----

|  [                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 March 31,                                  |                                     |
|                                           | 2006                  (unaudited) and June 30, 2005                                   | 2                                        |
|                                           |                                                                                  |                                     |
|                                           | Statements                  of Operations for the Nine                  and      |                                     |
|                                           | Three                  Months Ended March 31,                                    |                                     |
|                                           | 2006                  and 2005 (unaudited) and                                        |                                     |
|                                           | the                  Period June 28, 1996 (Date of                                    |                                     |
|                                           | Formation)                  through March 31, 2006                               | 3                                        |
|                                           |                                                                                  |                                     |
|                                           | Statements                  of Stockholders' Deficiency                               |                                     |
|                                           | for                  the Period June 28, 1996 (Date of                  Formation)    |                                     |
|                                           | through March                  31, 2006                                          | 4-5                                 |
|                                           |                                                                                  |                                     |
|                                           | Statements                  of Cash Flows for the Six                                 |                                     |
|                                           | Months                  Ended March 31, 2005 and                                 |                                     |
|                                           | 2005                  (unaudited) and the Period June                                 |                                     |
|                                           | 28,                  1996 (Date of Formation) through                                 |                                     |
|                                           | March                  31, 2006                                                       | 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                                       |

----

Index

FINANCIAL      INFORMATION

----

Index

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

|                                                            |   | March                  31, |        | June                  30, |   |
|-----------------------------------------------------------------|--------|----------------------------|-------------|---------------------------|--------|
|                                                            |   |                       | 2006        |                      |   | 2005  |   |
|                                                            |   |                       | (Unaudited) |                      |   |   |   |
| CURRENT                  ASSETS:                                |   |                       |        |                      |   |   |   |
| Cash                                                            |   | $                          | -           |                      | $      | - |   |
| Total                  Current Assets                           |   |                       | -           |                      |   | - |   |
|                                                            |   |                       |        |                      |   |   |   |
| PROPERTY                  AND EQUIPMENT                         |   |                       |        |                      |   |   |   |
| -                  net of depreciation                          |   |                       | 814         |                      |   | 1,036 |   |
|                                                            |   |                       |        |                      |   |   |   |
| OTHER                  ASSETS:                                  |   |                       |        |                      |   |   |   |
| Patents                  - net of amortization                  |   |                       | 10,145      |                      |   | 11,166 |   |
| Total                  Other Assets                             |   |                       | 10,145      |                      |   | 11,166 |   |
|                                                            |   |                       |        |                      |   |   |   |
| TOTAL                  ASSETS                                   |   | $                          | 10,959      |                      | $      | 12,202 |   |
|                                                            |   |                       |        |                      |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' DEFICIENCY       |   |                       |        |                      |   |   |   |
|                                                            |   |                       |        |                      |   |   |   |
| CURRENT                  LIABILITIES:                           |   |                       |        |                      |   |   |   |
| Note                  payable related party                     |   | $                          | 841,430     |                      | $      | 826,983 |   |
| Accrued                  interest payable - related parties     |   |                       | 380,044     |                      |   | 326,845 |   |
| Accounts                  payable - related parties             |   |                       | 198,000     |                      |   | 144,000 |   |
| Accounts                  payable                               |   |                       | 155,917     |                      |   | 135,461 |   |
|                                                            |   |                       |        |                      |   |   |   |
| Total                  Current Liabilities                      |   |                       | 1,575,391   |                      |   | 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 March 31, 2006              |   |                       |        |                      |   |   |   |
| 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                              |   |                       | (3,508,713  | )                         |   | (3,332,368 | ) |
|                                                            |   |                       |        |                      |   |   |   |
| Total                  Stockholders' Deficiency                 |   |                       | (1,564,432  | )                         |   | (1,421,087 | ) |
|                                                            |   |                       |        |                      |   |   |   |
| TOTAL                  LIABILITIES AND                          |   |                       |        |                      |   |   |   |
| STOCKHOLDERS'                  DEFICIENCY                       |   | $                          | 10,959      |                      | $      | 12,202 |   |

----

Index

| PURCHASE                  POINT MEDIA CORPORATION                                                         |
|-----------------------------------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                                       |
| STATEMENTS                  OF OPERATIONS - UNAUDITED                                                |
| FOR                  THE NINE AND THREE MONTHS ENDED MARCH 31, 2006 AND                  2005   |
| AND                  THE PERIOD JUNE 28, 1996 (DATE OF INCEPTION)                                    |
| TO                  MARCH 31, 2006                                                                   |

|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       | JUNE                  28, 1996 |   |
|--------------------------------------------------------------------|--------|--------------------------------------------|------------------------------|---------------------------------------------------|--------|----------------------------|--------|--------|----------------------------|--------------------------------|--------|
|                                                               |   | FOR                  THE NINE MONTHS ENDED |                         | FOR                  THE THREE MONTHS ENDED  |   | to                         |   |
|                                                                    |   |                                       | MARCH                    31, |                                              |   | MARCH                  31, |   |   | MARCH                  31, |                           |
|                                                               |   |                                       | 2006                         |                                              |   | 2005                       |   |   | 2006                       |                           |   | 2005 |   |   | 2006 |   |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| REVENUES                                                           |   | $                                          | -                            |                                              | $      | -                          |   | $      | -                          |                           | $      | - |   | $ | - |   |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| EXPENSES:                                                          |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| Administrative                                                     |   |                                       | 121,904                      |                                              |   | 544,720                    |   |   | 28,175                     |                           |   | 37,819 |   |   | 2,512,060 |   |
| Depreciation                  and amortization                     |   |                                       | 1,243                        |                                              |   | 1,810                      |   |   | 415                        |                           |   | 603 |   |   | 29,209 |   |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| NET                  LOSS                  - before other expenses |   |                                       | (123,147                     | )                                                 |   | (546,530                   | )      |   | (28,590                    | )                              |   | (38,422 | ) |   | (2,541,269 | ) |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| OTHER                  EXPENSES                                    |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| Loss                  from theft - net                             |   |                                       | -                            |                                              |   | -                          |   |   | -                          |                           |   | - |   |   | (354,477 | ) |
| Interest                                                           |   |                                       | (53,198                      | )                                                 |   | (49,041                    | )      |   | (18,231                    | )                              |   | (16,370 | ) |   | (612,967 | ) |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| NET                  LOSS                                          |   | $                                          | (176,345                     | )                                                 | $      | (595,571                   | )      | $      | (46,821                    | )                              | $      | (54,792 | ) | $ | (3,508,713 | ) |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| LOSS                  PER COMMON SHARE -                           |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| Basic                  and diluted                                 |   | $                                          | (0.01                        | )                                                 | $      | (0.03                      | )      | $      | -                          |                           | $      | - |   |   |   |   |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| AVERAGE                  OUTSTANDING SHARES                   |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| (stated                  in 1,000's)                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
|                                                               |   |                                       |                         |                                              |   |                       |   |   |                       |                           |   |   |   |   |   |   |
| Basic                                                              |   |                                       | 22,377                       |                                              |   | 21,714                     |   |   | 22,379                     |                           |   | 21,785 |   |   |   |   |
| Diluted                                                            |   |                                       | 22,877                       |                                              |   | 22,214                     |   |   | 22,879                     |                           |   | 22,285 |   |   |   |   |

----

Index

| PURCHASE                  POINT MEDIA CORPORATION                                                  |
|---------------------------------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                                     |
| STATEMENTS                  OF STOCKHOLDERS' DEFICIENCY                                            |
| PERIOD                  JUNE 28, 1996 (DATE OF FORMATION) THROUGH MARCH 31,                  2006  |
| (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 | ) |

----

Index

| PURCHASE                  POINT MEDIA CORPORATION                                                              |
|---------------------------------------------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                                                 |
| STATEMENTS                  OF STOCKHOLDERS' DEFICIENCY                                                        |
| PERIOD                  JUNE 28, 1996 (DATE OF FORMATION) THROUGH MARCH 31, 2006                  (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 nine months   |   |      |   |   |   |                          |   |       |       |     |   |      |   |   |   |   |   |   |   |   |   |   |
| ended                  March 31, 2006           |   |      | -      |   |   | -                             |   |       | -          |     |   | -         |   |   | - |   |   | (176,345 | ) |   | (176,345 | ) |
|                                            |   |      |        |   |   |                               |   |       |            |     |   |           |   |   |  |   |   |  |   |   |  |   |
| Balance                  at                     |   |      |   |   |   |                          |   |       |       |     |   |      |   |   |   |   |   |   |   |   |   |   |
| March                  31, 2006                 |   |      | 2,000  |   | $      | 170                           |   |       | 22,378,940 |     | $      | 1,815,983 |   | $ | 128,128 |   | $ | (3,508,713 | ) | $ | (1,564,432 | ) |

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| PURCHASE                  POINT MEDIA CORPORATION                                              |
|-----------------------------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                                 |
| STATEMENT                  OF CASH FLOWS - UNAUDITED                                           |
| FOR                  THE NINE MONTHS ENDED MARCH 31, 2006 AND 2005                  AND   |
| FOR                  THE PERIOD JUNE 28, 1996 (DATE OF INCEPTION)                  TO     |
| MARCH                  31, 2006                                                                |

|                                          |   |                                       |     |                       |   | JUNE                  28, |   |
|-----------------------------------------------|--------|--------------------------------------------|----------|----------------------------|--------|---------------------------|--------|
|                                          |   |                                       |     |                       |   | 1996                      |   |
|                                          |   | FOR                  THE NINE MONTHS ENDED |     | TO                         |   |
|                                          |   | MARCH                  31,                 |     | MARCH                  31, |   |
| CASH                  FLOWS FROM OPERATING    |   |                                       | 2006     |                       |   | 2005                      |   |   | 2006 |   |
| ACTIVITIES:                                   |   |                                       |     |                       |   |                      |   |   |   |   |
| Net                  loss                     |   | $                                          | (176,345 | )                          | $      | (595,571                  | )      | $ | (3,508,713 | ) |
| Adjustments                  to reconcile     |   |                                       |     |                       |   |                      |   |   |   |   |
| net                  loss to net cash         |   |                                       |     |                       |   |                      |   |   |   |   |
| used                  in operating            |   |                                       |     |                       |   |                      |   |   |   |   |
| activities:                                   |   |                                       |     |                       |   |                      |   |   |   |   |
| Depreciation                  and             |   |                                       |          |                       |   |                      |   |   |   |   |
| amortization                                  |   |                                       | 1,243    |                       |   | 1,809                     |   |   | 29,209 |   |
| Other                  assets                 |   |                                       | -        |                       |   | 141,903                   |   |   | 4,767 |   |
| Changes                  in accounts payable  |   |                                       | 127,655  |                       |   | 26,859                    |   |   | 1,242,258 |   |
| Issuance                  of common and       |   |                                       |     |                       |   |                      |   |   |  |   |
| preferred                  stock for expenses |   |                                       | 15,000   |                       |   | 425,000                   |   |   | 478,620 |   |
| Issuance                  of warrants for     |   |                                       |     |                       |   |                      |   |   |   |   |
| financing                                     |   |                                       | -        |                       |   | -                         |   |   | 128,128 |   |
| Net                  Change in Cash from      |   |                                       |     |                       |   |                      |   |   |  |   |
| Operations                                    |   |                                       | (32,447  | )                          |   | -                         |   |   | (1,625,731 | ) |
|                                          |   |                                       |     |                       |   |                      |   |   |   |   |
| 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    |   |                                       | 14,538   |                       |   | -                         |   |   | 830,246 |   |
| Payment                  to notes payable     |   |                                       |     |                       |   |                      |   |   |   |   |
| --                  related parties           |   |                                       | (91      | )                          |   | -                         |   |   | (91 | ) |
| Proceeds                  from sale of        |   |                                       |     |                       |   |                      |   |   |   |   |
| common                  stock                 |   |                                       | 18,000   |                       |   | -                         |   |   | 840,511 |   |
| Net                  Cash Provided by         |   |                                       |     |                       |   | .                         |   |   |   |   |
| Financing                  Activities         |   |                                       | 32,447   |                       |   | -                         |   |   | 1,670,666 |   |

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Index

| PURCHASE                  POINT MEDIA CORPORATION                                                    |
|-----------------------------------------------------------------------------------------------------------|
| (A                  DEVELOPMENT STAGE COMPANY)                                                       |
| STATEMENT                  OF CASH FLOWS - UNAUDITED                                                 |
| FOR                  THE NINE AND THREE MONTHS ENDED MARCH 31, 2006 AND                  2005   |
| AND                  FOR THE PERIOD JUNE 28, 1996 (DATE OF INCEPTION)                  TO       |
| MARCH                  31, 2006                                                                      |

|                                        |   |                                 |   |                       |   | JUNE                  28, |   |
|---------------------------------------------|--------|--------------------------------------|--------|----------------------------|--------|---------------------------|--------|
|                                        |   | FOR                  THE NINE MONTHS |   | 1996                       |   |
|                                        |   | ENDED                                |   | TO                         |   |
|                                        |   | MARCH                  31,           |   | MARCH                  31, |   |
|                                        |   | 2006                                 |   | 2005                       |   | 2006                      |   |
|                                        |   |                                 |   |                       |   |                      |   |   |   |   |
| Net                  (Decrease) in Cash     |   |                                 | -      |                       |   | -                         |   |   | - |   |
|                                        |   |                                 |   |                       |   |                      |   |   |   |   |
| Cash                  - Beginning of Period |   |                                 | -      |                       |   | -                         |   |   | - |   |
|                                        |   |                                 |   |                       |   |                      |   |   |   |   |
| Cash                  - End of Period       |   | $                                    | -      |                       | $      | -                         |   | $ | - |   |

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Index

PURCHASE      POINT MEDIA CORPORATION

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

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

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Index

| Office                  and other equipment at cost |   | $ | 3,549 |   |
|-----------------------------------------------------|--------|---|-------|--------|
| Less                  accumulated depreciation      |   | $ | 2,735 |   |
|                                                |   | $ | 814   |   |

| Patents                  at cost               |   | $ | 23,743 |   |
|------------------------------------------------|--------|---|--------|--------|
| Less                  accumulated depreciation |   | $ | 13,598 |   |
|                                           |   | $ | 10,145 |   |

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Index

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

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

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

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Index

Item      6. Management’s Discussion and Analysis or Plan of      Operations

*last*
*last*

*last*
*last*
*last*
*last*

*last*
*last*

*last*
*last*

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*last*

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*last*

*last*

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Item      3.
Quantitative
and
Qualitative

| (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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ITEM      5. OTHER INFORMATION

ITEM      6. Exhibits and Reports on Form 8-K

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Index

SIGNATURES

|                                  |                                                       |                                |
|---------------------------------------|------------------------------------------------------------|-------------------------------------|
|                                  | PURCHASE              POINT MEDIA CORPORATION              |
|                             |                                                  |                           |
| Dated:              May 9, 2006  | By:                                              | /s/ Albert              Folsom |
|                                  | Albert              Folsom President, Chief Executive      |
|                                  | Officer,              Chief Financial Officer and Director |

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Certification of the Chief Executive Officer      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of the Director pursuant to Section      302 of the Sarbanes-Oxley Act of 2002.