----

|  [                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 September 30,                                   |                                     |
|                                                            | 2005                  (unaudited) and June 30, 2005                                   | 2                                        |
|                                                            |                                                                                  |                                     |
|                                                            | Statements                  of                  Operations for the                    |                                     |
|                                                            | Three                  Months                  Ended September 30,                    |                                     |
|                                                            | 2005                  and 2004                  (unaudited) and                       |                                     |
|                                                            | the                  Period                  June 28, 1996 (Date of                   |                                     |
|                                                            | Formation)                  through September 30, 2005                                | 3                                        |
|                                                            |                                                                                  |                                     |
|                                                            | Statements                  of                  Stockholders' Deficiency              |                                     |
|                                                            | for                  the                  Period June 28, 1996 (Date of Formation)    |                                     |
|                                                            | through                  September 30, 2005                                           | 4-5                                 |
|                                                            |                                                                                  |                                     |
|                                                            | Statements                  of                  Cash Flows for the Three              |                                     |
|                                                            | Months                  Ended                  September 30, 2005 and                 |                                     |
|                                                            | 2004                  (unaudited) and the Period June                                 |                                     |
|                                                            | 28,                  1996                  (Date of Formation) through                |                                     |
|                                                            | September                  30,                  2005                                  | 6                  -                  7  |
|                                                            |                                                                                  |                                     |
|                                                            | Notes                  to                  Financial Statements (unaudited)           | 8                  -                  18 |
|                                                            |                                                                                  |                                     |
| Item                  2.                                        | Management's                  Discussion and Analysis                                 |                                     |
|                                                            | or                  Plan of                  Operations                               | 19                                       |
|                                                            |                                                                                  |                                     |
| 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                                                                  |   |
|                                                                    |   |   | September                  30, |   |   | June                  30, |   |
|                                                                    |   |   |                     2005 |   |   | 2005 |   |
|                                                                    |   |   | (Unaudited)  |   |   |   |   |
| CURRENT                  ASSETS:                                        |   |   |   |   |   |   |   |
| Cash                                                                    |   | $ | 350 |   | $ | - |   |
| Total                  Current                  Assets                  |   |   | 350 |   |   | - |   |
|                                                                    |   |   |   |   |   |   |   |
| PROPERTY                  AND                  EQUIPMENT                |   |   |   |   |   |   |   |
| -                  net of                  depreciation                 |   |   | 962 |   |   | 1,036 |   |
|                                                                    |   |   |   |   |   |   |   |
| OTHER                  ASSETS:                                          |   |   |   |   |   |   |   |
| Patents                  - net                  of amortization         |   |   | 10,825 |   |   | 11,166 |   |
| Total                  Other                  Assets                    |   |   | 10,825 |   |   | 11,166 |   |
|                                                                    |   |   |   |   |   |   |   |
| TOTAL                  ASSETS                                           |   | $ | 12,137 |   | $ | 12,202 |   |
|                                                                    |   |   |   |   |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' DEFICIENCY               |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES:                                   |   |   |   |   |   |   |   |
| Note                  payable                  related party            |   | $ | 826,983 |   | $ | 826,983 |   |
| Accrued                  interest payable - related parties             |   |   | 344,153 |   |   | 326,845 |   |
| Accounts                  payable - related parties                     |   |   | 162,000 |   |   | 144,000 |   |
| Accounts                  payable                                       |   |   | 142,819 |   |   | 135,461 |   |
|                                                                    |   |   |   |   |   |   |   |
| Total                  Current                  Liabilities             |   |   | 1,475,955 |   |   | 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 September 30, 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                                      |   |   | (3,408,099 | ) |   | (3,332,368 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Total                  Stockholders' Deficiency                         |   |   | (1,463,818 | ) |   | (1,421,087 | ) |
|                                                                    |   |   |   |   |   |   |   |
| TOTAL                  LIABILITIES AND                                  |   |   |   |   |   |   |   |
| STOCKHOLDERS'                  DEFICIENCY                               |   | $ | 12,137 |   | $ | 12,202 |   |
|                                                                    |   |   |   |   |   |   |   |

----

| PURCHASE                    POINT MEDIA CORPORATION                                          |
|----------------------------------------------------------------------------------------------|
| (A                    DEVELOPMENT STAGE COMPANY)                                             |
| STATEMENTS                    OF                    OPERATIONS - UNAUDITED                   |
| FOR                    THE THREE                    MONTHS ENDED SEPTEMBER 30, 2005 AND 2004 |
| AND                    THE                    PERIOD JUNE 28, 1996 (DATE OF INCEPTION)       |
| TO                    SEPTEMBER                    30, 2005                                  |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |  FOR                    THE THREE                    MONTHS ENDED  |   |   | JUNE                        28,                        1996to |   |
|                                                                                         |   |  SEPTEMBER                    30,  |   | SEPTEMBER                    30, |   |
|                                                                                         |   |   | 2005 |   |   | 2004 |   |   |                            2005 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| REVENUES                                                                                     |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| EXPENSES:                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Administrative                                                                               |   |   | 58,010 |   |   | 489,816 |   |   | 2,447,813 |   |
| Depreciation                    and amortization                                             |   |   | 414 |   |   | 603 |   |   | 28,380 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| NET                    LOSS                    - before                    other expenses    |   |   | (58,424 | ) |   | (490,419 | ) |   | (2,476,193 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| OTHER                    EXPENSES                                                            |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Loss                    from                    theft - net                                  |   |   | - |   |   | - |   |   | (354,477 | ) |
| Interest                                                                                     |   |   | (17,307 | ) |   | (16,336 | ) |   | (577,429 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| NET                    LOSS                                                                  |   | $ | (75,731 | ) | $ | (506,755 | ) | $ | (3,408,099 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| LOSS                    PER                    COMMON SHARE -                                |   |   |   |   |   |   |   |   |   |   |
| Basic                    and                    diluted                                      |   | $ | - |   | $ | (0.02 | ) |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| AVERAGE                    OUTSTANDING SHARES                                           |   |   |   |   |   |   |   |   |   |   |
| (stated                    in                    1,000's)                                    |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                        |   |   | 22,374 |   |   | 21,268 |   |   |   |   |
| Diluted                                                                                      |   |   | 22,874 |   |   | 21,768 |   |   |   |   |

----

|                                          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 three months                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ended                  September 30, 2005                                                                                          |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (75,731 | ) |   | (75,731 | ) |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September                  30,                  2005                                                                               |   |   | 2,000 |   | $ | 170 |   | $ | 22,378,940 |   | $ | 1,815,983 |   | $ | 128,128 |   | $ | (3,408,099 | ) | $ | (1,463,818 | ) |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| PURCHASE                  POINT MEDIA CORPORATION                                            |
|----------------------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                               |
| STATEMENT                  OF                  CASH FLOWS - UNAUDITED                        |
| FOR                  THE THREE                  MONTHS ENDED SEPTEMBER 30, 2005 AND 2004 AND |
| FOR                  THE                  PERIOD JUNE 28, 1996 (DATE OF INCEPTION) TO        |
| SEPTEMBER                  30,                  2005                                    |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   | JUNE                  28,  |   |
|                                                                                         |   |   |   |   |   |   |   |   |                         1996 |   |
|                                                                                         |   |                                     FOR THE THREE MONTHS ENDED |   |                         TO |   |
|                                                                                         |                                           SEPTEMBER 30, | SEPTEMBER                  30, |   |
| CASH                  FLOWS                  FROM OPERATING                                  |   |   | 2005 |   |   | 2004 |   |   |                        2005 |   |
| ACTIVITIES:                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                    |   | $ | (75,731 | ) | $ | (506,755 | ) | $ | (3,408,099 | ) |
| Adjustments                  to reconcile                                                    |   |   |   |   |   |   |   |   |   |   |
| net                  loss to                  net cash                                       |   |   |   |   |   |   |   |   |   |   |
| used                  in                  operating                                          |   |   |   |   |   |   |   |   |   |   |
| activities:                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Depreciation                  and                                                            |   |   |  |   |   |   |   |   |   |   |
| amortization                                                                                 |   |   | 415 |   |   | 603 |   |   | 28,381 |   |
| Other                  assets                                                                |   |   | - |   |   | - |   |   | 4,767 |   |
| Changes                  in                  accounts payable                                |   |   | 42,666 |   |   | 299,998 |   |   | 1,157,269 |   |
| Issuance                  of                  common and                                     |   |   |   |   |   |   |   |   |  |   |
| preferred                  stock for expenses                                                |   |   | 15,000 |   |   | 200,000 |   |   | 478,620 |   |
| Issuance                  of                  warrants for                                   |   |   |   |   |   |   |   |   |   |   |
| financing                                                                                    |   |   | - |   |   | - |   |   | 128,128 |   |
| Net                  Change in                  Cash from                                    |   |   |   |   |   |   |   |   |  |   |
| Operations                                                                                   |   |   | (17,650 | ) |   | (6,154 | ) |   | (1,610,934 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |
| 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 THREE                  MONTHS ENDED SEPTEMBER 30, 2005 AND 2004  |
| AND                  FOR THE                  PERIOD JUNE 28, 1996 (DATE OF INCEPTION) TO |
| SEPTEMBER                  30,                  2005                                 |
|                                                                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |   |   | JUNE                  28,  |   |
|                                                                                      |   |                                           FOR THE THREE MONTHS |   | 1996 |   |
|                                                                                      |   |                                       ENDED |   | TO |   |
|                                                                                      |   |                                        SEPTEMBER 30, |   | SEPTEMBER                  30, |   |
|                                                                                      |   |   | 2005 |   |   | 2004 |   |   | 2005 |   |
|                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Net                  (Decrease) Increase in Cash                                          |   |   | 350 |   |   | (6,154 | ) |   | 350 |   |
|                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Cash                  -                  Beginning of Period                              |   |   | - |   |   | 26,859 |   |   | - |   |
|                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Cash                  - End of                  Period                                    |   | $ | 350 |   | $ | 20,705 |   | $ | 350 |   |

----

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

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

----

| Office                  and                  other equipment at cost |   | $      | 3,549 |   |
|----------------------------------------------------------------------|--------|--------|-------|--------|
| Less                  accumulated depreciation                       |   |   | 2,587 |   |
|                                                                 |   | $      | 962   |   |

| Patents                  at                  cost |   | $      | 23,743 |   |
|---------------------------------------------------|--------|--------|--------|--------|
| Less                  accumulated amortization    |   |   | 12,918 |   |
|                                              |   | $      | 10,825 |   |

----

----

| 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. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                     |                                                                |                                      |
|------------------------------------------|---------------------------------------------------------------------|-------------------------------------------|
|                                     | PURCHASE              POINT MEDIA CORPORATION                       |
|                                |                                                           |                                 |
| Date: November              9, 2005 | By:                                                       | /s/ Albert              Folsom  |
|                                     | Albert              Folsom, President, Chief              Executive |
|                                     | Officer,              Chief Financial Officer and Director          |

----