**SECURITIES
      AND EXCHANGE COMMISSION**






**WASHINGTON,
      D.C. 20549**






**FORM
      10-Q**






(Mark
      one)




**x**
              **QUARTERLY
                  REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
                  SECURIT****IES
                  EXCHANGE ACT OF 1934.**
 
 For
        the
        quarterly period ended March 31, 2008
 OR
 **o**
              **TRANSITION
                  REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE****SECURITIES EXCHANGE ACT OF
                  1934**






*Commission
      file number 0-16819*


**CREATIVE
      VISTAS, INC.**




**(Exact
      name of registrant as specified in its charter)**




Arizona
              (State
                or other jurisdiction of
              incorporation
                or organization
            6770
              (Primary
                Standard Industrial
              Classification
                Code Number)
            86-0464104
              (I.R.S.
                Employer
              Identification
                No.)






2100
      Forbes Street


Unit
      8-10


Whitby,
      Ontario, Canada L1N 9T3


(905)
      666-8676


(Address,
      including zip code, and telephone number,


including
      area code, of registrant’s principal executive offices)




Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days. Yes x No
o




Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      the definitions of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act. (Check one):





Large
                  Accelerated Filer o
              Accelerated
                  Filer oNon-Accelerated
                  Filer o
              Smaller
                  Reporting Company x(Do
                  not check if a smaller reporting company)




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




Yes  o No
x




Indicate
      the number of shares outstanding of each of the issuer's classes of common
      stock, as of the latest practicable date.






At
      May 15, 2008, the number of shares outstanding of the registrant’s common stock,
      no par value (the only class of voting stock), was 37,214,757.















PART
                  I.
                Financial
                  InformationItem
                  1.
              Financial
                  Statements
              1Item
                  2.
              Management's
                  Discussion And Analysis of Financial Condition and Results of
                  Operations
              13Item
                  3.
              Quantitative
                  and Qualitative Disclosures about Market Risk
              19Item
                  4.
              Controls
                  and Procedures
              19PART
                  II.
                OTHER
                  INFORMATIONItem
                  1.
              Legal
                  Proceedings
              20Item
                  1A.
              Risk
                  Factors
              20Item
                  2.
              Unregistered
                  Sales of Equity Securities and Use of Proceeds
              20Item
                  3.
              Defaults
                  upon Senior Securities
              20Item
                  4.
              Submission
                  of Matters to a Vote of Security Holders.
              20Item
                  5.
              Other
                  Information
              20Item
                  6.
              Exhibits
                  and Reports on Form 8-K
              20

















**PART
      I.**  **FINANCIAL
      INFORMATION**


**Item
      1.** **Financial
      Statements**






**Creative
                Vistas, Inc.**
              **Condensed
                Consolidated Balance Sheets**
            
            **March
                31,**
              **2008**
            
            **December
                31,**
              **2007****(Unaudited)****Assets****Current
                Assets**Cash
                and bank balances
            
            **$**
            **1,215,806**
            
            **$**
            **1,960,340**Accounts
                receivable, net of allowance for doubtful accounts of $203,742 and
                $405,432
            
            
            **5,419,744**
            
            
            **6,187,551**Income
                tax recoverable
            
            
            **253,921**
            
            
            **448,126**Inventory
                and supplies
            
            
            **870,124**
            
            
            **1,043,815**Prepaid
                expenses
            
            
            **705,389**
            
            
            **270,930**Due
                from related parties
            
            
            **2,481**
            
            
            **2,581****Total
                current assets**
            
            
            **8,467,465**
            
            
            **9,913,343****Property
                plant and equipment, net of depreciation**
            
            
            **7,052,809**
            
            
            **6,352,014****Deposits**
            
            
            **284,000**
            
            
            **125,498****Goodwill**
            
            
            **3,093,530**
            
            
            **3,101,598****Intangible
                assets**
            
            
            **1,500,162**
            
            
            **1,717,003****Other
                investments - available for sale securities**
            
            
            **3,588,567**
            
            
            **-****Restricted
                cash**
            
            
            **-**
            
            
            **53,430****Deferred
                financing costs, net**
            
            
            **488,631**
            
            
            **551,747****Deferred
                income taxes**
            
            
            **37,093**
            
            
            **37,547****$**
            **24,512,257**
            
            **$**
            **21,852,180****Liabilities
                and Shareholders' (Deficit)****Current
                Liabilities**Bank
                Indebtedness
            
            **$**
            **1,018,226**
            
            **$**
            **-**Accounts
                payable and accrued liabilities
            
            
            **6,326,582**
            
            
            **6,074,212**Current
                portion of obligation under capital leases
            
            
            **1,316,545**
            
            
            **1,195,366**Deferred
                income
            
            
            **124,344**
            
            
            **91,900**Deferred
                income taxes
            
            
            **25,858**
            
            
            **25,858**Current
                portion of term notes
            
            
            **1,995,178**
            
            
            **2,240,356**Current
                portion of other payable
            
            
            **194,175**
            
            
            **303,030**Due
                to related parties
            
            
            **7,453**
            
            
            **8,143****Total
                current liabilities**
            
            
            **11,008,361**
            
            
            **9,938,865****Term
                notes**
            
            
            **13,540,421**
            
            
            **13,565,421****Notes
                payable to related parties**
            
            
            **1,500,000**
            
            
            **1,500,000****Obligation
                under capital lease**
            
            
            **3,437,283**
            
            
            **3,184,103****Other
                payables**
            
            
            **97,087**
            
            
            **303,030****Due
                to related parties**
            
            
            **224,145**
            
            
            **233,203****29,807,297**
            
            
            **28,724,622****Shareholders'
                (deficit)**Share
                capitalAuthorized50,000,000
                no par value preferred shares undesignated, none issued or
                outstanding100,000,000
                no par value common shares 36,914,757 and 34,494,623 issued and
                outstandingCommon
                stock
            
            
            **5,863,020**
            
            
            **1,439,307**Deferred
                compensation
            
            
            **(354,559**
            **)**
            
            **-**Additional
                paid-in capital
            
            
            **11,530,572**
            
            
            **4,958,871**Accumulated
                (deficit)
            
            
            **(18,831,310**
            **)**
            
            **(12,445,468**
            **)**Accumulated
                other comprehensive lossesForeign
                Currency Translation Adjustment
            
            
            **(644,481**
            **)**
            
            **(825,152**
            **)**Unrealized
                loss on available for sale securities
            
            
            **(2,858,282**
            **)**
            
            **-****(5,295,040**
            **)**
            
            **(6,872,442**
            **)****$**
            **24,512,257**
            
            **$**
            **21,852,180**


The
      accompanying notes are an integral part of these financial
      statements












**Creative
                Vistas, Inc.****Condensed
                Consolidated Statements of Operations****(Unaudited)**




**Three
                months ended****March
                31,****2008**
            
            **2007****Contract
                and service revenue**Contract
            
            **$**
            **1,479,319**
            
            **$**
            **1,327,247**Service
            
            
            **9,291,977**
            
            
            **6,453,929**Others
            
            
            **10,059**
            
            
            **12,444****10,781,355**
            
            
            **7,793,620****Cost
                of sales**Contract
            
            
            **900,707**
            
            
            **921,996**Service
            
            
            **7,407,221**
            
            
            **4,609,700****8,307,928**
            
            
            **5,531,696****Gross
                margin**
            
            
            **2,473,427**
            
            
            **2,261,924****Operating
                expense**Project
            
            
            **326,055**
            
            
            **281,666**Selling
            
            
            **218,597**
            
            
            **175,844**General
                and administrative
            
            
            **3,582,254**
            
            
            **1,750,956****4,126,906**
            
            
            **2,208,466****Income
                (loss) from operations**
            
            
            **(1,653,479**
            **)**
            
            **53,458****Interest
                and other expenses**Net
                financing expenses
            
            
            **4,432,917**
            
            
            **559,198**Amortization
                of deferred charges
            
            
            **44,215**
            
            
            **45,276**Foreign
                currency translation gain (loss)
            
            
            **255,234**
            
            
            **(18,918**
            **)****4,732,366**
            
            
            **585,556**(Loss)
                before income taxes
            
            
            **(6,385,845**
            **)**
            
            **(532,098**
            **)**Income
                taxes
            
            
            **-**
            
            
            **-**Net
                (loss)
            
            
            **(6,385,845**
            **)**
            
            **(532,098**
            **)**Other
                comprehensive income (loss):Unrealized
                loss - available for sale securities
            
            
            **(2,858,282**
            **)**
            
            **-**Foreign
                currency translation adjustment
            
            
            **180,671**
            
            
            **(44,688**
            **)**Comprehensive
                (loss)
            
            **$**
            **(9,063,456**
            **)**
            **$**
            **(576,786**
            **)**Basic
                weighted-average shares
            
            
            **36,248,724**
            
            
            **33,382,608**Diluted
                weighted-average shares
            
            
            **36,248,724**
            
            
            **33,382,608****Basic
                (loss) per share**
            
            **$**
            **(0.18**
            **)**
            **$**
            **(0.02**
            **)****Diluted
                (loss) per share**
            
            **$**
            **(0.18**
            **)**
            **$**
            **(0.02**
            **)**




The
      accompanying notes are an integral part of these financial
      statements














**Creative
                Vistas, Inc.****Condensed
                Consolidated Statements of Cash Flows****(Unaudited)**




**Three
                months ended March 31,****2008**
            
            **2007****Operating
                activities**Net
                cash (used in) operating activities
            
            **$**
            **(399,791**
            **)**
            **$**
            **(
                714,207**
            **)****Investing
                activities**Payment
                for acquisition
            
            
            **(300,000**
            **)**
            
            **-**Proceeds
                of sales of property and equipment
            
            
            **24,830**
            
            
            **105,051**Purchase
                of property and equipment
            
            
            **(586,028**
            **)**
            
            **(110,832**
            **)**Net
                cash (used in) investing activities
            
            
            **(861,198**
            **)**
            
            **(5,781**
            **)****Financing
                activities**Proceeds
                from bank indebtedness
            
            
            **1,043,223**
            
            
            **-**Repayment
                from notes payable
            
            
            **-**
            
            
            **(28,564**
            **)**Due
                to related parties
            
            
            **(385**
            **)**
            
            **86**Repayment
                of capital leases
            
            
            **(362,429**
            **)**
            
            **(266,710**
            **)**Issuance
                of common shares
            
            
            **1,260**
            
            
            **145,924**Restricted
                cash
            
            
            **52,894**
            
            
            **61,620**Repayment
                of term notes
            
            
            **(270,178**
            **)**
            
            **(306,686**
            **)**Net
                cash provided by (used in) financing activities
            
            
            **464,385**
            
            
            **(394,330**
            **)**Effect
                of foreign exchange rate changes in cash
            
            
            **52,070**
            
            
            **(28,879**
            **)**Net
                change in cash and cash equivalents
            
            
            **(744,534**
            **)**
            
            **(1,143,197**
            **)****Cash
                and cash equivalents,**beginning of period
            
            
            **1,960,340**
            
            
            **3,560,181****Cash
                and cash equivalents,**end of period
            
            **$**
            **1,215,806**
            
            **$**
            **2,416,984**







The
      accompanying notes are an integral part of these financial
      statements









**Creative
      Vistas, Inc.**


**Notes
      to Consolidated Condensed Financial Statements**


**March
      31, 2008 (Unaudited)**




**1.**  **Summary
      of Accounting Policies**




**Basis
      of presentation**




The
      accompanying unaudited condensed consolidated balance sheet as at March 31,
      2008, and the consolidated condensed statements of operations and cash flows
      for
      the periods ended March 31, 2007 and 2008, include the accounts of Creative
      Vistas, Inc. (“CVAS”), Creative Vistas Acquisition Corp. (“AC Acquisition”), AC
      Technical Systems Ltd. (“AC Technical”), Cancable Holding Corp. (“Cancable
      Holding”), Cancable Inc., , Cancable XL Inc., XL Digital Services Inc. (“XL
      Digital”), 2141306 Ontario Inc., Iview Holding Corp. (“Iview Holding”), and
      Iview Digital Solutions Inc. (“Iview DSI”). Intercompany balances and
      transactions have been eliminated in consolidation. In the opinion of
      management, these condensed consolidated financial statements reflect all
      adjustments (consisting of normal recurring adjustments) that are necessary
      for
      a fair presentation of the results for and as of the periods shown. The
      accompanying condensed consolidated financial statements have been prepared
      in
      conformity with accounting principles generally accepted in the United States.
      However, certain information or footnote disclosures normally included in
      financial statements prepared in accordance with generally accepted accounting
      principles have been condensed or omitted pursuant to the rules and regulations
      of the Securities and Exchange Commission. The results of operations for such
      periods are not necessarily indicative of the results expected for 2008 or
      for
      any future period. These financial statements should be read in conjunction
      with
      the financial statements and related notes included in our Annual Report on
      Form
      10-K for the fiscal year ended December 31, 2007, filed with the Securities
      and
      Exchange Commission.




**Reclassifications**


Certain
      amounts from the March 31, 2007, financial statements have been reclassified
      to
      conform to the current year’s presentation.





**Liquidity
      and going concern**




Our
      consolidated condensed financial statements were prepared using accounting
      principles generally accepted in the United States of America applicable to
      a
      going concern, which contemplates the realization of assets and liquidation
      of
      liabilities in the normal course of business. We have incurred losses of
      $6,385,845 for the three months ended March 31, 2008 and have an accumulated
      deficit of $18,831,310  at
      March
      31, 2008. In addition, we have working capital and stockholder deficits of
      $2,540,896 and $5,295,040 at March 31, 2008.




We
      have
      outstanding term loans aggregating $15,535,599, together with common stock
      options and warrants, held by Laurus. We do not currently have the ability
      to
      repay the notes in the event of a demand by the holder. Furthermore, we granted
      a security interest to Laurus in substantially all of our assets and,
      accordingly, in the event of any default under our agreements with Laurus,
      they
      could conceivably attempt to foreclose on our assets, which could cause us
      to
      terminate our operations. Additionally, there were 49 shares of common stock
      of
      Cancable Holding issuable upon the exercise of options and 20 shares of common
      stock of Iview Holding issuable upon the exercise of options to
      Laurus.





Over
      the
      next twelve months the Company believes that its existing capital will be
      sufficient to sustain its operations. Management plans to seek additional
      capital in the future to fund operations, growth and expansion through
      additional equity, debt financing or credit facilities. The Company has had
      early stage discussions with investors about potential investment in the Company
      at a future date. No assurance can be made that such financing would be
      available, and if available it may take either the form of debt or equity.
      In
      either case, the financing could have a negative impact on our financial
      condition and our shareholders. The Company has introduced cost cutting
      initiatives within the Administration, Project and Selling departments to
      improve efficiency within the Company and also improve cash flow. The Company
      has also increased its rates for service provided by AC Technical by 20 percent
      to improve gross margins. This is in line with our competitors. The Company
      also
      expects to see the benefits of its research and development efforts within
      the
      next 12 months as it starts to introduce its own line of customized products
      to
      the industry. These products and technologies are expected to improve gross
      margins. The Company believes that it will be eligible for research and
      development tax credits at year end for its research and development efforts
      during the year and these are additional sources of cash flow for the Company.
      The Company is also negotiating longer credit terms with its suppliers from
      45
      days to 60 to 75 days. For all the reasons mentioned above, we believe that
      we
      have adequate short term borrowing capability and that we will be able to
      sustain our operations and continue as a going concern for a reasonable period
      of time although there can be no assurance of this.








The
      financial statements do not include any adjustments to reflect the possible
      future effects on the recoverability and classification of assets or the amounts
      and classification of liabilities that may result from the possible inability
      of
      the Company to continue as a going concern.





Inventory





Inventory
      consists of materials and supplies and is stated at the lower of cost and market
      value. Cost is generally determined on the first in, first out basis. The
      inventory is net of estimated obsolescence, and excess inventory based upon
      assumptions about future demand and market conditions. Inventory consists
      principally of parts, materials and supplies





**Earnings
      (loss) per share**




The
      Company applies Statement of Financial Accounting Standards No. 128, Earnings
      Per Share (FAS 128). Basic loss per share (“LPS”) is computed using the weighted
      average number of common shares outstanding during the period. Diluted LPS
      is
      computed using the weighted average number of common and dilutive potential
      common shares outstanding during the period. Dilutive potential common shares
      consist of common stock issuable upon exercise of stock options and warrants
      using the treasury stock method. An adjustment to earnings per share calculation
      includes reversing the changes in derivative instruments. Dilutive common share
      equivalents are not considered in periods when their effect is
      antidilutive.




**2.**  **Deferred
      Financing Costs, Net**




Deferred
      financing costs, net are associated with the Company’s term notes from Laurus
      Master Fund, Ltd., a Cayman Islands company. For the period ended March 31,
      2008, the amortization of deferred financing cost was approximately $44,215
      (2007 - $45,276).




Cost
            
            $
            920,671Accumulated
                amortization
            
            
            (432,040
            )$
            488,631




The
      estimated amortization expense for each of the next five fiscal years and
      thereafter is as follows:




**Year**
            
            **Amount**2008
            
            $
            123,5742009
            
            
            133,9392010
            
            
            127,5012011
            
            
            103,617$
            488,631







**3.** **Other
      Investments- Available For Sale Securities**




On
      January 22, 2008, the Company entered into a Stock Purchase Agreement (the
      “Stock Purchase Agreement”) with Erato Corporation (“Erato”) pursuant to which
      the Company purchased and acquired from Erato 2,674,407 shares of common stock,
      par value $0.0001 per share (the “Shares”), of 180 Connect Inc., a Delaware
      corporation, for an aggregate purchase price of $5,444,940 paid by the Company
      by delivery to Erato of (i) 2,195,720 duly and validly issued shares of common
      stock of the Company and (ii) a common stock purchase warrant, exercisable
      into
      up to 812,988 shares of common stock of the Registrant at an exercise price
      of
      $0.01 per share.







On
      January 30, 2008, the Company entered into a Warrant Purchase Agreement with
      Laurus Master Fund, Ltd., Erato Corporation, Valens U.S. Fund, LLC and Valens
      Offshore SPV I, Ltd. (collectively, the “Sellers”) pursuant to which the Company
      purchased and acquired from the Sellers, warrants to purchase 450,000 shares
      of
      common stock at an exercise price of $0.01 per share of 180 Connect Inc. The
      aggregate purchase price paid by the Company in exchange for the 180 Connect
      Warrants was $1,001,909 paid by the Company by delivery to the Sellers of common
      stock purchase warrants, exercisable in the aggregate into up to 506,250 shares
      of common stock of the Company at an exercise price of $0.01 per share.




The
      above
      investment was recorded as fair value as at March 31, 2008, of $3,588,567 and
      had a cost basis of $6,446,849. The unrealized loss of $2,858,282 was recorded
      as a component of other comprehensive losses.





**4.** **Intangible
      Assets**




**Cost**
            
            
            **Accumulated**
              **amortization**
            
            
            **Net
                book**
              **value****Customer
                relationships**
            
            $
            1,650,485
            
            $
            515,048
            
            $
            1,135,437**Trade
                name**
            
            
            1,277,670
            
            
            912,945
            
            
            364,725$
            2,928,155
            
            $
            1,427,993
            
            $
            1,500,162




Amortization
      expense for the period ended March 31, 2008 amounted to $190,167
      (2007-$150,000).




**5.**  **Bank
      Indebtedness**




During
      the period ended March 31, 2008, the Company established credit facilities
      with
      a Canadian chartered bank to provide for borrowings by its subsidiaries, AC
      Technical and Cancable Inc. The credit facility for AC Technical and Cancable
      was $500,000 and $1,500,000. Revolving credit loans bear interest at the bank’s
      domestic rate plus 1.5% for Canadian dollar amounts. Interest is payable
      monthly. The facilities are secured by an assignment of book debts, inventory,
      certain other assets and life insurance. In April 2008, an amendment was made
      to
      the credit agreement to increase the maximum facility of Cancable to
      $3,500,000.




As
      at
      March 31, 2008, the interest rate of the Canadian dollar amount was 6.25%.
      At
      March 31, 2008, the borrowings outstanding under this facility were
      $1,018,226.




**6.** **Term
          Notes**




In
      January 2006, concurrently with the closing of the acquisition of Cancable
      Inc.,
      the Company entered into a series of agreements with Laurus whereby Cancable
      issued to Laurus a secured term note (the “Cancable Note”) in the amount of
      $6,865,000 and Cancable Holding issued to Laurus a related option to purchase
      up
      to 49 shares of common stock of Cancable Holding (up to 49% of the outstanding
      shares of Cancable Holding) at a price of $0.01 per share (the “Option”). The
      loan is secured by all of the assets of the Company and its subsidiaries.





The
      Cancable Note bears interest at the prime rate plus 1.75% with a minimum rate
      of
      seven percent. Interest accrued on the term note but was not payable until
      February 1, 2006. Interest is calculated on the basis of a 360 day year. The
      minimum monthly payment on the term note is $81,726 commencing from October
      1,
      2006. The Company is not obligated, except upon an event of default, to pay
      more
      than 25% of the Principal Amount prior to December 31, 2011.




In
      February 2006, the Company and its subsidiaries, Iview Holding and Iview DSI
      entered into a series of agreements with Laurus pursuant to a refinancing
      transaction whereby the Company issued to Laurus a secured term note (the
“Company Note”) in the amount of $8,250,000, Iview DSI issued to Laurus a
      secured term note (the “Iview Note”) in the amount of $2,000,000, the Company
      issued to Laurus a related warrant to purchase up to 2,411,003 shares of common
      stock of the Company (up to 7.5% of the outstanding shares of the Company)
      at a
      price of $0.01 per share (the “Warrant”) and Iview Holding issued to Laurus a
      related option to purchase up to 20 shares of common stock of Holding (up to
      20%
      of the outstanding shares of Holding) at a price of $0.01 per share (the
“Option”). The loans are secured by all of the assets of the Company and its
      subsidiaries.








The
      Company Note bears interest at the prime rate plus 2% with a minimum rate of
      seven percent. Interest accrued on the term note but was not payable until
      April
      1, 2006. Interest is calculated on the basis of a 360 day year. The minimum
      monthly payment on the term note is $137,500 commencing March 1, 2007 to
      February 1, 2009. $4,950,000 is payable on the maturity date. The Company has
      issued warrants to purchase up to 1,404,000 shares of common stock of the
      Company at a price from $0.90 to $2.73 per share to defer the principal
      repayment from March 1, 2007 to March 1, 2008.




The
      Iview
      Note bears interest at the prime rate plus 2% with a minimum rate of seven
      percent. Interest accrued on the term note but was not payable until April
      1,
      2006. Interest is calculated on the basis of a 360 day year. The minimum monthly
      payment on the term note is $8,333 commencing March 1, 2007 to February 1,
      2011.
      $1,600,000 is payable on the maturity date. The Company is not obligated, except
      upon an event of default, to pay more than 25% of the Principal Amount prior
      to
      December 31, 2011.




Simultaneously
      with the closing of this refinancing transaction, the Company paid off the
      entire outstanding principal amount and all obligations due to Laurus under
      the
      Secured Convertible Term Note dated September 30, 2004, the Secured Convertible
      Minimum Borrowing Note dated September 30, 2004 and the Secured Revolving Note
      dated September 30, 2004 (collectively, the “2004 Notes”) and such 2004 Notes
      were subsequently cancelled.





Interest
      on the term note for the period ended March 31, 2008 was $318,968 (2007:
      $425,186).








**Amount**Cancable
                term note bears interest at prime plus 1.75% with the minimum interest
                rate 7% and due on December 31, 2010
            
            $
            5,393,932Company
                term note bears interest at prime plus 2% with the minimum interest
                rate
                7% and due on December 31, 2009
            
            
            8,250,000Iview
                term note bears interest at prime plus 2% with the minimum interest
                rate
                7% and due on December 31, 2011
            
            
            1,891,66715,535,599Less:
                current portion
            
            
            1,995,178$
            13,540,421







The
      principal payments for the next five fiscal years are as follows:




**Amount**2008
            
            $
            1,970,1782009
            
            
            6,700,0002010
            
            
            100,0002011
            
            
            6,765,421$
            15,535,599










**7.**  **Net
      Financing Expenses**




**Three
                  months ended March 31,****2008**
              
              **2007**Capital
                  leases
              
              $
              103,790
              
              $
              80,811Interest
                  of credit facility
              
              
              318,968
              
              
              425,186Interest
                  on deferred principal repayment of term note - 324,000
                  warrants
              
              
              274,196
              
              
              39,519Warrants
                  issued for proposed new financing
              
              
              3,723,565
              
              
              -Others
              
              
              12,398
              
              
              13,682$
              4,432,917
              
              $
              559,198





Included
      in net financing expenses are the fair value of $3,723,565 of 2,030,865 warrants
      to purchase the Company’s common stock issued in conjunction with the investment
      described in Note 3 for a proposed financing. There can be no assurance that
      any
      such financing will be successful.




**8.**  **Note
      Payable to Related Parties**





In
      September 2004, the Company issued two promissory notes with an aggregate
      principal amount of $3,300,000. On September 30, 2004, the Company repaid
      an aggregate of $1,800,000 of the principal balance. The outstanding principal
      bears interest at 3% per annum with no fixed terms of repayment. The notes
      each
      with an amount of $750,000 are due to The Burns Trust (the Company’s president
      is one of the beneficiaries of the trust) and the Navaratnam Trust (the
      Company’s CEO is one of the beneficiaries of the trust), respectively. During
      the period ended June 30, 2006, the above two notes payable have been
      transferred to Malar Trust Inc. (the Company’s CEO is the shareholder of Malar
      Trust Inc.).




Interest
      expense recognized for the period was $12,398 (2007 - $13,682).




**9.**  **Shareholders’
      (Deficit)**




The
      Company has total authorized share capital of 50,000,000 preferred shares,
      no
      par value and 100,000,000 common shares, no par value.




During
      the period ended March 31, 2008, the Company entered into a consulting agreement
      by issuing 222,414 common shares stock in consideration for investor relations
      services rendered for 2008 with the fair value of $448,200. The expense in
      the
      amount of $93,641 was recorded under general and administrative expenses. The
      remaining balance was recorded as deferred compensation. Additionally, the
      Company issued 2,000 common shares to an employee for the exercise of the
      employee stock options for cash aggregating $1,260.




**Options**




On
      June
      30, 2006, the Company granted 2,317,000 options to purchase a maximum of
      2,317,000 shares of common stock to employees. The options allow the holders
      to
      buy the Company’s common stock at a price of $0.63 per share and expire on June
      30, 2011. During the year 2007, the Company granted 1,226,000 options to
      purchase common stock to employees. These options allow the holders to buy
      the
      Company’s common stock at a price between $0.90 to $2.59 which will expire in
      2012.




The
      Company’s Stock Option Plan is intended to provide incentives for key employees,
      directors, consultants and other individuals providing services to the Company
      by encouraging their ownership of the common stock of the Company and to aid
      the
      Company in retaining such key employees, directors, consultants and other
      individuals upon whose efforts the Company’s success and future growth depends
      and in attracting other such employees, directors, consultants and
      individuals.







The
      Plan
      is administered by the Board of Directors, or its Compensation Committee. Under
      the Plan, options on a total of 4,000,000 shares of common stock may be issued.
      Shares of common stock covered by options which have terminated or expired
      prior
      to exercise are available for further options under the Plan. The maximum
      aggregate number of shares of Stock that may be issued under the Plan as
“incentive stock options” is 3,500,000 shares. No options may be granted under
      the Plan after June 30, 2011; provided, however, that the Board of Directors
      may
      at any time prior to that date amends the Plan.




Options
      under the Plan may be granted to key employees of the Company, including
      officers or directors of the Company, and to consultants and other individuals
      providing services to the Company. Options may be granted to eligible
      individuals whether or not they hold or have held options previously granted
      under the Plan or otherwise granted or assumed by the Company. In selecting
      individuals for options, the Committee may take into consideration any factors
      it may deem relevant, including its estimate of the individual’s present and
      potential contributions to the success of the Company.




The
      Committee may, in its discretion, prescribe the terms and conditions of the
      options to be granted under the Plan, which terms and conditions need not be
      the
      same in each case, subject to the following:





a. Option
      Price. The price at which each share of common stock covered by an option
      granted under the Plan may be purchased may not be less than the market value
      per share of the common stock on the date of grant of the option. The date
      of
      the grant of an option shall be the date specified by the Committee in its
      grant
      of the option, which date will normally be the date the Committee determines
      to
      make such grant.





b. Option
      Period. The period for exercise of an option shall in no event be more than
      five
      years from the date of grant. Options may, in the discretion of the Committee,
      be made exercisable in installments during the option period.





c. Exercise
      of Options. For the purpose of assisting an Optionee to exercise an option,
      the
      Company may make loans to the Optionee or guarantee loans made by third parties
      to the Optionee, on such terms and conditions as the Board of Directors may
      authorize. In no event shall any option be exercisable more than five years
      from
      the date of grant thereof.





d. Lock-Up
      Period. Without the consent of the Company, an Optionee may not sell more than
      fifty percent of the shares issued under the Plan for a period of two years
      from
      the date that the Optionee exercises the option. The Committee may impose such
      other terms and conditions, not inconsistent with the terms of the Plan, on
      the
      grant or exercise of options, as it deems advisable.





The
      fair
      value of each option award is estimated on the date of grant using the
      Black-Scholes option valuation model, using the assumptions noted in the
      following table. Expected volatility is based on the historical volatility
      of
      the Company’s stock, and other factors. The Company uses historical data to
      estimate employee termination within the valuation model. Because the Company
      has not previously granted options to employees, for purposes of the valuation
      model, the Company has assumed that the life of the options will be equal to
      one-half of the combined vesting period and contractual life (i.e., that
      employees will exercise the options at the midpoint between the vesting and
      expiry date of the options). The risk-free rates used to value the options
      are
      based on the U.S. Treasury yield curve in effect at the time of
      grant.





At
      March
      31, 2008 options to purchase 3,194,000 shares of common stock were outstanding.
      These options vest ratably in annual installments, over the four year period
      from the date of grant. As of March 31, 2008, there was $1,249,120 of total
      unrecognized compensation cost related to non-vested share-based compensation
      arrangements granted under the Plan. That cost is expected to be recognized
      over
      the four year vesting period. 496,500 options were vested as of March 31, 2008.
      The cost recognized for the period end March 31, 2008 was $101,353
      (2007:$31,765) which was recorded as general and administrative
      expenses.





In
      valuing the options issued, the following assumptions were used;





2008
            2007Expected
                volatility
            45%
            45%Expected
                dividends
            0%
            0%Expected
                term (in years)
            3.0
                - 4.5
            3.0
                - 4.5Risk-free
                rate
            4.25%
                - 5.13%
            4.25%
                - 5.13%








A
      summary
      of option activity under the Plan during the period ended March 31, 2008 is
      presented below:





Options
            
            Shares
            
            Weighted-Average
              Exercise
              Price
            
            Weighted-Average
              Remaining
                Contractual
              Term
            
            Intrinsic
              ValueOutstanding
                at December 31, 2007
            
            
            3,222,000
            
            $
            0.63
            
            
            5.0
            
            
            -Granted
            
            
            64,000
            
            $
            2.32Exercised
            
            
            (2,000
            )
            $
            0.63Forfeited
                or expired
            
            
            (90,000
            )
            $
            0.63Outstanding
                at March 31, 2008
            
            
            3,194,000
            
            $
            1.22
            
            
            4.0
            
            $
            0.67Exercisable
                at March 31, 2008
            
            
            496,500
            
            $
            0.63
            
            
            -
            
            
            -





**Warrants**




We
      use
      the Black-Scholes option pricing model to value warrants issued to
      non-employees, based on the market price of our common stock at the time the
      warrants are issued. All outstanding warrants may be exercised by the holder
      at
      any time. During the period ended March 31, 2008, in connection with financing
      and acquisition arrangements, the Company issued warrants to purchase 3,674,103
      shares of common stock. The fair value of the warrants of $6,470,357 was
      measured using the Black-Scholes option pricing model using the following
      assumptions: risk free interest rate of 2.18% to 4.44%, expected dividend yield
      of 0%, volatility of 45%, share price of $0.01 to $2.84 and expected life of
      4
      to 50 years.




As
      of
      March 31, 2008, we had the following options and warrants
      outstanding:




Issue
                Date
            
            Expiry
                Date
            
            Number
                of
              warrants
            
            Exercise
                Price
              Per
                share
            
            Value-issue
              date
            
            Issued
              for01-05-2004
            
            
            01-05-2009
            
            
            540,000
            
            $
            0.33
            
            $
            447,463
            
            
            Consulting
                and investment banking fees09-30-2004
            
            
            09-30-2009
            
            
            199,500
            
            $
            1.00
            
            $
            111,853
            
            
            Consulting
                and investment banking fees09-30-2004
            
            
            09-30-2011
            
            
            2,250,000
            
            $
            1.15
            
            $
            1,370,000
            
            
            Financing03-31-2005
            
            
            03-31-2012
            
            
            100,000
            
            $
            1.20
            
            $
            60,291
            
            
            Financing04-30-2005
            
            
            04-30-2012
            
            
            100,000
            
            $
            1.01
            
            $
            44,309
            
            
            Financing05-31-2005
            
            
            05-31-2012
            
            
            100,000
            
            $
            1.01
            
            $
            56,614
            
            
            Financing06-22-2005
            
            
            06-22-2012
            
            
            313,000
            
            $
            1.00
            
            $
            137,703
            
            
            Financing06-30-2005
            
            
            06-30-2012
            
            
            100,000
            
            $
            0.90
            
            $
            50,431
            
            
            Financing07-31-2005
            
            
            07-31-2012
            
            
            100,000
            
            $
            1.05
            
            $
            56,244
            
            
            Financing08-31-2005
            
            
            08-31-2012
            
            
            100,000
            
            $
            1.05
            
            $
            22,979
            
            
            Financing09-30-2005
            
            
            09-30-2012
            
            
            100,000
            
            $
            0.80
            
            $
            36,599
            
            
            Financing10-31-2005
            
            
            10-31-2012
            
            
            100,000
            
            $
            0.80
            
            $
            27,367
            
            
            Financing11-30-2005
            
            
            11-30-2012
            
            
            100,000
            
            $
            0.80
            
            $
            16,392
            
            
            Financing12-31-2005
            
            
            12-31-2012
            
            
            100,000
            
            $
            0.80
            
            $
            10,270
            
            
            Financing02-13-2006
            
            
            02-13-2016
            
            
            1,927,096
            
            $
            0.01
            
            $
            1,529,502
            
            
            Financing

















03-01-2007
            
            
            03-01-2011
            
            
            108,000
            
            $
            0.90
            
            $
            39,519
            
            
            Financing04-01-2007
            
            
            04-01-2011
            
            
            108,000
            
            $
            1.15
            
            $
            50,529
            
            
            Financing05-01-2007
            
            
            05-01-2011
            
            
            108,000
            
            $
            1.25
            
            $
            54,941
            
            
            Financing06-01-2007
            
            
            06-01-2011
            
            
            108,000
            
            $
            2.28
            
            $
            101,470
            
            
            Financing07-01-2007
            
            
            07-01-2011
            
            
            108,000
            
            $
            2.10
            
            $
            93,307
            
            
            Financing08-01-2007
            
            
            08-01-2011
            
            
            108,000
            
            $
            2.55
            
            $
            112,117
            
            
            Financing09-01-2007
            
            
            09-01-2011
            
            
            108,000
            
            $
            2.73
            
            $
            118,647
            
            
            Financing10-01-2007
            
            
            10-01-2011
            
            
            108,000
            
            $
            2.43
            
            $
            105,362
            
            
            Financing11-01-2007
            
            
            11-01-2011
            
            
            108,000
            
            $
            2.60
            
            $
            111,868
            
            
            Financing12-01-2007
            
            
            12-01-2011
            
            
            108,000
            
            $
            2.55
            
            $
            107,284
            
            
            Financing01-01-2008
            
            
            01-01-2012
            
            
            108,000
            
            $
            2.84
            
            $
            108,331
            
            
            Financing01-22-2008
            
            
            01-22-2058
            
            
            812,988
            
            $
            0.01
            
            $
            1,470,687
            
            
            Acquisition01-22-2008
            
            
            01-22-2058
            
            
            1,738,365
            
            $
            0.01
            
            $
            3,144,685
            
            
            Financing01-30-2008
            
            
            01-30-2058
            
            
            2,350
            
            $
            0.01
            
            $
            4,650
            
            
            Financing01-30-2008
            
            
            01-30-2058
            
            
            582,367
            
            $
            0.01
            
            $
            1,152,551
            
            
            Financing01-30-2008
            
            
            01-30-2058
            
            
            214,033
            
            $
            0.01
            
            $
            423,588
            
            
            Financing02-01-2008
            
            
            02-01-2012
            
            
            108,000
            
            $
            2.09
            
            $
            85,612
            
            
            Financing03-01-2008
            
            
            03-01-2012
            
            
            108,000
            
            $
            2.04
            
            $
            80,253
            
            
            Financing10,983,699




**10.**  **Major
      Customers**




During
      the three months ended March 31, 2008 the Company derived 60.4% (2007:57.2%)
      of
      its revenue from a single customer. The accounts receivable from this customers
      comprises 40.4% (2007: 39.3%) of the total trade receivable **.**




**11.**  **Segment
      Information**




We
      determine and disclose our segments in accordance with SFAS No. 131 “Disclosures
      about Segments of an Enterprise and Related Information”, which uses a
“management” approach for determining segments. The management approach
      designates the internal organization that is used by management for making
      operating decisions and assessing performance as the source of the reportable
      segments. Our management reporting structure provides for the following
      segments:




Cancable




Cancable
      Inc. and its wholly owned subsidiary XL Digital Services, Inc. are Canadian
      based entity. Cancable, Inc. is a US cased entity which is also the wholly
      owned
      subsidiary of Cancable Inc. (collectively, the “Cancable”). Cancable is in the
      business of providing deployment and servicing of broadband technologies in
      both
      residential and commercial markets. The Cancable service offering, network
      deployment, IT integration, and support services, enable the cable television
      and telecommunications industries to deliver a high quality broadband experience
      to their customers. Cancable’s clients rely on Cancable’s knowledge and
      expertise to rapidly deploy the latest technologies to support advanced cable
      services, cable broadband Internet access and DSL. Services provisioned include
      new installations, reconnections, disconnections, service upgrades and
      downgrades, inbound technical call center sales and trouble resolution for
      cable
      Internet subscribers, and network servicing for broadband video, data, and
      voice
      services for residential, business, and commercial marketplaces.







AC
      Technical




A.C.
      Technical Systems Ltd. (“AC Technical”), a corporation incorporated under the
      laws of the Province of Ontario, is engaged in the engineering, design,
      installation, integration and servicing of various types of security systems.




Iview
      DVSI




Iview
      Digital Solutions Inc. (“Iview DVSI”), a corporation incorporated under the laws
      of the Province of Ontario, is a newly formed subsidiary incorporated in late
      2005 to focus on providing video surveillance products and technologies to
      the
      market.




**March
                31, 2008**
            
            **March
                31, 2007****Sales:**Cancable
            
            $
            8,871,904
            
            $
            6,136,499AC
                Technical
            
            
            1,846,753
            
            
            1,630,708Iview
            
            
            62,698
            
            
            24,529Creative
                Vistas, Inc.
            
            
            -
            
            
            1,884**Consolidated
                Total**
            
            $
            10,781,355
            
            $
            7,793,620**Depreciation
                and amortization:**Cancable
            
            $
            490,533
            
            $
            335,556AC
                Technical
            
            
            10,352
            
            
            9,745**Consolidated
                Total**
            
            $
            500,885
            
            $
            345,301**INTEREST
                EXPENSES:**Cancable
            
            $
            214,795
            
            
            244,070AC
                Technical
            
            
            -
            
            
            1,650Iview
            
            
            35,629
            
            
            50,521AC
                Acquisition
            
            
            12,398
            
            
            12,032Creative
                Vistas, Inc.
            
            
            4,170,095
            
            
            250,925**CONSOLIDATED
                TOTAL**
            
            $
            4,432,917
            
            
            559,198**Net
                (Loss):**Cancable
            
            $
            (1,824,129
            )
            $
            183,924AC
                Technical
            
            
            215,362
            
            
            31,767Iview
            
            
            (76,500
            )
            
            (54,934
            )AC
                Acquisition
            
            
            (12,398
            )
            
            (12,032
            )Corporate
                (1)
            
            
            (4,688,180
            )
            
            (680,823
            )**Consolidated
                Total**
            
            $
            (6,385,845
            )
            $
            (532,098
            )**TOTAL
                ASSETS**Cancable
            
            $
            12,275,543
            
            $
            8,459,876AC
                Technical
            
            
            3,623,690
            
            
            3,784,971Iview
            
            
            1,379,437
            
            
            1,538,235AC
                Acquisition
            
            
            -
            
            
            -Creative
                Vistas, Inc.
            
            
            7,233,587
            
            
            4,582,281Consolidated
                Total
            
            $
            24,512,257
            
            $
            18,365,363**CAPITAL
                ASSETS**Cancable
            
            $
            6,237,896
            
            $
            3,927,159AC
                Technical
            
            
            814,912
            
            
            763,103**Consolidated
                Total**
            
            $
            7,052,809
            
            $
            4,690,262**CAPITAL
                EXPENDITURES**Cancable
            
            $
            1,506,176
            
            $
            1,417,354AC
                Technical
            
            
            3,048
            
            
            -Iview
            
            
            -
            
            
            -AC
                Acquisition
            
            
            -
            
            
            -**CONSOLIDATED
                TOTAL**
            
            $
            1,509,224
            
            $
            1,417,354












(1) Corporate
      expenses primarily include certain stock-based compensation for consulting
      and
      advisory services, which we do not internally allocate to our segments because
      they are related to our common stock and are non-cash in nature.




Revenues
      by geographic destination and product group were as follows:





**Marc
                31, 2008**
            
            **March
                31, 2007**Contract
            
            $
            1,479,319
            
            $
            1,327,247Service
            
            
            9,291,977
            
            
            6,453,929Others
            
            
            10,059
            
            
            12,444Total
                sales to external customers
            
            $
            10,781,355
            
            $
            7,793,620





Revenue
      generated by the Company in Canada and United States was $10,501,775
      (2007:$7,793,620) and $279,580 (2007: $Nil).





**Item
      2.** **Management's
      Discussion And Analysis** **of
      Financial Condition and Results of Operations**


(Unaudited)




The
      following discussion of the financial condition and results of operations should
      be read in conjunction with the consolidated financial statements and related
      notes thereto. The following discussion contains certain forward-looking
      statements that involve risks and uncertainties. Our actual results could differ
      materially from those discussed therein. Factors that could cause or contribute
      to such differences include, but are not limited to, risks and uncertainties
      related to the need for additional funds, the rapid growth of the operations
      and
      our ability to operate profitably a number of new projects. Except as required
      by law, we do not intend to publicly release the results of any revisions to
      those forward-looking statements that may be made to reflect any future events
      or circumstances.




**Results
      of Operations**




**Comparison
      of Three Months Period Ended March 31, 2008**




**to
      Period Ended March 31, 2007**




For
      purposes of this “Management’s Discussion and Analysis or Plan of Operation”, we
      compared the three month period ended March 31, 2008, to the comparable period
      in 2007.




Sales :
      Sales
      for the three month period ended 2008 increased 38% to $10,781,400 from
      $7,793,600 for the three months period ended 2007. The increase in revenue
      was
      mainly due to the increase in service revenue of Cancable Segment to $8,871,900
      for the three month period ended 2008 from $6,136,500 for the same period in
      2007.







(a)
      Cancable Segment - This segment includes Cancable Inc., XL Digital and OSS-IM
      View (collectively, “Cancable Group”). The principal activity is provisioning
      the deployment and servicing of broadband technologies in both residential
      and
      commercial markets. The Cancable Group’s service offering, network deployment,
      IT integration, and support services, enable the cable television and
      telecommunications industries to deliver a high quality broadband experience
      to
      their customers. In October 2007, we acquired XL Digital which is incorporated
      under the laws of Ontario and with the same principal business activity of
      Cancable Inc. XL Digital, with over 70 employees, provides its deployment and
      provisioning services for Rogers Cable Inc. within two territories where the
      Company did not have a presence.  Total
      revenue of this segment for the first quarter of fiscal 2008 was $8,871,900
      from
      $6,136,500 for the same period in fiscal 2007. The increase reflects continued
      growth in revenue, particularly with the business from Rogers Cable Inc. We
      continued to allocate resources to support the growth of our business. During
      the first quarter of fiscal 2008, Cancable signed a multi-year contract with
      one
      of the largest cable and media companies in the United States. Under the terms
      of the contract, Cancable will perform installation, customer service and
      fulfillment for this multi-billion dollar cable and media conglomerate in
      Charlotte, North Carolina and surrounding communities. Total revenue generated
      in the United States was $280,000 for the period ended March 31,
      2008.  Rogers
      Cable Inc. is Cancable Group’s largest customer and the revenue from this
      customer for the first quarter of fiscal 2008 was approximately $6,508,100
      or
      73.4% of its total Cancable revenue compared to $4,457,800 or 72.6% for the
      three months ended March 31, 2007. (b) AC Technical segment - Total revenue
      of
      AC Technical segment was $1,846,800 for the first quarter of fiscal year 2008
      compared to $1,630,700 for the first quarter of fiscal year 2007. Contract
      revenue increased to $1,479,300 for the three months ended March 31, 2008
      compared to $1,327,200 for the same period of fiscal 2007. This increase was
      mainly due to an increase in the number of subcontracts for the provision of
      services to government and commercial contracts. The service revenue has
      increased to $420,100 for the three months ended March 31, 2008 from $317,400
      for the same period of fiscal 2007. Service revenue primarily represents the
      cumulative effect of the growth in contracts and number of customers over the
      past few years. We have experienced a significant increase in the number of
      inquiries for systems from the government and retail sector. This increased
      interest in security products and services may result in our achieving increased
      revenues in future periods if we are successful in attracting new customers or
      obtaining additional projects from existing customers. There is no assurance
      that the Company will be able to attract new customers.




Cost
      of Goods Sold :
      Cost of
      goods sold as a percentage of revenue for the three months ended March 31,
      2008
      was $8,307,900 or 77.1% of revenues compared to $5,531,700 or 71.0% of revenues
      for the three months period ended March 31, 2007. The increase in cost of sales
      and a percentage of sales resulted principally from the increase in service
      revenue from $6,453,900 for the three months period ended March 31, 2007 to
      $9,291,980 for the three months period ended March 31, 2008. (a) Cancable
      segment - Cost of sales of this segment was $7,407,200 for the three months
      ended March 31, 2008, which is comprised principally of labor expenses
      $5,589,700, vehicle expenses $705,350 and material cost $539,800. The increase
      in cost of sales is primarily due to the revenue growth discussed above. (b)
      AC
      Technical segment - Cost of sales of this segment was $864,900. The material
      cost was $591,900 or 32.1% of the AC Technical revenue for the three months
      ended March 31, 2007 compared to $596,700 or 36.6% of revenues in the same
      period of fiscal 2007. The decrease in percentage of the material cost was
      mainly due to some contracts having less material needs. On
      the other hand, the labor and subcontractor cost decreased to $264,100 or 14.3%
      of AC Technical revenues for the three months ended March 31, 2008 and $296,900
      or 18.2% of AC Technical revenues for fiscal 2007. The decrease in labor and
      subcontractor cost was mainly due to the increase in efficiency.




Project,
      Selling, General and Administrative Expenses :
      Project, selling, general and administrative expenses for the three months
      ended
      March 31, 2008 was $4,126,900 or 38.3% of revenues for the three months ended
      2008 compared to $2,208,500 or 28.3% of revenues for the same period of fiscal
      2007. The balance is mainly comprised of the following:




Project
      cost was $326,100 or 3.0% of revenue for the three months ended March 31, 2008,
      compared to $281,700 or 3.6% for the same period of fiscal year 2007. Project
      cost was mainly related to the AC Technical segment. The balance mainly includes
      the salaries and benefits of indirect staff amounting to $208,700 in the first
      quarter of fiscal 2008 compared to $157,800 for the same period of fiscal 2007.
      The increase was mainly due to the increase in headcounts. The automobile and
      travel expenses were approximately $65,900 for the three months ended March
      31,
      2008 compared to $64,600 for the same period of fiscal 2007. There was no
      material fluctuation of percentage in automobile and travel
      expenses.




Selling
      expense was $218,600 or 2.0% of revenues for thefirst quarter of 2008 compared
      to $175,800 or 2.3% of revenues for the first quarter of fiscal 2007. Selling
      expenses were mainly related to AC Technical segment. As at March 31, 2008,
      we
      have 5 salespersons in AC Technical segment, compared to 4 salespersons as
      at
      March 31, 2007. The balance for the three months ended March 31, 2007 is mainly
      comprised of salaries and commission to salespersons of $174,500 compared to
      $129,600 for the same period of fiscal 2007. The increase was mainly due to
      the
      increase in headcounts. The advertising and promotion and trade show expenses
      were $28,000 in the first quarter of fiscal 2008 compared to $35,300 for the
      same period of fiscal 2007 with no material fluctuation.







General
      and administrative expenses were $3,582,300 or 33.2% of revenues for the three
      month period ended March 31, 2008 compared to $1,750,900 or 22.5% for the same
      period of fiscal 2007. The balance for the three months ended March 31, 2008
      is
      mainly comprised of $203,300 of professional fees related to fees for the
      quarterly reports and other corporate matters. In addition, investor relations
      expenses amounted to $142,500 for the three month period ended March 31, 2008
      compared to $57,000 for the same period last year. Total salaries and benefits
      to administrative staff were $1,086,300 for the first quarter of 2008 compared
      to $577,000 for the same period last year. Total depreciation of property plant
      and equipment was $500,900 for the first quarter of fiscal 2008 compared to
      $345,300 for the same period of last year. The increase in balance was mainly
      due to the increase in property, plant and equipment.




Interest
      and other Expenses :
      Interest and net other expenses for the three months ended March 31, 2008,
      was
      $4,732,400 or 44% of revenues compared to net expenses of $585,600 or 7.5%
      of
      the revenues for the same period of fiscal 2007. The balance for the current
      period is primarily comprised of the amortization of deferred charges amounting
      to $44,200 compared to $45,300 for the same period of fiscal 2007. Additionally,
      net financing expenses increased to $4,432,900 or 41.1% of revenues compared
      to
      $559,200 or 7.2% of revenues for the same period of fiscal 2007. During the
      three months ended March 31, 2008, the Company entered into two financing
      arrangements in which the Company has issued 2,030,865 warrants with a value
      of
      $3,723,600. The interest due with respect to the Company’s credit facility was
      $318,900 for the three months ended March 31, 2008 compared to $425,200 in
      the
      same period of 2007. The decrease in the balance was due to the decrease in
      outstanding payables of the term notes from $16,616,300 as at March 31, 2007
      to
      $15,535,600 as at March 31, 2008.




Income
      taxes :
      No
      income tax was paid for the period ended March 31, 2008, which was mainly due
      to
      the Company’s losses carried forward to offset all income generated by the
      Company. All prior taxes have already been accounted for in the income tax
      recoverable and therefore, there is no additional provision for income taxes
      recoverable and deferred tax asset.




Net
      Income/Loss :
      Net
      loss for the three months ended March 31, 2008 was $6,385,800 compared to net
      loss of $532,100 for the three month period ended March 31, 2007. The Company’s
      operating loss was $1,653,500 for the first quarter of fiscal 2008 compared
      to
      operating income of $53,000 for the same period of fiscal 2007. The loss was
      primarily attributed to the financing transactions in January 2008.




**Liquidity
      and Capital Resources**




Since
      our
      inception, we have financed our operations through bank debt, loans and equity
      from our principals, loans from third parties and funds generated by our
      business. At March 31, 2008, we had $1,215,800 in cash. We believe that cash
      from operations and our credit facilities with our banks will continue to be
      adequate to satisfy the ongoing working capital needs of the Company. During
      fiscal year 2008, our primary objectives in managing liquidity and cash flows
      will be to ensure financial flexibility to support growth and entry into new
      markets and improve inventory management and to accelerate the collection of
      accounts receivable.




Net
      Cash Used in Operating Activities .
      Net
      cash used in operating activities amounted to $399,800 for the three months
      ended March 31, 2008. The changes in operating assets and liabilities resulted
      in a use of cash of $1,055,999, which included a $543,400 decrease in accounts
      receivable, a $187,100 decrease in inventory, a $626,600 increase in prepaid
      expenses, a $438,700 increase in accounts payable, a $182,100 decrease in income
      tax recoverable and a $37,100 increase in deferred revenue.




Comparison
      of the balance sheet as at March 31, 2008 to December 31, 2007




Accounts
      Receivable




Our
      accounts receivable decreased by approximately $767,800 compared to the balance
      as at December 31, 2007. Accounts receivable of Cancable segment were
      $3,400,800 as at March 31, 2008 compared to $3,989,100 as at December 31, 2007. Accounts
      receivable of AC Technical segment was $1,908,400 as at March 31, 2008 compared
      to $2,083,200 as at December 31, 2007. The
      decrease in balance was mainly due to the timing of payments from our customers.







Inventory




Inventory
      on hand at
      March 31, 2008 was $870,100 compared to $1,043,800 as at December 31, 2007.
      The
      inventory of the Cancable segment as at March 31, 2008 was $173,700 compared
      to
      $363,600 as at December 31, 2007. There was no material fluctuation from the
      fiscal year ended December 31, 2007. The inventory of AC Technical segment
      as at
      March 31, 2008 was $382,700 compared to $638,900 as at December 31, 2007. The
      level of inventory was higher as we had purchased the inventory as at December
      31, 2007 for jobs the Company began to work on during the first quarter of
      2008.




Accounts
      Payable and Accrued Liabilities




Accounts
      payable increased to approximately $6,326,600 as at March 31, 2008 from
      $6,074,200 as at December 31, 2007. The increase was mainly due to the timing
      of
      payments to our suppliers.




Deferred
      Revenue




Deferred
      revenue increased to $124,300 as at March 31, 2008 compared to $91,900 the
      balance as at December 31, 2007. This increase was mainly due to the timing
      of
      payments by our customers. Deferred revenue primarily relates to payments
      associated with contracts in which revenue is recognized on a percentage of
      completion basis.




Incomes
      Taxes Recoverable




The
      decrease in income taxes recoverable was mainly due to the Company’s receipt of
      a refund from the Government relating to the losses carried back to prior years
      and investment tax credits.




Net
      Cash Used in Investing Activities .
      Net
      cash used in investing activities was $861,200 for the three months ended March
      31, 2008, compared to $5,781 used for the three months ended March 31, 2007.
      The
      balance for both periods was mainly due to the purchase of property and
      equipment of the Company and offset by the sale proceeds from the sale of
      property and equipment. For the three month period ended March 31, 2008, the
      Company has paid $300,000 for the acquisition of XL Digital.




Net
      Cash Provided From Financing Activities .
      Net
      cash provided by financing activities was $464,400 for the three months ended
      March 31, 2008 compared to net cash used of $394,300 for the three months ended
      March 31, 2007. Last year’s balance mainly represents the repayment of capital
      leases and term notes in the amount of $573,400. The current year balance
      represents net proceeds received from new banking facilities set up with a
      Canadian financial institution in the amount of $1,043,000. The balance was
      offset with the repayment of term notes and capital leases in the amount of
      $632,600.




Our
      capital requirements have grown since our inception with the growth of our
      operations and staffing. We expect our capital requirements to continue to
      increase in the future as we seek to expand our operations. On September 30,
      2004, we obtained funding through a series of agreements with Laurus. In 2006,
      through our wholly owned subsidiary, we acquired
      all of the issued and outstanding shares of capital stock and any other equity
      interests of Cancable. Simultaneously, Cancable entered into a series of
      agreements with Laurus whereby Cancable issued to Laurus a secured term note
      (the “Cancable Note”) in the amount of $6,865,000. We completed a refinancing
      transaction with Laurus in February 2006; we
      issued
      to Laurus a secured term note (the “Company Note”) in the amount of $8,250,000
      and Iview DSI issued to Laurus a secured term note (the “Iview Note”) in the
      amount of $2,000,000. Simultaneously with the closing of this refinancing
      transaction, we paid off the entire outstanding principal amount and all
      obligations due to Laurus under the Secured Convertible Term Note dated
      September 30, 2004, the Secured Convertible Minimum Borrowing Note dated
      September 30, 2004 and the Secured Revolving Note dated September 30, 2004
      (collectively, the “2004 Notes”) and such 2004 Notes were subsequently
      cancelled.





Over
      the
      next twelve months we believe that our existing capital will be sufficient
      to
      sustain our operations. Management plans to seek additional capital in the
      future to fund operations, growth and expansion through additional equity,
      debt
      financing or credit facilities. We have had early stage discussions with
      investors about potential investment in our firm at a future date. No assurance
      can be made that such financing would be available, and if available it may
      take
      either the form of debt or equity. In either case, the financing could have
      a
      negative impact on our financial condition and our shareholders.








***Recent
      Accounting Pronouncements***




In
      September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements.” This
      standard establishes a standard definition for fair value, establishes a
      framework under generally accepted accounting principles for measuring fair
      value and expands disclosure requirements for fair value measurements. This
      standard is effective for financial statements issued for fiscal years beginning
      after November 15, 2007. Adoption
      of this statement is not expected to have any material effect on our financial
      position or results of operations .





In
      September 2006, the FASB issued Financial Accounting Standard No. 158,
“Employers’ Accounting for Defined Benefit Pension and Other Postretirement
      Plans, an amendment of FASB Statement Nos. 87, 88, 106, and 132(R *)* ,”
      or FAS 158. This Statement requires an employer that is a business entity and
      sponsors one or more single-employer defined benefit plans to (a) recognize
      the
      funded status of a benefit plan—measured as the difference between plan assets
      at fair value (with limited exceptions) and the benefit obligation—in its
      statement of financial position; (b) recognize, as a component of other
      comprehensive income, net of tax, the gains or losses and prior service costs
      or
      credits that arise during the period but are not recognized as components of
      net
      periodic benefit cost pursuant to FAS 87, *Employers’
      Accounting for Pensions* ,
      or FAS 106, *Employers’
      Accounting for Postretirement Benefits Other Than Pensions* ;
      (c) measure defined benefit plan assets and obligations as of the date of the
      employer’s fiscal year-end statement of financial position (with limited
      exceptions); and (d) disclose in the notes to financial statements additional
      information about certain effects on net periodic benefit cost for the next
      fiscal year that arise from delayed recognition of the gains or losses, prior
      service costs or credits, and transition assets or obligations. An employer
      with
      publicly traded equity securities is required to initially recognize the funded
      status of a defined benefit postretirement plan and to provide the required
      disclosures as of the end of the fiscal year ending after December 15, 2006.
      This statement is not expected to have a significant effect on our financial
      statements.





In
      February 2007, the FASB issued **** Financial
      Accounting Standard No. 159 *The
      Fair Value Option for Financial Assets and Financial Liabilities—Including an
      amendment of FASB Statement No. 115* or FAS
      159. This Statement permits entities to choose to measure many financial
      instruments and certain other items at fair value. Most of the provisions of
      this Statement apply only to entities that elect the fair value option.




The
      following are eligible items for the measurement option established by this
      Statement:






1.
            Recognized
                financial assets and financial liabilities
                except:






a.
            An
                investment in a subsidiary that the entity is required to
                consolidate






b.
            An
                interest in a variable interest entity that the entity is required
                to
                consolidate






c.
            Employers’
                and plans’ obligations (or assets representing net overfunded positions)
                for pension benefits, other postretirement benefits (including health
                care
                and life insurance benefits), post employment benefits, employee
                stock
                option and stock purchase plans, and other forms of deferred compensation
                arrangements.






d.
            Financial
                assets and financial liabilities recognized under leases as defined
                in
                FASB Statement No. 13,*Accounting
                for Leases.*






e.
            Deposit
                liabilities, withdrawable on demand, of banks, savings and loan
                associations, credit unions, and other similar depository
                institutions






f.
            Financial
                instruments that are, in whole or in part, classified by the issuer
                as a
                component of shareholder’s equity (including “temporary equity”). An
                example is a convertible debt security with a noncontingent beneficial
                conversion feature.






2.
            Firm
                commitments that would otherwise not be recognized at inception and
                that
                involve only financial instruments











3.
            Nonfinancial
                insurance contracts and warranties that the insurer can settle by
                paying a
                third party to provide those goods or
                services






4.
            Host
                financial instruments resulting from separation of an embedded
                nonfinancial derivative instrument from a nonfinancial hybrid
                instrument.






The
      fair
      value option:






1.
            May
                be applied instrument by instrument, with a few exceptions, such
                as
                investments otherwise accounted for by the equity
                method






2.
            Is
                irrevocable (unless a new election date
                occurs)






3.
            Is
                applied only to entire instruments and not to portions of
                instruments.






The
      Statement is effective as of the beginning of an entity’s first fiscal year that
      begins after November 15, 2007. Early adoption is permitted as of the beginning
      of a fiscal year that begins on or before November 15, 2007, provided the entity
      also elects to apply the provisions of FASB Statement No. 157, *Fair
      Value Measurements* .
      We have
      not yet determined what effect, if any, adoption of this Statement will have
      on
      our financial position or results of operations .




FIN
      48 -
‘Accounting for Uncertainty in Income Taxes’




In
      June 2006, the FASB issued Interpretation No. 48 (“FIN 48”), “Accounting for
      Uncertainty in Income Taxes”, an interpretation of SFAS No. 109. FIN 48
      prescribes a comprehensive model for how companies should recognize, measure,
      present and disclose uncertain tax positions taken or expected to be taken
      on a
      tax return. Under FIN 48, we shall initially recognize tax positions in the
      financial statements when it is more likely than not the position will be
      sustained upon examination by the tax authorities. We shall initially and
      subsequently measure such tax positions as the largest amount of tax benefit
      that is greater than 50% likely of being realized upon ultimate settlement
      with
      the tax authority assuming full knowledge of the position and all relevant
      facts. FIN 48 also revises disclosure requirements to include an annual tabular
      roll-forward of unrecognized tax benefits. We will adopt this interpretation
      as
      required in 2007 and will apply its provisions to all tax positions upon initial
      adoption with any cumulative effect adjustment recognized as an adjustment
      to
      retained earnings. Adoption
      of this statement is not expected to have any material effect on our financial
      position or results of operations.




EITF
      00-19-2, "Accounting for Registration Payment Arrangements".




In
      December 2006, the FASB issued Staff Position FSP EITF 00-19-2, "Accounting
      for
      Registration Payment Arrangements". This statement is effective for existing
      registration payment arrangements as of January 1, 2007, with earlier
      application permitted in previously-unissued financial statements. As discussed
      in Note 8 and as permitted by the FSP, we adopted the provisions of this FSP
      in
      our fourth quarter of 2006, resulting in re-classification of certain of our
      outstanding warrants from derivative instrument liabilities to
      equity.





In
      December 2007, the FASB issued SFAS No. 160 Noncontrolling Interests in
      Consolidated Financial Statements—an amendment of ARB No. 51. SFAS 160
      establishes accounting and reporting standards for the noncontrolling interest
      in a subsidiary and for the deconsolidation of a subsidiary. The guidance will
      become effective as of the beginning of the Company’s fiscal year beginning
      after December 15, 2008. The Company has not yet determined the impact, if
      any,
      of SFAS 160 on its consolidated financial statements.









**Off
      Balance Sheet Arrangements**




None ****




**DISCUSSION
      OF CRITICAL ACCOUNTING ESTIMATES**




Critical
      accounting estimates are those that management deems to be most important to
      the
      portrayal of our financial condition and results of operations, and that require
      management’s most difficult, subjective or complex judgments, due to the need to
      make estimates about the effects of matters that are inherently uncertain.
      We
      have identified six critical accounting estimates: accounts receivable
      allowances, goodwill, revenue, inventory, accounting for income taxes and
      financial instruments. See our Form 10-K for the year ended December 31, 2007,
      for a discussion of our critical accounting estimates.




**CAUTIONARY
      NOTE REGARDING FORWARD-LOOKING STATEMENTS**




This
      quarterly report contains forward-looking statements about our company that
      are
      not historical facts but, rather, are statements about future expectations.
      When
      used in this document, the words “anticipates,” “believes,” “expects,”
“intends,” “should” and similar expressions as they relate to us, or to our
      management, are intended to identify forward-looking statements. However,
      forward-looking statements in this document are based on management’s current
      views and assumptions and may be influenced by factors that could cause actual
      results, performance or events to be materially different from those projected.
      These forward-looking statements are subject to numerous risks and
      uncertainties. Important factors, some of which are beyond our control, could
      cause actual results, performance or events to differ materially from those
      in
      the forward-looking statements. These factors include impact of general economic
      conditions in North America, changes in laws and regulations, fluctuation in
      interest rates and access to capital markets.




Our
      actual results or performance could differ materially from those expressed
      in,
      or implied by, these forward-looking statements and, accordingly, we cannot
      predict whether any of the events anticipated by the forward-looking statements
      will transpire or occur, or if any of them do, what impact they will have on
      our
      results of operations and financial condition.




For
      further information about these and other risks, uncertainties and factors,
      please review the disclosure included in our December 31, 2007, Annual Report
      on
      Form 10-K under the caption “Risk Factors.”




You
      should not place undue reliance on any forward-looking statements. Except as
      otherwise required by federal securities laws, we undertake no obligation to
      publicly update or revise any forward-looking statements or risk factors,
      whether as a result of new information, future events, changed circumstances
      or
      any other reason after the date of this quarterly report.




**Item
      3.** **Quantitative
      and Qualitative Disclosures about Market Risk**




This
      item
      is not applicable to the Company because we are a smaller reporting
      company.




**Item
      4.** **Controls
      and Procedures**




We
      maintain a system of disclosure controls and procedures, as such term is defined
      in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed
      to
      provide reasonable assurance that information required to be disclosed by us
      in
      the reports that we file under the Exchange Act is recorded, processed,
      summarized and reported within the time periods specified in the SEC’s rules and
      forms, and that such information is accumulated and communicated to our
      management, including our Chief Executive Officer and Chief Financial Officer,
      as appropriate, to allow timely decisions regarding required
      disclosures.




We
      have
      carried out an evaluation under the supervision and with the participation
      of
      the Company’s management, including the Company’s Chief Executive Officer and
      Chief Financial Officer, of the effectiveness of the des ign
      and
      operation of our disclosure controls and procedures. Based upon their evaluation
      and subject to the foregoing ,
      the
      Chief Executive Officer and Chief Financial Officer concluded that such controls
      and procedures were effective as of the end of the period covered by this
      report, in all material respects, to ensure that required information will
      be
      disclosed on a timely basis in our reports filed under the Exchange
      Act.




In
      designing and evaluating the disclosure controls and procedures, our management
      recognized that any controls and procedures, no matter how well designed and
      operated, can provide only reasonable assurance of achieving the desired control
      objectives, and our management necessarily was required to apply their judgment
      in evaluating the cost-benefit relationship of  possible
      controls and procedures.








There
      were no changes in our internal control over financial reporting that occurred
      during the quarter ended March 31, 2008, that have materially affected, or
      are
      reasonably likely to materially affect our internal control over financial
      reporting.




**PART
      II.**  **OTHER
      INFORMATION**




**Item
      1.** **Legal
      Proceedings**




Not
      applicable.




**Item
      1A.**  **Risk
      Factors**




This
      item
      is not applicable to the Company because we are a smaller reporting
      company.




**Item
      2.** **Unregistered
      Sales of Equity Securities and Use of Proceeds**




Not
      applicable.




**Item
      3.** **Defaults
      upon Senior Securities**




Not
      applicable.




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




Not
      applicable.




**Item
      5.** **Other
      Information**




Not
      applicable.




**Item
      6.** **Exhibits**




(a)  Exhibits




31.1
            
            Certification
                of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
                Act of 200231.2
            
            Certification
                of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
                Act of 200232.1
            
            Chief
                Executive Officer certification pursuant to 18 U.S.C. Section 1350,
                as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                200232.2
            
            Chief
                Financial Officer certification pursuant to 18 U.S.C. Section 1350,
                as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002




SIGNATURES




In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.




CREATIVE
                VISTAS, INC.By:/s/
                Dominic BurnsDominic
                Burns, CEO





Dated:
      May 15, 2008