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

|   | For      the quarterly period ended September 30,2008 |
|--------|-------------------------------------------------------|

| 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 (September 30, 2008 - Unaudited)                                            |                                                                                                                                                                      |          |
|                |   |                                                                                                  |
|                |   |                                                                                                  | Condensed      Consolidated Balance Sheets – September 30, 2008 and December 31,      2007                                                                               |     | 2 |
|                |   |                                                                                                  |
|                |   |                                                                                                  | Condensed      Consolidated Statements of Operations – Three  Months Ended      September 30, 2008 and 2007;Nine      Months Ended September 30, 2008 and 2007 |     | 4 |
|                |   |                                                                                                  |
|                |   |                                                                                                  | Condensed      Consolidated Statements of Cash Flows - Nine Months Ended September 30,      2008 and 2007                                                                      |     | 5 |
|                |   |                                                                                                  |
|                |   |                                                                                                  | Condensed      Consolidated Statement of Changes in Stockholders Equity  - Nine      Months Ended September 30, 2008                                                 |     | 7 |
|                |   |                                                                                                  |
|                |   |                                                                                                  | Notes      to Condensed Consolidated Financial Statements                                                                                                                      |     | 8 |
|                |   |                                                                                                  |
| Item 2 -  |   | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |                                                                                                                                                                      | 16            |
|                |   |                                                                                                  |
| Item 3 -  |   | Quantitative      and Qualitative Disclosures about Market Risk                                       |                                                                                                                                                                      | 20            |
|                |   |                                                                                                  |
| Item 4 -  |   | Controls      and Procedures                                                                          |                                                                                                                                                                      | 20            |
|                |   |                                                                                                  |
| Part II.       |   | Other      Information                                                                                |                                                                                                                                                                      | 21            |
|                |   |                                                                                                  |
| 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 6 -  |   | Exhibits                                                                                              |                                                                                                                                                                      |          |

----

|                                                                                         |   | September      30, 2008 |       |   | December      31, 2007 |   |
|----------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|------------------------|--------|
|                                                                                         |   | (UNAUDITED)             |       |   | (RESTATED)             |   |
|                                                                                         |   |                    |       |   |                   |   |
| ASSETS                                                                                       |   |                    |       |   |                   |   |
| Current      assets                                                                          |   |                    |       |   |                   |   |
|     Cash                                                                 |   | $                       | 408,221    |   |                   | $      | 812,365 |   |
|     Restricted      cash                                                 |   |                    | 675,291    |   |                   |   | 483,443 |   |
|     Marketable      securities                                           |   |                    | 103,986    |   |                   |   | 118,380 |   |
|     Accounts      receivable, net                                        |   |                    | 1,250,874  |   |                   |   | 1,516,938 |   |
|     Earned      trade account                                            |   |                    | 609,193    |   |                   |   | 314,928 |   |
|     Prepaid      expenses                                                |   |                    | 177,410    |   |                   |   | 112,233 |   |
|     Inventory                                                            |   |                    | 33,839     |   |                   |   | 33,839 |   |
|                                                                                         |   |                    |       |   |                   |   |   |   |
|           Total      current assets        |   |                    | 3,258,814  |   |                   |   | 3,392,126 |   |
|                                                                                         |   |                    |       |   |                   |   |   |   |
|           Net      furniture and equipment |   |                    | 1,113,516  |   |                   |   | 1,269,263 |   |
|                                                                                         |   |                    |       |   |                   |   |   |   |
| Other      assets                                                                            |   |                    |       |   |                   |   |   |   |
|                                                                                         |   |                    |       |   |                   |   |   |   |
|     Membership      lists, net                                           |   |                    | 10,128,999 |   |                   |   | 9,962,154 |   |
|     Goodwill                                                             |   |                    | 3,435,479  |   |                   |   | 3,435,479 |   |
|     Covenant      not to compete, net                                    |   |                    | -          |   |                   |   | 14,883 |   |
|     Purchase      option                                                 |   |                    | -          |   |                   |   | 112,500 |   |
|     Assets      held for investment                                      |   |                    | 99,298     |   |                   |   | 99,298 |   |
|     Investment      in real estate                                       |   |                    | 26,000     |   |                   |   | 28,695 |   |
|     Cash      surrender value                                            |   |                    | 41,256     |   |                   |   | 37,056 |   |
|                                                                                         |   |                    |       |   |                   |   |   |   |
|           Total      other assets          |   |                    | 13,731,032 |   |                   |   | 13,690,065 |   |
|                                                                                         |   |                    |       |   |                   |   |   |   |
|           Total      assets                |   | $                       | 18,103,362 |   |                   | $      | 18,351,454 |   |

----

|                                                                                            |   | September      30, 2008 |       |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|------------------------|--------|
|                                                                                            |   | (UNAUDITED)             |       |   | (RESTATED)             |   |
| LIABILITIES                                                                                     |   |                    |       |   |                   |   |
| Current      liabilities                                                                        |   |                    |       |   |                   |   |
|     Accounts      payable and accrued expenses                              |   | $                       | 822,522    |   |                   | $      | 1,002,732 |   |
|     Current      portion of notes payable                                   |   |                    | 1,289,583  |   |                   |   | 1,980,737 |   |
|     Current      portion of common stock                                    |   |                    |       |   |                   |   |   |   |
|       subject      to guarantee                                   |   |                    | 1,287,000  |   |                   |   | 995,000 |   |
|                                                                                            |   |                    |       |   |                   |   |   |   |
|           Total      current liabilities      |   |                    | 3,399,105  |   |                   |   | 3,978,469 |   |
|                                                                                            |   |                    |       |   |                   |   |   |   |
| Long-term      liabilities                                                                      |   |                    |       |   |                   |   |   |   |
|     Notes      payable net, less current portion                            |   |                    | 1,735,849  |   |                   |   | 716,037 |   |
|     Common      stock subject to guarantee, less current portion            |   |                    | 1,541,000  |   |                   |   | 1,890,000 |   |
|     Deferred      compensation                                              |   |                    | 147,250    |   |                   |   | 136,000 |   |
|     Deferred      income taxes                                              |   |                    | 2,250,000  |   |                   |   | 2,550,000 |   |
|                                                                                            |   |                    |       |   |                   |   |   |   |
|           Total      long-term liabilities    |   |                    | 5,674,099  |   |                   |   | 5,292,037 |   |
|                                                                                            |   |                    |       |   |                   |   |   |   |
|           Total      liabilities              |   |                    | 9,073,204  |   |                   |   | 9,270,506 |   |
|                                                                                            |   |                    |       |   |                   |   |   |   |
| STOCKHOLDER      EQUITY                                                                         |   |                    |       |   |                   |   |   |   |
| Preferred      stock, $.0001 par value                                                          |   |                    |       |   |                   |   |   |   |
|    20,000,000      authorized, 0 outstanding                                     |   |                    | -          |   |                   |   | - |   |
| Common      stock, $.0001 par value 280,000,000                                                 |   |                    |       |   |                   |   |   |   |
|   authorized,      61,425,436 and 60,565,436                                          |   |                    |       |   |                   |   |   |   |
|   issued      and outstanding September 30, 2008                                      |   |                    |       |   |                   |   |   |   |
|   and      December 31, 2007 respectively                                             |   |                    | 6,143      |   |                   |   | 6,057 |   |
| Paid      in capital                                                                            |   |                    | 11,467,358 |   |                   |   | 10,901,944 |   |
| Treasury      stock, 1,505,875 and 1,276,542                                                    |   |                    |       |   |                   |   |   |   |
|    shares      outstanding, respectively                                         |   |                    | (719,241   | )      |                   |   | (547,241 | ) |
| Subscription      receivable                                                                    |   |                    | (27,477    | )      |                   |   | (31,196 | ) |
| Accumulated      other comprehensive gain                                                       |   |                    | (16,083    | )      |                   |   | 15,310 |   |
| Accumulated      deficit                                                                        |   |                    | (1,680,542 | )      |                   |   | (1,263,926 | ) |
|                                                                                            |   |                    |       |   |                   |   |   |   |
|           Total      stockholder equity       |   |                    | 9,030,158  |   |                   |   | 9,080,948 |   |
|                                                                                            |   |                    |       |   |                   |   |   |   |
|           Total      liabilities and          |   |                    |       |   |                   |   |   |   |
|             stockholder      equity |   | $                       | 18,103,362 |   |                   | $      | 18,351,454 |   |
|                                                                                            |   |                    |       |   |                   |   |   |   |

----

|                                                                                                                                                                                                            |   | Three      Months Ended |       |   | Nine      Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|------------------------|--------|
|                                                                                                                                                                                                            |   | September      30,      |       |   | September      30,     |   |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |
|                                                                                                                                                                                                            |   | 2008                    |       |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |
|   Gross      revenue                                                                                                                                                                                  |   | $                       | 3,537,840  |   |                   | $      | 3,563,578 |   |   | $ | 10,596,113 |   |   | $ | 10,285,250 |   |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Expenses                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Payroll,      related taxes                                                                                                                                                                   |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      and      employee benefits                                                                                                                                                        |   |                    | 2,188,512  |   |                   |   | 2,341,223 |   |   |   | 7,091,202 |   |   |   | 6,689,952 |   |
|    General      and administrative                                                                                                                                                               |   |                    | 430,201    |   |                   |   | 547,483 |   |   |   | 1,390,898 |   |   |   | 1,504,612 |   |
|    Occupancy                                                                                                                                                                                     |   |                    | 272,923    |   |                   |   | 236,535 |   |   |   | 793,061 |   |   |   | 711,678 |   |
|    Selling                                                                                                                                                                                       |   |                    | 270,149    |   |                   |   | 167,858 |   |   |   | 526,712 |   |   |   | 509,639 |   |
|    Depreciation                                                                                                                                                                                  |   |                    | 75,389     |   |                   |   | 68,308 |   |   |   | 222,192 |   |   |   | 180,228 |   |
|    Amortization                                                                                                                                                                                  |   |                    | 342,143    |   |                   |   | 303,462 |   |   |   | 1,002,961 |   |   |   | 898,378 |   |
|    Provision      for bad debt                                                                                                                                                                   |   |                    | (68,263    | )      |                   |   | 51,271 |   |   |   | 12,590 |   |   |   | 78,839 |   |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Total      expenses                                                                                                                                                               |   |                    | 3,511,054  |   |                   |   | 3,716,140 |   |   |   | 11,039,616 |   |   |   | 10,573,326 |   |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Net      income (loss) from operations                                                                                                                                            |   |                    | 26,786     |   |                   |   | (152,562 | ) |   |   | (443,503 | ) |   |   | (288,076 | ) |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Other      income (expense)                                                                                                                                                                   |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Interest      income                                                                                                                                                              |   |                    | 2,099      |   |                   |   | 10,323 |   |   |   | 9,654 |   |   |   | 36,765 |   |
|      Interest      expense                                                                                                                                                             |   |                    | (74,119    | )      |                   |   | (73,060 | ) |   |   | (202,485 | ) |   |   | (271,426 | ) |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Total      other income (expense)                                                                                                                                                 |   |                    | (72,020    | )      |                   |   | (62,737 | ) |   |   | (192,831 | ) |   |   | (234,661 | ) |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Loss      before income taxes                                                                                                                                                     |   |                    | (45,234    | )      |                   |   | (215,299 | ) |   |   | (636,334 | ) |   |   | (522,737 | ) |
|      Income      tax expense (benefit)                                                                                                                                                 |   |                    | 76,282     |   |                   |   | (81,067 | ) |   |   | (219,718 | ) |   |   | (261,143 | ) |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Net      loss                                                                                                                                                                     |   | $                       | (121,516   | )      |                   | $      | (134,232 | ) |   | $ | (416,616 | ) |   | $ | (261,594 | ) |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Net      loss per                                                                                                                                                                 |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       common      share - basic                                                                                                                                                   |   | $                       | (.00       | )      |                   | $      | (.00 | ) |   | $ | (.01 | ) |   | $ | (.00 | ) |
|                                -      dilutive       |   | $                       | (.00       | )      |                   | $      | (.00 | ) |   | $ | (.01 | ) |   | $ | (.00 | ) |
|  Weighted      average common                                                                                                                                                                              |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   shares      outstanding - basic                                                                                                                                                                     |   |                    | 61,396,450 |   |                   |   | 57,976,366 |   |   |   | 61,045,679 |   |   |   | 56,375,316 |   |
|                                 -      dilutive |   |                    | 61,396,450 |   |                   |   | 57,976,366 |   |   |   | 61,045,679 |   |   |   | 56,375,316 |   |
|                                                                                                                                                                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                       |   | Nine      Months Ended September 30, |      |
|------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                                                                       |   | 2008                                 |      |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                 |   |                                 |      |   |   |   |
|     Net      loss                                                                      |   | $                                    | (416,616  | ) |   | $ | (261,594 | ) |
|     Adjustments      to reconcile net loss to net cash                                 |   |                                 |      |   |   |   |   |   |
|       provided      by operating activities:                                 |   |                                 |      |   |   |   |   |   |
|        Depreciation      and amortization                               |   |                                 | 1,225,153 |   |   |   | 1,078,606 |   |
|        Provision      for bad debts                                     |   |                                 | 12,590    |   |   |   | 78,839 |   |
|        Stock      issued for services                                   |   |                                 | 56,000    |   |   |   | 85,000 |   |
|        Loss      on disposal of fixed assets                            |   |                                 | 23,786    |   |   |   | - |   |
|        Accretion      of discount on notes payable                      |   |                                 | 4,723     |   |   |   | 32,077 |   |
|        Deferred      compensation                                       |   |                                 | 11,250    |   |   |   | 11,250 |   |
|        Interest      on subscription receivable                         |   |                                 | (1,281    | ) |   |   | - |   |
|      Changes      in assets and liabilities                                       |   |                                 |      |   |   |   | - |   |
|         Accounts      receivable                                   |   |                                 | 284,475   |   |   |   | 219,827 |   |
|         Earned      trade account                                  |   |                                 | (344,265  | ) |   |   | (321,916 | ) |
|         Prepaid      expense                                       |   |                                 | (65,177   | ) |   |   | 126,385 |   |
|         Accounts      payable                                      |   |                                 | (90,284   | ) |   |   | 44,114 |   |
|         Accrued      compensation & payroll taxes              |   |                                 | 53,774    |   |   |   | 192,614 |   |
|         Accrued      sales tax                                     |   |                                 | (44,700   | ) |   |   | (34,705 | ) |
|         Accrued      income taxes                                  |   |                                 | (99,000   | ) |   |   | 17,000 |   |
|         Deferred      income taxes (net of acquisition)            |   |                                 | (300,000  | ) |   |   | (290,625 | ) |
|                                                                                                       |   |                                 |      |   |   |   |   |   |
|           Net      cash provided by operating activities |   |                                 | 310,428   |   |   |   | 976,872 |   |
|                                                                                                       |   |                                 |      |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                 |   |                                 |      |   |   |   |   |   |
|     (Increase)      decrease in restricted cash                                        |   |                                 | (191,848  | ) |   |   | (361,886 | ) |
|     Capital      expenditures                                                          |   |                                 | (70,731   | ) |   |   | (747,135 | ) |
|     Purchase      of marketable securities                                             |   |                                 | (6,750    | ) |   |   | (6,751 | ) |
|     Proceeds      from sale of real estate                                             |   |                                 | 2,695     |   |   |   | - |   |
|     Cash      payments on business acquisitions                                        |   |                                 | (495,000  | ) |   |   | 488,452 |   |
|     Increase      in cash surrender value                                              |   |                                 | (4,200    | ) |   |   | (4,200 | ) |
|                                                                                                       |   |                                 |      |   |   |   |   |   |
|           Net      cash used in investing activities     |   |                                 | (765,834  | ) |   |   | (631,520 | ) |

----

|                                                                                                                     |   | Nine      Months Ended September 30, |      |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                                                                                     |   | 2008                                 |      |   | 2007 |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                               |   |                                 |      |   |   |   |
|     Payments      on notes payable to related parties                                                |   |                                 | -         |   |   |   | (110,024 | ) |
|     Proceeds      from line of credit and notes payable                                              |   |                                 | 620,000   |   |   |   | - |   |
|     Payments      on notes payable                                                                   |   |                                 | (693,989  | ) |   |   | (464,050 | ) |
|     Purchase      of treasury stock                                                                  |   |                                 | (172,000  | ) |   |   | - |   |
|     Proceeds      from subscription receivable                                                       |   |                                 | 5,000     |   |   |   | 8,299 |   |
|     Proceeds      related to issuance of stock                                                       |   |                                 | 302,500   |   |   |   | 421,500 |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
|         Net      cash provided by financing activities                           |   |                                 | 61,511    |   |   |   | (144,275 | ) |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
| Foreign      currency translation adjustment                                                                             |   |                                 | (10,249   | ) |   |   | 12,788 |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
|         Net      increase (decrease) in cash                                     |   |                                 | (404,144  | ) |   |   | 213,865 |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
| Cash      at beginning of period                                                                                         |   |                                 | 812,365   |   |   |   | 930,962 |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
| Cash      at end of period                                                                                               |   | $                                    | 408,221   |   |   | $ | 1,144,827 |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES                                                                                            |   |                                 |      |   |   |   |   |   |
|     Cash      paid for interest                                                                      |   | $                                    | 194,297   |   |   | $ | 261,463 |   |
|     Cash      paid for income taxes                                                                  |   | $                                    | 179,282   |   |   | $ | 12,482 |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
| SCHEDULE      OF NONCASH INVESTING AND                                                                                   |   |                                 |      |   |   |   |   |   |
|    FINANCING      ACTIVITIES:                                                                             |   |                                 |      |   |   |   |   |   |
|     Business      acquisitions                                                                       |   |                                 |      |   |   |   |   |   |
|         Fair      value of assets acquired                                       |   | $                                    | 1,155,424 |   |   | $ | 4,095,000 |   |
|         Less:  Liabilities      assumed                                |   |                                 | -         |   |   |   | (130,000 | ) |
|                Stock      issued              |   |                                 | (150,000  | ) |   |   | (2,550,000 | ) |
|                Deferred      tax liability    |   |                                 | -         |   |   |   | (650,000 | ) |
|                Purchase      option           |   |                                 | (112,500  | ) |   |   | - |   |
|                Issuance      of notes payable |   |                                 | (397,924  | ) |   |   | (755,000 | ) |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
|         Net      cash paid for acquisitions                                      |   | $                                    | 495,000   |   |   | $ | 10,000 |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
|    Release      of stock guarantees                                                                       |   | $                                    | 150,000   |   |   | $ | - |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
|    Stock      guarantees on acquisitions                                                                  |   | $                                    | 207,000   |   |   | $ | 2,500,000 |   |
|                                                                                                                     |   |                                 |      |   |   |   |   |   |
|    Payment      of long term debt with stock                                                              |   | $                                    | -         |   |   | $ | 1,000,000 |   |

----

|                                       |   | 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, 2007               |   |                 | -      |   |              |   | -      |   |   |   | 60,565,436          |   |   | $            | 6,057  |   |   | $ | 10,901,944 |   |   | $ | (31,196 | ) |   | $ | 15,310 |   |   | $ | (1,263,926 | ) |   |   | (1,276,542 | ) |   | $ | (547,241 | ) |   | $ | 9,080,948 |   |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency                      |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   translation      adjustment    |   |                 | -      |   |              |   | -      |   |   |   | -                   |   |   |         | -      |   |   |   | - |   |   |   | - |   |   |   | (10,249 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (10,249 | ) |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      loss on available          |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   for      sale securities       |   |                 | -      |   |              |   | -      |   |   |   | -                   |   |   |         | -      |   |   |   | - |   |   |   | - |   |   |   | (21,144 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (21,144 | ) |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) Nine Months                |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Ended      September 30, 2008  |   |                 | -      |   |              |   | -      |   |   |   | -                   |   |   |         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (416,616 | ) |   |   | - |   |   |   | - |   |   |   | (416,616 | ) |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      comprehensive  (loss)   |   |                 | -      |   |              |   | -      |   |   |   | -                   |   |   |         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (448,009 | ) |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      issued for services             |   |                 | -      |   |              |   | -      |   |   |   | 110,000             |   |   |         | 11     |   |   |   | 55,989 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56,000 |   |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants      exercised                    |   |                 | -      |   |              |   | -      |   |   |   | 550,00              |   |   |         | 55     |   |   |   | 302,445 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 302,500 |   |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued in                      |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   conjunction      with the      |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   acquisition      of businesses |   |                 | -      |   |              |   | -      |   |   |   | 200,000             |   |   |         | 20     |   |   |   | 149,980 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 150,000 |   |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Guaranteed      stock returned             |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   for      restricted cash       |   |                 | -      |   |              |   | -      |   |   |   | -                   |   |   |         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (229,333 | ) |   |   | (172,000 | ) |   |   | (172,000 | ) |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification      of shares            |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   issued      at guaranteed      |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   prices      to liabilities     |   |                 | -      |   |              |   | -      |   |   |   | -                   |   |   |         | -      |   |   |   | 57,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 57,000 |   |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription      receivable               |   |                 | -      |   |              |   | -      |   |   |   | -                   |   |   |         | -      |   |   |   | - |   |   |   | 3,719 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,719 |   |
|                                       |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                                   |   |                 |   |   |              |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  September      30, 2008              |   |                 | -      |   |              |   | -      |   |   |   | 61,425,436          |   |   | $            | 6,143  |   |   | $ | 11,467,358 |   |   | $ | (27,477 | ) |   | $ | (      16,083 | ) |   | $ | (1,680,542 | ) |   |   | (1,505,875 | ) |   | $ | (719,241 | ) |   | $ | 9,030,158 |   |

----

----

(SFAS 
161). This statement is intendedto improve transparency in financial reporting by requiring enhanced disclosuresof an entity’s derivative instruments and hedging activities and their effectson the entity’s financial position, financial performance, and cash flows.
SFAS 
161 applies to all derivativeinstruments within the scope of SFAS 133, “Accounting for Derivative Instrumentsand Hedging Activities” (SFAS 133), as well as related hedged items, bifurcatedderivatives, and nonderivative instruments that are designated and qualify ashedging instruments. Entities with instruments subject to 
SFAS 
161 must provide more robustqualitative disclosures and expanded quantitative disclosures. 
SFAS 
161 is effective prospectively forfinancial statements issued for fiscal years and interim periods beginning afterNovember 15, 2008, with early application permitted. We are currentlyevaluating the disclosure implications of this statement.

----

----

| Purchase      price                        |   | $      | 405,424 |   |
|--------------------------------------------|--------|--------|---------|--------|
|                                       |   |   |    |   |
| Accounts      receivable (net)             |   | $      | 4,500   |   |
| Furniture      and fixtures                |   |   | 5,000   |   |
| Membership      list                       |   |   | 395,923 |   |
|                                       |   |   |    |   |
|    Net      assets acquired |   | $      | 405,423 |   |

| Purchase      price                        |   | $      | 400,000 |   |
|--------------------------------------------|--------|--------|---------|--------|
|                                       |   |   |    |   |
| Accounts      receivable (net)             |   | $      | 12,600  |   |
| Furniture      and fixtures                |   |   | 6,000   |   |
| Membership      list                       |   |   | 381,400 |   |
|                                       |   |   |    |   |
|    Net      assets acquired |   | $      | 400,000 |   |

----

| Purchase      price                        |   | $      | 400,000 |   |
|--------------------------------------------|--------|--------|---------|--------|
|                                       |   |   |    |   |
| Accounts      receivable (net)             |   | $      | 13,900  |   |
| Furniture      and fixtures                |   |   | 8,500   |   |
| Membership      list                       |   |   | 377,600 |   |
|                                       |   |   |    |   |
|    Net      assets acquired |   | $      | 400,000 |   |

----

|                                       |   | September      30, 2008 |    |
|--------------------------------------------|--------|-------------------------|---------|
|                                       |   |                    |    |   | Weighted      Average |   |
| Fixed      Options                         |   | Shares                  |    |   | Exercise      Price |   |
|                                       |   |                    |    |   |   |   |
| Outstanding      at                        |   |                    |    |   |   |   |
|    beginning      of period |   |                    | 820,000 |   |   | $ | 0.16 |   |
| Granted                                    |   |                    | -       |   |   |   | - |   |
| Forfeited                                  |   |                    | -       |   |   |   | - |   |
| Expired                                    |   |                    | -       |   |   |   | - |   |
| Exercised                                  |   |                    | -       |   |   |   |   |   |
|                                       |   |                    |    |   |   |   |   |   |
| Outstanding      at end of period          |   |                    | 820,000 |   |   | $ | 0.16 |   |
|                                       |   |                    |    |   |   |   |   |   |
| Options      exercisable at                |   |                    |    |   |   |   |   |   |
|    period      end          |   |                    | 820,000 |   |   |   |   |   |
|                                       |   |                    |    |   |   |   |   |   |
| Weighted      average fair value           |   |                    |    |   |   |   |   |   |
|   of      options granted to     |   |                    |    |   |   |   |   |   |
|   employees      during the year |   | $                       | -       |   |   |   |   |   |

----

|                                                  |   | Nine      Months        |     |   | Nine      Months        |   |
|-------------------------------------------------------|--------|-------------------------|----------|--------|-------------------------|--------|
|                                                  |   | Ended                   |     |   | Ended                   |   |
|                                                  |   | September      30, 2008 |     |   | September      30, 2007 |   |
|                                                  |   |                    |     |   |                    |   |
| Net      loss                                         |   | $                       | (416,616 | )      |                    | $      | (261,597 | ) |
| Foreign      currency translation adjustment          |   |                    | (10,249  | )      |                    |   | 12,788 |   |
| Unrealized      loss on available for sale securities |   |                    | (21,144  | )      |                    |   | - |   |
| Comprehensive      income (loss)                      |   | $                       | (448,009 | )      |                    | $      | (248,806 | ) |

----

----

|                      |   | Nine      Months        |     |   | Nine      Months        |   |
|---------------------------|--------|-------------------------|----------|--------|-------------------------|--------|
|                      |   | Ended                   |     |   | Ended                   |   |
|                      |   | September      30, 2008 |     |   | September      30, 2007 |   |
|                      |   |                    |     |   |                    |   |
| Income      tax expense   |   | $                       | 50,000   |   |                    | $      | 67,000 |   |
| Deferred      tax benefit |   |                    | (269,718 | )      |                    |   | (328,143 | ) |
|                      |   |                    |     |   |                    |   |   |   |
|                      |   | $                       | (219,718 | )      |                    | $      | (261,143 | ) |

----

|                      |   | Nine      Months        |      |   | Nine      Months        |   |
|---------------------------|--------|-------------------------|-----------|--------|-------------------------|--------|
|                      |   | Ended                   |      |   | Ended                   |   |
|                      |   | September      30, 2008 |      |   | September      30, 2007 |   |
|                      |   |                    |      |   |                    |   |
| Net      loss             |   | $                       | (416,616  | )      |                    | $      | (261,594 | ) |
| Interest      expense     |   |                    | 202,485   |   |                    |   | 271,426 |   |
| Income      tax (benefit) |   |                    | (219,718  | )      |                    |   | (261,143 | ) |
| Depreciation              |   |                    | 222,192   |   |                    |   | 180,228 |   |
| Amortization              |   |                    | 1,002,961 |   |                    |   | 898,378 |   |
|                      |   |                    |      |   |                    |   |   |   |
|                      |   | $                       | 791,304   |   |                    | $      | 827,295 |   |

----

----

----

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----