                                                                                                                                                                           |   |
|         Item                  3.  Controls and Procedures                                                                                    | 21     |
|                                                                                                                                                                                           |   |
| Part                  II.  Other Information                                                                                                                                         | 22     |
|                                                                                                                                                                                           |   |
|         Item                  1.   Legal Proceedings                                                                                    |   |
|                                                                                                                                                                                           |   |
|         Item                  2.   Changes in Securities and Use of                  Proceeds                                           |   |
|                                                                                                                                                                                           |   |
|         Item                  3.   Defaults upon Senior Securities                                                                      |   |
|                                                                                                                                                                                           |   |
|         Item                  4.   Submission of Matters to a Vote of Security                  Holders                                 |   |
|                                                                                                                                                                                           |   |
|         Item                  5.   Other Information                                                                                    |   |
|                                                                                                                                                                                           |   |
|         Item                  6.   Exhibits and Reports on Form 8-K                                                                     |   |
|                                                                                                                                                                                           |   |
| Signatures                                                                                                                                                                                     | 24     |

----

|                                                                                                     |   | September                  30, 2007 |       |   | December                  31, |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|-------------------------------|--------|
|                                                                                                     |   | (UNAUDITED)                         |       |   | 2006                          |   |
|                                                                                                     |   |                                |       |   |                          |   |
| ASSETS                                                                                                   |   |                                |       |   |                          |   |
| Current                  assets                                                                          |   |                                |       |   |                          |   |
|     Cash                                                                             |   | $                                   | 1,144,827  |   |                          | $      | 930,962 |   |
|     Restricted                  cash                                                 |   |                                | 361,886    |   |                          |   | - |   |
|     Marketable                  securities                                           |   |                                | 112,081    |   |                          |   | 105,330 |   |
|     Accounts                  receivable, net                                        |   |                                | 1,515,705  |   |                          |   | 1,644,299 |   |
|     Prepaid                  expenses                                                |   |                                | 101,450    |   |                          |   | 227,835 |   |
|     Inventory                                                                        |   |                                | 33,839     |   |                          |   | 33,839 |   |
|                                                                                                     |   |                                |       |   |                          |   |   |   |
|           Total                  current assets        |   |                                | 3,269,788  |   |                          |   | 2,942,265 |   |
|                                                                                                     |   |                                |       |   |                          |   |   |   |
|           Net                  furniture and equipment |   |                                | 1,315,026  |   |                          |   | 647,884 |   |
|                                                                                                     |   |                                |       |   |                          |   |   |   |
| Other                  assets                                                                            |   |                                |       |   |                          |   |   |   |
|                                                                                                     |   |                                |       |   |                          |   |   |   |
|     Membership                  lists, net                                           |   |                                | 10,305,247 |   |                          |   | 8,505,059 |   |
|     Goodwill                                                                         |   |                                | 3,435,478  |   |                          |   | 2,785,478 |   |
|     Covenant                  not to compete, net                                    |   |                                | 22,325     |   |                          |   | 44,650 |   |
|     Purchase                  option                                                 |   |                                | 112,500    |   |                          |   | 112,500 |   |
|     Assets                  held for investment                                      |   |                                | 99,298     |   |                          |   | 99,298 |   |
|     Investment                  in real estate                                       |   |                                | 33,695     |   |                          |   | 33,695 |   |
|     Cash                  surrender value                                            |   |                                | 37,258     |   |                          |   | 33,058 |   |
|                                                                                                     |   |                                |       |   |                          |   |   |   |
|           Total                  other assets          |   |                                | 14,045,801 |   |                          |   | 11,613,738 |   |
|                                                                                                     |   |                                |       |   |                          |   |   |   |
|           Total                  assets                |   | $                                   | 18,630,615 |   |                          | $      | 15,203,887 |   |

----

|                                                                                                        |   | September                  30, 2007 |       |   | December                  31, |   |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|-------------------------------|--------|
|                                                                                                        |   | (UNAUDITED)                         |       |   | 2006                          |   |
| LIABILITIES                                                                                                 |   |                                |       |   |                          |   |
| Current                  liabilities                                                                        |   |                                |       |   |                          |   |
|     Accounts                  payable and accrued expenses                              |   | $                                   | 995,865    |   |                          | $      | 776,842 |   |
|     Trade                  payable                                                      |   |                                | 124,383    |   |                          |   | 316,299 |   |
|     Current                  portion of notes payable                                   |   |                                | 2,013,266  |   |                          |   | 1,645,610 |   |
|     Current                  portion of notes payable,                                  |   |                                |       |   |                          |   |   |   |
|       related                  party                                          |   |                                | -          |   |                          |   | 110,024 |   |
|     Current                  portion of common stock                                    |   |                                |       |   |                          |   |   |   |
|       subject                  to guarantee                                   |   |                                | 622,664    |   |                          |   | 155,000 |   |
|                                                                                                        |   |                                |       |   |                          |   |   |   |
|           Total                  current liabilities      |   |                                | 3,756,178  |   |                          |   | 3,003,775 |   |
|                                                                                                        |   |                                |       |   |                          |   |   |   |
| Long-term                  liabilities                                                                      |   |                                |       |   |                          |   |   |   |
|     Notes                  payable net, less current portion                            |   |                                | 890,126    |   |                          |   | 2,334,755 |   |
|     Common                  stock subject to guarantee,                                 |   |                                |       |   |                          |   |   |   |
|       less                  current portion                                   |   |                                | 2,382,336  |   |                          |   | - |   |
|     Deferred                  compensation                                              |   |                                | 132,250    |   |                          |   | 121,000 |   |
|     Deferred                  income taxes                                              |   |                                | 2,424,375  |   |                          |   | 2,065,000 |   |
|                                                                                                        |   |                                |       |   |                          |   |   |   |
|           Total                  long-term liabilities    |   |                                | 5,829,087  |   |                          |   | 4,420,755 |   |
|                                                                                                        |   |                                |       |   |                          |   |   |   |
|           Total                  liabilities              |   |                                | 9,585,265  |   |                          |   | 7,424,530 |   |
|                                                                                                        |   |                                |       |   |                          |   |   |   |
| STOCKHOLDER                  EQUITY                                                                         |   |                                |       |   |                          |   |   |   |
| Preferred                  stock, $.0001 par value                                                          |   |                                |       |   |                          |   |   |   |
|    20,000,000                  authorized, 0 outstanding                                     |   |                                | -          |   |                          |   | - |   |
| Common                  stock, $.0001 par value 280,000,000                                                 |   |                                |       |   |                          |   |   |   |
|   authorized,                  60,440,436 and 52,623,769                                          |   |                                |       |   |                          |   |   |   |
|   issued                  and outstanding September 30, 2007                                      |   |                                |       |   |                          |   |   |   |
|   and                  December 31, 2006 respectively                                             |   |                                | 6,045      |   |                          |   | 5,263 |   |
| Paid                  in capital                                                                            |   |                                | 10,738,706 |   |                          |   | 9,291,988 |   |
| Treasury                  stock, 1,290,742 and 1,566,542                                                    |   |                                |       |   |                          |   |   |   |
|    shares                  outstanding, respectively                                         |   |                                | (567,241   | )      |                          |   | (626,241 | ) |
| Subscription                  receivable                                                                    |   |                                | (33,718    | )      |                          |   | (42,017 | ) |
| Accumulated                  other comprehensive gain                                                       |   |                                | 12,788     |   |                          |   | - |   |
| Accumulated                  deficit                                                                        |   |                                | (1,111,230 | )      |                          |   | (849,636 | ) |
|                                                                                                        |   |                                |       |   |                          |   |   |   |
|           Total                  stockholder equity       |   |                                | 9,045,350  |   |                          |   | 7,779,357 |   |
|                                                                                                        |   |                                |       |   |                          |   |   |   |
|           Total                  liabilities and          |   |                                |       |   |                          |   |   |   |
|             stockholder                  equity |   | $                                   | 18,630,615 |   |                          | $      | 15,203,887 |   |

----

|                                                                                                                                                      |   | Three                  Months Ended |       |   | Nine                  Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|------------------------------------|--------|
|                                                                                                                                                      |   | September                  30,      |       |   | September                  30,     |   |
|                                                                                                                                                      |   |                                |       |   |                               |   |
|                                                                                                                                                      |   | 2007                                |       |   | 2006                               |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |
|   Gross                  revenue                                                                                                                |   | $                                   | 3,563,578  |   |                               | $      | 1,687,573 |   |   | $ | 10,285,250 |   |   | $ | 5,240,400 |   |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|   Expenses                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|    Payroll,                  related taxes                                                                                                 |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|      and                  employee benefits                                                                                      |   |                                | 2,341,223  |   |                               |   | 1,081,819 |   |   |   | 6,689,952 |   |   |   | 3,189,814 |   |
|    General                  and administrative                                                                                             |   |                                | 486,060    |   |                               |   | 232,456 |   |   |   | 1,326,915 |   |   |   | 701,276 |   |
|    Occupancy                                                                                                                               |   |                                | 297,958    |   |                               |   | 166,813 |   |   |   | 889,375 |   |   |   | 488,358 |   |
|    Selling                                                                                                                                 |   |                                | 167,858    |   |                               |   | 84,566 |   |   |   | 509,639 |   |   |   | 205,761 |   |
|    Depreciation                                                                                                                            |   |                                | 68,308     |   |                               |   | 38,264 |   |   |   | 180,228 |   |   |   | 112,008 |   |
|    Amortization                                                                                                                            |   |                                | 303,462    |   |                               |   | 150,583 |   |   |   | 898,378 |   |   |   | 432,688 |   |
|    Provision                  for bad debt                                                                                                 |   |                                | 51,271     |   |                               |   | 48,765 |   |   |   | 78,839 |   |   |   | 111,310 |   |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|      Total                  expenses                                                                                             |   |                                | 3,716,140  |   |                               |   | 1,803,266 |   |   |   | 10,573,326 |   |   |   | 5,241,215 |   |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|      Net                  loss from operations                                                                                   |   |                                | (152,562   | )      |                               |   | (115,693 | ) |   |   | (288,076 | ) |   |   | (815 | ) |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|    Other                  income (expense)                                                                                                 |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|      Interest                  income                                                                                            |   |                                | 10,323     |   |                               |   | 33,223 |   |   |   | 36,765 |   |   |   | 58,544 |   |
|      Interest                  expense                                                                                           |   |                                | (73,060    | )      |                               |   | (72,728 | ) |   |   | (271,426 | ) |   |   | (239,098 | ) |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|      Total                  other income (expense)                                                                               |   |                                | (62,737    | )      |                               |   | (39,505 | ) |   |   | (234,661 | ) |   |   | (180,554 | ) |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|      Loss                  before income taxes                                                                                   |   |                                | (215,299   | )      |                               |   | (155,198 | ) |   |   | (522,737 | ) |   |   | (181,369 | ) |
|      Income                  tax expense (benefit)                                                                               |   |                                | (81,067    | )      |                               |   | (35,000 | ) |   |   | (261,143 | ) |   |   | 11,000 |   |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|      Net                  loss                                                                                                   |   | $                                   | (134,232   | )      |                               | $      | (120,198 | ) |   | $ | (261,594 | ) |   | $ | (192,369 | ) |
|                                                                                                                                                      |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|      Net                  loss per                                                                                               |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|       common                  share - basic                                                                                 |   | $                                   | (.00       | )      |                               | $      | (.00 | ) |   | $ | (.00 | ) |   | $ | (.00 | ) |
|                    -                  dilutive             |   | $                                   | (.00       | )      |                               | $      | (.00 | ) |   | $ | (.00 | ) |   | $ | (.00 | ) |
|  Weighted                  average common                                                                                                            |   |                                |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|   shares                  outstanding - basic                                                                                                   |   |                                | 57,976,366 |   |                               |   | 50,376,803 |   |   |   | 56,375,316 |   |   |   | 45,807,076 |   |
|                      -                  dilutive |   |                                | 57,976,366 |   |                               |   | 52,005,302 |   |   |   | 56,375,316 |   |   |   | 47,522,030 |   |

----

|                                                                                                        |   | Nine                  Months Ended September 30, |      |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|-----------|
|                                                                                                        |   | 2007                                             |      |   | 2006 |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                      |   |                                             |      |   |   |   |
|     Net                  loss                                                           |   | $                                                | (261,594  | ) |   | $ | (192,369 | ) |
|     Adjustments                  to reconcile net loss to net cash                      |   |                                             |      |   |   |   |   |   |
|       provided                  by operating activities:                      |   |                                             |      |   |   |   |   |   |
|        Depreciation                  and amortization                    |   |                                             | 1,078,606 |   |   |   | 544,697 |   |
|        Provision                  for bad debts                          |   |                                             | 78,839    |   |   |   | 111,310 |   |
|        Stock                  issued in exchange for services            |   |                                             | 85,000    |   |   |   | 32,050 |   |
|        Accretion                  of discount on notes payable           |   |                                             | 32,077    |   |   |   | 41,894 |   |
|        Deferred                  compensation                            |   |                                             | 11,250    |   |   |   | 11,250 |   |
|        Disposal                  of fixed assets                         |   |                                             | -         |   |   |   | 4,901 |   |
|        Amortization                  of deferred compensation            |   |                                             | -         |   |   |   | 2,043 |   |
|       Changes                  in assets and liabilities                      |   |                                             |      |   |   |   |   |   |
|         Accounts                  receivable                        |   |                                             | 219,827   |   |   |   | 65,137 |   |
|         Earned                  trade account                       |   |                                             | (321,916  | ) |   |   | (15,429 | ) |
|         Prepaid                  expense                            |   |                                             | 126,385   |   |   |   | (8,797 | ) |
|         Deferred                  income taxes                      |   |                                             |      |   |   |   | 11,000 |   |
|         Accounts                  payable                           |   |                                             | 44,114    |   |   |   | (21,064 | ) |
|         Accrued                  compensation & payroll taxes   |   |                                             | 192,614   |   |   |   | (73,818 | ) |
|         Accrued                  sales tax                          |   |                                             | (34,705   | ) |   |   | (27,320 | ) |
|         Accrued                  income taxes                       |   |                                             | 17,000    |   |   |   | (9,622 | ) |
|         Deferred                  income taxes (net of acquisition) |   |                                             | (290,625  | ) |   |   | - |   |
|                                                                                                        |   |                                             |      |   |   |   |   |   |
|         Net                  cash provided by                       |   |                                             |      |   |   |   |   |   |
|          operating                  activities                 |   |                                             | 976,872   |   |   |   | 475,863 |   |
|                                                                                                        |   |                                             |      |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                      |   |                                             |      |   |   |   |   |   |
|     (Increase)                  decrease in restricted cash                             |   |                                             | (361,886  | ) |   |   | 363,400 |   |
|     Capital                  expenditures                                               |   |                                             | (747,135  | ) |   |   | (97,273 | ) |
|     Increase                  in marketable securities                                  |   |                                             | (6,751    | ) |   |   | (10,490 | ) |
|     Cash                  received in business acquisitions                             |   |                                             | 498,452   |   |   |   | - |   |
|     Cash                  payments on business acquisitions                             |   |                                             | (10,000   | ) |   |   | (5,440,000 | ) |
|     Trade                  payments on business acquisitions                            |   |                                             | -         |   |   |   | (15,000 | ) |
|     Increase                  in cash surrender value                                   |   |                                             | (4,200    | ) |   |   | (4,200 | ) |
|                                                                                                        |   |                                             |      |   |   |   |   |   |
|         Net                  cash used in                           |   |                                             |      |   |   |   |   |   |
|            investing                  activities     |   |                                             | (631,520  | ) |   |   | (5,203,563 | ) |

----

|                                                                                                                                 |   | Nine                  Months Ended September 30, |       |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|------------|
|                                                                                                                                 |   | 2007                                             |       |   | 2006 |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                                               |   |                                             |       |   |   |
|     Proceeds                  from notes payable to related parties                                              |   |                                             | -          |   |   |   | 20,000 |   |
|     Payments                  on notes payable to related parties                                                |   |                                             | (110,024   | ) |   |   | (58,499 | ) |
|     Proceeds                  from notes payable                                                                 |   |                                             | -          |   |   |   | 2,629,855 |   |
|     Payments                  on notes payable                                                                   |   |                                             | (464,050   | ) |   |   | (923,302 | ) |
|     Purchase                  of treasury stock                                                                  |   |                                             | -          |   |   |   | (412,700 | ) |
|     Proceeds                  from subscription receivable                                                       |   |                                             | 8,299      |   |   |   | 22,279 |   |
|     Proceeds                  related to issuance of stock                                                       |   |                                             | 421,500    |   |   |   | 4,107,833 |   |
|                                                                                                                                 |   |                                             |       |   |   |   |
|         Net                  cash provided by (used in)                                      |   |                                             |       |   |   |   |
|           financing                  activities                                    |   |                                             | (144,275   | ) |   |   | 5,382,466 |   |
|                                                                                                                                 |   |                                             |       |   |   |   |
| Foreign                  currency translation adjustment                                                                             |   |                                             | 12,788     |   |   |   | - |   |
|                                                                                                                                 |   |                                             |       |   |   |   |
|         Net                  increase in cash                                                |   |                                             | 213,865    |   |   |   | 654,766 |   |
|                                                                                                                                 |   |                                             |       |   |   |   |
| Cash                  at beginning of period                                                                                         |   |                                             | 930,962    |   |   |   | 80,496 |   |
|                                                                                                                                 |   |                                             |       |   |   |   |
| Cash                  at end of period                                                                                               |   | $                                                | 1,144,827  |   |   | $ | 735,262 |   |
|                                                                                                                                 |   |                                             |       |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES                                                                                            |   |                                             |       |   |   |   |
|     Cash                  paid for interest                                                                      |   | $                                                | 261,463    |   |   | $ | 165,260 |   |
|     Cash                  paid for income taxes                                                                  |   | $                                                | 12,482     |   |   | $ | 3,840 |   |
|                                                                                                                                 |   |                                             |       |   |   |   |
| SCHEDULE                  OF NONCASH INVESTING AND                                                                                   |   |                                             |       |   |   |   |
|    FINANCING                  ACTIVITIES:                                                                             |   |                                             |       |   |   |   |
|     Business                  acquisitions                                                                       |   |                                             |       |   |   |   |
|         Fair                  value of assets acquired                                       |   | $                                                | 4,095,000  |   |   | $ | 7,739,191 |   |
|         Less:  Liabilities                  assumed                                |   |                                             | (130,000   | ) |   |   | (20,324 | ) |
|                Barter                  paid               |   |                                             | -          |   |   |   | (598,367 | ) |
|                Stock                  issued              |   |                                             | (2,550,000 | ) |   |   | (180,500 | ) |
|                Issuance                  of notes payable |   |                                             | (755,000   | ) |   |   | - |   |
|                Deferred                  tax liability    |   |                                             | (650,000   | ) |   |   | (1,500,000 | ) |
|                                                                                                                                 |   |                                             |       |   |   |   |
|         Net                  cash paid for acquisitions                                      |   | $                                                | 10,000     |   |   | $ | 5,440,000 |   |
|                                                                                                                                 |   |                                             |       |   |   |   |
|    Release                  of stock guarantees                                                                       |   | $                                                | -          |   |   | $ | 1,454,250 |   |
|                                                                                                                                 |   |                                             |       |   |   |   |   |   |
|    Stock                  guarantees on acquisitions                                                                  |   | $                                                | 2,500,000  |   |   | $ | - |   |
|                                                                                                                                 |   |                                             |       |   |   |   |   |   |
|    Payment                  of long term debt with stock                                                              |   | $                                                | 1,000,000  |   |   | $ | 33,775 |   |

----

|                                     |   | Preferred                  Stock |   |   | Common                  Stock |   |   |   |   |   | Treasury                  Stock |   |   |                     |   |
|------------------------------------------|--------|----------------------------------|--------|--------|-------------------------------|--------|--------|--------|--------|--------|---------------------------------|--------|--------|--------------------------|--------|
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   | Total                    |   |
|                                     |   |                             |   |   | Par                           |   |   |   |   |   | Par                             |   |   | Paid                  in |   |   | Sub. |   |   | Other |   |   | Accum. |   |   |   |   |   | Par |   |   | Stockholder |   |
|                                     |   | Shares                           |   |   | Value                         |   |   | Shares |   |   | Value                           |   |   | Capital                  |   |   | Rec. |   |   | Income |   |   | Deficit |   |   | Shares |   |   | Value |   |   | Equity |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances                  at             |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  December                  31, 2006 |   |                             | -      |   |                          |   | -      |   |   |   | 52,623,769                      |   |   | $                        | 5,263  |   |   | $ | 9,291,988 |   |   | $ | (42,017 | ) |   | $ | - |   |   | $ | (849,636 | ) |   |   | (1,566,542 | ) |   | $ | (626,241 | ) |   | $ | 7,779,357 |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                                    |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  comprehensive                      |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  income                             |   |                             | -      |   |                          |   | -      |   |   |   | -                               |   |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | 12,788 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,788 |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  (loss) nine         |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  months                  ended      |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Sept.                  30, 2007    |   |                             | -      |   |                          |   | -      |   |   |   | -                               |   |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (261,594 | ) |   |   | - |   |   |   | - |   |   |   | (261,594 | ) |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  comprehensive       |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (loss)                             |   |                             | -      |   |                          |   | -      |   |   |   | -                               |   |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (248,806 | ) |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  issued for        |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Services                           |   |                             | -      |   |                          |   | -      |   |   |   | 50,000                          |   |   |                     | 5      |   |   |   | 34995 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 75,000 |   |   |   | 50,000 |   |   |   | 85,000 |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options                  exercised       |   |                             | -      |   |                          |   | -      |   |   |   | -                               |   |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 55,000 |   |   |   | 9,000 |   |   |   | 9,000 |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                  issued in        |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  conjunction                  with  |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  the                  acquisition   |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  of                  businesses     |   |                             | -      |   |                          |   | -      |   |   |   | 3,683,333                       |   |   |                     | 368    |   |   |   | 2,849,632 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,850,000 |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                         |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  of                  shares issued  |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  at                  guaranteed     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  prices                  to         |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  liabilities                        |   |                             | -      |   |                          |   | -      |   |   |   | -                               |   |   |                     | -      |   |   |   | (2,850,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,850,000 | ) |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes                  Payable           |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  converted                  to      |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  common                  stock      |   |                             | -      |   |                          |   | -      |   |   |   | 3,333,334                       |   |   |                     | 334    |   |   |   | 999,666 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,000,000 |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants                  redeemed       |   |                             | -      |   |                          |   | -      |   |   |   | 750,000                         |   |   |                     | 75     |   |   |   | 412,425 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 412,500 |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription                             |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  receivable                         |   |                             | -      |   |                          |   | -      |   |   |   | -                               |   |   |                     | -      |   |   |   | - |   |   |   | 8,299 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,299 |   |
|                                     |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                                 |   |                             |   |   |                          |   |   |   |   |   |                            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Sept.                  30, 2007    |   |                             | -      |   |                          |   | -      |   |   |   | 60,440,436                      |   |   | $                        | 6,045  |   |   | $ | 10,738,706 |   |   | $ | (33,718 | ) |   | $ | 12,788 |   |   | $ | (1,111,230 | ) |   |   | (1,436,542 | ) |   | $ | (567,241 | ) |   | $ | 9,045,350 |   |

----

----

----

----

| Purchase                  price                        |   | $      | 2,500,000 |   |
|--------------------------------------------------------|--------|--------|-----------|--------|
|                                                   |   |   |      |   |
| Cash                                                   |   | $      | 498,452   |   |
| Accounts                  receivable (net)             |   |   | 94,548    |   |
| Furniture                  and fixtures                |   |   | 70,000    |   |
| Other                  Assets (Canadian Office)        |   |   | 50,000    |   |
| Trade                  Account                         |   |   | (130,000  | )      |
| Membership                  list                       |   |   | 1,917,000 |   |
|                                                   |   |   |      |   |
|    Net                  assets acquired |   | $      | 2,500,000 |   |

----

| Purchase                  price                        |   | $      | 50,000 |   |
|--------------------------------------------------------|--------|--------|--------|--------|
|                                                   |   |   |   |   |
| Accounts                  receivable (net)             |   | $      | 4,400  |   |
| Membership                  list                       |   |   | 45,600 |   |
|                                                   |   |   |   |   |
|    Net                  assets acquired |   | $      | 50,000 |   |

| Purchase                  price                        |   | $      | 600,000 |   |
|--------------------------------------------------------|--------|--------|---------|--------|
|                                                   |   |   |    |   |
| Accounts                  receivable (net)             |   | $      | 27,400  |   |
| Furniture                  and fixtures                |   |   | 8,000   |   |
| Membership                  list                       |   |   | 564,600 |   |
|                                                   |   |   |    |   |
|    Net                  assets acquired |   | $      | 600,000 |   |

| Purchase                  price                        |   | $      | 165,000 |   |
|--------------------------------------------------------|--------|--------|---------|--------|
|                                                   |   |   |    |   |
| Accounts                  receivable (net)             |   | $      | 21,300  |   |
| Furniture                  and fixtures                |   |   | 5,000   |   |
| Membership                  list                       |   |   | 138,700 |   |
|                                                   |   |   |    |   |
|    Net                  assets acquired |   | $      | 165,000 |   |

----

| Gross                  revenue                      |   | $      | 10,813,396  |   |
|-----------------------------------------------------|--------|--------|-------------|--------|
| Total                  expenses                     |   |   | (11,170,633 | )      |
|                                                |   |   |        |   |
| Net                  income before taxes            |   | $      | (357,237    | )      |
|                                                |   |   |        |   |
| Earnings                  per share                 |   | $      | -           |   |
|                                                |   |   |        |   |
| Weighted                  average sharesoutstanding |   |   | 56,375,316  |   |

|                                                   |   | September                  30, 2007 |      |
|--------------------------------------------------------|--------|-------------------------------------|-----------|
|                                                   |   |                                |      |   | Weighted                  Average |   |
| Fixed                  Options                         |   | Shares                              |      |   | Exercise                  Price |   |
|                                                   |   |                                |      |   |   |   |
| Outstanding                  at                        |   |                                |      |   |   |   |
|    beginning                  of period |   |                                | 1,050,000 |   |   | $ | 0.15 |   |
| Granted                                                |   |                                | -         |   |   |   | - |   |
| Forfeited                                              |   |                                | -         |   |   |   | - |   |
| Expired                                                |   |                                | -         |   |   |   | - |   |
| Exercised                                              |   |                                | 30,000    |   |   |   |   |   |
|                                                   |   |                                |      |   |   |   |   |   |
| Outstanding                  at end of period          |   |                                | 1,020,000 |   |   | $ | 0.15 |   |
|                                                   |   |                                |      |   |   |   |   |   |
| Options                  exercisable at                |   |                                |      |   |   |   |   |   |
|    period                  end          |   |                                | 1,020,000 |   |   |   |   |   |
|                                                   |   |                                |      |   |   |   |   |   |
| Weighted                  average fair value           |   |                                |      |   |   |   |   |   |
|   of                  options granted to     |   |                                |      |   |   |   |   |   |
|   employees                  during the year |   | $                                   | -         |   |   |   |   |   |

----

----

|                                                     |   | Nine                  Months   |     |   | Nine                  Months   |   |
|----------------------------------------------------------|--------|--------------------------------|----------|--------|--------------------------------|--------|
|                                                     |   | Ended                          |     |   | Ended                          |   |
|                                                     |   | Sept                  30, 2007 |     |   | Sept                  30, 2006 |   |
|                                                     |   |                           |     |   |                           |   |
| Net                  loss                                |   | $                              | (261,594 | )      |                           | $      | (192,369 | ) |
| Foreign                  currency translation adjustment |   |                           | 12,788   |   |                           |   | - |   |
|                                                     |   |                           |     |   |                           |   |   |   |
| Comprehensive                  income (loss)             |   | $                              | (248,806 | )      |                           | $      | (192,369 | ) |

----

| ·   | Spending                  more than $500,000 on new computers, monitors, printers, servers,                  and                  other equipment to enhance the efficiency of our trade brokering                  staff. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Acquiring                  the source code for TradeWorks, our proprietary clearing system,                  then                  migrating the entire program from its original RPGII format into                  a more                  current .NET technology. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Upgrading                  our IMSbarter.com website towards creating a fully interactive                  online                  marketplace. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Hiring                  additional technicians to service the new equipment, to convert                  and                  enhance the software, and to develop the website. We have expanded                  our IT                  department to three employees, with plans to add a                  fourth. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Enhancing                  our sales and brokering departments by hiring a full-time national                  sales                  trainer and a full-time national broker                  trainer. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Doubling                  the size of our Columbus, OH office for the purpose of expanding                  our                  telemarketing and telesales staff. There are now 14 people working                  to                  support our outside sales force. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Hiring                  a full-time marketing and public relations director who has helped                  advance                  our new website, and who is designing a campaign to develop and                  strengthen                  the IMS brand in the marketplace through a comprehensive PR program                  scheduled for launch in the first quarter of                  2008. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   | Nine                  Months    |     |   | Nine                  Months    |   |
|---------------------------------------|--------|---------------------------------|----------|--------|---------------------------------|--------|
|                                  |   | Ended                           |     |   | Ended                           |   |
|                                  |   | Sept.                  30, 2007 |     |   | Sept.                  30, 2006 |   |
|                                  |   |                            |     |   |                            |   |
| Income                  tax expense   |   | $                               | 67,000   |   |                            | $      | 11,000 |   |
| Deferred                  tax benefit |   |                            | (328,143 | )      |                            |   | - |   |
|                                  |   |                            |     |   |                            |   |   |   |
|                                  |   | $                               | (261,143 | )      |                            | $      | 11,000 |   |

|                                  |   | Nine                  Months   |     |   | Nine                  Months   |   |
|---------------------------------------|--------|--------------------------------|----------|--------|--------------------------------|--------|
|                                  |   | Ended                          |     |   | Ended                          |   |
|                                  |   | Sept                  30, 2007 |     |   | Sept                  30, 2006 |   |
|                                  |   |                           |     |   |                           |   |
| Net                  loss             |   | $                              | (261,594 | )      |                           | $      | (192,369 | ) |
| Interest                  expense     |   |                           | 271,426  |   |                           |   | 239,098 |   |
| Income                  tax (benefit) |   |                           | (261,143 | )      |                           |   | 11,000 |   |
| Depreciation                          |   |                           | 180,228  |   |                           |   | 112,008 |   |
| Amortization                          |   |                           | 898,378  |   |                           |   | 432,688 |   |
|                                  |   |                           |     |   |                           |   |   |   |
|                                  |   | $                              | 827,295  |   |                           | $      | 602,425 |   |

----

----

----

----

----

| ·   | On                  July 2, 2007, an employee of the company issued a check for $9,000                  to IMS.                  This was to exercise stock options. The employee received 30,000                  shares of                  IMS common stock. The option price was $.30 per share. The shares                  were                  issued from the company’s treasury                  shares. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                  July 31, 2007, 50,000 of shares of common stock of IMS were issued                  to the                  five outside members of the board of directors (10,000 shares each).                  The                  shares were issued as annual                  compensation. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                  August 2, 2007, 25,000 shares were issued to a private investor.                  The                  shares were issued for exercised options from a prior year in which                  the                  investor had not received the full amount of shares that were due                  to him.                  At the time IMS had received the full amount due for the share                  options.                  The shares from the company’s treasury                  shares. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                  August 3, 2007, the company issued 75,000 shares to Danny W. Weibling                  (DWW) in exchange for a copy of the source code of the software                  package                  called TradeWorks that was developed by DWW. DWW is an officer                  of the                  company. The cost of the source code was $50,000. The shares were                  issued                  from the company’s treasury shares. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                  August 29, 2007, two private investors converted convertible notes                  payable                  of $300,000 into 1,000,000 shares of IMS common stock. The shares                  were                  converted at $.30 per share. There was no gain or loss recorded                  on the                  conversion. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                  September 1, 2007, 50,000 shares of common stock of IMS were issued                  for                  the acquisition of specific assets of Barter Partners of St. Joseph,                  Michigan. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | A                  Form 8-K was filed on August 31, 2007 reporting the conversion                  by two                  private investors of notes payable fortotaling $300,000 for 1,000,000                  of                  IMS common stock. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                  Form 8-K was filed on September 5, 2007 reporting the acquisition                  of                  specific assets of Kansas Trade Exchange of Wichita, Kansas. The                  acquisition was effective on September 30,                  2007. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                  Form 8-K was filed on October 3, 2007 that rescinded the original                  agreement for the acquisition of Kansas Trade Exchange. A revised                  agreement was included replacing the original                  agreement. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                  From 8-K was filed on October 4, 2007 reporting the acquisition                  of                  specific assets of Synergy Trade Exchange of Louisville, Kentucky.                  The                  acquisition was effective on September 30,                  2007. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----