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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-K/A







|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the year ended December 31, 2007

or



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

For the transition period from  to

Commission File Number: 000-25385





POWER SPORTS FACTORY, INC.

(Exact name of registrant as specified in its
charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|MINNESOTA                                                      |  | 41-1853993                          
|(State of other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



|                                         |  |           
|---------------------------------------- |  | ----------
|6950 Central Highway, Pennsauken, NJ     |  | 08109     
|(Address of principal executive offices) |  | (Zip Code)

(856) 488-9333

Registrants telephone number, including area code)





Securities registered
pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common
Stock, No Par Value





Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     Yes   ̈    No  x

Indicate by checkmark if the registrant is not
required to file reports to Section 13 or 15(d)Of the Act.   ̈    Yes  x    No

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.  x    Yes   ̈    No

Indicate by check mark
if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a smaller reporting company. (Check One):



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

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

The aggregate market value of the voting and non-voting common equity held by non-affiliates as of the last business day of the registrants most recently completed second fiscal quarter was $1,047,493.

Number of shares of Common Stock outstanding as of April 1, 2008: 98,503,940.

Documents incorporated by reference: None









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POWER SPORTS FACTORY, INC.

INDEX



|             |  |                                                                                                  |  |     
|------------ |  | ------------------------------------------------------------------------------------------------ |  | ----
|             |  |                                                                                                  |  | Page
|Item 1.      |  | Business.                                                                                        |  | 1   
|Item 1A.     |  | Risk Factors.                                                                                    |  | 4   
|Item 1B.     |  | Unresolved Staff Comments.                                                                       |  | 10  
|Item 2.      |  | Properties.                                                                                      |  | 10  
|Item 3.      |  | Legal Proceedings.                                                                               |  | 10  
|Item 4.      |  | Submission of Matters to a Vote of Security Holders.                                             |  | 10  
|Item 5.      |  | Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |  | 10  
|Item 6.      |  | Selected Financial Data.                                                                         |  | 11  
|Item 7.      |  | Managements Discussion and Analysis of Financial Condition and Results of Operations.           |  | 11  
|Item 7A.     |  | Quantitative and Qualitative Disclosures About Market Risk.                                      |  | 14  
|Item 8.      |  | Financial Statements and Supplementary Data.                                                     |  | 15  
|Item 9.      |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.            |  | 31  
|Item 9A (T). |  | Controls and Procedures.                                                                         |  | 31  
|Item 9B.     |  | Other Information.                                                                               |  | 31  
|Item 10.     |  | Directors, Executive Officers, Promoters, Control Persons and Corporate Governance.              |  | 31  
|Item 11.     |  | Executive Compensation.                                                                          |  | 34  
|Item 12.     |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.  |  | 35  
|Item 13.     |  | Certain Relationships and Related Transactions, and Director Independence.                       |  | 36  
|Item 14.     |  | Principal Accountant Fees and Services.                                                          |  | 37  
|Item 15.     |  | Exhibits and Financial Statement Schedules.                                                      |  | 38  



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AS A PART OF THE REVIEW BY THE SECURITIES AND EXCHANGE COMMISSION OF THE COMPANYS PAST FILINGS UNDER THE
SECURITIES EXCHANGE ACT OF 1934, WE ARE FILING THIS AMENDMENT NO. 1 TO OUR FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2007 (THE 2007 FORM 10-KSB). THIS AMENDMENT NO. 1 AMENDS AND RESTATES THE FINANCIAL STATEMENTS AND THE INFORMATION UNDER
THE CAPTION MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. IN ORDER TO PRESERVE THE NATURE AND CHARACTER OF THE DISCLOSURES SET FORTH IN THE 2007 FORM 10-K AS OF APRIL 14, 2008, THE DATE ON
WHICH THE 2007 10-K WAS FILED, NO ATTEMPT HAS BEEN MADE IN THIS AMENDMENT NO. 1 TO MODIFY OR UPDATE DISCLOSURES EXCEPT AS DESCRIBED ABOVE AND EXCEPT THAT THE OFFICERS AND DIRECTORS OF THE COMPANY AT THIS TIME ARE SIGNING THIS AMENDMENT NO. 1.

PART I

This Annual Report on
Form 10-K contains forward-looking statements that have been made pursuant to the provisions of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation
Reform Act of 1995 and concern matters that involve risks and uncertainties that could cause actual results to differ materially from historical results or from those projected in the forward-looking statements. Discussions containing
forward-looking statements may be found in the material set forth under Business, Managements Discussion and Analysis of Financial Condition and Results of Operations and in other sections of this Form 10-K. Words
such as may, will, should, could, expect, plan, anticipate, believe, estimate, predict, potential,
continue or similar words are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Although we believe that our opinions and expectations reflected in the forward-looking
statements are reasonable as of the date of this Report, we cannot guarantee future results, levels of activity, performance or achievements, and our actual results may differ substantially from the views and expectations set forth in this Annual
Report on Form 10-K. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations.

Readers should carefully review and consider the various disclosures made by us in this Report, set forth in detail in Part I, under the heading Risk
Factors, as well as those additional risks described in other documents we file from time to time with the Securities and Exchange Commission, which attempt to advise interested parties of the risks, uncertainties, and other factors that
affect our business. We undertake no obligation to publicly release the results of any revisions to any forward-looking statements to reflect anticipated or unanticipated events or circumstances occurring after the date of such statements.



|Item 1. | Business.
|------- | ---------

General

Power Sports Factory, Inc. (the Company, we or us) was organized under the laws of the State of Minnesota on June 28, 1996. We
changed our name to Power Sports Factory, Inc. from Purchase Point Media Corp. effective June 10, 2008, to reflect the acquisition in September 2007 of a Delaware corporation of the same name. Through the acquisition in 1997 of a Nevada
corporation, we acquired the trademark, patent and exclusive marketing rights to, and have invested over one million dollars in the development of a grocery cart advertising display device called the last word®, a clear plastic display
panel that attaches to the back of the childs seat section in supermarket shopping carts.



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Power Sports Factory

Since this business remained in the development stage, our Board of Directors determined to acquire an operating business, and on April 24, 2007, we entered into a Share Exchange and Acquisition Agreement (the Share Exchange
Agreement), with Power Sports Factory, Inc., a Delaware corporation with offices in Pennsauken, New Jersey (PSF or Power Sports Factory), and the shareholders of PSF. PSF was formed in Delaware in June, 2003,
and imports, markets, distributes and sells motorcycles and scooters. Through PSFs manufacturing relationships in China, it began to import and sell Power Sports products in the United States. Its products have been marketed mainly under
the Strada and Yamati, and recently under the Andretti, brands. At the beginning of 2007, PSF made the determination to focus primarily on the sales and distribution of motor scooters. PSF now sells the motor
scooters that it imports primarily to power sports dealers and a small portion through the internet.

The Share Exchange Agreement

The Share Exchange Agreement provided for our acquiring all of the outstanding shares of PSF in exchange for shares of the Companys Common Stock and for the change
of our name to Power Sports Factory, Inc. and a 1:20 reverse split (the Reverse Split) of our outstanding common stock, both of which were effective June 10, 2008, pursuant to a definitive information statement filed with the
Securities and Exchange Commission (SEC). On May 14, 2007, we issued 60,000,000 shares of Common Stock to Steve Rubakh, the major shareholder of PSF, and on August 31, 2007, entered into an amendment (the Amendment)
to the Share Exchange Agreement, that provided for a completion of the acquisition of PSF at a closing (the Closing) which was held on September 5, 2007. At the Closing the Company issued 1,650,000 shares of a new Series B
Convertible Preferred Stock (the Preferred Stock) to the shareholders of PSF, to complete the acquisition of PSF by us. Each share of Preferred Stock is convertible into 10 shares of our Common Stock following effectiveness of the
Reverse Split.

Planned Share Dividend of last word® Business

Our Board of Directors accordingly determined that, following the acquisition of PSF, that we should transfer our then existing business relating to the development of last word® to our subsidiary The Last Word,
Inc. To distribute the existing business of the Company as of June 30, 2007 to our stockholders, the Board of Directors of the Company has declared a dividend, payable in common stock of our subsidiary holding our last word®
technology, at the rate of one share of common stock of this subsidiary for each share of common stock of the Company owned on the record date. The Board of Directors of the Company has fixed May 2, 2007, as the record date for this
share dividend, with a payment date as soon as practicable thereafter. Prior to the payment of this dividend, our subsidiary holding the last word® technology will have to file a registration statement under the Securities Act of 1933 with,
and have the filing declared effective by, the SEC. We plan to file the registration statement as soon as practicable following the filing of this Annual Report.

Our Business

The Motor Scooters That We Sell

Motor scooters are step-through or feet-forward vehicles with automatic transmissions. The motor scooter is engine-powered, with the drive system and engine usually
attached to either the rear axle or fixed under the seat of the vehicle. They range in engine size from 49.50cc to 600cc with the 150cc and higher motor scooters most capable of sustained highway speeds and capabilities to keep up with regular
motorcycles. Majority of motor scooters can be used on highways, but in certain states, 49.50cc scooters may only be used on certain types of roads, such as within the city limits.



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The motor scooters that we sell have engine sizes ranging from 49.50cc to 300 cc, with wheel sizes from 10 to
16. Most of motor scooters require a valid drivers license and a motorcycle registration. They comply and adhere to DOT safety and comfort standards too and hence, have good brakes, suspension, strength, power, and other things.

Our Manufacturing and Licensing Rights

On
May 15, 2007, PSF signed an exclusive licensing agreement with Andretti IV, LLC. Andretti IV, LLC, has the rights to the personal name, likeness and endorsement rights of certain members of the Mario Andretti family. This agreement allows
PSF to use the Andretti name to brand scooters for the next 10 years assuming minimum license fees are met.

We have an exclusive manufacturing arrangement
for the territory of the United States and Puerto Rico with one of the largest manufacturers in China for our Andretti branded line of motor scooters, utilizing the designs of an Italian company purchased by this manufacturer. We have to meet
certain annual volume requirements for different models of scooters we purchase under this arrangement. We purchase motor scooters from other manufacturers from time to time.

Product Warranty Policies

Our product warranty policy is two years on major parts or 5,000 miles and three years on
engines. In addition, the manufacturers of our parts and vehicles have their own warranty policies that limit our financial exposure to a certain extent during the first year of the warranty on major parts.

Marketing

We have three employees (other than our officers) involved
in sales and marketing. We have relationships with over 100 dealers.

We use a creative agency to handle all the advertising and marketing programs for our
products and also rely on our retailers for sales.

Competition

The motorscooter industry is highly competitive. The Companys competitors include specialty companies as well as large motor vehicle companies with diversified product lines. Competitors of the company in the motorcycle and scooter
category include Honda, Yamaha, Piaggio/Vespa, Keeway, Genuine Motor Company, Kymco, United Motors and Vento Motorcycles. A number of our competitors have significantly greater financial, technological, engineering, manufacturing, sales, marketing
and distribution resources than Power Sports Factory. Their greater capabilities in these areas may enable them to better withstand periodic downturns in the motorscooter industry, compete more effectively on the basis of price and production and
more quickly develop new products. In addition, new companies may enter the markets in which Power Sports Factory competes, further increasing competition. Power Sports Factory believes its ability to compete successfully depends on a number of
factors including the strength of licensed brand names, effective advertising and marketing, impressive design, high quality, and value.

Additionally, our
manufacturers may have relationships with our competitors in some or all markets or product lines. Pricing and supply commitments may be more favorable to our competitors. Power Sports Factory may not be able to compete successfully in the
future, and increased competition may adversely affect our financial results.

We believe that market penetration in this segment is difficult and, among
other things, requires significant marketing and sales expenditures. Competition in this market is based upon a number of factors, including price, quality, reliability, styling, product features, customer preference, and warranties. We intend to
compete based on competitively based pricing, quality of product offering, service, support, and styling.



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Government Regulation

The motorcycles and scooters we distribute are subject to certification by the U.S. Environmental Protection Agency (EPA) for compliance with applicable emissions and noise standards, and by California regulatory authorities
with respect to emissions, tailpipe, and evaporative emissions standards. All motorscooters, components and manufactured parts are subject to Department of Transportation (DOT) standards. Certain states have minimum product and general
liability and casualty insurance liability requirements prior to granting authorizations or certifications to distributors to sell motor vehicles and scooters. Without this insurance we are not permitted to sell these vehicles to motor vehicle
dealers in certain states. We have secured product liability policy coverage of $10 million per occurrence. While we believe that this policy limit will be sufficient initially in order to qualify us to do business, the insurance requirements that
are imposed upon us may vary from state to state, and will increase if and as sales increase or as the products we offer increase in variety. Additionally, these insurance limits do not represent the maximum amounts of our actual potential liability
and motor vehicle liability tort claims may exceed these claim amounts substantially. No assurance can be made that we will be able to satisfy each states insurance coverage requirements or that we will be able to maintain the policy limits
necessary from time to time in order to permit sales of our products in various jurisdictions that require such coverage and, if a liability arises, no assurance can be made that these insurance limits will be sufficient.

Agent for Service of Process

To comply and maintain with Federal
regulations under National Highway Traffic Safety Administration (NHTSA), we act as Agent for Service of Process for all the products manufactured under the Yamati and Strada brand names.

Intellectual Property

We have applied for trademarks for our
Power Sports Factory and Yamati brand names with the U.S. Patent and Trademark Office.

Employees

As of January 1, 2008, we had 10 employees (excluding our two executive officers), eight of whom are employed at our Pennsauken, New Jersey offices. All of our
employees were employed on a full-time basis including three salespersons, two administrative persons and five operations persons. We are not a party to a collective bargaining agreement with our employees and we believe that our relationship with
our employees is satisfactory.



|Item 1A. | Risk Factors.
|-------- | -------------

We will require additional financing to sustain
operations and, without it, we may not be able to continue operations.

We require additional financing to sustain operations. Our inability to raise
additional working capital at all or to raise it in a timely manner may negatively impact our ability to fund the operations, to generate revenues, and to otherwise execute the business plan, leading to the reduction or suspension of the operations
and ultimately termination of the business. If we obtain additional financing by issuing debt securities, the terms of these securities could restrict or prevent the Company from paying dividends and could limit flexibility in making business
decisions.



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Our future success depends on our ability to respond to changing consumer demands, identify and interpret trends in
the industry and successfully market new products.

The motor scooter industry is subject to rapidly changing consumer demands, technological
improvements and industry standards. Accordingly, we must identify and interpret vehicle trends and respond in a timely manner. Demand for and market acceptance of new products are uncertain and achieving market acceptance for new products generally
requires substantial product development and marketing efforts and expenditures. If we do not continue to meet changing consumer demands and develop successful product lines in the future, the Companys growth and profitability will be
negatively impacted. If radical changes in transportation technology occur, it could significantly diminish demand for our products. If we fail to anticipate, identify or react appropriately to changes in product style, quality and trends or is
not successful in marketing new products, we could experience an inability to profitably sell our products even at lower cost margins. These risks could have a severe negative effect on our results of operations or financial condition.

Our product offering is currently heavily concentrated.

The Company currently concentrates on the sale of motor scooters. If consumer demand for motor scooters in general, or the Companys offerings specifically, wanes or fails to grow, our ability to sell motor scooters may be
significantly impacted.

Our business and the success of our products could be harmed if Power Sports Factory is unable to maintain their brand image.

Our success is heavily dependent upon the market acceptance of our Andretti and Yamati branded lines of motor scooters. If we are unable to
timely and appropriately respond to changing consumer demand, the brand names and brand images Power Sports Factory distributes may be impaired. Even if we react appropriately to changes in consumer preferences, consumers may consider those brand
images to be outdated or associate those brands with styles of vehicles that are no longer popular. We invest significantly in our branded presentation to the marketplace. Lack of acceptance of our brands will have a material impact on the
performance of the Company.

Our business could be harmed if we fail to maintain proper inventory levels.

We place orders with manufacturers for most products prior to the time we receive customers orders. We do this to minimize purchasing costs, the time necessary to
fill customer orders and the risk of non-delivery. However, we may be unable to sell the products we have ordered in advance from manufacturers or that we have in inventory. Inventory levels in excess of customer demand may result in inventory
write-downs, and the sale of excess inventory at discounted prices could significantly impair brand image and have a material adverse effect on operating results and financial condition. Conversely, if we underestimate consumer demand for our
products or if our manufacturers fail to supply the quality products that we require at the time we need them, the Company may experience inventory shortages. Inventory shortages might delay shipments to customers, negatively impact retailer and
distributor relationships, and diminish brand loyalty.

Our products are subject to extensive international, federal, state and local safety,
environmental and other government regulation that may require us to incur expenses, modify product offerings or cease all or portions of our business in order to maintain compliance with the actions of regulators.

Power Sports Factory must comply with numerous federal and state regulations governing environmental and safety factors with respect to its products and their use. These
various governmental regulations generally relate to air, water and noise pollution, as well as safety standards. If we are unable to obtain the necessary certifications or authorizations required by government standards, or fail to maintain them,
business and future operations would be harmed seriously.



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Use of motorcycles and scooters in the United States is subject to rigorous regulation by the EPA, and by state pollution
control agencies. Any failure by the Company to comply with applicable environmental requirements of the EPA or state agencies could subject the Company to administratively or judicially imposed sanctions such as civil penalties, criminal
prosecution, injunctions, product recalls or suspension of production. Additionally, the Consumer Product Safety Commission exercises jurisdiction when applicable over the Companys product categories.

The Companys business and facilities also are subject to regulation under various federal, state and local regulations relating to the sale of its products,
operations, occupational safety, environmental protection, hazardous substance control and product advertising and promotion. Failure to comply with any of these regulations in the operation of the business could subject the Company to
administrative or legal action resulting in fines or other monetary penalties or require the Company to change or cease business.

A significant adverse
determination in any material product liability claim against the Company could adversely affect our operating results or financial condition.

Accidents involving personal injury and property damage occur in the use of Power Sports Factorys products. Product liability insurance is presently maintained by the Company in the amount of $10,000,000 per occurrence.
While Power Sports Factory does not have any pending product liability litigation, no assurance can be given that material product liability claims against Power Sports Factory will not be made in the future. Adverse determination of material
product liability claims made against Power Sports Factory or a lapse in coverage could adversely affect our operating results or financial condition.

Significant repair and/or replacement with respect to product warranty claims or product recalls could have a material adverse impact on the results of operations.

Power Sports Factory provides a limited warranty for its products for a period of two years or 5,000 miles for parts and three years for engines. Although we have a one year warranty on parts and engine from our
manufacturer, sometimes a product is distributed which needs repair or replacement beyond that period. Our standard warranties of two years or 5,000 miles on major parts and three years on engines require us or our dealers to repair or replace
defective products during such warranty periods at no cost to the consumer.

Our business is subject to seasonality and weather conditions that may
cause quarterly operating results to fluctuate materially.

Motorcycle and scooter sales in general are seasonal in nature since consumer demand is
substantially lower during the colder season in North America. We may endure periods of reduced revenues and cash flows during off-season months and be required to lay off or terminate some employees from time to time. Building inventory during the
off-season period could harm financial results if anticipated sales are not realized. Further, if a significant number of dealers are concentrated in locations with longer or more intense cold seasons, or suffer other weather conditions, such as
Katrina on the Gulf Coast, a lack of consumer demand may impact adversely the Companys financial results.

Power Sports Factory faces intense
competition, including competition from companies with significantly greater resources, and if Power Sports Factory is unable to compete effectively with these companies, market share may decline and business could be harmed.



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The motorcycle and scooter industry is highly competitive. Our competitors include specialty companies as well as large
motor vehicle companies with diversified product lines. Many of our competitors have significantly greater financial, technological, engineering, manufacturing, sales, marketing and distribution resources than the Company. Their greater capabilities
in these areas may enable them to better withstand periodic downturns in the recreational vehicle industry, compete more effectively on the basis of price and production and more quickly develop new products. In addition, new companies may enter the
markets in which Power Sports Factory competes, further increasing competition. Additionally, our manufacturers may have relationships with our competitors in some or all markets or product lines. Pricing and supply commitments may be more
favorable to our competitors. Power Sports Factory may not be able to compete successfully in the future, and increased competition may adversely affect our financial results.

We have an exclusive licensing arrangement for a significant portion of our product offering.

Our exclusive
marketing arrangement with Andretti IV, LLC., requires us to pay Andretti IV a certain minimum payment per year. If we do not make the minimum payment, we may lose our exclusive license. Our licensing fee is a fixed cost according to the
agreement which may cause us to be inflexible in our pricing structure.

The failure of certain key manufacturing suppliers to provide us with scooters
and components could have a severe and negative impact on our business.

At this time, we purchase scooters from several Chinese manufacturers and we
rely on a small group of suppliers to provide us with components for our products, some of whom are located outside of the United States. If the manufacturers or these suppliers become unwilling or unable to provide the scooters and components,
there are a limited number of alternative manufacturers or suppliers who could provide them. Changes in business conditions, wars, governmental changes, and other factors beyond our control or which we do not presently anticipate, could affect our
ability to receive the scooters and components from our manufacturer and suppliers. Further, it could be difficult to find replacement components if our current suppliers fail to provide the parts needed for these products. A failure by our major
suppliers to provide scooters and these components could severely restrict our ability to manufacture our products and prevent us from fulfilling customer orders in a timely fashion.

We are currently negotiating for exclusive design and products from manufacturers that, in addition to other terms, will require us to make minimum purchase commitments. If we do not make the minimum amount of
purchases under the agreement, we may lose our exclusive rights to certain products and designs. Additionally we may have to agree to offer reciprocal purchasing exclusivity which could increase risks associated with single source supplying
such as pricing, quality control, timely delivery and market acceptance of designs.

Our business is subject to risks associated with offshore
manufacturing.

We import motorcycles and scooters into the United States from China for resale. All of our import operations are subject to tariffs
and quotas set by the U.S. and Chinese governments through mutual agreements or bilateral actions. In addition, China, where our products are manufactured, may from time to time impose additional new quotas, duties, tariffs or other restrictions on
our imports or exports, or adversely modify existing restrictions. Adverse changes in these import costs and restrictions, or our suppliers failure to comply with customs regulations or similar laws, could harm our business.

Our operations are also subject to the effects of international trade agreements and regulations such as the North American Free Trade Agreement, the Caribbean Basin
Initiative and the European Economic Area Agreement, and the activities and regulations of the World Trade Organization. Trade agreements can also impose requirements that adversely affect our business, such as setting quotas on products that may be
imported from a particular country into our key market, the United States. In fact, some trade agreements can provide our competitors with an advantage over us, or increase our costs, either of which could have an adverse effect on our business and
financial condition.



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In addition, the recent elimination of quotas on World Trade Organization member countries by 2005 could result in
increased competition from developing countries which historically have lower labor costs, including China. This increased competition, including from competitors who can quickly create cost and sourcing advantages from these changes in trade
arrangements, could have an adverse effect on our business and financial condition.

Our ability to import products in a timely and cost-effective manner
may also be affected by problems at ports or issues that otherwise affect transportation and warehousing providers, such as labor disputes or increased U.S. homeland security requirements. These issues could delay importation of products or require
us to locate alternative ports or warehousing providers to avoid disruption to our customers. These alternatives may not be available on short notice or could result in higher transit costs, which could have an adverse impact on our business and
financial condition.

Our international operations expose us to political, economic and currency risks.

All of our products came from sources outside of the United States. As a result, we are subject to the risks of doing business abroad, including:



| |  |  | currency fluctuations;
| | - |  | ----------------------



| |  |  | changes in tariffs and taxes;
| | - |  | -----------------------------



| |  |  | political and economic instability; and
| | - |  | ---------------------------------------



| |  |  | disruptions or delays in shipments.
| | - |  | -----------------------------------

Changes in
currency exchange rates may affect the relative prices at which we are able to manufacture products and may affect the cost of certain items required in our operation, thus possibly adversely affecting our profitability.

There are inherent risks of conducting business internationally. Language barriers, foreign laws and customs and duties issues all have a potential negative effect on
our ability to transact business in the United States. We may be subject to the jurisdiction of the government and/or private litigants in foreign countries where we transact business, and we may be forced to expend funds to contest legal matters in
those countries in disputes with those governments or with customers or suppliers.

We may suffer from infringements or piracy of our trademarks,
designs, brands or products.

We may suffer from infringements or piracy of our trademarks, designs, brands or products in the U.S. or
globally. Some jurisdictions may not honor our claims to our intellectual properties. In addition, we may not have sufficient legal resources to police or enforce our rights in such circumstances.

Unfair trade practices or government subsidization may impact our ability to compete profitably.

In an effort to penetrate markets in which the Company competes, some competitors may sell products at very low margins, or below cost, for sustained periods of time in order to gain market share and
sales. Additionally, some competitors may enjoy certain governmental subsidations that allow them to compete at substantially lower prices. These events could substantially impact our ability to sell our product at profitable prices.



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If Power Sports Factory markets and sells its products in international markets, we will be subject to additional
regulations relating to export requirements, environmental and safety matters, and marketing of the products and distributorships, and we will be subject to the effects of currency fluctuations in those markets, all of which could increase the cost
of selling products and substantially impair the ability to achieve profitability in foreign markets.

As a part of our marketing strategy, Power
Sports Factory plans to market and sell its products internationally. In addition to regulation by the U.S. government, those products will be subject to environmental and safety regulations in each country in which Power Sports Factory markets and
sells. Regulations will vary from country to country and will vary from those of the United States. The difference in regulations under U.S. law and the laws of foreign countries may be significant and, in order to comply with the laws of these
foreign countries, Power Sports Factory may have to implement manufacturing changes or alter product design or marketing efforts. Any changes in Power Sports Factorys business practices or products will require response to the laws of foreign
countries and will result in additional expense to the Company.

Additionally, we may be required to obtain certifications or approvals by foreign
governments to market and sell the products in foreign countries. We may also be required to obtain approval from the U.S. government to export the products. If we are delayed in receiving, or are unable to obtain import or export clearances, or if
we are unable to comply with foreign regulatory requirements, we will be unable to execute our complete marketing strategy.

We plan to significantly
increase operating expenses related to advertising and the expansion of sales and support departments.

Because of our intent to launch the Andretti
brand, we expect to incur significant expenditures in advertising and promotions introducing and maintaining visibility of the brand in the marketplace, assuming that the financial resources are available to do so. We also intend to add
significant personnel to our sales and support departments. In the event that our advertising campaigns are not successful, and we do not realize significant increases in revenues, our financial results could be adversely affected.

Our plan to grow will place strains on the management team and other Company resources to both implement more sophisticated managerial, operational, technological
and financial systems, procedures and controls and to train and manage the personnel necessary to implement those functions. The inability to manage growth could impede the ability to generate revenues and profits and to otherwise implement the
business plan and growth strategies, which would have a negative impact on business.

If we fail to effectively manage growth, the financial results
could be adversely affected. Growth may place a strain on the management systems and resources. We must continue to refine and expand the business development capabilities. This growth will require the Company to significantly improve and/or replace
the existing managerial, operational and financial systems, procedures and controls, to improve the coordination between various corporate functions, and to manage, train, motivate and maintain a growing employee base. The Companys performance
and profitability will depend on the ability of the officers and key employees to: manage the business as a cohesive enterprise; manage expansion through the timely implementation and maintenance of appropriate administrative, operational, financial
and management information systems, controls and procedures; add internal capacity, facilities and third-party sourcing arrangements as and when needed; maintain quality controls; and attract, train, retain, motivate and effectively manage
employees. The time and costs to implement these steps may place a significant strain on management personnel, systems and resources, particularly given the limited amount of financial resources and skilled employees that may be available at the
time. We may not be able to successfully integrate and manage new systems, controls and procedures for the business, or even if we successfully



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integrate systems, controls, procedures, facilities and personnel, such improvements may not be adequate to support projected future operations. We may never
recoup expenditures incurred during our growth. Any failure to implement and maintain such changes could have a material adverse effect on our business, financial condition and results of operations.

We may make acquisitions which could divert managements attention, cause ownership dilution to stockholders and be difficult to integrate.

Given that our strategy envisions growing our business, we may decide that it is in the best interest of the Company to identify, structure and integrate acquisitions
that are complementary to, or accretive with, our current business model. Acquisitions, strategic relationships and investments often involve a high degree of risk. Acquisitions can place a substantial strain on current operations, financial
resources and personnel. Successful integrations may not be achieved, or customers may become dissatisfied with the Company. We may also be unable to find a sufficient number of attractive opportunities, if any, to meet our objectives.



|Item 1B. | Unresolved Staff Comments.
|-------- | --------------------------

Not applicable.



|Item 2. | Properties.
|------- | -----------

Our principal executive offices are located at our
6950 Central Highway, Pennsauken, New Jersey, and comprise an approximately 19,700 square foot facility, which is also the offices and warehouse for our motorcycle and scooter products. We lease this facility under a lease expiring
September 30, 2008, with a monthly rental rate of $8,800 through September 30, 2007, increasing to $9,100 on October 1, 2007 through September 30, 2008.

During our fiscal year ended June 30, 2007, we leased offices at 585 Southborough Drive, West Vancouver, BC, Canada, consisting of approximately 1,500 square feet of office space at a monthly rental rate of
$1,500. This lease has been assumed by our last word® subsidiary.



|Item 3. | Legal Proceedings.
|------- | ------------------

We are not a party to any other litigation nor
is its property the subject of any pending legal proceeding.



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

Not
Applicable.

PART II



|Item 5. | Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|------- | ------------------------------------------------------------------------------------------------

The Companys Common Stock trades on the OTC Bulletin Board of the National Association of Securities Dealers, Inc. (NASD) under the symbol PSPF. As of April 1, 2008, the Company had
approximately 490 holders of record of its Common Stock. These quotations represent prices between dealers, do not include retail mark ups, mark downs or commissions and do not necessarily represent actual transactions.

The following table sets forth for each period indicated the high and the low bid prices per share for the Companys Common Stock. The Common Stock commenced
trading on June 9, 1998.



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|                                       |  |      |      |     |   |     
|-------------------------------------- |  | ---- | ---- | --- | - | ----
|                                       |  | High |      | Low
|2008                                   |  |      |      |     |   |     
|First Quarter Ended March 31, 2008     |  | $    | 0.03 |     | $ | 0.02
|                                       |  |     
|2007                                   |  |      |      |     |   |     
|First Quarter Ended March 31, 2007     |  |      | 0.02 |     |   | 0.01
|Second Quarter Ended June 30, 2007     |  |      | 0.07 |     |   | 0.01
|Third Quarter Ended September 30, 2007 |  |      | 0.06 |     |   | 0.02
|Fourth Quarter Ended December 31, 2006 |  |      | 0.08 |     |   | 0.02
|                                       |  |     
|2006                                   |  |      |      |     |   |     
|First Quarter Ended March 31, 2006     |  |      | 0.08 |     |   | 0.02
|Second Quarter Ended June 30, 2006     |  |      | 0.08 |     |   | 0.02
|Third Quarter Ended September 30, 2006 |  |      | 0.08 |     |   | 0.08
|Fourth Quarter Ended December 31, 2006 |  |      | 0.03 |     |   | 0.02

The Company has never paid a cash dividend on its Common Stock and does not anticipate paying dividends in the
foreseeable future. It is the present policy of the Companys Board of Directors to retain earnings, if any, to finance the expansion of the Companys business. The payment of dividends in the future will depend on the results of
operations, financial condition, capital expenditure plans and other cash obligations of the Company and will be at the sole discretion of the Board of Directors



|Item 6. | Selected Financial Data.
|------- | ------------------------

The following selected financial data has
been derived from our audited financial statements and should be read in conjunction with such financial statements included herein.



|                                                 |  |                         |            |   |      |   |           |  
|------------------------------------------------ |  | ----------------------- | ---------- | - | ---- | - | --------- | -
|                                                 |  | Years EndedDecember 31, |           
|                                                 |  | 2007                    |            |   | 2006 |  
|Statement of operations data:                    |  |                         |            |   |      |   |           |  
|Net Sales                                        |  | $                       | 2,254,450  |   |      | $ | 4,877,155 |  
|Gross profit                                     |  |                         | 330,576    |   |      |   | 706,630   |  
|Gain (loss) from continuing operations           |  |                         | (2,729,286 | ) |      |   | (627,158  | )
|Gain (loss) from continuing operations per share |  |                         | (0.04      | ) |      |   | (0.01     | )
|                                                 |  |                        
|Balance sheet data:                              |  |                         |            |   |      |   |           |  
|Total assets                                     |  | $                       | 1,169,392  |   |      | $ | 2,270,677 |  
|Long-term debt                                   |  |                         | 34,604     |   |      |   | 12,639    |  



|Item 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations.
|------- | --------------------------------------------------------------------------------------

The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and notes thereto and the other financial information included elsewhere in
this report. Certain statements contained in this report, including, without limitation, statements containing the words believes, anticipates, expects and words of similar import, constitute forward
looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties. Our actual results may differ materially from those
anticipated in these forward-looking statements as a result of certain factors, including our ability to create, sustain, manage or forecast our growth; our ability to attract and retain key personnel; changes in our business strategy or development
plans; competition; business disruptions; adverse publicity; and international, national and local general economic and market conditions.



11



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Overview

The Company
was organized under the laws of the State of Minnesota on June 28, 1996. The Company, through the acquisition in 1997 of a Nevada corporation acquired the trademark, patent and exclusive marketing rights to, and has invested over
one million dollars in the development of a grocery cart advertising display device called the last word®, a clear plastic display panel that attaches to the back of the childs seat section in supermarket shopping carts.

To distribute this existing business of the Company following the PSF acquisition to our stockholders, the Board of Directors of the Company has declared
a dividend, payable in common stock of our subsidiary holding our last word® technology, at the rate of one share of common stock of this subsidiary for each share of common stock of the Company owned on the record date. The Board
of Directors of the Company has fixed May 2, 2007, as the record date for this share dividend, with a payment date as soon as practicable thereafter. Prior to the payment of this dividend, our subsidiary holding the last word®
technology will have to file a registration statement under the Securities Act of 1933 with, and have the filing declared effective by, the SEC. We plan to file the registration statement for this dividend as soon as practicable following the
filing of this Annual Report.

On April 24, 2007, we entered into the Share Exchange Agreement with PSF and the shareholders of PSF. The Share
Exchange Agreement provided for our acquiring all of the outstanding shares of PSF in exchange for shares of the Companys Common Stock. On May 14, 2007, we issued 60,000,000 shares of Common Stock to Steve Rubakh, the major shareholder of
PSF, and on August 31, 2007, entered into an amendment (the Amendment) to the Share Exchange Agreement, that provided for a completion of the acquisition of PSF at a closing (the Closing) which was held on
September 5, 2007. At the closing the Company issued 1,650,000 shares of a new Series B Convertible Preferred Stock (the Preferred Stock) to the shareholders of PSF, to complete the acquisition of PSF by us. Each share of
Preferred Stock is convertible into 10 shares of our Common Stock following effectiveness of the 1:20 reverse split described below. Pursuant to a Definitive Information Statement filed with the SEC, under the Securities Exchange Act of 1934, as
amended, the 1:20 reverse split of our outstanding common stock in connection with the Share Exchange Agreement, as well as changing our name to Power Sports Factory, Inc. from Purchase Point Media Corp. was effective June 10, 2008.

Results of Operations for the Years ended December 31, 2007 and December 31, 2006

Revenues. For the year ended December 31, 2007, net sales decreased to $2,254,350 from $4,877,155, a decrease of $2,622,805 from the year ended December 31, 2006. Such decrease was due to a
purposeful reduction in sales to permit management to focus on internal corporate restructuring in preparation for the launch of the Andretti brand in February 2008. The new management team that came in June 2007 reduced the number of products sold
from 40 different SKUs (product types) to three SKUs and also stopped selling ATVs and dirt bikes. In the year ended December 31, 2007, we sold 2,453 scooters, at an average price of approximately $920, as compared with sales
of 4,905 scooters at an average price of approximately $995 in 2006. We have encountered no difficulties in the manufacturing process for our scooters.

Gross Profit. Gross profit was $330,576 for the year ended December 31, 2007, compared to $706,630 for the year ended December 31, 2006, representing a decrease of $376,054 over the previous year.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased to approximately $2,332,912 for the year ended
December 31, 2007, from approximately $1,333,788 for the year ended December 31, 2006. Selling, general and administrative expense increased substantially in the year ended December 31, 2007 due to preparation for the launch of the
Andretti brand in February 2008. The following components of selling, general and administrative expense were up: consulting fees by $754,000, professional fees by $66,000, advertising expense by $64,000, license fees by $50,000, payroll expense by
$168,000, and travel and entertainment expense by $53,000; and the following components were down: bank charges by $80,000, commissions by $82,000, rent by $18,000, and office expense by $22,000.



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##### Table of Contents

The increase in selling, general and administrative expense in 2007 was mainly due to increased accounting, legal
and other costs associated with the acquisition of PSF, as well as increased staff expense.

Depreciation and Amortization Expense. Depreciation and
amortization expense decreased from approximately $8,000 in fiscal 2006 to approximately $1,943 for the year ended December 31, 2007. The decrease is primarily due to a lower equipment depreciation base and lower debt amortization in 2007.

Interest Expense. Interest expense decreased from $106,396 in fiscal 2006 to $68,856 in fiscal 2007. This decrease was due primarily to decreased
corporate debt incurred in 2007.

Net loss. Our net loss for the year ended December 31, 2007 was $2,748,049 compared to a net loss of $436,572
for the year ended December 31, 2006.

The fiscal 2007 net loss includes depreciation and amortization expense of $1,943, and interest expense of
$68,856. The fiscal year 2006 net loss includes depreciation and amortization expense of $7,984, and interest expense of $106,396.

Liquidity and
Financial Resources

Prior to the acquisition of Power Sports Factory, we have had no operations that have generated any revenue. We have had rely
entirely on private placements of Company stock to pay operating expenses. Our liquidity will depend primarily on consumer demand for our products, which demand is driven by consumer likes or dislikes about our product offering. Our sales are to
dealers and are driven by our ability to provide the market with products people want. Since the Andretti line of scooters is a new product offering, we do not believe that our past performance is necessarily indicative of consumer demand for our
new Andretti line.

We will always require capital to purchase product inventory in an amount sufficient to the meet the demands of our dealers. If we do
not have inventory financing in place, our liquidity would necessarily be affected since we would be limited in ordering product. We estimate that approximately $3,000,000 of inventory financing will be required for our marketing of the new Andretti
line. We are currently negotiating this financing. There is no assurance that we will be successful in these negotiations. If our new Andretti product line does not meet with market acceptance, or we are unsuccessful in negotiating required
financing for product sales, we would have to terminate operations and most likely file for reorganization.

As of December 31, 2007, the Company had
$11,146 of cash on hand. The Company has incurred a net loss of $2,748,049 in the year ended December 31, 2007, and has working capital and stockholders deficiencies of $1,599,350 and $1,552,689, respectively, at December 31,
2007. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. These conditions raise substantial doubt about the Companys ability to continue as a going concern. The
financial statements do not include any adjustments that might result from the outcome of this uncertainty.

During the year ended December 31, 2007,
the Company received $270,000 from the sale of preferred stock, the proceeds of a $175,000 capital contribution by a shareholder, and $400,000 from issuance of convertible debt. We will require substantial additional financing to maintain our
operations and to expand our operations to continue the launch of our new Andretti brand.

Critical Accounting Policies

The Securities and Exchange Commission recently issued Financial Reporting Release No. 60 Cautionary Advice Regarding Disclosure About Critical Accounting
Policies (FRR 60), suggesting companies



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provide additional disclosures, discussion and commentary on those accounting policies considered most critical to its business and financial reporting
requirements. FRR 60 considers an accounting policy to be critical if it is important to the Companys financial condition and results of operations, and requires significant judgment and estimates on the part of management in the
application of the policy. For a summary of the Companys significant accounting policies, including the critical accounting policies discussed below, please refer to the accompanying notes to the financial statements.

The Company assesses potential impairment of its long-lived assets, which include its property and equipment and its identifiable intangibles such as deferred charges
under the guidance of SFAS 144 Accounting for the Impairment or Disposal of Long-Lived Assets. The Company must continually determine if a permanent impairment of its long-lived assets has occurred and write down the assets to their fair
values and charge current operations for the measured impairment.

The Companys discussion and analysis of its financial condition and results of
operations are based upon the Companys financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the financial statements, requires the
Company to make estimates and judgments that effect the reported amount of assets, liabilities, and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those
related to intangible assets, income taxes and contingencies and litigation. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form
the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.



|Item 7A. | Quantitative and Qualitative Disclosures About Market Risk.
|-------- | -----------------------------------------------------------

We are
primarily exposed to foreign currency risk, interest rate risk and credit risk.

Foreign Currency RiskWe import products from China into the United
States and market our products in North America. As a result, our financial results could be affected by factors such as changes in foreign currency exchange rates or, if we initiate our planned international operations, weak economic conditions in
foreign markets. Because our revenues are currently denominated in U.S. dollars, a strengthening of the dollar could make our products less competitive in foreign markets that we plan to enter. If the Chinese Yuan strengthened against the
dollar, our cost of imported products could increase and make us less competitive. We have not hedged foreign currency exposures related to transactions denominated in currencies other than U.S. dollars. We do not engage in financial transactions
for trading or speculative purposes.

Interest Rate RiskInterest rate risk refers to fluctuations in the value of a security resulting from changes
in the general level of interest rates. Investments that are classified as cash and cash equivalents have original maturities of three months or less. Our interest income is sensitive to changes in the general level of U.S. interest rates. We
do not have significant short-term investments, and due to the short-term nature of our investments, we believe that there is not a material risk exposure.

Credit RiskOur accounts receivables are subject, in the normal course of business, to collection risks. We regularly assess these risks and have established policies and business practices to protect against the adverse effects of
collection risks. As a result we do not anticipate any material losses in this area.



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|Item 8. | Financial Statements and Supplementary Data.
|------- | --------------------------------------------



|                                                                                                                       |  |     
|---------------------------------------------------------------------------------------------------------------------- |  | ----
|                                                                                                                       |  | Page
|Report of Independent Registered Public Accounting Firm                                                                |  | 14  
|                                                                                                                       | 
|Consolidated Balance Sheets at December 31, 2007                                                                       |  | 15  
|                                                                                                                       | 
|Consolidated Statements of Operations for the Years Ended December 31, 2007 and 2006                                   |  | 16  
|                                                                                                                       | 
|Consolidated Statements of Stockholders Equity (Deficiency) for the Period January 
1, 2006 through December 31, 2007 |  | 17  
|                                                                                                                       | 
|Consolidated Statement of Cash Flows for the Years Ended December 31, 2007 and 2006                                    |  | 18  
|                                                                                                                       | 
|Notes to Consolidated Financial Statements                                                                             |  | 20  



15



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##### Table of Contents

MADSEN & ASSOCIATES, CPAs INC.

Certified Public Accountants and Business Consultants

684 East Vine St
.. #3

Murray,

Utah 84107

Telephone 801-268-2632

Fax 801-262-3978

Board of Directors

Purchase Point Media Corp. and Subsidiary

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have audited the accompanying consolidated balance sheet of Purchase Point Media Corp. and Subsidiary at December 31, 2007 and the consolidated statements of operations, stockholders
equity, and cash flows for the years ended December 31, 2007 and 2006. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on
our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have nor were we engaged to perform an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness for the companys internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the over all financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of Purchase Point Media Corp. and Subsidiary at December 31, 2007 and the consolidated statements of operations, and cash flows for the years ended December 31, 2007 and 2006 in conformity with accounting principles
generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a
going concern. The Company will need additional working capital for its planned activity and to service its debt, which raises substantial doubt about its ability to continue as a going concern. Managements plans in regard
to these matters are described in the notes to the financial statements. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The Companys financial statements for the year ended December 31, 2007 were revised and restated to include the issuance of additional preferred shares and the results of a reverse merger as disclosed in
note 13.

Salt Lake City, Utah

June 16, 2008, except for
Note 13 which is dated August 12, 2008



/s/ Madsen & Associates, CPAs Inc.




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POWER SPORTS FACTORY, INC.

CONSOLIDATED BALANCE SHEETS



|                                                                                                                               |  |              |            |   |      |   |          
|------------------------------------------------------------------------------------------------------------------------------ |  | ------------ | ---------- | - | ---- | - | ---------
|                                                                                                                               |  | December 31,
|                                                                                                                               |  | 2007         |            |   | 2006
|ASSETS                                                                                                                         |  |              |            |   |      |   |          
|Current Assets:                                                                                                                |  |              |            |   |      |   |          
|Cash                                                                                                                           |  | $            | 11,146     |   |      | $ | 46,740   
|Cash - restricted                                                                                                              |  |              |           |   |      |   | 173,264  
|Accounts receivable                                                                                                            |  |              | 3,959      |   |      |   |         
|Note receivable - related party                                                                                                |  |              |           |   |      |   | 366,400  
|Inventory                                                                                                                      |  |              | 937,703    |   |      |   | 1,612,904
|Prepaid expenses                                                                                                               |  |              | 135,319    |   |      |   |         
|                                                                                                                               |  |              |            |   |      |   |          
|Total Current Assets                                                                                                           |  |              | 1,088,127  |   |      |   | 2,199,308
|                                                                                                                               |  |             
|Property and equipment-net                                                                                                     |  |              | 71,389     |   |      |   | 57,493   
|Other assets                                                                                                                   |  |              | 9,876      |   |      |   | 13,876   
|                                                                                                                               |  |              |            |   |      |   |          
|TOTAL ASSETS                                                                                                                   |  | $            | 1,169,392  |   |      | $ | 2,270,677
|                                                                                                                               |  |              |            |   |      |   |          
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY)                                                                              |  |              |            |   |      |   |          
|Current Liabilities:                                                                                                           |  |              |            |   |      |   |          
|Accounts payable                                                                                                               |  | $            | 1,096,769  |   |      | $ | 120,206  
|Accounts payable - related party                                                                                               |  |              | 80,172     |   |      |   |         
|Note payable                                                                                                                   |  |              |           |   |      |   | 1,570,376
|Current portion of long-term debt                                                                                              |  |              | 164,772    |   |      |   | 2,540    
|Note payable to related party                                                                                                  |  |              | 11,466     |   |      |   | 54,266   
|Accrued expenses                                                                                                               |  |              | 192,804    |   |      |   | 122,873  
|Current portion of convertible debt                                                                                            |  |              | 262,159    |   |      |   |         
|Income taxes payable                                                                                                           |  |              |           |   |      |   | 128,032  
|Dividend payable                                                                                                               |  |              | 879,335    |   |      |   |         
|                                                                                                                               |  |              |            |   |      |   |          
|Total Current Liabilities                                                                                                      |  |              | 2,687,477  |   |      |   | 1,998,293
|                                                                                                                               |  |              |            |   |      |   |          
|Long term liabilities:                                                                                                         |  |              |            |   |      |   |          
|Long-term debt - less current portion                                                                                          |  |              | 10,461     |   |      |   | 12,639   
|Long-term convertible debt                                                                                                     |  |              | 24,143     |   |      |   |         
|                                                                                                                               |  |              |            |   |      |   |          
|Total Long-term Liabilities                                                                                                    |  |              | 34,604     |   |      |   | 12,639   
|TOTAL LIABILITIES                                                                                                              |  |              | 2,722,081  |   |      |   | 2,010,932
|                                                                                                                               |  |              |            |   |      |   |          
|Stockholders Equity (Deficiency):                                                                                             |  |              |            |   |      |   |          
|Preferred Stock; no par value - authorized 50,000,000 shares Series B Convertible - outstanding 2,303,216 and 1,650,000 shares |  |              | 2,687,450  |   |      |   | 27,500   
|Common stock, no par value - authorized 100,000,000 shares - outstanding 98,503,940 and 60,000,000 shares                      |  |              | 200,000    |   |      |   | 100,000  
|Additional paid-in capital                                                                                                     |  |              | 429,000    |   |      |   | 74,000   
|Retained earnings (deficit)                                                                                                    |  |              | (4,869,139 | ) |      |   | 58,245   
|                                                                                                                               |  |              |            |   |      |   |          
|Total Stockholders Equity (Deficiency)                                                                                        |  |              | (1,552,689 | ) |      |   | 259,745  
|                                                                                                                               |  |              |            |   |      |   |          
|TOTAL LIABILITIES AND                                                                                                          |  |              |            |   |      |   |          
|STOCKHOLDERS EQUITY (DEFICIENCY)                                                                                              |  | $            | 1,169,392  |   |      | $ | 2,270,677
|                                                                                                                               |  |              |            |   |      |   |          

See notes to consolidated financial statements.



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##### Table of Contents

POWER SPORTS FACTORY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



|                                                               |  |                          |            |   |      |   |            |  
|-------------------------------------------------------------- |  | ------------------------ | ---------- | - | ---- | - | ---------- | -
|                                                               |  | Years Ended December 31, |           
|                                                               |  | 2007                     |            |   | 2006 |  
|Net sales                                                      |  | $                        | 2,254,350  |   |      | $ | 4,877,155  |  
|                                                               |  |                          |            |   |      |   |            |  
|Costs and Expenses:                                            |  |                          |            |   |      |   |            |  
|Cost of sales                                                  |  |                          | 1,923,774  |   |      |   | 4,170,525  |  
|Selling, general and administrative expenses                   |  |                          | 2,332,912  |   |      |   | 1,333,788  |  
|Non-cash compensation                                          |  |                          | 726,950    |   |      |   |           |  
|                                                               |  |                          |            |   |      |   |            |  
|                                                               |  |                          | 4,983,636  |   |      |   | 5,504,313  |  
|                                                               |  |                          |            |   |      |   |            |  
|Loss from operations                                           |  |                          | (2,729,286 | ) |      |   | (627,158   | )
|                                                               |  |                         
|Other income and expenses:                                     |  |                          |            |   |      |   |            |  
|Disposal of fixed asset                                        |  |                          | (38,347    | ) |      |   |           |  
|Forgiveness of debt                                            |  |                          | 3,580      |   |      |   |           |  
|Accretion of beneficial conversion feature                     |  |                          | (66,302    | ) |      |   |           |  
|Interest expense                                               |  |                          | (68,856    | ) |      |   | (106,396   | )
|Interest income                                                |  |                          | 4,442      |   |      |   |           |  
|Commission income                                              |  |                          | 18,688     |   |      |   |           |  
|                                                               |  |                          |            |   |      |   |            |  
|                                                               |  |                          | (146,795   | ) |      |   | (106,396   | )
|                                                               |  |                          |            |   |      |   |            |  
|Loss before provision for benefit from income taxes            |  |                          | (2,876,081 | ) |      |   | (733,554   | )
|                                                               |  |                         
|Benefit from income taxes                                      |  |                          | (128,032   | ) |      |   | (296,982   | )
|                                                               |  |                          |            |   |      |   |            |  
|Net loss                                                       |  | $                        | (2,748,049 | ) |      | $ | (436,572   | )
|                                                               |  |                          |            |   |      |   |            |  
|Loss per common share - basic and diluted                      |  | $                        | (0.04      | ) |      | $ | (0.01      | )
|                                                               |  |                          |            |   |      |   |            |  
|Weighted average common shares outstanding - basic and diluted |  |                          | 69,072,161 |   |      |   | 60,000,000 |  
|                                                               |  |                          |            |   |      |   |            |  

See notes to consolidated financial statements.



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##### Table of Contents

POWER SPORTS FACTORY, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)



|                                                                              |  |                 |  |              |           |                            |            |                           |   |         |       |   |         |  |   |            |   |  |   |            |  
|----------------------------------------------------------------------------- |  | --------------- |  | ------------ | --------- | -------------------------- | ---------- | ------------------------- | - | ------- | ----- | - | ------- |  | - | ---------- | - |  | - | ---------- | -
|                                                                              |  | Preferred Stock |  | Common Stock |           | AdditionalPaid - InCapital |            | RetainedEarnings(Deficit) |   |         | Total |  
|                                                                              |  | Shares          |  | Amount       |           | Shares                     |            | Amount                    |   |         |      
|Balance, January 1, 2006                                                      |  | 1,650,000       |  | $            | 27,500    |                            | 60,000,000 |                           | $ | 100,000 |       | $ | 74,000  |  | $ | 494,817    |   |  | $ | 696,317    |  
|Net loss                                                                      |  |                |  |              |          |                            |           |                           |   |        |       |   |        |  |   | (436,572   | ) |  |   | (436,572   | )
|                                                                              |  |                 |  |              |           |                            |            |                           |   |         |       |   |         |  |   |            |   |  |   |            |  
|Balance, December 31, 2006                                                    |  | 1,650,000       |  |              | 27,500    |                            | 60,000,000 |                           |   | 100,000 |       |   | 74,000  |  |   | 58,245     |   |  |   | 259,745    |  
|Effect of reverse merger                                                      |  |                 |  |              |           |                            | 38,503,940 |                           |   | 100,000 |       |   |         |  |   | (2,179,335 | ) |  |   | (2,079,335 | )
|Conversion of debt for preferred stock (valued at $4.99 per share)            |  | 240,716         |  |              | 1,200,000 |                            |            |                           |   |         |       |   |         |  |   |            |   |  |   | 1,200,000  |  
|Issuance of preferred stock for services (valued at $3.00 - $14.00 per share) |  | 265,900         |  |              | 726,950   |                            |           |                           |   |        |       |   |        |  |   |           |   |  |   | 726,950    |  
|Issuance of preferred stock for debt (valued at $5.00 per share)              |  | 92,600          |  |              | 463,000   |                            |           |                           |   |        |       |   |        |  |   |           |   |  |   | 463,000    |  
|Contribution by shareholders                                                  |  |                |  |              |          |                            |           |                           |   |        |       |   | 175,000 |  |   |           |   |  |   | 175,000    |  
|Beneficial conversion feature                                                 |  |                |  |              |          |                            |           |                           |   |        |       |   | 180,000 |  |   |           |   |  |   | 180,000    |  
|Sale of preferred stock                                                       |  | 54,000          |  |              | 270,000   |                            |           |                           |   |        |       |   |        |  |   |           |   |  |   | 270,000    |  
|Net loss                                                                      |  |                |  |              |          |                            |           |                           |   |        |       |   |        |  |   | (2,748,049 | ) |  |   | (2,748,049 | )
|                                                                              |  |                 |  |              |           |                            |            |                           |   |         |       |   |         |  |   |            |   |  |   |            |  
|Balance, December 31, 2007                                                    |  | 2,303,216       |  | $            | 2,687,450 |                            | 98,503,940 |                           | $ | 200,000 |       | $ | 429,000 |  | $ | (4,869,139 | ) |  | $ | (1,552,689 | )
|                                                                              |  |                 |  |              |           |                            |            |                           |   |         |       |   |         |  |   |            |   |  |   |            |  

See notes to consolidated financial statements.



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##### Table of Contents

POWER SPORTS FACTORY, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS



|                                                                                     |  |                          |            |   |      |   |            |  
|------------------------------------------------------------------------------------ |  | ------------------------ | ---------- | - | ---- | - | ---------- | -
|                                                                                     |  | Years Ended December 31, |           
|                                                                                     |  | 2007                     |            |   | 2006 |  
|CASH FLOW FROM OPERATING ACTIVITIES:                                                 |  |                          |            |   |      |   |            |  
|Net (loss)                                                                           |  | $                        | (2,748,049 | ) |      | $ | (436,572   | )
|Adjustments to reconcile net (loss) income to net cash used in operating activities: |  |                          |            |   |      |   |            |  
|Depreciation and amortization                                                        |  |                          | 6,705      |   |      |   | 7,984      |  
|Non cash compensation                                                                |  |                          | 726,950    |   |      |   |           |  
|Accretion of beneficial conversion feature                                           |  |                          | 66,302     |   |      |   |           |  
|Loss on abandonment                                                                  |  |                          | 38,347     |   |      |   |           |  
|Changes in operating assets and liabilities                                          |  | $                        | 2,363,957  |   |      |   | (746,633   | )
|                                                                                     |  |                          |            |   |      |   |            |  
|Net cash provided by (used in) operating activities                                  |  |                          | 454,212    |   |      |   | (1,175,221 | )
|                                                                                     |  |                          |            |   |      |   |            |  
|CASH FLOW FROM INVESTING ACTIVITIES:                                                 |  |                          |            |   |      |   |            |  
|Security deposit                                                                     |  |                          | 4,000      |   |      |   | 65,000     |  
|Purchase of equipment                                                                |  |                          | (58,948    | ) |      |   | (36,459    | )
|Change in restricted cash                                                            |  |                          | 173,264    |   |      |   | (173,264   | )
|                                                                                     |  |                          |            |   |      |   |            |  
|Net cash provided by (used in) investing activities                                  |  |                          | 118,316    |   |      |   | (144,723   | )
|                                                                                     |  |                          |            |   |      |   |            |  
|CASH FLOW FROM FINANCING ACTIVITIES:                                                 |  |                          |            |   |      |   |            |  
|Proceeds from related party                                                          |  |                          | 369,800    |   |      |   | 220,000    |  
|Payment to related party                                                             |  |                          | (412,600   | ) |      |   | (464,075   | )
|Proceeds from loan payable                                                           |  |                          | 185,512    |   |      |   | 2,766,734  |  
|Payment on loan                                                                      |  |                          | (1,595,834 | ) |      |   | (1,196,679 | )
|Contribution by shareholder                                                          |  |                          | 175,000    |   |      |   |           |  
|Proceeds from sale of preferred stock                                                |  |                          | 270,000    |   |      |   |           |  
|Proceeds from convertible debt                                                       |  |                          | 400,000    |   |      |   |           |  
|                                                                                     |  |                          |            |   |      |   |            |  
|Net cash provided by (used in) financing activities                                  |  |                          | (608,122   | ) |      |   | 1,325,980  |  
|                                                                                     |  |                          |            |   |      |   |            |  

See notes to consolidated financial statements.



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##### Table of Contents

POWER SPORTS FACTORY, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)



|                                                         |  |                             |           |   |      |   |          |  
|-------------------------------------------------------- |  | --------------------------- | --------- | - | ---- | - | -------- | -
|                                                         |  | Years EndedDecember 31,2007 |          
|                                                         |  | 2007                        |           |   | 2006 |  
|Net (decrease) increase in cash                          |  |                             | (35,594   | ) |      |   | 6,036    |  
|                                                         |  |                            
|Cash - beginning of year                                 |  |                             | 46,740    |   |      |   | 40,704   |  
|                                                         |  |                             |           |   |      |   |          |  
|Cash - end of year                                       |  | $                           | 11,146    |   |      | $ | 46,740   |  
|                                                         |  |                             |           |   |      |   |          |  
|Changes in operating assets and liabilities consists of: |  |                             |           |   |      |   |          |  
|Decrease in accounts receivable                          |  | $                           | 162,441   |   |      | $ | 199,680  |  
|Decrease (increase) in inventory                         |  |                             | 675,201   |   |      |   | (437,036 | )
|(Increase) in prepaid expenses                           |  |                             | (135,319  | ) |      |   | 7,385    |  
|Decrease (increase) in other assets                      |  |                             |          |   |      |   | (9,876   | )
|Increase (decrease) in accounts payable                  |  |                             | 1,669,735 |   |      |   | (272,236 | )
|Increase (decrease) in accrued expenses                  |  |                             | 119,931   |   |      |   | (234,550 | )
|Decrease in income taxes payable                         |  |                             | (128,032  | ) |      |   |         |  
|                                                         |  |                             |           |   |      |   |          |  
|                                                         |  | $                           | 2,363,957 |   |      | $ | (746,633 | )
|                                                         |  |                             |           |   |      |   |          |  
|Supplementary information:                               |  |                             |           |   |      |   |          |  
|Cash paid during the year for:                           |  |                             |           |   |      |   |          |  
|Income taxes                                             |  | $                           |          |   |      | $ |         |  
|                                                         |  |                             |           |   |      |   |          |  
|Interest                                                 |  | $                           | 53,849    |   |      | $ | 18,381   |  
|                                                         |  |                             |           |   |      |   |          |  
|Non-cash financing activities:                           |  |                             |           |   |      |   |          |  
|Issuance of preferred stock for services                 |  | $                           | 726,950   |   |      | $ |         |  
|                                                         |  |                             |           |   |      |   |          |  
|Beneficial Conversion Feature                            |  | $                           | 180,000   |   |      | $ |         |  
|                                                         |  |                             |           |   |      |   |          |  
|Issuance of preferred stock for debt                     |  | $                           | 1,663,000 |   |      | $ |         |  
|                                                         |  |                             |           |   |      |   |          |  

See notes to consolidated financial statements.



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##### Table of Contents

POWER SPORTS FACTORY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2007



|1. | Description of Business and Summary of Significant Accounting Policies
|-- | ----------------------------------------------------------------------

ORGANIZATION

Power Sports Factory, Inc. (formerly Purchase Point Media Corp, the Company) was incorporated under the laws of the State
of Minnesota.

The Company, through a reverse acquisition described below is in the business of marketing, selling, importing and distributing motorcycles
and scooters. The Company principally imports products from China. To date the Company has marketed significantly under the Yamati brand.

BASIS OF
PRESENTATION

On September 5, 2007, the Company entered into a share exchange agreement with the shareholders of Power Sports Factory, Inc.
(PSF). In connection with the share exchange, the Company acquired the assets and assumed the liabilities of PSF (subsidiary) as the acquirer. The financial statements prior to September 5, 2007 are those of PSF and reflect the
assets and liabilities of PSF at historical carrying amounts.

As provided for in the share exchange agreement, the stockholders of PSF received 60,000,000
shares of the Companys common stock and 1,650,000 of Series B Convertible Preferred Stock (Preferred Stock) of the Company (each share of preferred stock is convertible into 10 shares of common stock) representing 77% of the
outstanding stock of the Company after the acquisition, in exchange for the outstandin shares of PSF common stock they held, which was accounted for as a recapitalization. The financial statements show a retroactive restatement of the Companys
historical stockholders deficiency to reflect the equivalent number of shares of common stock and preferred stock issued in the acquisition.

GOING
CONCERN

The Companys consolidated financial statements for the year ended December 31, 2007 have been prepared on a going concern basis which
contemplates the realization of assets and the settlement of liabilities in the normal course of business. Management recognizes that the Companys continued existence is dependent upon its ability to obtain needed working capital through
additional equity and/or debt financing and revenue to cover expenses as the Company continues to incur losses.

The Company presently does not have
sufficient liquid assets to finance its anticipated funding needs and obligations. The Companys continued existence is dependent upon its ability to obtain needed working capital through additional equity and/or debt financing and achieve a
level of revenue and production adequate to support its cost structure. Management is actively seeking additional capital to ensure the continuation of its current operations, complete its proposed activities and fund its current debt obligations.
However, there is no assurance that additional capital will be obtained. These uncertainties raise substantial doubt about the ability of the Company to continue as a going concern. The accompanying consolidated financial statements do not include
any adjustments that might result from the outcome of these uncertainties should the Company be unable to continue as a going concern.



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SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION

The Companys consolidated financial statements include the accounts of the Company and its wholly-owned and
majority-owned subsidiaries. All inter-company transactions and balances have been eliminated.

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual
results could differ from those estimates.

CONCENTRATION OF CREDIT RISK

Financial instruments which potentially subject the Company to concentration of credit risk consist principally of accounts receivable. The Company grants credit to customers based on an evaluation of the
customers financial condition, without requiring collateral. Exposure to losses on the receivables is principally dependent on each customers financial condition. The Company controls its exposure to credit risk through credit approvals.

INVENTORIES

Inventories are stated at the lower of cost or
market.

REVENUE RECOGNITION

The Company recognizes revenue
in accordance with the guidance contained in SEC Staff Accounting Bulletin No. 104 Revenue Recognition Financial Statements (SAB No. 104). Revenue is recognized when the product has been delivered and title and risk of loss
have passed to the customer, collection of the receivables is deemed reasonably assured by management, persuasive evidence of an agreement exist and the sale price is fixed and determinable.

EARNINGS PER SHARE

Basic loss per share is computed by dividing net loss by
the weighted average number of common shares outstanding during the specified period. Diluted loss per common share is computed by dividing net loss by the weighted average number of common shares and potential common shares during the specified
period. All potentially dilutive securities at December 31, 2007, which include preferred stock convertible into 23,032,160 common shares following the effectiveness of the proposed 1 for 20 reverse split of the Companys common stock,
have been excluded from the computation as their effect is antidilutive.

EVALUATION OF LONG-LIVED ASSETS

The Company reviews property and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying value may
not be recoverable in accordance with guidance in Statement of Financial Accounting Standards (SFAS) No. 144 Accounting for the Impairment or Disposal of Long-Lived Assets. If the carrying value of the long-lived asset exceeds the
present value of the related estimated future cash flows, the asset would be adjusted to its fair value and an impairment loss would be charged to operations in the period identified.



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DEPRECIATION AND AMORTIZATION

Property and equipment are stated at cost. Depreciation is provided for by the straight-line method over the estimated useful lives of the related assets.

STOCK BASED COMPENSATION

For the years ended December 31, 2007 and 2006, the Company issued 265,900 and -0- of its preferred shares and
recorded consulting expense of $726,950 and $-0-, respectively, the fair value of the shares at the time of issuance.

INCOME TAXES

The Company accounts for income taxes using an asset and liability approach under which deferred taxes are recognized by applying enacted tax rates applicable to future
years to the differences between financial statement carrying amounts and the tax basis of reported assets and liabilities. The principal item giving rise to deferred taxes are future tax benefits of certain net operating loss carryforwards.

BENEFICIAL CONVERSION FEATURE

When debt or equity is issued
which is convertible into common stock at a discount from the common stock market price at the date the debt or equity is issued, a beneficial conversion feature for the difference between the closing price and the conversion price multiplied by the
number of shares issuable upon conversion is recognized. The beneficial conversion feature is presented as a discount to the related debt, with an offering amount increasing additional paid-in capital.

FAIR VALUE OF FINANCIAL INSTRUMENTS

For financial instruments including
cash, accounts payable, accrued expenses, and loans payable, it was assumed that the carrying amount approximated fair value because of the short maturities of such instruments.

RECLASSIFICATIONS

Certain reclassifications have been made to prior period amounts to conform to the current year
presentation.

NEW FINANCIAL ACCOUNTING STANDARDS

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements, which enhances existing guidance for measuring assets and liabilities using fair value. This Standard provides a single definition of fair value,
together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. SFAS No. 157 as amended by FASB Staff Position 157-2, is effective for financial statements issued for
fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. The Company does not believe that SFAS No. 157 will have a material impact on its consolidated financial statements.

In February 2007, the FASB issued SFAS No. 159 (SFAS 159) The Fair Value Option for Financial Assets and Financial
Liabilities, providing companies with an option to report selected financial assets and liabilities at fair value. The Standards objective is to reduce both complexity in accounting for financial instruments and the volatility in
earnings caused by measuring related assets and liabilities differently. It also requires entities to display the fair value of those assets and liabilities for which the Company has chosen to use fair value on the face of the balance sheet. SFAS
159 is effective for fiscal years beginning after November 15, 2007. The Company does not expect that the adoption will have a material impact on its consolidated financial statements.



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In December 2007, the FASB issued SFAS No. 141 (revised 2007) (SFAS 141 (R))
Business Combinations, which replaces SFAS 141 Business Combinations. This Statement improves the relevance, completeness and representational faithfulness of the information provided in financial reports about the assets
acquired and the liabilities assumed in a business combination. This Statement requires an acquirer to recognize the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their
fair values as of that date, with limited exceptions specified in the Statement. Under SFAS 141(R), acquisition-related costs, including restructuring costs, must be recognized separately for the acquisition and will generally be expensed as
incurred. That replaces SFAS 141s cost- allocation process, which required the cost of an acquisition to be allocated to the individual assets acquired and liabilities assumed based on their estimated fair values. SFAS 141 (R) shall be
applied prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual report period beginning on or after December 15, 2008. The Company will implement this Statement in 2009.

In December 2007, the FASB issued SFAS No. 160 Non-Controlling Interests in Consolidated Financial Statements  An Amendment of ARB
NO. 51 (SFAS 160). SFAS 160 establishes new accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. Specifically, this statement requires the recognition of
non-controlling interests (minority interest) as equity in the consolidated financial statements and separate for parents equity. The amount of net income attributable to the non-controlling interest will be included in consolidated net income
on the face of the income statement. SFAS 160 clarifies that changes in a parents ownership in a subsidiary that does not result in deconsolidation are equity transactions if the parent retains its controlling financial interest. In addition,
this statement requires that a parent recognize a gain or loss in net income when a subsidiary is deconsolidated. Such gain or loss will be measured using the fair value of the non-controlling equity investment of the deconsolidation date. SFAS 160
also includes expanded disclosure requirements regarding the interest of the parent and its non-controlling interest. SFAS 160 is effective for fiscal years, and interim periods other than fiscal years, beginning on or after December 15,2008.
The Company is currently evaluating the impact of the adoption of this Statement on its consolidated financial statements.

In January
2008, Staff Accounting Bulletin (SAB) 110 Share-Based Payment (SAB 110), was issued. Registrants may continue, under certain circumstances, to use the simplified method in developing estimates of the expected term
of share options as initially allowed by SAB 107, Share-Based Payments. The adoption of SAB 110 should have no effect on the consolidated financial position and results of operations of the Company.



|2. | Inventories
|-- | -----------

The components of inventories are as follows:



|                      |  |              |         |      |   |          
|--------------------- |  | ------------ | ------- | ---- | - | ---------
|                      |  | December 31,
|                      |  | 2007         |         | 2006
|Motor bikes           |  | $            | 576,780 |      | $ | 1,534,314
|Parts                 |  |              | 44,340  |      |   | 78,590   
|Deposits on Inventory |  |              | 316,583 |      |   |         
|                      |  |              |         |      |   |          
|                      |  | $            | 937,703 |      | $ | 1,612,904
|                      |  |              |         |      |   |          

In October, 2007, the Company entered into a Manufacturing Agreement, and subsequently entered
into an Amendment thereto, with Dickson International Holdings Ltd. for the manufacture of Andretti/Benelli branded motor scooters for the exclusive distribution thereof in the United States by the Company. The Manufacturing Agreement is for a term
of two years and is renewable for successive two-year terms unless either party gives notice of termination in advance of the renewal period. The Company



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is required to use commercially reasonable efforts to purchase certain minimum quantities of motor scooters. As an initial deposit under the Manufacturing
Agreement, the Company issued to Dickson International Holdings Ltd. 50,000 shares of its Series B Preferred Stock valued at $250,000.



|3. | Property and Equipment
|-- | ----------------------



|                               |  |              |        |      |   |       
|------------------------------ |  | ------------ | ------ | ---- | - | ------
|                               |  | December 31,
|                               |  | 2007         |        | 2006
|Equipment                      |  | $            | 40,586 |      | $ | 19,204
|Signs                          |  |              | 7,040  |      |   | 7,040 
|Software                       |  |              | 37,566 |      |   | 15,500
|Leasehold improvements         |  |              |       |      |   | 27,609
|                               |  |              |        |      |   |       
|                               |  |              | 85,192 |      |   | 69,353
|Less: accumulated depreciation |  |              | 13,803 |      |   | 11,860
|                               |  |              |        |      |   |       
|                               |  | $            | 71,389 |      | $ | 57,493
|                               |  |              |        |      |   |       

Depreciation expense for the years ended December 31, 2007 and 2006 amounted to $ 6,705 and $7,984,
respectively.



|4. | Note Payable
|-- | ------------

On
January 27, 2006, the Company entered into a revolving credit loan and floor plan loan (the Credit Facility) with General Electric Commercial Distribution Finance Corporation (CDF). Terms under the Trade Finance Purchase
Program (TFPP) included interest at prime plus 1 1/2percent with one tenth of one percent per month administration
fee, and a rate of prime plus 5 percent on all amounts outstanding after maturity with a two and one half tenths of one percent administration fee. Maturity on advances under the TFPP was 180 days. Advance rate under the TFPP was 100 percent of
supplier invoice plus freight. CDF had a first security interest in all inventory equipment, fixtures, accounts, chattel paper, instruments, deposit accounts, documents, general intangibles, letter of credit rights, and all judgments, claims and
insurance policies via Uniform Commercial Code Filing Position or invoice purchase money security interest. The Credit Facility was personally guaranteed by an officer and director of the Company.

On June 6, 2006, the Company entered into an amendment to the Credit Facility whereby the Company agreed to post an Irrevocable Letter of Credit (ILOC)
as additional collateral for the amounts loaned under the Credit Facility. The amount of the ILOC was required to be 15 percent of the amounts outstanding or advanced. At September 30, 2007 and December 31, 2006, the amount of the ILOC was
$-0- and $173,264 and is included in cash-restricted on the Companys balance sheet.

In addition, the Amendment provided in part that Interest
on an advance for Import Inventory shall begin to accrue on the date CDF makes such an advance. Interest on all other advances shall begin on the Start Date which shall be defined as the earlier of (A) the invoice date referred to in the
Vendors invoice; or (B) the ship date referred to in the Vendors invoice; or (C) the date CDF makes such advance.

On October 9,
2006, CDF sent the Company a notice of default for failing to make one or more payments due under the Credit Facility. CDF demanded a payment to cure the default in the amount of $320,034.10 by October 13, 2006, which payment was not made.

On November 6, 2006, CDF terminated the Credit Facility and demanded full payment, requiring final payment of a claimed remaining balance of
$1,817,920. On November 17, 2006, CDF initiated a lawsuit in the United States District Court for the District of New Jersey to enforce its rights under the Credit Facility and related documents. The requested relief included a Court for
replevin, granting CDF the right to possess any and all Collateral covered by its security interest.



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On January 20, 2007, the Company entered into a Forbearance Agreement with CDF regarding the Credit Facility. The
Forbearance Agreement stated that the amount of the Companys indebtedness as of that date was $1,570,376. Under the Forbearance Agreement, the Company agreed to a new Payment Program. The new Payment Program provided that the Company would
make payments monthly through April, 2007. Under this agreement, the Company also agreed to execute a Stipulated Order for Preliminary Injunction and Writ of Seizure (Writ). The Writ could be filed in the event of a default under the
Forbearance Agreement at any time. If no default occurred, the Writ could be duly filed after March 1, 2007, to further protect CFDs interest. On March 19, 2007, CDF filed the Writ. There was no Forbearance Agreement default as of
that date. The Writ was never executed upon, meaning that CDF did not repossess the Companys Collateral at any time.

The last payment to CDF was
made by the Company on or about July 20, 2007. As of that date, all indebtedness under the Credit Facility, the Forbearance Agreement, and any related Agreements with CDF has been satisfied, by revenue generated through sales by the Company.



|5. | Long-term debt
|-- | --------------

Long-term debt consists of the following:



|                                                                                                   |  |              |         |      |   |       
|-------------------------------------------------------------------------------------------------- |  | ------------ | ------- | ---- | - | ------
|                                                                                                   |  | December 31,
|                                                                                                   |  | 2007         |         | 2006
|Note payable to Five Point Capital Inc. due May 2011; interest at 18.45%; monthly payments of $397 |  | $            | 13,036  |      | $ | 15,179
|                                                                                                   |  |             
|Note payable due April 30, 2008; interest at 10% payable at maturity (1)                           |  |              | 80,000  |      |   |      
|                                                                                                   |  |             
|Note payable to Premium Payment Plan due May 31, 2008; interest at 7.5%; monthly payments of $871  |  |              | 4,218   |      |   |      
|                                                                                                   |  |             
|Note payable to AICCO, Inc. due July 13, 2008; interest at 8%; monthly payments of $7,111 (2)      |  |              | 48,479  |      |   |      
|                                                                                                   |  |             
|Note payable to Micro Capital Management Corp. due June 14, 2008; interest at 8%                   |  |              | 14,500  |      |   |      
|                                                                                                   |  |             
|Demand note payable to Shawn Landgraf; interest free                                               |  |              | 15,000  |      |   |      
|                                                                                                   |  |              |         |      |   |       
|                                                                                                   |  |              | 175,233 |      |   | 15,179
|Less amounts due within one year                                                                   |  |              | 164,772 |      |   | 2,540 
|                                                                                                   |  |              |         |      |   |       
|                                                                                                   |  | $            | 10,461  |      | $ | 12,639
|                                                                                                   |  |              |         |      |   |       



23



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##### Table of Contents

For the years ended December 31, 2007 and 2006, the Company recorded interest expense of $65,455 and $321,
respectively.

1) On July 31, 2007, the Company borrowed $80,000 from an investor. The note matures on April 30, 2008 at
which time the principal amount plus ten percent interest is due. The Company issued 1,000 Series B convertible Preferred Shares valued at $3,000, as additional consideration with the loan.

2) On October 1, 2007, the Company entered into a premium finance agreement with Aicco, Inc., for the purchase of insurances. The total amount
financed was $68,575, with an annual percentage rate of 8% and monthly payments of $7,111. The final payment is due on July 13, 2008.

The aggregate
amounts of all long-term debt to be repaid for the year following December 31, 2007 is:



|                |  |   |        
|--------------- |  | - | -------
|2008            |  | $ | 165,248
|2009            |  |   | 3,188  
|2010            |  |   | 3,828  
|2011            |  |   | 2,969  
|                |  |   |        
|                |  |   | 175,233
|Current portion |  |   | 164,772
|                |  |   |        
|                |  | $ | 10,461 
|                |  |   |        



|6. | Convertible Debt
|-- | ----------------

On September 7, 2007, the Company issued four
convertible promissory notes for a total of $150,000 with interest at twelve (12.0%) percent. The notes mature October 1, 2009. Each note is convertible, at the option of the holders, into 300,000 shares of the Companys common stock
following the effectiveness of the Companys proposed 1 for 20 reverse stock split.

On November 2, 2007, the Company issued a convertible
promissory note for $250,000 with interest at twelve (12%) percent. The note matures April 30, 2008. The note is convertible, at the option of the holder, into 250,000 shares of the Companys common stock following the effectiveness
of the Companys proposed 1 for 20 reverse stock split.

The Company has evaluated the conversion feature under applicable accounting literature,
including SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities and EITF 00-19 Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Companys Owned Stock and
concluded that none of these features should be respectively accounted for as derivatives. The difference between the conversion price of $400,000 and the fair value of the common stock into which the debt is convertible of $220,000 was included as
additional paid in capital based on the conversion discount. This beneficial conversion feature in the amount of $180,000 is being accreted over the lives of the outstanding debt. Accretion expense of the beneficial conversion feature for the year
ended December 31, 2007 amounted to $66,302. For the year ended December 31, 2007, the Company recorded interest expense of $9,335 on the convertible notes, all of which is included in accrued expenses on the Companys balance sheet.



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##### Table of Contents

|7. | Note Receivable/Note PayableRelated Party
|-- | ------------------------------------------

a) On November 9,
2005, the Company issued a note payable at 12% compound monthly interest, to a related party, in the amount of $300,000 with interest and principal due at maturity. The note was paid on October 9, 2006. Interest expense for the year ended
December 31, 2006 was $15,582.

b) As of December 31, 2006, the Company advanced $166,400 to a related party. This advance was taken as payroll
in 2007. This was a demand loan with no interest.

c) In 2007 and 2006, officers of the Company advanced $59,800 and $54,266, respectively, to the Company.
During 2007, the Company repaid $102,600. At December 31, 2007, the balance was $11,466. The advances are interest free and due upon demand.

d) In
2007, one of our officers and directors made a short term loan to the company in the amount of $110,000. The loan was secured by scooter inventory. The interest rate on the loan was 12%. The loan was repaid as of September 30, 2007 in full
satisfaction of the terms and the Company recorded interest expense of $1,350 for the year ended December 31, 2007.



|8. | Accrued Expenses
|-- | ----------------

Accrued expenses consist of the following:



|                    |  |              |         |      |   |        
|------------------- |  | ------------ | ------- | ---- | - | -------
|                    |  | December 31,
|                    |  | 2007         |         | 2006
|Professional fees   |  | $            | 48,500  |      | $ | 50,000 
|Payroll expense     |  |              | 76,978  |      |   |       
|Payroll tax expense |  |              | 45,825  |      |   | 28,260 
|Advertising         |  |              |        |      |   | 11,505 
|Rent                |  |              |        |      |   | 8,800  
|Commission expense  |  |              | 6,493   |      |   | 7,800  
|Interest expense    |  |              | 15,008  |      |   | 16,508 
|                    |  |              |         |      |   |        
|                    |  | $            | 192,804 |      | $ | 122,873
|                    |  |              |         |      |   |        



|9. | Stockholders Equity
|-- | --------------------

Common Stock

The Company is authorized to issue 100,000,000 shares of no par value common stock. All the outstanding common stock is fully paid and non-assessable. The total
proceeds received for the common stock is the value used for the common stock.

During 2007, certain officers of the Company contributed $175,000 to the
Company, which is included in Additional paid-in capital on the Companys consolidated balance sheet.



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##### Table of Contents

Preferred Stock

The
Company is authorized to issue 50,000,000 shares of no par value preferred stock. The Company has designated 3,000,000 of these authorized shares of preferred stock as Series B convertible Preferred Stock. The Board of Directors has the authority,
without action by the stockholders, to designate and issue the shares of preferred stock in one or more series and to designate the rights, preferences and each series, any or all of which may be greater than the rights of the Companys common
stock.



| | a) | During 2007, the Company sold 54,000 shares of Series B Convertible Preferred Stock and received proceeds of $270,000.
| | -- | ----------------------------------------------------------------------------------------------------------------------



| | b) | During 2007, the Company issued 333,316 shares of Series B Convertible Preferred Stock in exchange for the liquidation of $1,663,000 of Company debt.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | During 2007, the Company issued 265,900 shares of Series B Convertible Preferred Stock for services with a fair value of $726,950.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------

As of December 31, 2007, there were 2,303,216 Series B Convertible Preferred Shares outstanding which are convertible into 23,034,160 common shares following the
effectiveness of the proposed 1 for 20 reverse split of the Companys common stock.



|10. | Income Taxes
|--- | ------------

The Company adopted the provisions of financial
Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48) on January 1, 2007. As a result of the implementation of FIN 48, the Company recognized no adjustment in the net liability for unrecognized
income tax benefits.

During the year ended December 31, 2007, the Company recorded a deferred tax asset associated with its net operating loss
(NOL) carryforwards of approximately $2,200,000 that was fully offset by a valuation allowance due to the determination that it was more likely than not that the Company would be unable to utilize these benefits in the foreseeable
future. The Companys NOL carryforwards expire in years through 2022.

The types of temporary differences between tax basis of assets and liabilities
and their financial reporting amounts that give rise to the deferred tax liability or deferred tax asset and their appropriate tax effects are as follows:



|                                                                        |  |                     |            |   |                   |   |            |                     |  |            |   |  |   |  
|----------------------------------------------------------------------- |  | ------------------- | ---------- | - | ----------------- | - | ---------- | ------------------- |  | ---------- | - |  | - | -
|                                                                        |  | For the Year Ended 
|                                                                        |  | December 31, 2007   |            |   | December 31, 2006
|                                                                        |  | TemporaryDifference |            |   | Tax Effect        |   |            | TemporaryDifference |  | Tax Effect
|Gross deferred tax asset resulting from net operating loss carryforward |  | $                   | 3,990,000  |   |                   | $ | 1,357,000  |                     |  | $          |  |  | $ | 
|                                                                        |  |                     |            |  
|Valuation allowance                                                     |  |                     | (3,990,000 | ) |                   |   | (1,357,000 | )                   |  |            |  |  |   | 
|                                                                        |  |                     |            |   |                   |   |            |                     |  |            |   |  |   |  
|Net deffered tax asset                                                  |  | $                   |           |   |                   | $ |           |                     |  | $          |  |  | $ | 
|                                                                        |  |                     |            |   |                   |   |            |                     |  |            |   |  |   |  



26



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The reconciliation of the effective income tax rate to the federal statutory rate is as follows:



|                                           |  |                                |          |   |      |   |          |  
|------------------------------------------ |  | ------------------------------ | -------- | - | ---- | - | -------- | -
|                                           |  | For the Year EndedDecember 31, |         
|                                           |  | 2007                           |          |   | 2006 |  
|Tax benefit computed at the statutory rate |  | $                              | (977,868 | ) |      | $ | (249,408 | )
|Tax effect of state operating losses       |  |                                |         |   |      |   | (47,574  | )
|Effect of unused operating losses          |  |                                | 849,836  |   |      |   |         |  
|                                           |  |                                |          |   |      |   |          |  
|                                           |  | $                              | (128,032 | ) |      | $ | (296,982 | )
|                                           |  |                                |          |   |      |   |          |  



|11. | Dividend Payable
|--- | ----------------

In September 2007, the Company entered into a share exchange agreement with the shareholders of PSF. Following the share exchange, the Company would transfer its existing business relating to the development of lastword® to its subsidiary, The Last Word Inc. To distribute the existing business of the Company to the shareholders, the Board of Directors of PPMC declared a dividend, payable in common stock of our
subsidiary holding the lastword® technology, at the rate of one share of common stock of the subsidiary for each share of common stock of PPMC owned on the record date. The Board of
Directors of PPMC used May 2, 2007, as the record date for this share dividend, with a payment date as soon as practicable thereafter. Prior to the payment of this dividend, our subsidiary holding the lastword® technology will have to file a registration statement under the Securities Act of 1933 with, and have the filing deemed effective by the SEC. The Company plans to file the registration statement as soon as
practicable. As of December 31, 2007, the dividend payable in the amount of $879,335 represents the net liabilities that will be assumed by The Last Word Inc.



|12. | Commitments and Contingencies
|--- | -----------------------------

a) On April 1,
2007, the Company hired two consultants to provide transition management services, business planning, managerial systems analysis, sales and distribution assistance and inventory management systems services. Both contracts are each $15,000 per
month and can be terminated at will when the Company decides that the services have been completed and/or are no longer necessary. For the year ended December 31, 2007, the Company recorded consulting expense of $250,000.

b) On May 15, 2007, the Company entered into an exclusive licensing agreement with Andretti IV, LLC, a Pennsylvanian limited liability company
to brand motorcycles and scooters. The term of the agreement is through December 31, 2017. Royalties under the agreement are tied to motorcycle and scooter sales branded under the Andretti line. The agreement calls
for a minimum annual guarantee. After year two of the agreement, if the Company does not sell a certain minimum number of motorcycles and scooters under the Andretti Line it may elect to terminate the licensing agreement. A minimum
payment of $250,000 is due under the agreement on March 31, 2008. A minimum payment of $250,000 is also due on July 31, 2008. These two payments totaling $500,000 represent the minimum annual guarantee owed to Andretti IV LLC for 2008. In
addition, after certain volume targets are met, Andretti IV LLC receives a $60 per bike fee. A consultant working for the Company co-guaranteed the minimum annual guarantee for the first two years and receives a 4.1667% of the license fees as a
fee throughout the life of the license related to that work. The consultant



27



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##### Table of Contents

subsequently became an officer and director of the Company. On January 1, 2008, the Company issued a warrant to Andretti IV, LLC, pursuant to their
May 15, 2007 agreement, to purchase 200,000 common shares following the effectiveness of the Reverse Split at an exercise price equal to $.01 per share. The warrant expires December 31, 2017. The Company issued the warrant as part of the
consideration to Andretti IV LLC in connection with the original license agreement signed in May 2007. The Company paid $50,000 as a licensing fee in 2007. The warrant has been accounted for in the financial statements.

c) On June 1, 2007, the Company hired Steven A. Kempenich as its Chief Executive Officer and a director of the Company. His contract is a
two-year agreement at $16,666 per month.

d) On October 11, 2007, the Company retained a firm to provide corporate communications and
investor relations. The agreement is for one year which automatically renews unless either party elects to terminate the agreement with a notice of termination no later than sixty days prior to the end of the term. Fees for these services are $5,000
per month and 20,000 shares of common stock upon the effectiveness of the reverse split. Fees are earned but deferred until the seventh month at which time the deferred fees are paid in equal amounts along with the current fees as they are incurred.
The Company paid $24,000 as consulting fees in 2007 of which $14,000 was paid with 1,000 shares of preferred stock.

e) On December 5,
2007, the Company entered into contracts with a storage company to provide warehousing and logistics services on the East and West coasts of the United States. These contracts require fees for storage and handling of our motor bike inventory which
are incurred monthly on a per bike basis. To date, the Company has not incurred any fees under these agreements because it has utilized warehousing capability at its headquarters in New Jersey.



|13. | Subsequent Events
|--- | -----------------

a) Effective January 1, 2008, the
Company entered into a monthly agency retainer agreement with a marketing and advertising firm to provide the company with services at a fee of $25,000 per month.

b) On January 4, 2008, the Company entered into a short term secured convertible promissory note with a private investor for $250,000 at an annual simple interest rate of 15%. The note originally matured on
March 1, 2008 and was extended to May 1, 2008. The note has the option to convert into post-reverse split common shares @ $1.00 per share. The Company granted the investor a security interest in all of the Companys right, title and
interest in all inventory of motorcycles, motor scooters, parts accessories and all proceeds of any and all of same including insurance payments and cash. There was no difference between the conversion price and the fair value of the common stock
into which the debt is convertible.

c) On January 18, 2008, the Company retained a firm to provide management consulting, business
advisory, shareholder information and public relation services. The term of the agreement is one year. The Company issued 35,000 Series B Convertible shares and pays $2,500 per month as compensation under the agreement.



28



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##### Table of Contents

|14. | Financial Statements Revised and Restated
|--- | -----------------------------------------

The financial
statements have been revised from the original filing as follows:

Condensed Consolidated Balance Sheet

December 31, 2007



|                                               |  |             |            |   |  |    |         |             |   |            |                 |  |   |            |  
|---------------------------------------------- |  | ----------- | ---------- | - |  | -- | ------- | ----------- | - | ---------- | --------------- |  | - | ---------- | -
|                                               |  | As Reported |            |   |  |    |         | Adjustments |   |            | AdjustedBalance | 
|Total Assets                                   |  | $           | 1,169,392  |   |  |    |         |             | $ |           |                 |  | $ | 1,169,392  |  
|                                               |  |             |            |   |  |    |         |             |   |            |                 |  |   |            |  
|Liabilities and Stockholders Deficiency       |  |             |            |   |  |    |         |             |   |            |                 |  |   |            |  
|Total Liabilities                              |  | $           | 1,842,746  |   |  | (3 | )(4)    |             | $ | 879,335    |                 |  | $ | 2,722,081  |  
|                                               |  |             |            |  
|Stockholders Deficiency:                      |  |             |            |   |  |    |         |             |   |            |                 |  |   |            |  
|Preferred stock                                |  |             | 964,950    |   |  | (1 | )(2)(4) |             |   | 1,722,500  |                 |  |   | 2,687,450  |  
|Common stock                                   |  |             | 200,000    |   |  | (2 | )(3)    |             |   |           |                 |  |   | 200,000    |  
|Additional paid-in-capital                     |  |             | 356,500    |   |  | (2 | )       |             |   | 72,500     |                 |  |   | 429,000    |  
|Deficit                                        |  |             | (2,194,804 | ) |  | (1 | )(3)    |             |   | (2,674,335 | )               |  |   | (4,869,139 | )
|                                               |  |             |            |   |  |    |         |             |   |            |                 |  |   |            |  
|Total Stockholders Deficiency                 |  |             | (673,354   | ) |  |    |         |             |   |            |                 |  |   | (1,552,689 | )
|                                               |  |             |            |   |  |    |         |             |   |            |                 |  |   |            |  
|Total Liabilities And Stockholders Deficiency |  | $           | 1,169,392  |   |  |    |         |             |   |            |                 |  | $ | 1,169,392  |  
|                                               |  |             |            |   |  |    |         |             |   |            |                 |  |   |            |  



|(1) | To record the issuance of 195,000 shares of preferred stock for services valued at $495,000.
|--- | --------------------------------------------------------------------------------------------

|(2) | To record the initial capitalization and the issuance of 60,000,000 shares of common stock (valued at $100,000) and 1,650,000 shares of preferred stock (valued at $27,500).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | To record reverse acquisition of Purchase Point Media Corp. (38,503,940 common shares valued at $100,000, assumption of debt of $1,200,000, a dividend in the amount of $879,335 to
the former shareholders of Purchase Point Media Corp., and deficit of $1,300,000).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | To record conversion of debt ($1,200,000) into 240,716 shares of preferred stock.
|--- | ---------------------------------------------------------------------------------

Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2007



|                                                  |  |             |            |   |  |    |   |             |   |                 |  |   |            |  
|------------------------------------------------- |  | ----------- | ---------- | - |  | -- | - | ----------- | - | --------------- |  | - | ---------- | -
|                                                  |  | As Reported |            |   |  |    |   | Adjustments |   | AdjustedBalance | 
|Net Sales                                         |  | $           | 2,254,350  |   |  |    |   |             | $ |                |  | $ | 2,254,350  |  
|Costs and Expenses                                |  |             | 4,983,636  |   |  | (1 | ) |             |   | 495,000         |  |   | 5,478,636  |  
|Net loss                                          |  | $           | (2,253,049 | ) |  |    |   |             |   |                 |  | $ | (2,748,049 | )
|Net loss per share - basic and diluted            |  | $           | (0.02      | ) |  |    |   |             |   |                 |  | $ | (0.04      | )
|                                                  |  |             |            |   |  |    |   |             |   |                 |  |   |            |  
|Weighted average common share - basic and diluted |  |             | 98,503,940 |   |  |    |   |             |   |                 |  |   | 69,072,161 |  
|                                                  |  |             |            |   |  |    |   |             |   |                 |  |   |            |  



|(1) | To record the issuance of 195,000 shares of preferred stock for services valued at $495,000.
|--- | --------------------------------------------------------------------------------------------



29



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##### Table of Contents

Condensed Consolidated Balance Sheet

December 31, 2006



|                                           |  |             |           |  |    |   |             |   |          |                 |  |   |          
|------------------------------------------ |  | ----------- | --------- |  | -- | - | ----------- | - | -------- | --------------- |  | - | ---------
|                                           |  | As Reported |           |  |    |   | Adjustments |   |          | AdjustedBalance
|Total Assets                               |  | $           | 2,270,677 |  |    |   |             | $ |         |                 |  | $ | 2,270,677
|                                           |  |             |           |  |    |   |             |   |          |                 |  |   |          
|Liabilities and Stockholders Equity       |  |             |           |  |    |   |             |   |          |                 |  |   |          
|Total Liabilities                          |  | $           | 2,010,932 |  |    |   |             | $ |         |                 |  | $ | 2,010,932
|                                           |  |             |           | 
|Stockholders Equity:                      |  |             |           |  |    |   |             |   |          |                 |  |   |          
|Preferred stock                            |  |             |          |  | (1 | ) |             |   | 27,500   |                 |  |   | 27,500   
|Common stock                               |  |             | 200,000   |  | (1 | ) |             |   | (100,000 | )               |  |   | 100,000  
|Additional paid-in-capital                 |  |             | 1,500     |  | (1 | ) |             |   | 72,500   |                 |  |   | 74,000   
|Deficit                                    |  |             | 58,245    |  | (1 | ) |             |   |         |                 |  |   | 58,245   
|                                           |  |             |           |  |    |   |             |   |          |                 |  |   |          
|Total Stockholders Equity                 |  |             | 259,745   |  |    |   |             |   |          |                 |  |   | 259,745  
|                                           |  |             |           |  |    |   |             |   |          |                 |  |   |          
|Total Liabilities And Stockholders Equity |  | $           | 2,270,677 |  |    |   |             |   |          |                 |  | $ | 2,270,677
|                                           |  |             |           |  |    |   |             |   |          |                 |  |   |          



|(1) | To record the initial capitalization and the issuance of 60,000,000 shares of common stock (valued at $100,000) and 1,650,000 shares of preferred stock (valued at $27,500).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2006



|                                                      |  |             |            |   |             |   |                 |  |   |            |  
|----------------------------------------------------- |  | ----------- | ---------- | - | ----------- | - | --------------- |  | - | ---------- | -
|                                                      |  | As Reported |            |   | Adjustments |   | AdjustedBalance | 
|Net loss                                              |  | $           | (436,572   | ) |             | $ |                |  | $ | (436,572   | )
|Net loss per share - basic and diluted                |  | $           | (0.00      | ) |             |   |                 |  | $ | (0.00      | )
|                                                      |  |             |            |   |             |   |                 |  |   |            |  
|(1) Weighted average common share - basic and diluted |  |             | 98,503,940 |   |             |   |                 |  |   | 60,000,000 |  
|                                                      |  |             |            |   |             |   |                 |  |   |            |  



|(1) | To record the initial capitalization and the issuance of 60,000,000 shares of common stock (valued at $100,000) and 1,650,000 shares of preferred stock (valued at $27,500).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

|Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|------- | -------------------------------------------------------------------------------------

Not applicable



|Item 9A (T). | Controls and Procedures.
|------------ | ------------------------

As supervised by our board of directors
and our principal executive and principal financial officers, management has established a system of disclosure controls and procedures and has evaluated the effectiveness of that system. The system and its evaluation are reported on in the
below Managements Annual Report on Internal Control over Financial Reporting. Our principal executive and financial officer has concluded that our disclosure controls and procedures (as defined in the 1934 Securities Exchange Act

Rule 13a-15(e)) as of December 31, 2007, are effective, based on the evaluation of these controls and procedures required by paragraph (b) of
Rule 13a-15.

Managements Annual Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Securities Exchange Act of 1934 (the Exchange
Act). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
U.S. generally accepted accounting principles.

Management assessed the effectiveness of internal control over financial reporting as of December 31,
2007. We carried out this assessment using the criteria of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal ControlIntegrated Framework.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Managements report was not subject to attestation by
our registered public accounting firm, pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only managements report in this annual report. Management concluded in this assessment that as of
December 31, 2007, our internal control over financial reporting is effective.

There have been no significant changes in our internal control over
financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter of 2007 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



|Item 9B. | Other Information.
|-------- | ------------------

None.

PART III



|Item 10. | Directors, Executive Officers, Promoters, Control Persons and Corporate Governance.
|-------- | -----------------------------------------------------------------------------------

Directors and Executive Officers

The following sets forth-certain information with respect to the directors and
executive officers of the Company as at April 1, 2008:



|                    |  |     |  |                                                
|------------------- |  | --- |  | -----------------------------------------------
|Name                |  | Age |  | Position                                       
|Steve Rubakh        |  | 46  |  | President, Chief Financial Officer and Director
|Steven A. Kempenich |  | 36  |  | Chief Executive Officer, Secretary and Director
|Albert P. Folsom    |  | 68  |  | Director                                       
|Raymond A. Hatch    |  | 72  |  | Director                                       
|Michael F. Reuling  |  | 63  |  | Director                                       



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##### Table of Contents

On September 5, 2007, in connection with the acquisition of Power Sports Factory, the Board of Directors of the
Company amended our By-Laws to provide that the number of directors constituting the entire Board be fixed at five, appointed Steve Rubakh as our President and Acting Chief Financial Officer, and elected Mr. Rubakh as a director of the Company
to fill one of the two newly-created directorships. At this Board meeting, Steven Kempenich was also appointed as our Chief Executive Officer and Acting Secretary and was elected a director.

The Companys directors are elected at the annual meeting of stockholders and hold office until their successors are elected and qualified. The Companys
officers are appointed annually by the Board of Directors and serve at the pleasure of the Board. There is no family relationship among any of the Companys directors and executive officers.

The following is a brief summary of the business experience of each of the directors and executive officers of the Company:

Steve Rubakh, Founder of PSF and President

Steve Rubakh, age
46, founded Power Sports Factory, Inc., in June, 2003 and currently serves as the President. Prior to founding Power Sports Factory, Mr. Rubakh was the founder of International Parking Concepts specializing in providing services to the
hospitality industry. From 1987 to 1992 Mr. Rubakh was the owner and operator of Gold Connection, a fine gem retail operation in Atlantic City. Mr. Rubakh attended both Community College of Philadelphia and Temple University majoring in
business administration.

Steven A. Kempenich, Chief Executive Officer

Steven A. Kempenich, age 36, joined Power Sports Factory on June 4, 2007. Prior to joining Power Sports Factory, Mr. Kempenich was the Vice President of Business Development and Finance for ICON International, Inc. from July of
2002 until June of 2007. From 1999 until joining ICON International, Mr. Kempenich was the Portfolio Manager and Managing Partner for Gentex Asset Management and SAK Capital, LLC. Mr. Kempenich received a Bachelor of Science in Finance,
Investments and Entrepreneurial Studies from Babson College in 1992 and a Masters in Business Administration from Harvard University Graduate School of Business Administration in 1996. On February 25, 2004, Mr. Kempenich consented without
admitting or denying guilt to a NYSE hearing panel finding that he accepted a post-execution trade into a firm account that was deemed by the NYSE panel as improper. As a result, the NYSE imposed, which Mr. Kempenich consented to, a penalty of
a censure, two-month bar and an undertaking to cooperate with the NYSE in connection with any disciplinary proceeding arising from this matter. The SEC and the NASD did not pursue any action regarding this matter.



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Albert P. Folsom, Director

Albert Folsom invented The Last Word, an advertisement display device and formed Amtel Communications Inc. to develop and patent the product. In 1997, Mr. Folsom merged this company, Purchase Point Media Corporation, with the Company,
of which he has acted as President of the Company until the closing of the acquisition of Power Sports Factory on September 5, 2007.

In 1983 he
created Aricana Resources by amalgamating several companies and served as President and Director from 1983 to 1988. Aricanas activities included medical research, and the development and marketing of medicinal products. He also started a
publishing company for medicinal products and founded, the American Health Research Association, a not-for-profit corporation. From 1980 to 1982 he served as President and Director of Alanda Energy Corp., an oil and gas company. From 1963 to 1980 he
served as a Director and Senior Officer of a number of companies including Computer Parking Systems, Resource Funding and an electrical contracting company. He served in the US Navy between 1956 and 1960.

Raymond A. Hatch, Director

After completing a Chase Manhattan bank training
program and becoming a member of the banks credit department, Mr. Hatch started his career on Wall Street in the early sixties. He completed the Reynolds Securities (Dean Witter Reynolds) training program and became an account executive.
Subsequently he joined Carreau & Company, which was known as a 1919 NYSE specialist firm specializing in stock issues such a Westinghouse Corporation, Carrier Corporation, General American Oil, etc. He was an officer and director of the
company and was primarily responsible for the American Stock Exchange operations. After leaving Carreau & Company , Mr. Hatch joined Delafield & Delafield as a member of the their syndicate department and subsequently,
Sterling & Grace & Co. as the manager of their syndicate department. Both of these firms were NYSE investment banking firms. Sterling & Grace was founded in the late 1800s. Mr. Hatch Joined Arbitrage Management
Co. as a Vice President. Arbitrage Management Co. was a convertible bond arbitrage operation headed up by Jon and Asher Edleman, and programmed by Harry Markowitz of Harvard University.

In May 1982, Mr. Hatch started his own investment banking boutique, Grady and Hatch & Company, Inc. The organization focused on private placements, syndicate participation and the origination of its own
underwritings. At the end of 1999, Mr. Hatch resigned from Grady & Hatch & Company and joined Ridgewood Group International Ltd. (RGI) as managing partner. RGI is managed by William G. Potter, who was previously Co-Chairman of
Prudential Securities International. The firm specializes in a variety of private placements.

Mr. Hatch attended the University of Colorado, New York
University Graduate School of Business Administration, New York Institute of Finance and the Hill School of Insurance. He was a consultant to American International Life Assurance Co., a member of the AIG Group, and was also associated with
Nationwide Insurance. He held a New York State Life License and New York State broker license. Mr. Hatch was a regular member of the American Stock Exchange and an allied member of the NYSE on several occasions, a principal of the NASD and was
a registered investment advisor with the SEC for over ten years.

Michael F. Reuling, Director

In late 1981 when he was with Albertsons, Mr. Reuling moved from the legal side of the business to the development side, becoming Senior Vice President of Real
Estate. In 1987 he became Executive Vice President of Store Development with responsibility for all store development functions, including real estate, design and construction. Mr. Reuling supervised a corporate development team that developed
hundreds of supermarkets and drugstores throughout the country with an annual capital budget in excess of



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$2 billion. He also played a key role in Albertsons merger and acquisition program. Upon consummation of the merger of Albertsons and American
Stores Company in 1999, Mr. Reuling assumed the role of Vice Chairman of the merged company with responsibility for store development, information technology, human resources and finance. He retired in 2001 and has since worked as a development
consultant.

Mr. Reuling grew up in Morton, Illinois where he attended public schools. He subsequently received a B.A. from Carleton College in
Northfield, Minnesota and a J.D. from the University of Michigan Law School in Ann Arbor, Michigan. He is a member of the Utah, Idaho and Texas bar associations. He served for nine years as a member of the board of Capital City Development
Corporation, the redevelopment agency of the City of Boise, and has also served on the boards of several local non-profit organizations. Mr. Reuling is presently on the board of directors of Jackson Food Stores, Inc., a 100+ unit convenience
store chain based in Boise and operating in several intermountain states.

Committees

We do not have an audit committee, although we intend to establish such a committee, with an independent audit committee financial expert member as defined in the rules of the SEC.

Corporate Code of Conduct

Section 16(A) Beneficial Ownership
Reporting Compliance

We are reviewing a proposed corporate code of conduct, which would provide for internal procedures concerning the reporting and
disclosure of corporate matters that are material to our business and to our stockholders. The corporate code of conduct would include a code of ethics for our officers and employees as to workplace conduct, dealings with customers, compliance with
laws, improper payments, conflicts of interest, insider trading, company confidential information, and behavior with honesty and integrity.



|Item 11. | Executive Compensation.
|-------- | -----------------------

The following table sets forth information
for the years ended December 31, 2007 and 2006 concerning the compensation paid or awarded to the Chief Executive Officer and President of the Company.

SUMMARY COMPENSATION TABLE



|                                                   |  |         |  |                 |         |             |  |                   |  |                    |  |                                           |  |                                                                          |  |                          |  |             |   |        
|-------------------------------------------------- |  | ------- |  | --------------- | ------- | ----------- |  | ----------------- |  | ------------------ |  | ----------------------------------------- |  | ------------------------------------------------------------------------ |  | ------------------------ |  | ----------- | - | -------
|Name and Principal Position (a)                    |  | Year(b) |  | Salary($)(1)(c) |         | Bonus($)(d) |  | StockAwards($)(e) |  | OptionAwards($)(f) |  | Non-EquityIncentivePlanCompensation($)(g) |  | Change inPension Valueand NonqualifiedDeferredCompensationEarnings($)(h) |  | All OtherCompensation(i) |  | Total($)(j)
|Steven A. Kempenich,Chief Executive Officer        |  | 2007    |  | $               | 115,385 |             |  |                   |  |                    |  |                                           |  |                                                                          |  |                          |  |             | $ | 115,385
|Steve Rubakh,President and Chief Financial Officer |  | 2007    |  | $               | 255,129 |             |  |                   |  |                    |  |                                           |  |                                                                          |  |                          |  |             | $ | 255,129
|Steve Rubakh,Chief Executive Officer               |  | 2006    |  | $               | 86,168  |             |  |                   |  |                    |  |                                           |  |                                                                          |  |                          |  |             | $ | 86,168 



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|Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|-------- | -----------------------------------------------------------------------------------------------

The following table sets forth certain information regarding the beneficial ownership of the Companys common stock as of April 1, 2008, and on an as adjusted basis following effectiveness of the Reverse
Split, by (a) each person known by the Company to own beneficially more than 5% of the Companys common stock, (b) each director of the Company who beneficially owns common stock, and (c) all officers and directors of the Company
as a group. Each named beneficial owner has sole voting and investment power with respect to the shares owned.

As of April 1, 2008, there were
98,503,940 shares of common stock outstanding.

Following effectiveness of the 1-for-20 Reverse Split, it is estimated that there will be approximately
28,307,357 shares of common stock outstanding.



|                                      |  |                                                               |  |                                  |   |  |                                                                             |  |                                                                                                                                     |  |                                                                     |  
|------------------------------------- |  | ------------------------------------------------------------- |  | -------------------------------- | - |  | --------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------- | -
|Name of Stockholder                   |  | Number ofShares ofCommonStockOwnedBeneficiallyat April 1,2008 |  | %OutstandingStock atApril 1,2008 |   |  | Number ofShares of SeriesB PreferredStock OwnedBeneficially atApril 1, 2008 |  | Number of Shares ofCommon Stock OwnedBeneficially asAdjusted FollowingEffectiveness ofReverse Split andConversion ofPreferred Stock |  | % OutstandingStock asAdjustedFollowingEffectiveness ofReverse Split |  
|Steve Rubakh (1)                      |  | 60,000,000                                                    |  | 60.91                            | % |  | 287,400                                                                     |  | 5,874,000                                                                                                                           |  | 20.75                                                               | %
|Folsom Family Holdings (2)            |  | 3,337,500                                                     |  | 3.39                             | % |  | 200,000                                                                     |  | 2,166,875                                                                                                                           |  | 7.65                                                                | %
|Amtel Communications, Inc. (3)        |  | 3,337,500                                                     |  | 3.39                             | % |  |                                                                             |  | 166,875                                                                                                                             |  | 0.59                                                                | %
|Raymond A. Hatch (4)                  |  | 250,000                                                       |  | *                                |   |  |                                                                             |  | 12,500                                                                                                                              |  | *                                                                   |  
|Steven A. Kempenich (5)               |  |                                                               |  |                                  |   |  | 139,833                                                                     |  | 1,398,333                                                                                                                           |  | 4.94                                                                | %
|All Officers and Directors as a Group |  | 63,587,500                                                    |  | 64.55                            | % |  |                                                                             |  | 9,451,708                                                                                                                           |  | 33.39                                                               | %



Less than 1%.



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|(1) | Mr. Rubakhs address is c/o Power Sports Factory, Inc., 6950 Central Highway, Pennsauken, NJ 08109. Does not include 287,400 shares of Series B Preferred Stock also issued
to Mr. Rubakh on September 5, 2007, in connection with the acquisition of Power Sports Factory, which shares will be converted into 2,874,000 shares of common stock upon the effectiveness of the planned 1-for-20 reverse split of our common
stock.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Consists of shares held by Folsom Family Holdings, a trust formed under the laws of Canada. Mr. Folsom has a 10% interest in such entity, but no voting or dispositive power
over the shares held in the Folsom Family Holdings trust. The trustee of the trust is Mr. Thomas Skipon. The address of the trust is 2495 Haywood Ave., West Vancouver, B.C. V7V 1Y2. Mr. Folsoms address is 1100 Melville Street, Suite
320, Vancouver, B.C. V6E 4A6 Canada. Does not include 3,337,500 shares owned by Amtel Communications, Inc. Mr. Folsom is the president and a director of Amtel. Folsom Family Holdings was issued 200,000 shares of Series B Preferred Stock in
exchange for the cancellation of obligations owing to Mr. Folsom by the Company.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | The address of Amtel is c/o Martin and Associates, #2100-1066 West Hastings Street, Vancouver, British Columbia, Canada V6E 3X2. To the knowledge of the Company, Amtel has
approximately 65 stockholders and 10% to 15% of Amtel is owned by Rurik Trust, a Grand Cayman Islands Trust formed in 1986. The Company is not aware of any other shareholder owning over 5% of Amtel. Mr. Albert Folsom is President and a director
of Amtel, and by reason of his being president of Amtel, would have voting power over the shares of the Companys common stock held by Amtel. Mr. Folsom does not own any shares of Amtel,has no ownership interest, direct or indirect, in
Amtel, and has no dispositive power over the shares of Company common stock held by Amtel.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | The address of Raymond A. Hatch is c/o Corporate House, 320 1100 Melville, Vancouver, B.C. VC64A6 Canada.
|--- | ---------------------------------------------------------------------------------------------------------

|(5) | Does not include 139,833 shares of Series B Preferred Stock issued to Mr. Steven A. Kempenich, our Chief Executive Officer and a Director, on September 5, 2007, in
connection with the acquisition of Power Sports Factory, which shares will be converted into 1,398,333 shares of common stock upon the effectiveness of the planned 1-for-20 reverse split of our common stock. Mr. Kempenichs address is c/o
Power Sports Factory, Inc., 6950 Central Highway, Pennsauken, NJ 08109.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Item 13. | Certain Relationships and Related Transactions, and Director Independence.
|-------- | --------------------------------------------------------------------------

The development activities of the Company have been financed through advances by Amtel, which is a major shareholder. The Company owed Amtel $567,911 at June 30, 2007 and 2006. Interest expense on these advances was $52,081 and $49,244
for the years ended June 30, 2007 and 2006, respectively, and $332,898 for the period June 28, 1996 (Date of Formation) through June 30, 2007. All interest has been accrued. All of such advances have been made on a demand loan basis.
The Company does not have a formal loan agreement with Amtel.

The Company entered into an agreement with Albert Folsom (Folsom), the
Companys President and Chief Executive Officer, for consulting services to be performed on behalf of the Company. Folsom received consulting fees for the fiscal years ended June 30, 2007 and 2006 of $72,000 and $72,000 and $288,000 for
the period June 28, 1996 (Date of Formation) through June 30, 2007, respectively.

The Company owed Folsom $602,968 and $496,739 at the fiscal
year ends of June 30, 2007 and 2006, respectively. Interest expense was $24,894 and $22,384 for the fiscal years ended June 30, 2007 and 2006, respectively, and $142,552 for the period June 28, 1996 (Date of Formation) through
June 30, 2007. All consulting and interest has been accrued. On September 5, 2007, immediately following the closing of the completion of the acquisition of PSF, the Company issued 200,000 shares of Preferred Stock to Folsom in exchange
for the satisfaction of all amounts owed to Folsom by the Company.



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The Company has accrued rental payments of $1,500 per month for its fiscal years ended June 30, 2006 and 2007 for
approximately 1,500 square feet of office space leased from Mr. Folsom.

As part of the acquisition of PSF, on May 14, 2007, the Company issued
60,000,000 shares of Common Stock to Steve Rubakh, the major shareholder of PSF, and on August 31, 2007, entered into an amendment (the Amendment) to the Share Exchange Agreement governing the acquisition, that provided for a
completion of the acquisition of PSF at a closing held on September 5, 2007. At the closing the Company issued 1,650,000 shares of a new Series B Convertible Preferred Stock (the Preferred Stock) to the shareholders of PSF,
including 402,800 shares to Mr. Rubakh, who is now our President and a director, and 185,833 shares to Steven A. Kempenich, our Chief Executive Officer and a director, to complete the acquisition of PSF by us. Each share of Preferred Stock is
convertible into 10 shares of our Common Stock.



|Item 14. | Principal Accountant Fees and Services.
|-------- | ---------------------------------------

In accordance with the
requirements of the Sarbanes-Oxley Act of 2002 and the Audit Committees charter, all audit-related work and all non-audit work performed by our independent accounts, Madsen & Associates, CPAs Inc. is approved in advance by the
Audit Committee, including the proposed fees for such work. The Audit Committee is informed of each service actually rendered.

Audit Fees. Audit
fees expected to be billed to us by Madsen & Associates, CPAs Inc. for the audit of financial statements included in our Annual Reports on Form 10-K, and reviews of the financial statements included in our Quarterly Reports on Form
10-QSB, for the years ended June 30, 2007 and 2006 are approximately $9,575 and $3,500, respectively.

Audit fees expected to be billed to us by
Madsen & Associates, CPAs Inc. for the audit of financial statements included in our Annual Report on Form 10-K, and reviews of the financial statements included in our Quarterly Report on Form 10-QSB for the period ended
September 30, 2007, and for the years ended December 31, 2007 and 2006 are approximately $8,500.

Audit-Related Fees. We have been billed
$-0- and $-0- by Madsen & Associates, CPAs Inc. for the fiscal years ended December 31, 2007 and 2006, respectively, for the assurance and related services that are reasonably related to the performance of the audit or review of
our financial statements and are not reported under the caption Audit Fees above.

Tax Fees. We have been billed an aggregate of $-0-
and $-0- by Madsen & Associates, CPAs Inc. for the fiscal years ended December 31, 2007 and 2006, respectively, for tax services.

All Other Fees. We have been billed an aggregate of $-0- and $-0- by Madsen & Associates, CPAs Inc. for the fiscal years ended December 31, 2007 and 2006, respectively, for permitted non-audit services.

Other Matters. N.A.

Applicable law and regulations
provide an exemption that permits certain services to be provided by our outside auditors even if they are not pre-approved. We have not relied on this exemption at any time since the Sarbanes-Oxley Act was enacted.

To our knowledge, there have been no persons, other than Madsen & Associates, CPAs Inc.s full time, permanent employees who have worked on the audit
or review of our financial statements.



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|Item 15. | Exhibits and Financial Statement Schedules.
|-------- | -------------------------------------------

(3) Exhibits.



|              |  |                                                                                                                                                                                                                                                                                                                                        
|------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Title                                                                                                                                                                                                                                                                                                                                  
|3 (a)         |  | Certificate of Incorporation. (Incorporated by Reference to Exhibit 3(a) to the Companys Report on Form 10-SB dated February 11, 1999.)                                                                                                                                                                                               
|              | 
|3 (a)(2)      |  | Statement of Designations of Convertible Preferred Stock, Series B, filed August 4, 2007. (Incorporated by Reference to Exhibit 3(a)(2) to the Companys Current Report on Form 8-K, filed
September 12, 2007.)                                                                                                                        
|              | 
|3 (b)         |  | By-Laws. (Incorporated by Reference to Exhibit 3(b) to the Companys Report on Form 10-SB dated February 11, 1999.)                                                                                                                                                                                                                    
|              | 
|3 (b)(2)      |  | Amendment to By-Laws approved August 5, 2007. (Incorporated by Reference to Exhibit 3(b)(2) to the Companys Current Report on Form 8-K, filed September 12, 2007.)                                                                                                                                                                    
|              | 
|10 (a)        |  | Agreement dated September 15, 1998 between International Trade Group, LLC and the Registrant. (Incorporated by Reference to Exhibit 10(a) to the Companys Report on Form 10-SB dated
February 11, 1999.)                                                                                                                              
|              | 
|10 (b)        |  | Agreement dated August 14, 1998 between Culver Associates, Ltd. and the Registrant. (Incorporated by Reference to Exhibit 10 (b) to the Companys Report on Form 10-SB dated February 11,
1999.)                                                                                                                                       
|              | 
|10 (c)        |  | Agreement dated August 12, 1998 between Dorian Capital Corporation and the Registrant. (Incorporated by Reference to Exhibit 10(c) to the Companys Report on Form 10-SB dated February
11, 1999.)                                                                                                                                     
|              | 
|10 (d)        |  | Agreement dated April 25, 1999 between Roger Jung (assigned to Last Word Management, Inc.) and the Registrant. (Incorporated by Reference to Exhibit 10(d) to the Companys Report on Form
10-SB dated February 11, 1999.)                                                                                                             
|              | 
|10 (e)        |  | Agreement dated September 1, 1999 between Vintage International Corp. and the Registrant. (Incorporated by Reference to Exhibit 10(e) to the Companys Annual Report on Form 10-KSB for
the year ended June 30, 2000.)                                                                                                                 
|              | 
|10 (f)        |  | Agreement dated February 1, 2000 between Quadrant Financial Inc. and the Registrant. (Incorporated by Reference to Exhibit 10(f) of the Companys Annual Report on Form 10-KSB for the
year ended June 30, 2000.)                                                                                                                      
|              | 
|10 (g)        |  | Share Exchange and Acquisition Agreement, dated April 24, 2007, by and among the Company, Power Sports Factory, Inc., and the shareholders of Power Sports Factory, Inc. (Incorporated by
Reference to Exhibit 10(g) to the Companys Current Report on Form 8-K, filed September 12, 2007.)                                           
|              | 
|10 (h)        |  | Amendment, dated as of August 31, 2007, to Share Exchange and Acquisition Agreement, dated April 24, 2007, by and among the Company, Power Sports Factory, Inc., and the shareholders
of Power Sports Factory, Inc. (Incorporated by Reference to Exhibit 10(h) to the Companys Current Report on Form 8-K, filed September 12, 2007.)



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Exhibit 31.1Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002, filed herewith.

Exhibit 31.2Certification of the President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002, filed herewith.

Exhibit 32.1Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
filed herewith.

Exhibit 32.2Certification of the President and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, filed herewith.

SIGNATURES

In
accordance with the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Dated: August 15, 2008



|                           |  |                                                               |  |  |  |                
|-------------------------- |  | ------------------------------------------------------------- |  |  |  | ---------------
|POWER SPORTS FACTORY, INC. |  |                                                               |  | 
|                           |  |                                                               | 
|By:                        |  | /s/ Shawn Landgraf                                            |  |  |  |                
|                           |  | Chief Executive Officer                                       |  |  |  |                
|                           |  |                                                               | 
|                           |  | /s/ Steve Rubakh                                              |  |  |  | August 15, 2008
|                           |  | Steve Rubakh, President, Chief Financial Officer and Director |  |  |  |                
|                           |  |                                                               | 
|                           |  | /s/ Shawn Landgraf                                            |  |  |  | August 15, 2008
|                           |  | Shawn Landgraf                                                |  |  |  |                
|                           |  | Chief Executive, Officer, Secretary and Director              |  |  |  |                



39