----

|  [                X                ]  | **QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934** |
|-------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|

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

|   | -                    - - - - - -                    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                    - - - -                    - |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  MINNESOTA-------------------------------                                              |  41-1853993------------------------------------ |
|---------------------------------------------------------------------------------------------|------------------------------------------------------|
| (State                or Other Jurisdiction ofIncorporation                or Organization) | (I.R.S.                Employer Identification No.)  |

**Persons who are to respond to the collection of information          contained in this form are not required**

**to          respond unless the form displays a          currently valid OMB control number.**

----

|                                           | PURCHASE                  POINT MEDIA CORPORATION                    |                                     |
|------------------------------------------------|----------------------------------------------------------------------|------------------------------------------|
|                                           |                                                                 |                                     |
|                                           | **INDEX**                                                            |                                     |
|                                           |                                                                 | Page                                     |
|                                           |                                                                 |                                     |
| Part                  I. Financial Information | 1                                                                    |
|                                           |                                                                 |                                     |
| Item                  1.                       | Financial                  Statements                                |                                     |
|                                           |                                                                 |                                     |
|                                           | Balance                  Sheets as of December 31,              |                                     |
|                                           | 2005                  (unaudited) and June 30, 2005                  | 2                                        |
|                                           |                                                                 |                                     |
|                                           | Statements                  of Operations for the Six and            |                                     |
|                                           | Three                  Months Ended December 31,                     |                                     |
|                                           | 2005                  and 2004 (unaudited) and                       |                                     |
|                                           | the                  Period June 28, 1996 (Date of                   |                                     |
|                                           | Formation)                  through December 31, 2005                | 3                                        |
|                                           |                                                                 |                                     |
|                                           | Statements                  of Stockholders' Deficiency              |                                     |
|                                           | for                  the Period June 28, 1996 (Date of Formation)    |                                     |
|                                           | through                  December 31, 2005                           | 4-5                                 |
|                                           |                                                                 |                                     |
|                                           | Statements                  of Cash Flows for the Six                |                                     |
|                                           | Months                  Ended December 31, 2005 and                  |                                     |
|                                           | 2004                  (unaudited) and the Period June                |                                     |
|                                           | 28,                  1996 (Date of Formation) through                |                                     |
|                                           | December                  31, 2005                                   | 6                  -                  7  |
|                                           |                                                                 |                                     |
|                                           | Notes                  to Financial Statements (unaudited)           | 8                  -                  11 |
|                                           |                                                                 |                                     |
| Item                  2.                       | Management's                  Discussion and Analysis                |                                     |
|                                           | or                  Plan of Operations                               | 12                  - 18                 |
|                                           |                                                                 |                                     |
| Item                  3.                       | Quantitative                  and Qualitative Disclosures about      |                                     |
|                                           | Market                  risk fair value of financial instruments     | 19                                       |
|                                           |                                                                 |                                     |
| Item                  4.                       | Controls                  and Procedures                             | 19                                       |
|                                           |                                                                 |                                     |
| Part                  II. Other Information    |                                                                 |
|                                           |                                                                 |                                     |
| Item                  1.                       | Legal                  Proceedings                                   | 19                                       |
|                                           |                                                                 |                                     |
| Item                  4.                       | Submission                  of Matters to a Vote of Security Holders | 19                                       |
|                                           |                                                                 |                                     |
| Item                  5                        | Other                  Information                                   | 20                                       |
|                                           |                                                                 |                                     |
| Item                  6.                       | Exhibits                  and Reports on Form 8-K                    | 20                                       |
|                                           |                                                                 |                                     |
| Signatures                                     |                                                                 | 21                                       |

----

----

| PURCHASE                    POINT MEDIA CORPORATION |
|-----------------------------------------------------|
| (A                    DEVELOPMENT STAGE COMPANY)    |
| BALANCE                    SHEETS                   |

| ASSETS                                                            |   |   |                                  |   |   |                        |
|-------------------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|-----------------------------|
|                                                              |   |   | December                    31,  |   |   | June                    30, |
|                                                              |   |   | 2005                                  |   |   | 2005                        |
|                                                              |   |   | (Unaudited)                      |   |   |                        |
| CURRENT                    ASSETS:                                |   |   |                                  |   |   |                        |
| Cash                                                              |   | $      | -                                     |   | $      | -                           |
| Total                    Current Assets                           |   |   | -                                     |   |   | -                           |
|                                                              |   |   |                                  |   |   |                        |
| PROPERTY                    AND EQUIPMENT                         |   |   |                                  |   |   |                        |
| -                    net of depreciation                          |   |   | 888                                   |   |   | 1,036                       |
|                                                              |   |   |                                  |   |   |                        |
| OTHER                    ASSETS:                                  |   |   |                                  |   |   |                        |
| Patents                    - net of amortization                  |   |   | 10,485                                |   |   | 11,166                      |
| Total                    Other Assets                             |   |   | 10,485                                |   |   | 11,166                      |
|                                                              |   |   |                                  |   |   |                        |
| TOTAL                    ASSETS                                   |   | $      | 11,373                                |   | $      | 12,202                      |
|                                                              |   |   |                                  |   |   |                        |
| LIABILITIES                    AND STOCKHOLDERS' DEFICIENCY       |   |   |                                  |   |   |                        |
|                                                              |   |   |                                  |   |   |                        |
| CURRENT                    LIABILITIES:                           |   |   |                                  |   |   |                        |
| Note                    payable related party                     |   | $      | 833,154                               |   | $      | 826,983                     |
| Accrued                    interest payable - related parties     |   |   | 361,813                               |   |   | 326,845                     |
| Accounts                    payable - related parties             |   |   | 180,000                               |   |   | 144,000                     |
| Accounts                    payable                               |   |   | 154,017                               |   |   | 135,461                     |
|                                                              |   |   |                                  |   |   |                        |
| Total                    Current Liabilities                      |   |   | 1,528,984                             |   |   | 1,433,289                   |
|                                                              |   |   |                                  |   |   |                        |
| STOCKHOLDERS'                    DEFICIENCY:                      |   |   |                                  |   |   |                        |
| Preferred                    stock                                |   |   |                                  |   |   |                        |
| 50,000,000                    shares authorized at no par value;  |   |   |                                  |   |   |                        |
| 2,000                    shares issued and oustanding at          |   |   |                                  |   |   |                        |
| redemtpion                    value                               |   |   | 170                                   |   |   | 170                         |
| Common                    stock                                   |   |   |                                  |   |   |                        |
| 100,000,000                    shares authorized at no par value; |   |   |                                  |   |   |                        |
| 22,378,940                    and 21,928,940 shares issued        |   |   |                                  |   |   |                        |
| and                    outstanding on December 31, 2005           |   |   |                                  |   |   |                        |
| and                    June 30, 2005, respectively                |   |   | 1,815,983                             |   |   | 1,782,983                   |
| Additional                    paid-in capital                     |   |   | 128,128                               |   |   | 128,128                     |
| Deficit                    accumulated during the                 |   |   |                                  |   |   |                        |
| development                    stage                              |   |   | (3,461,892                            | )      |   | (3,332,368)                 |
|                                                              |   |   |                                  |   |   |                        |
| Total                    Stockholders' Deficiency                 |   |   | (1,517,611                            | )      |   | (1,421,087)                 |
|                                                              |   |   |                                  |   |   |                        |
| TOTAL                    LIABILITIES AND                          |   |   |                                  |   |   |                        |
| STOCKHOLDERS'                    DEFICIENCY                       |   | $      | 11,373                                |   | $      | 12,202                      |

----

| PURCHASE                  POINT MEDIA CORPORATION                              |
|--------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                 |
| STATEMENTS                  OF OPERATIONS - UNAUDITED                          |
| FOR                  THE SIX AND THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004 |
| AND                  THE PERIOD JUNE 28, 1996 (DATE OF INCEPTION)              |
| TO                  DECEMBER 31, 2005                                          |

|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |  JUNE                  28, 1996 |       |
|-------------------------------------------------------------------------------------|--------|-------------------------------------------|---------------------------------------------------|--------|--------|-------------------------------|--------|--------|---------|--------|--------|---------|--------|--------------------------------------|------------|
|                                                                                |   | FOR                  THE SIX MONTHS ENDED |  FOR                  THE THREE MONTHS ENDED |   | to     |                          |
|                                                                                |   | DECEMBER                  31,             |  DECEMBER                  31,               |   |   | DECEMBER                  31, |   |
|                                                                                |   |                                      | 2005                                              |   |   | 2004                          |   |   | 2005    |   |   | 2004    |   |                                 | 2005       |   |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| REVENUES                                                                            |   | $                                         | -                                                 |   | $      | -                             |   | $      | -       |   | $      | -       |   | $                                    | -          |   |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| EXPENSES:                                                                           |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| Administrative                                                                      |   |                                      | 93,729                                            |   |   | 506,901                       |   |   | 36,072  |   |   | 17,085  |   |                                 | 2,483,885  |   |
| Depreciation                  and amortization                                      |   |                                      | 828                                               |   |   | 1,207                         |   |   | 414     |   |   | 604     |   |                                 | 28,794     |   |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| NET                  LOSS                  -                  before other expenses |   |                                      | (94,557                                           | )      |   | (508,108                      | )      |   | (36,486 | )      |   | (17,689 | )      |                                 | (2,512,679 | ) |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| OTHER                  EXPENSES                                                     |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| Loss                  from theft - net                                              |   |                                      | -                                                 |   |   | -                             |   |   | -       |   |   | -       |   |                                 | (354,477   | ) |
| Interest                                                                            |   |                                      | (34,967                                           | )      |   | (32,671                       | )      |   | (17,307 | )      |   | (16,335 | )      |                                 | (594,736   | ) |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| NET                  LOSS                                                           |   | $                                         | (129,524                                          | )      | $      | (540,779                      | )      | $      | (53,793 | )      | $      | (34,024 | )      | $                                    | (3,461,892 | ) |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| LOSS                  PER COMMON SHARE -                                            |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| Basic                  and diluted                                                  |   | $                                         | (0.01                                             | )      | $      | (0.03                         | )      | $      | -       |   | $      | -       |   |                                 |       |   |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| AVERAGE                  OUTSTANDING SHARES                                    |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| (stated                  in 1,000's)                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
|                                                                                |   |                                      |                                              |   |   |                          |   |   |    |   |   |    |   |                                 |       |   |
| Basic                                                                               |   |                                      | 22,153                                            |   |   | 21,412                        |   |   | 22,379  |   |   | 21,556  |   |                                 |       |   |
| Diluted                                                                             |   |                                      | 22,653                                            |   |   | 21,412                        |   |   | 22,879  |   |   | 21,556  |   |                                 |       |   |

----

| PURCHASE                  POINT MEDIA CORPORATION                                                     |
|-------------------------------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                                        |
| STATEMENTS                  OF STOCKHOLDERS' DEFICIENCY                                               |
| PERIOD                  JUNE 28, 1996 (DATE OF FORMATION) THROUGH SEPTEMBER 30,                  2005 |
| (Unaudited)                                                                                           |

|                                              | PREFERRED                  STOCK |  COMMON                  STOCK |   | ADDITIONAL |   |  RETAINED |   |      |
|---------------------------------------------------|----------------------------------|-------------------------------------|--------|------------|--------|----------------|--------|-----------|
|                                              |                             |                                     |   |       |        |           |   |      |   |   |  |   |  PAID-IN  |  EARNINGS |   |   |
|                                              |                             | SHARES                         |   |       | AMOUNT |           |   | SHARES    |   |   | AMOUNT |   |   | CAPITAL |   |  (DEFICIT) | TOTAL |   |
| Balance,                  June 28,                |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1996                  (Date of                    |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Formation)                                        |                             | -                                   |   | $          | -      |           |   | -         |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common               |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                  for cash at $.009          |                             | -                                   |   |       | -      |           |   | 1,175,000 |   |   | 10,000 |   |   | - |   |   | - |   |   | 10,000 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock split               |                             | -                                   |   |       | -      |           |   | 3,525,000 |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of preferred            |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                  for services at $.09       |                             | 2,000                               |   |       | 170    |           |   | -         |   |   | - |   |   | - |   |   | - |   |   | 170 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for the period          |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ended                  June 30, 1996              |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | - |   |   | (338,760 | ) |   | (338,760 | ) |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recapitalization                  from            |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| reverse                  merger                   |                             | -                                   |   |       | -      |           |   | 6,675,000 |   |   | 8,500 |   |   | - |   |   | - |   |   | 8,500 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for the year ended      |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 1997                    |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | - |   |   | (99,350 | ) |   | (99,350 | ) |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for the year ended      |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 1998                    |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | - |   |   | (142,719 | ) |   | (142,719 | ) |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                  of common stock             |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                  cash at $7.00                |                             | -                                   |   |       | -      |           |   | 34,571    |   |   | 241,997 |   |   | - |   |   | - |   |   | 241,997 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of warrants             |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                  financing at $.67            |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | 23,104 |   |   | - |   |   | 23,104 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for the year ended      |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 1999                    |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | - |   |   | (458,843 | ) |   | (458,843 | ) |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of warrants             |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                  financing at $.08            |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | 83,738 |   |   | - |   |   | 83,738 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                  of common stock             |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (at                  $1.00 per share)             |                             | -                                   |   |       | -      |           |   | 117,665   |   |   | 117,665 |   |   | - |   |   | - |   |   | 117,665 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                  of common stock             |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                  cash at $.50                 |                             | -                                   |   |       | -      |           |   | 336,076   |   |   | 168,038 |   |   | - |   |   | - |   |   | 168,038 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for the year ended      |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 2000                    |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | - |   |   | (483,493 | ) |   | (483,493 | ) |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of warrants for         |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| financing                  at $.08                |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | 21,286 |   |   | - |   |   | 21,286 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock         |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                  cash at $1.00 , net of costs |                             | -                                   |   |       | -      |           |   | 97,138    |   |   | 97,138 |   |   | - |   |   | - |   |   | 97,138 |   |
|                                              |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for the year ended      |                             |                                |   |       |   |           |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 2001                    |                             | -                                   |   |       | -      |           |   | -         |   |   | - |   |   | - |   |   | (282,592 | ) |   | (282,592 | ) |

----

| PURCHASE                  POINT MEDIA CORPORATION                                                                 |
|-------------------------------------------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                                                    |
| STATEMENTS                  OF STOCKHOLDERS' DEFICIENCY                                                           |
| PERIOD                  JUNE 28, 1996 (DATE OF FORMATION) THROUGH SEPTEMBER 30, 2005                  (Continued) |
| (Unaudited)                                                                                                       |

|                                              |   |   |            |   |   |   |  Common                    Stock |  Additional |  Retained |   |         |          |
|---------------------------------------------------|--------|--------|-----------------|--------|--------|--------|---------------------------------------|------------------|----------------|--------|--------------|---------------|
|                                              |   |   | Preferred  |   |   | Par    |                                  |             |           |   |  Stated |  Paid-In |  Earnings |   |   |   |
|                                              |   |   | Stock      |   |   | Value  |                                  |             | Shares         |   |  Value  |  Capital |  (Deficit) |   | Total |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    cash at $.05               |   |   | -               |   |   | -      |                                  |             | 1,613,490      |   |         | 80,674        |   |   | - |   |   | - |   |   | 80,674 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    debt                       |   |   | -               |   |   | -      |                                  |             | 3,500,000      |   |         | 402,021       |   |   | - |   |   | - |   |   | 402,021 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for the year ended    |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| June                    30, 2002                  |   |   | -               |   |   | -      |                                  |             | -              |   |         | -             |   |   | - |   |   | (500,234 | ) |   | (500,234 | ) |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    cash at $.05 to $.10       |   |   | -               |   |   | -      |                                  |             | 650,000        |   |         | 39,000        |   |   | - |   |   | - |   |   | 39,000 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for the year ended    |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| June                    30, 2003                  |   |   | -               |   |   | -      |                                  |             | -              |   |         | -             |   |   | - |   |   | (92,158 | ) |   | (92,158 | ) |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| at                    $.05                        |   |   | -               |   |   | -      |                                  |             | 1,360,000      |   |         | 68,000        |   |   | - |   |   | - |   |   | 68,000 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    services                   |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| at                    $.05 to $.10                |   |   | -               |   |   | -      |                                  |             | 595,000        |   |         | 29,950        |   |   | - |   |   | - |   |   | 29,950 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for the year ended    |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| June                    30, 2004                  |   |   | -               |   |   | -      |                                  |             | -              |   |         | -             |   |   | - |   |   | (223,517 | ) |   | (223,517 | ) |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Balance,                    June 30, 2004         |   |   | 2,000           |   |   | 170    |                                  |             | 19,678,940     |   |         | 1,262,983     |   |   | 128,128 |   |   | (2,621,666 | ) |   | (1,230,385 | ) |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    costs of stock offering    |   |   | -               |   |   | -      |                                  |             | 1,000,000      |   |         | -             |   |   | - |   |   | - |   |   | - |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    services at $.50 per share |   |   | -               |   |   | -      |                                  |             | 400,000        |   |         | 200,000       |   |   | - |   |   | - |   |   | 200,000 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    payment of debt at         |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| $.50                    per share                 |   |   | -               |   |   | -      |                                  |             | 190,000        |   |         | 95,000        |   |   | - |   |   | - |   |   | 95,000 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    services at $.08 per share |   |   | -               |   |   | -      |                                  |             | 250,000        |   |         | 20,000        |   |   | - |   |   | - |   |   | 20,000 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    services at $.50 per share |   |   | -               |   |   | -      |                                  |             | 410,000        |   |         | 205,000       |   |   | - |   |   | - |   |   | 205,000 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for the year ended    |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| June                    30, 2005                  |   |   | -               |   |   | -      |                                  |             | -              |   |         | -             |   |   | - |   |   | (710,702 | ) |   | (710,702 | ) |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Balance,                    June 30, 2005         |   |   | 2,000           |   |   | 170    |                                  |             | 21,928,940     |   |         | 1,782,983     |   |   | 128,128 |   |   | (3,332,368 | ) |   | (1,421,087 | ) |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| for                    expenses                   |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| at                    $.06 per share              |   |   | -               |   |   | -      |                                  |             | 250,000        |   |         | 15,000        |   |   | - |   |   | - |   |   | 15,000 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Sale                    of common stock for       |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| cash                    at $.09 per share         |   |   | -               |   |   | -      |                                  |             | 200,000        |   |         | 18,000        |   |   | - |   |   | - |   |   | 18,000 |   |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for the six months    |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| ended                    December 31, 2005        |   |   | -               |   |   | -      |                                  |             | -              |   |         | -             |   |   | - |   |   | (129,524 | ) |   | (129,524 | ) |
|                                              |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| Balance                    at                     |   |   |            |   |   |   |                                  |             |           |   |         |          |   |   |   |   |   |   |   |   |   |   |
| December                    31, 2005              |   |   | 2,000           |   | $      | 170    |                                  | $                | 22,378,940     |   | $            | 1,815,983     |   | $ | 128,128 |   | $ | (3,461,892 | ) | $ | (1,517,611 | ) |

----

| PURCHASE                  POINT MEDIA CORPORATION                        |
|--------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                           |
| STATEMENT                  OF CASH FLOWS - UNAUDITED                     |
| FOR                  THE SIX MONTHS ENDED DECEMBER 31, 2005 AND 2004 AND |
| FOR                  THE PERIOD JUNE 28, 1996 (DATE OF INCEPTION) TO     |
| DECEMBER                  31, 2005                                       |

|                                          |   |                                      |                                     |                          |   |                                     |   |   | JUNE                  28, |   |
|-----------------------------------------------|--------|-------------------------------------------|------------------------------------------|-------------------------------|--------|------------------------------------------|--------|--------|---------------------------|--------|
|                                          |   |                                      |                                     |                          |   |                                     |   |   | 1996                      |   |
|                                          |   | FOR                  THE SIX MONTHS ENDED |                                     | TO                            |   |
|                                          |   | DECEMBER                  31,             |                                     | DECEMBER                  31, |   |
| CASH                  FLOWS FROM OPERATING    |   |                                      | 2005                      |                          |   | 2004                      |   |   | 2005                      |   |
| ACTIVITIES:                                   |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| Net                  loss                     |   | $                                         | (129,524                                 | )                             | $      | (540,779                                 | )      | $      | (3,461,892                | )      |
| Adjustments                  to reconcile     |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| net                  loss to net cash         |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| used                  in operating            |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| activities:                                   |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| Depreciation                  and             |   |                                      |                                          |                          |   |                                     |   |   |                      |   |
| amortization                                  |   |                                      | 829                                      |                          |   | 1,206                                    |   |   | 28,795                    |   |
| Other                  assets                 |   |                                      | -                                        |                          |   | -                                        |   |   | 4,767                     |   |
| Changes                  in accounts payable  |   |                                      | 95,695                                   |                          |   | 118,335                                  |   |   | 1,210,298                 |   |
| Issuance                  of common and       |   |                                      |                                     |                          |   |                                     |   |   |                           |   |
| preferred                  stock for expenses |   |                                      | 15,000                                   |                          |   | 405,000                                  |   |   | 478,620                   |   |
| Issuance                  of warrants for     |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| financing                                     |   |                                      | -                                        |                          |   | -                                        |   |   | 128,128                   |   |
| Net                  Change in Cash from      |   |                                      |                                     |                          |   |                                     |   |   |                           |   |
| Operations                                    |   |                                      | (18,000                                  | )                             |   | (16,238                                  | )      |   | (1,611,284                | )      |
|                                          |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| CASH                  FLOWS FROM INVESTING    |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| ACTIVITIES:                                   |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| Security                  deposit             |   |                                      | -                                        |                          |   | -                                        |   |   | (600                      | )      |
| Acquisition                  of patents       |   |                                      | -                                        |                          |   | -                                        |   |   | (31,542                   | )      |
| Purchase                  of equipment        |   |                                      | -                                        |                          |   | -                                        |   |   | (12,793                   | )      |
|                                          |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| Net                  Change from investing    |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| Activities                                    |   |                                      | -                                        |                          |   | -                                        |   |   | (44,935                   | )      |
|                                          |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| CASH                  FLOWS FROM FINANCING    |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| ACTIVITIES:                                   |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| Net                  proceeds from notes      |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| payable                  - related parties    |   |                                      | -                                        |                          |   | -                                        |   |   | 815,708                   |   |
| Proceeds                  from sale of        |   |                                      |                                     |                          |   |                                     |   |   |                      |   |
| common                  stock                 |   |                                      | 18,000                                   |                          |   | -                                        |   |   | 840,511                   |   |
| Net                  Cash Provided by         |   |                                      |                                     |                          |   | .                                        |   |   |                      |   |
| Financing                  Activities         |   |                                      | 18,000                                   |                          |   | -                                        |   |   | 1,656,219                 |   |

----

| PURCHASE                  POINT MEDIA CORPORATION                              |
|--------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                 |
| STATEMENT                  OF CASH FLOWS - UNAUDITED                           |
| FOR                  THE SIX AND THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004 |
| AND                  FOR THE PERIOD JUNE 28, 1996 (DATE OF INCEPTION) TO       |
| DECEMBER                  31, 2005                                             |

|                                          |   |                                  |                                          |   |                            |                                       |   |   |                                       | JUNE                    28, |   |
|-----------------------------------------------|--------|---------------------------------------|-----------------------------------------------|--------|---------------------------------|--------------------------------------------|--------|--------|--------------------------------------------|-----------------------------|--------|
|                                          |   | FOR                    THE SIX MONTHS |  FOR                    THE THREE MONTHS |   | 1996                            |                                       |
|                                               |   | ENDED                                 |  ENDED                                   |   | TO                              |                                       |
|                                               |   | DECEMBER                    31,       |  DECEMBER                    31,         |   | DECEMBER                    31, |                                       |
|                                          |   |                                  | 2005                           |   |                            | 2004                        |   |   | 2005                        |                        |   | 2004                        |   |   | 2005 |   |
|                                          |   |                                  |                                          |   |                            |                                       |   |   |                                       |                        |   |   |   |   |   |   |
| Net                    (Decrease) in Cash     |   |                                  | -                                             |   |                            | (16,238                                    | )      |   | -                                          |                        |   | (16,238 | ) |   | - |   |
|                                          |   |                                  |                                          |   |                            |                                       |   |   |                                       |                        |   |   |   |   |   |   |
| Cash                    - Beginning of Period |   |                                  | -                                             |   |                            | 26,859                                     |   |   | -                                          |                        |   | 26,859 |   |   | - |   |
|                                          |   |                                  |                                          |   |                            |                                       |   |   |                                       |                        |   |   |   |   |   |   |
| Cash                    - End of Period       |   | $                                     | -                                             |   | $                               | 10,621                                     |   | $      | -                                          |                        | $      | 10,621 |   | $ | - |   |

----

| 1.   | ORGANIZATION |
|----------------|--------------|

| 2.   | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES |
|----------------|-----------------------------------------------------------|

----

| Office                  and other equipment at cost |   | $      | 3,549 |   |
|-----------------------------------------------------|--------|--------|-------|--------|
| Less                  accumulated depreciation      |   |   | 2,661 |   |
|                                                |   | $      | 888   |   |

| Patents                  at cost               |   | $      | 23,743 |   |
|------------------------------------------------|--------|--------|--------|--------|
| Less                  accumulated amortization |   |   | 13,258 |   |
|                                           |   | $      | 10,485 |   |

----

----

| 2.   | CAPITAL                STOCK |
|----------------|------------------------------|

| 3.   | SIGNIFICANT                TRANSACTIONS WITH RELATED PARTIES |
|----------------|--------------------------------------------------------------|

| 4.   | GOING                CONCERN |
|----------------|------------------------------|

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| (a)   | Disclosure                controls and procedures. As of the end of the Company's most recently                completed fiscal quarter (the registrant's fourth fiscal quarter                in the                case of an annual report) covered by this report, the Company carried                out                an evaluation, with the participation of the Company's management,                including the Company's Chief Executive Officer and Chief Financial                Officer, of the effectiveness of the Company's disclosure controls                and                procedures pursuant to Securities Exchange Act Rule 13a-15. Based                upon                that evaluation, the Company's Chief Executive Officer and Chief                Financial                Officer concluded that the Company's disclosure controls and procedures                are effective in ensuring that information required to be disclosed                by the                Company in the reports that it files or submits under the Securities                Exchange Act is recorded, processed, summarized and reported, within                the                time periods specified in the SEC's rules and forms. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Changes                in internal controls over financial reporting. There have been no                changes                in the Company's internal controls over financial reporting that                occurred                during the Company's last fiscal quarter to which this report relates                that                have materially affected, or are reasonably likely to materially                affect,                the Company's internal control over financial reporting. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                       |                                                                        |                                  |
|--------------------------------------------|-----------------------------------------------------------------------------|---------------------------------------|
|                                       | PURCHASE                POINT MEDIA CORPORATION                             |
|                                  |                                                                   |                             |
| Date: January                24, 2006 | By:                                                               | /s/ Albert                Folsom |
|                                       | Albert                Folsom, President, Chief Executive                    |
|                                       | Officer,                Chief Financial Officer and                Director |

----