<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
                                   (Mark One)

     [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2007

                                       OR

     [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ARIL 1, 2007 TO
                                 JUNE 30, 2007.

                        COMMISSION FILE NUMBER 000-50586

                         MARKETING WORLDWIDE CORPORATION
                         -------------------------------
             (Exact name of registrant as specified in its charter)

          DELAWARE                                       68-0566295
          --------                                       -----------
  (State or jurisdiction of                    (IRS Employer Identification No.)
incorporation or organization)

                 2212 GRAND COMMERCE DR., HOWELL, MICHIGAN 48855
                 -----------------------------------------------
                    (Address of Principal Executive Offices)

                  Registrant's telephone number: (517) 540-0045

        SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE

           SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
                          COMMON STOCK $.001 PAR VALUE

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

As of August 14, 2007, the Registrant had 12,253,080 shares of common stock
issued and outstanding.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]




<PAGE>

                         MARKETING WORLDWIDE CORPORATION

                     Quarterly Report on Form 10-QSB for the
                      Quarterly Period Ending June 30, 2007

                                TABLE OF CONTENTS

 PART I.  FINANCIAL INFORMATION

          Item 1. Financial Statements (Unaudited)

                  Condensed Consolidated Balance Sheet:                        4
                  June 30, 2007 (unaudited)

                  Condensed Consolidated Statements of Income (unaudited):     5
                  Three Months and Nine Month Ended June 30, 2007 and 2006

                   Condensed Consolidated Statement of Stockholder's Equity
                  Nine Months Ended June 30, 2007                              6

                  Condensed Consolidated Statements of Cash Flows (unaudited): 7
                  Nine Months Ended June 30, 2007 and 2006

                  Notes to Condensed Consolidated Financial Statements         8
                  (unaudited): June 30, 2007

          Item 2. Management Discussion and Analysis                          19

          Item 3. Controls and Procedures                                     25

 PART II. OTHER INFORMATION

          Item 1. Legal Proceedings                                           25

          Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25

          Item 3. Defaults Upon Senior Securities                             25

          Item 4. Submission of Matters to a Vote of Security Holders         25

          Item 5. Other Information                                           25

          Item 6. Exhibits                                                    26

                                     Page 2



<PAGE>

ITEM 1. FINANCIAL STATEMENTS

The following unaudited Condensed Consolidated Financial Statements for the
three months and nine months ended June 30, 2007 and 2006 have been prepared by
Marketing Worldwide Corporation, a Delaware corporation.












                                     Page 3



<PAGE>


                         MARKETING WORLDWIDE CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2007
                                   (Unaudited)

ASSETS
Current assets:
Cash and cash equivalents                                           $ 2,437,437
Accounts receivable, net                                                976,207
Inventories                                                             830,399
Other current assets                                                    173,018
                                                                    -----------
  Total current assets                                                4,417,061


Property, plant and equipment, net                                    3,273,018

Other assets:
Other intangible assets                                                 147,500
Capitalized finance costs, net                                          636,819
Other current assets, net                                                22,560
                                                                    -----------

Total assets                                                        $ 8,496,958
                                                                    ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank line of credits                                                    600,000
Notes payable and capital leases, current portion                       425,576
Accounts payable                                                        814,035
Notes payable, related parties                                            7,285
Other current liabilities                                               227,597
                                                                    -----------
  Total current liabilities                                           2,074,493

Long term debt:
Notes payable, long term                                              1,997,215
Capital leases, long term                                                41,671
                                                                    -----------

Total liabilities                                                     4,113,379


Interest in non-controlling entity                                      232,291

Mandatory redeemable Series A convertible preferred stock,
$0.001 par value; 3,500,000 shares issued and outstanding             3,500,000

Stockholders' Equity
Preferred stock, $0.001 par value, 10,000,000 authorized

Common stock, $0.001 par value, 100,000,000 shares authorized;
12,253,080 shares issued and outstanding                                 11,763
Additional paid in capital                                            5,173,451

Deficit                                                              (4,533,926)
                                                                    -----------
  Total stockholders' equity                                            651,288
                                                                    -----------

Total Liabilities and Stockholders' Equity                          $ 8,496,958
                                                                    ===========

See the accompanying notes to the unaudited condensed consolidated financial
statements

                                     Page 4



<PAGE>
<TABLE>
                                               MARKETING WORLDWIDE CORPORATION
                                       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                         (Unaudited)

                                                       Three months ended June 30,            Nine months ended June 30,
                                                          2007               2006               2007               2006
                                                     ------------       ------------       ------------       ------------
<S>                                                  <C>                <C>                <C>                <C>
Sales, net                                           $  1,556,379       $  2,381,587       $  5,959,328       $  6,595,329

Cost of sales                                           1,030,643          1,737,907          4,113,799          4,887,855
                                                     ------------       ------------       ------------       ------------

Gross profit                                              525,736            643,680          1,845,529          1,707,474

Operating expenses:
Selling, general and administrative expenses            1,125,375            494,532          2,274,386          1,411,144
Financial expenses                                      3,566,167             42,327          3,661,412            106,306
Impairment loss                                           955,897                 --            955,897                 --
                                                     ------------       ------------       ------------       ------------

Total operating expenses                                5,647,440            536,859          6,891,695          1,517,450

Income (loss) from operations                          (5,121,703)           106,821         (5,046,166)           190,024

Other income (expense), net                               (10,795)           (10,736)            (9,558)           (10,332)
                                                     ------------       ------------       ------------       ------------

Income (loss) before provision for income taxes        (5,132,498)            96,085         (5,055,724)           179,692

Provision for income taxes                                     --             32,300             12,000             52,430
                                                     ------------       ------------       ------------       ------------

Income (loss) before minority interest                 (5,132,498)            63,785         (5,067,724)           127,262

Income (loss)  from minority interest                      (6,542)            (5,184)           (17,321)           (34,898)
                                                     ------------       ------------       ------------       ------------

NET INCOME (LOSS)                                    $ (5,139,040)      $     58,601       $ (5,085,045)      $     92,364
                                                     ============       ============       ============       ============

Income (loss) per share, basic                       $      (0.45)      $       0.01       $      (0.45)      $       0.01
                                                     ============       ============       ============       ============

Income (loss) per share, fully diluted               $      (0.45)      $       0.00       $      (0.45)      $       0.01
                                                     ============       ============       ============       ============

Weighted average common stock outstanding
    Basic                                              11,363,097         11,051,995         11,358,328         11,051,995
                                                     ============       ============       ============       ============
    Fully Diluted                                      11,363,097         12,301,995         11,358,328         12,301,995
                                                     ============       ============       ============       ============

See the accompanying notes to the unaudited condensed consolidated financial statements

                                                         Page 5



<PAGE>

                                                     MARKETING WORLDWIDE CORPORATION
                                         CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                                     NINE MONTHS ENDED JUNE 30, 2007
                                                                                                          Retained
                                    Preferred stock               Common stock          Additional        Earnings
                                  Shares       Amount        Shares          Amount   Paid in Capital    (Deficit)        Total
                                  ------       ------        ------          ------   ---------------    ---------        -----

Balance, October 1, 2006             --    $        --     11,228,280    $    11,228    $   988,837    $   551,119     $ 1,551,184

Exercise of common stock
options                                                        55,000             55         54,945             --          55,000

Common stock issued for
services rendered at
approximately $0.90 per
share                                --             --         79,800             80         66,154             --          66,234

Warrants issued for
services rendered                    --             --             --             --        383,915             --         383,915

Common stock issued in
conjunction with
acquisition of Colortek,
Inc.                                 --             --        400,000            400        179,600             --         180,000

Beneficial conversion
feature relating to the
issuance of Series A
preferred stock                      --             --             --             --      3,500,000             --       3,500,000


Net loss                             --             --             --             --             --     (5,085,045)     (5,085,045)
                            -----------    -----------    -----------    -----------    -----------    -----------     -----------
Balance, June 30, 2007               --    $        --     11,763,080    $    11,763    $ 5,173,451    $(4,533,926)    $   651,288
                            ===========    ===========    ===========    ===========    ===========    ===========     ===========

See the accompanying notes to the unaudited condensed consolidated financial statements

                                                         Page 6




<PAGE>

                                      MARKETING WORLDWIDE CORPORATION
                              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                (Unaudited)

                                                                  Nine months ended June 30,
                                                                   2007               2006
                                                                   ----               ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                               $(5,085,045)      $    92,364
Adjustments to reconcile net income (loss) to cash used
in operations:
Depreciation and amortization                                       416,747           107,305
Common stock issued for services rendered                            66,234                --
Fair value of warrants issued in connection with preferred
debt                                                              3,500,000                --
Amortization of deferred financing costs                             24,646                --
Impairment loss                                                     955,897                --
(Increase) decrease in:
Accounts receivable                                                 851,854          (422,208)
Inventory                                                           320,084          (315,174)
Other current assets                                                 29,517            (8,549)
Other assets                                                         (3,160)           22,170
Increase (decrease) in:
Accounts payable                                                 (1,296,899)          383,875
Other current liabilities                                           (87,997)            6,938
                                                                -----------       -----------
Net cash used in operating activities:                             (308,122)         (133,279)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment                                 (248,169)         (315,775)
Cash from acquisition of Colortek, Inc                               10,068                --
Advance to loan receivable                                               --           (73,137)
                                                                -----------       -----------

Net cash used in investing activities:                             (238,101)         (388,912)

CASH FLOWS FROM FINANCING ACTIVITIES:
Minority interest                                                    17,321                --
Proceeds from issuance of Series A preferred stock                3,222,450                --
Proceeds from (repayments of) lines of credit                      (558,613)          449,667
Proceeds from (repayments of) notes payable and capital
leases                                                              (41,187)          (84,940)
                                                                -----------       -----------

Net cash provided by financing activities                         2,639,971           364,727


Net increase (decrease) in cash and cash equivalents              2,093,748          (157,464)

Cash and cash equivalents, beginning of period                      343,689           187,596
                                                                -----------       -----------

Cash and cash equivalents, end of period                        $ 2,437,437       $    30,132
                                                                ===========       ===========


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Fixed assets purchased against capital leases                   $        --       $    32,325
                                                                ===========       ===========
Mortgage obligations incurred in connection with variable
interest entity: acquisition of building                        $        --       $ 1,363,626
Common stock issued for services rendered                       $    66,234       $        --
                                                                ===========       ===========
Common stock issued for acquisition of Colortek                 $   180,000       $        --
                                                                ===========       ===========
Warrants issued for financing services rendered                 $   383,915       $        --
                                                                ===========       ===========

See the accompanying notes to the unaudited condensed consolidated financial statements
</TABLE>

                                          Page 7



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)


NOTE A - SUMMARY OF ACCOUNTING POLICIES

GENERAL
-------

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America for interim financial information and with the
instructions to Form 10-QSB. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements.

In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Accordingly, the results from operations for the nine months and three months
periods ended June 30, 2007, are not necessarily indicative of the results that
may be expected for the year ended September 30, 2007. The unaudited condensed
consolidated financial statements should be read in conjunction with the
September 30, 2006 financial statements and footnotes thereto included in the
Company's SEC Form 10KSB.

BUSINESS AND BASIS OF PRESENTATION
----------------------------------

Marketing Worldwide Corporation (the "Company", "Registrant" or "MWW"), is
incorporated under the laws of the State of Delaware in July 2003. The Company
is engaged, through its wholly-owned subsidiary, Marketing Worldwide LLC
("MWWLLC"), in the design, import and distribution of automotive accessories for
motor vehicles in the automotive aftermarket industry.

The consolidated financial statements include the accounts of the Registrant and
its wholly-owned subsidiary, Marketing Worldwide LLC. Effective January 1, 2005,
the consolidated financial Statements also include a variable interest entity
(VIE) of which the LLC is the primary beneficiary as further described in Note
E. Additionally, on May 24, 2007; the Company acquired Colortek, Inc. (See
Below) All significant inter-company transactions and balances, including those
involving the VIE, have been eliminated in consolidation.

ACQUISITIONS
------------

On May 24, 2007, the Company acquired 100% ownership of Colortek, Inc. in
exchange for 400,000 shares of the Company's Common stock. The assets of
Colortek consist of a 46,000 square foot facility located in Michigan and
include two 100-foot down-draft batch paint production lines.

The acquisition of Colortek, Inc. was accounted for using the purchase method in
accordance with SFAS 141, "Business Combinations". The value of the Company's
common stock issued as part of the acquisition was determined at the fair value
of the Company's common stock at the date of acquisition. The results of
operations for Colortek, Inc. have been included in the Consolidated Statements
of Income (Loss) since acquisition. The components of the purchase price were as
follows:


               -------------------------------------- --------------
               Common stock issued                         $180,000
               -------------------------------------- --------------

In accordance with Financial Accounting Standard (SFAS) No. 141, Business
Combinations, the total purchase price was allocated to the estimated fair value
of the assets acquired and liabilities assumed. The fair value of the assets
acquired was based on management's best estimates. The purchase price was
allocated to the fair value of assets acquired and liabilities assumed as
follows:

                                     Page 8



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)

         -------------------------------------- --------------
         Cash and other current assets               $201,784
         -------------------------------------- --------------
         Property, plant and equipment              1,307,574
         -------------------------------------- --------------
         Customer lists                               150,000
         -------------------------------------- --------------
         Goodwill and other intangibles               955,897
         -------------------------------------- --------------
         Less: liabilities assumed                 (2,435,255)
         -------------------------------------- --------------
           Net                                       $180,000
         -------------------------------------- --------------


Goodwill and other intangible assets represent the excess of the purchase price
over the fair value of the net tangible assets acquired. In accordance with SFAS
142, goodwill is not amortized and will be tested for impairment at least
annually.


NOTE A - SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

ACQUISITIONS (CONTINUED)
------------------------

During the three months ended June 30, 2007, the Company management preformed an
evaluation of its intangible assets acquired from Colortek, Inc including
goodwill for purposes of determining the implied fair value of the assets at
June 30, 2007. The test indicated that the recorded book value of the goodwill
exceeded its fair value, as determined by discounted cash flows. As a result,
upon completion of the assessment, management recorded a non-cash impairment
charge of $955,897, net of tax, or $0.08 per share during the three months ended
June 30, 2007 to reduce the carrying value of the goodwill to $ 0. Considerable
management judgment is necessary to estimate the fair value. Accordingly, actual
results could vary significantly from management's estimates.

The customer list was valued at $150,000 with an estimated useful life of five
years.

The following unaudited condensed combined pro forma results of operations
reflect the pro forma combination of Marketing Worldwide Corporation and
Colortek, Inc. businesses as if the combination had occurred at the beginning of
the periods presented compared with the actual results of operations of
Marketing Worldwide Corporation for the same period. The unaudited pro forma
condensed combined results of operations do not purport to represent what the
companies' combined results of operations would have been if such transaction
had occurred at the beginning of the periods presented, and are not necessarily
indicative of Marketing Worldwide Corporation's future results.

<TABLE>
-------------------------------------- ---------------------- -------------------- --------------------- --------------------
                                         Three months ended    Three months ended     Nine months ended   Nine months ended
                                           June 30, 2007          June 30, 2006         June 30, 2007       June 30, 2006
-------------------------------------- ---------------------- -------------------- --------------------- --------------------
<S>                                               <C>                  <C>                   <C>                  <C>
Revenue                                           $1,739,135           $2,562,173            $6,230,270           $7,291,515
-------------------------------------- ---------------------- -------------------- --------------------- --------------------

-------------------------------------- ---------------------- -------------------- --------------------- --------------------
Net Income (loss)                                $(4,412,025)            $(60,243)          $(1,156,427)           $(230,473)
-------------------------------------- ---------------------- -------------------- --------------------- --------------------
Basic (loss) per share                                $(0.39)              $(0.01)               $(0.10)              $(0.02)
-------------------------------------- ---------------------- -------------------- --------------------- --------------------
Diluted (loss) per share                               $0.39)              $(0.01)               $(0.10)              $(0.02)
-------------------------------------- ---------------------- -------------------- --------------------- --------------------
</TABLE>


                                     Page 9



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)


RECLASSIFICATION
----------------

Certain reclassifications have been made to conform to prior periods' data to
the current presentation. These reclassifications had no effect on reported net
income (loss).

ACCOUNTING FOR VARIABLE INTEREST ENTITIES
-----------------------------------------

In December 2003, the FASB issued a revision to FASB Interpretation ("FIN") No.
46, "Consolidation of Variable Interest Entities" (FIN No. 46R). FIN No. 46R
clarifies the application of ARB No. 51, "Consolidated Financial Statements," to
certain entities in which equity investors do not have the characteristics of a
controlling financial interest or do not have sufficient equity risk for the
entity to finance its activities without additional subordinated financial
support. FIN No. 46R requires the consolidation of these entities, known as
variable interest entities, by the primary beneficiary of the entity. The
primary beneficiary is the entity, if any, that will absorb a majority of the
entities expected losses, receive a majority of the entity's expected residual
returns, or both.

Pursuant to the effective date of a related party lease obligation, the Company
adopted FIN 46R on January 1, 2005. This resulted in the consolidation of one
variable interest entity (VIE) of which the Company is considered the primary
beneficiary. The Company's variable interest in this VIE is the result of
providing certain secured debt mortgage guarantees on behalf of a limited
liability company that leases warehouse and general offices located in the city
of Howell, Michigan


NOTE A - SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

NEW ACCOUNTING PRONOUNCEMENTS
-----------------------------

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements"
("SFAS 157"). This statement defines fair value, establishes a framework for
measuring fair value and expands disclosures about fair value measurements. This
statement does not require any new fair value measurements. The effective date
of this statement is for fiscal years beginning after November 15, 2007. The
Company is currently evaluating the impact, if any, of the adoption of SFAS 157.

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities--Including an amendment of FASB
Statement No. 115" ("SFAS 159"). This statement permits all entities to choose,
at specified election dates, to measure eligible items at fair value (the "fair
value option"). A business entity must report unrealized gains and losses on
items for which the fair value option has been elected in earnings at each
subsequent reporting date. Upfront costs and fees related to items for which the
fair value option is elected must be recognized in earnings as incurred and not
deferred. This statement is effective as of the beginning of an entity's first
fiscal year that begins after November 15, 2007. The Company is currently
evaluating the impact, if any, of the adoption of SFAS 159.

In July 2006, the FASB issued Financial Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109" ("FIN
48"), which is a change in accounting for income taxes. FIN 48 specifies how tax
benefits for uncertain tax positions are to be recognized, measured, and
derecognized in financial statements; requires certain disclosures of uncertain
tax matters; specifies how reserves for uncertain tax positions should be
classified on the balance sheet; and provides transition and interim period
guidance, among other provisions. FIN 48 is effective for fiscal years beginning
after December 15, 2006. We do not anticipate that this FASB will have any
material impact on our financial condition or results of operations.

                                    Page 10



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)

In September 2006, the SEC issued SAB No. 108, "Considering the Effects of Prior
Year Misstatements When Quantifying Misstatements in Current Year Financial
Statements" ("SAB 108"), which provides interpretive guidance on how the effects
of the carryover or reversal of prior year misstatements should be considered in
quantifying a current year misstatement. The guidance is applicable for fiscal
years ending after November 15, 2006. We do not anticipate that this SAB will
have any material impact on our financial condition or results of operations.


NOTE B - INTANGIBLE ASSETS AND GOODWILL

As the result of Colortek, Inc acquisition at May 24, 2007, the Company had
intangibles totaling $1,105,897 at the completion of the acquisition.

In accordance with SFAS 142, GOODWILL AND OTHER INTANGIBLE ASSETS (SFAS 142), an
impairment test is required at least annually. Subsequent to the acquisition, in
the three months ended June 30, 2007; management preformed an evaluation of its
goodwill acquired from Colortek, Inc for purpose of determining the implied fair
value of the assets at June 30, 2007. The test indicated that the recorded book
value of the goodwill exceeded its fair value, as determined by discounted cash
flows. As a result, upon completion of the assessment, management recorded a
non-cash impairment charge of $955,897, net of tax, or $0.08 per share during
the three months ended June 30, 2007 to reduce the carrying value of the
goodwill to $ 0. Considerable management judgment is necessary to estimate the
fair value. Accordingly, actual results could vary significantly from
management's estimates.

The remaining identifiable intangible assets acquired and their carrying value
at June 30, 2007 is:

<TABLE>
----------------------- ---------- -------------- ----------- ------------- ------------------
                         Gross                                              Weighted average
                        carrying    Accumulated                 Residual      Amortization
                         amount    Amortization      Net         Value       Period (Years)
----------------------- ---------- -------------- ----------- ------------- ------------------
<S>                     <C>           <C>          <C>            <C>              <C>
Customer lists          $150,000      $2,500       $147,500       $-0-             5.0
----------------------- ---------- -------------- ----------- ------------- ------------------
</TABLE>

                                    Page 11



<PAGE>


                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)

NOTE B - INTANGIBLE ASSETS AND GOODWILL (CONTINUED)

Total amortization charged to operations for the three and nine months ended
June 30, 2007 was $2,500. The estimated amortization expense as of June 30, 2007
is as follows:

                -------------------------------- ---------------
                2007                                    $12,500
                -------------------------------- ---------------
                2008                                     30,000
                -------------------------------- ---------------
                2009                                     30,000
                -------------------------------- ---------------
                2010                                     30,000
                -------------------------------- ---------------
                2010                                     30,000
                -------------------------------- ---------------
                2012 and after                           15,000
                -------------------------------- ---------------
                  Total                                $147,500
                -------------------------------- ---------------

NOTE C - BANK LINE OF CREDIT

The Company renewed its credit facility on February 9, 2007 and was approved for
an increased credit line with Key Bank with a maximum borrowing limit increased
from $1,150,000 to $1,500,000, expiring on February 1, 2008. The line of credit
is set up with an annual renewal provision. Interests on advances are charged at
a rate of .25 percentage points under the Key Bank's announced Prime Rate.
Borrowings under the agreement are collateralized by substantially all the
Company's assets.

Additionally, assumed as part of the acquisition of Colortek, Inc, the Company
acquired a revolving line of credit of $75,000 secured by property, equipment,
deposits and receivables. Interest rate is prime plus 2.50%. As of the date of
acquisition, the balance outstanding was $58,613.

NOTE D - NOTES PAYABLE AND CAPITAL LEASES

As a result of the Colortek acquisition, the Company assumed a mortgage note
payable with original principal amount of $787,500 dated July 8, 2003. The note
payable obligation requires monthly payments of $5,633, based upon a 20 year
amortization, with a final balloon payment the maturity date on July 8, 2008.
The note is secured by a first priority security interest in the business
property of Colortek, first mortgage on the real estate at 2108 West Shawnee
Road, Baroda, Michigan. The interest rate is fixed at 5.98% per annum. Upon
default, the per annum interest rate on the unpaid principal and interest shall
be equal to the National Prime Rate than in effect plus 5%. A negative covenant
of the note obligation specifies that Colortek shall not be a party to any
merger or consolidation, transfer or lease or otherwise dispose of all or any
substantial part of their stock, property, assets or business. Upon acquisition,
Colortek has not received a waiver from the bank. As a result, the Company has
assumed its obligation is in default and has recorded its obligation as a
current liability.

As a result of the Colortek acquisition, the Company assumed a full-recourse
factoring arrangement for sale of certain eligible accounts receivables. The
facility is secured by the accounts receivable, all obligations to the lender
and any and all deposits, monies, negotiable instruments or chattel paper. The
lender may require the Company to repurchase sold, but unpaid accounts
receivable. As of June 30, 2007, the Company borrowed $131,263 under the
factoring arrangement with $158,508 of the existing accounts receivables sold.
Subsequent to June 30, 2007, the balance outstanding was fully paid off and the
facility was cancelled.

NOTE D - CAPITAL STOCK

The Company is authorized to issue 110,000,000 shares of which stock 100,000,000
shares of par value of $.001 each shall be common stock and of which 10,000,000
shares of par value of $.001 each shall be preferred stock. As of June 30, 2007,
the Company has issued and outstanding 3,500,000 shares of Series A preferred
stock and 12,253,080 shares of common stock.


                                    Page 12



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)

SERIES A PREFERRED STOCK
------------------------

On April 23, 2007, the Company filed a Certificate of Designation creating a
$0.001 par value Series A Convertible Preferred stock for 3,500,000 shares

PAYMENT OF DIVIDENDS. Commencing on the date of issuance of the Series A
Preferred Stock, the holders of record of shares of Series A Preferred Stock
shall be entitled to receive, out of any assets at the time legally available
therefore and as declared by the Board of Directors, dividends at the rate of
nine percent (9%) of the stated Liquidation Preference Amount (see below) per
share PER ANNUM., payable quarterly


NOTE D - CAPITAL STOCK (CONTINUED)

SERIES A PREFERRED STOCK (CONTINUED)
------------------------------------

RIGHT TO CONVERT. At any time on or after the Issuance Date, the holder of any
such shares of Series A Preferred Stock may, at such holder's option, subject
certain limitations, elect to convert all or any portion of the shares of Series
A Preferred Stock held into a number of shares of Common Stock equal to the
quotient of (i) the Liquidation Preference Amount (see below) of the shares of
Series A Preferred Stock being converted plus any accrued but unpaid dividends
thereon DIVIDED BY (ii) the Conversion Price of $0.50 per share, subject to
certain adjustments.

MANDATORY CONVERSION. Subject to certain restrictions and limitations, five
years after the issuance date, the Series A Preferred Stock will automatically
and without any action on the part of the holder thereof, convert into shares of
Common Stock equal to the quotient of (i) the Liquidation Preference Amount of
the number of shares of Series A Preferred Stock being converted on the
Mandatory Conversion Date DIVIDED BY (ii) the Conversion Price in effect on the
Mandatory Conversion Date.

LIQUIDATION RIGHTS. The Series A Preferred Stock shall, with respect to
distributions of assets and rights upon the occurrence of a Liquidation rank (i)
senior to all classes of common stock of the Company and (ii) senior to each
other class of Capital Stock of the Company hereafter created with does not
expressly rank pari passu or senior to the Series A Preferred Stock. Holders of
the Series A Preferred Stock is entitled, in the event of liquidation or winding
up of the Company's affairs, a liquidation payment of $1.00 per share plus any
accrued and unpaid dividends before any distribution to any common or other
junior classes of stock

VOTING RIGHTS. The holders of Series A Preferred Stock shall have no voting
rights with the exception relating to increasing the number of outstanding
shares of Series A Preferred or modifying the rights of the Series A Preferred
Stock

REGISTRATION RIGHTS. The Company is required to file a registration statement
with the SEC to affect the registration of the shares of its common stock
underlying the Series A Preferred Stock and the warrants (see below) within 30
days. The Company also agreed to use its reasonable best efforts to cause the
registration statement to be declared effective no later than 150 days after its
filing. If the Registration Statement is not filed and declared effective as
described above, the Company will be required to pay liquidated damages to the
holders of the Series A Preferred Stock, in an amount equal to 2% of the initial
investment.  On May 29, 2007, the Company filed a registration statement.  The
registration statement, as amended, was declared effective at 10:00 a.m. on July
20, 2007 (SEC File Number 333-143333).

On April 23, 2007 the Company issued 3,500,000 shares of Series A Preferred
Stock for gross proceeds of $3,500,000 resulting in net proceeds of $3,222,450.

As additional consideration for the purchase of the Series A Preferred Stock,
the Company granted to the holders warrants entitling it to purchase 11,000,000
common shares of the Company's common stock at the price of $0.70 per share,
6,000,000 at $0.85 per share and 6,000,000 at $1.20 per share. The underlying A,
B & C warrants lapse if unexercised by April 23, 2012, while the J and D, E &F
warrants lapse if unexercised by June 28, 2008. All warrants are subject to the
registration rights agreement described above.


                                    Page 13



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)

In accordance with EMERGING ISSUES TASK FORCE ISSUE 98-5, ACCOUNTING FOR
CONVERTIBLE SECURITIES WITH A BENEFICIAL CONVERSION FEATURES OR CONTINGENTLY
ADJUSTABLE CONVERSION RATIOS ("EITF 98-5"), the Company recognized an imbedded
beneficial conversion feature present in the Convertible Series A Preferred
Stock. The Company allocated a portion of the proceeds equal to the fair value
of that feature to additional paid-in capital. The Company recognized and
measured an aggregate of $3,500,000 of the proceeds, which is equal to the
intrinsic value of the imbedded beneficial conversion feature, to additional
paid-in capital and a charge against current earnings. The fair value of the
warrants was determined using the Black-Scholes Option Pricing Model with the
following assumptions: Dividend yield: $-0-; Volatility: 146.64%, risk free
rate: 4.55%.

COMMON STOCK
------------

In January 2007, the Company issued an aggregate of 55,000 of common stock to a
consultant under the non employee stock option plan. The original exercise price
was $1.00 per share. The Company issued the shares to settle an outstanding
accounts payable balance of $55,000

In 2nd Quarter 2007, the Company issued an aggregate of 79,800 shares of common
stock to a consultant in exchange for a total of $66,234 for services and
expenses rendered. These shares were valued at a weighted average of $0.83 per
share which represents the fair value of the services received which did not
differ materially from the value of the stock issued.

In May 2007, the Company issued 400,000 shares in connection with the
acquisition of Colortek, Inc. (See note A). These shares were valued at $0.85
per share which represents the fair value of the services received which did not
differ materially from the value of the stock issued.


NOTE E - STOCK OPTIONS AND WARRANTS

EMPLOYEE STOCK OPTIONS
----------------------

The following table summarizes the changes in options outstanding and the
related prices for the shares of the Company's common stock issued to employees
of the Company as of June 30, 2007:

<TABLE>
                                Options Outstanding                      Options Exercisable
                                -------------------                      -------------------
                                 Weighted Average
                               Remaining Contractual    Weighted       Weighted
                    Number           Exercise            Average        Number         Average
Exercise Price   Outstanding       Life (Years)          Price       Exercisable    Exercise Price
--------------   -----------       ------------          -----       -----------    --------------
<S>  <C>           <C>                  <C>              <C>                            <C>
     $0.45         170,000              8.9              $0.45            -             $0.45
</TABLE>

Transactions involving options issued to non-employees are summarized as
follows:

---------------------------------------------- -------------------- ------------
                                                Weighted Average     Price per
                                                Number of Shares       Share
---------------------------------------------- -------------------- ------------
Outstanding at October 1, 2006                                   -            -
Granted                                                    170,000        $0.45
Exercised                                                        -            -
Canceled or expired                                              -            -
                                                        ---------- ------------
Outstanding, June 30, 2007                                 170,000        $0.45
                                                        ========== ============

                                    Page 14



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)

Effective January, 2006, the Company adopted SFAS 123R and recognized
compensation expense in its financial statements in fiscal 2006. Prior to the
adoption of SFAS 123R, the Company accounted for its stock option plans
according to Accounting Principles Board Opinion No. 25, "Accounting for Stock
Issued to Employees." Accordingly, no compensation costs were recognized upon
issuance or exercise of stock options for fiscal 2005.

SFAS No. 123, "Accounting for Stock-Based Compensation," required the disclosure
of the estimated fair value of employee option grants and their impact on net
income using option pricing models that are designed to estimate the value of
options that, unlike employee stock options, can be traded at any time and are
transferable. In addition to restrictions on trading, employee stock options may
include other restrictions such as vesting periods. Further, such models require
the input of highly subjective assumptions, including the expected volatility of
the stock price.

In May 2007, the Company granted 170,000 employee stock options vesting over the
next three years. The options grant the employee the right to purchase the
Company's common stock over the next 8 to 10 years at an exercise price of
$0.45. The options were valued using the Black-Scholes Option Pricing model with
the following assumptions: dividend yield: -0-%; volatility: 37.74%; risk free
interest rate: 4.50%. The determined fair value of the options of $41,440 will
be recognized as a period expense ratably with vesting rights.

NON EMPLOYEE STOCK OPTIONS
--------------------------

The following table summarizes the changes in options outstanding and the
related prices for the shares of the Company's common stock issued to non-
employees of the Company as of June 30, 2007:


<TABLE>
                                Options Outstanding                      Options Exercisable
                                -------------------                      -------------------
                                 Weighted Average
                              Remaining Contractual    Weighted       Weighted
                   Number           Exercise            Average         Number         Average
Exercise Price   Outstanding       Life (Years)          Price       Exercisable    Exercise Price
--------------   -----------       ------------          -----       -----------    --------------
<S>  <C>           <C>                 <C>               <C>           <C>              <C>
     $1.00         195,000             1.50              $1.00         195,000          $1.00
     $1.25         200,000             1.50              $1.25         200,000          $1.25
                 -----------       ------------          -----       -----------    --------------
                   395,000             1.50              $1.11         395,000          $1.11
                 ===========       ============          =====       ===========    ==============
</TABLE>

Transactions involving options issued to non-employees are summarized as
follows:

---------------------------------------------- -------------------- ------------
                                                Weighted Average     Price per
                                                Number of Shares       Share
---------------------------------------------- -------------------- ------------
Outstanding at October 1, 2006                             450,000        $1.11
Granted                                                          -            -
Exercised                                                 (55,000)       (1.00)
Canceled or expired                                              -            -
                                                     ------------- ------------
Outstanding, June 30, 2007                                 395,000        $1.11
                                                     ============= =============


                                    Page 15



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)


WARRANTS

The following table summarizes the changes in warrants outstanding and the
related prices for the shares of the Company's common stock issued to
non-employees of the Company as of June 30, 2007:

<TABLE>
                               Warrants Outstanding                      Warrants Exercisable
                               --------------------                      --------------------
                                 Weighted Average
                                Remaining Contractual    Weighted       Weighted
                    Number          Exercise            Average         Number         Average
Exercise Price   Outstanding       Life (Years)          Price       Exercisable    Exercise Price
--------------   -----------       ------------          -----       -----------    --------------
<S>  <C>            <C>                <C>               <C>             <C>            <C>
     $0.50          1,000,000          1.50              $0.50           1,000,000      $0.50
     $0.65            490,000          3.82              $0.65             490,000      $0.65
     $0.70         11,000,000          4.82              $0.70           8,500,000      $0.70
     $0.85          6,000,000          4.82              $0.85           3,500,000      $0.85
     $1.20          6,000,000          4.82              $1.20           3,500,000      $1.20
                  -----------       -----------          -----         -----------    ------------
                   24,490,000          4.66              $0.85          16,990,000      $0.82
</TABLE>

NOTE E - STOCK OPTIONS AND WARRANTS (CONTINUED)

WARRANTS (CONTINUED)
--------------------

Transactions involving warrants issued to non-employees are summarized as
follows:

---------------------------------------------- -------------------- ------------
                                                Weighted Average     Price per
                                                Number of Shares       Share
---------------------------------------------- -------------------- ------------
Outstanding at October 1, 2006                           1,000,000        $0.50
Granted                                                 23,490,000         0.87
Exercised                                                        -            -
Canceled or expired                                              -            -
                                                     ------------- ------------
Outstanding, June 30, 2007                              24,490,000        $0.85
                                                     ============= ============

In April 2007, in conjunction with the sale of the Series A Preferred stock, the
Company granted 23,000,000 warrants to purchase the Company's common stock over
the next five years. The various denominations are as follows:

-------------------------------------------- ------------------ ----------
                                                 Number of      Exercise
                                                  warrants       Price
-------------------------------------------- ------------------ ----------
Series A warrants                                    3,500,000      $0.70
-------------------------------------------- ------------------ ----------
Series B warrants                                    3,500,000       0.85
-------------------------------------------- ------------------ ----------
Series C warrants                                    3,500,000       1.20
-------------------------------------------- ------------------ ----------
Series D warrants                                    2,500,000       0.70
-------------------------------------------- ------------------ ----------
Series E warrants                                    2,500,000       0.85
-------------------------------------------- ------------------ ----------
Series F warrants                                    2,500,000       1.20
-------------------------------------------- ------------------ ----------
Series J warrants                                    5,000,000       0.70
-------------------------------------------- ------------------ ----------
Total                                               23,000,000
-------------------------------------------- ------------------ ----------

                                    Page 16



<PAGE>

                         MARKETING WORLDWIDE CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)


Series D, E and F are restricted to 50% of the number of shares exercised by the
holder of Series J warrants. Series J warrants include certain reset provisions
and the term for these warrants ends on June 23, 2008. The fair value of the
warrants, determined using the Black-Scholes Option Pricing Model, up to the
proceeds received from the sale of the Series A Preferred stock, as a charge
against current earnings and a credit to additional paid in capital. The
assumptions in determining the fair value of the warrants were as follows:
Dividend yield: $-0-; Volatility: 146.64%, risk free rate: 4.55%.

Additionally, in April 2007, the Company issued 490,000 warrants to purchase the
Company's common stock at $0.65 per share over the next four years. The warrants
were issued for services rendered in conjunction with the sale of the Series A
Convertible Preferred stock.

The fair value of the warrants, determined using the Black-Scholes Option
Pricing Model, as capitalized financing costs with a credit to additional paid
in capital. The assumptions in determining the fair value of the warrants were
as follows: Dividend yield: $-0-; Volatility: 146.64%, risk free rate: 4.55%.

NOTE F - CONSOLIDATION OF VARIABLE INTEREST ENTITIES

On June 6, 2005 and August 8, 2005, JCMD Properties LLC, an entity controlled by
the Company's Chief Executive and Chief Operating officers respectively
("JCMD"), entered into a Secured Loan Agreement with a financial institution, in
connection with the financing of real property and improvements ("property").
This agreement is guaranteed by the company.

The property is leased to the Company under a long term operating lease
beginning on January 1, 2005. Under the loan agreements, JCMD is obligated to
make periodic payments of principal repayments and interest. The Company has no
equity interest in JCMD or the property.

Based on the terms of the lending agreement with the above entity, the Company
determined that JCMD was a variable interest entity ("VIE") and the Company was
the primary beneficiary under FIN No. 46 since JCMD does not have sufficient
equity at risk for the entity to finance its activities.

FIN No. 46 requires that an enterprise consolidate a VIE if that enterprise has
a variable interest that will absorb a majority of the entity's expected losses
if they occur. Accordingly, the Company adopted FIN No. 46 and consolidated JCMD
as a VIE, regardless of the Company not having an equity interest in JCMD.

Included in the Company's consolidated balance sheet at June 30, 2007 are the
following net assets of JCMD:

                                    Page 17



<PAGE>

   ---------------------------------------------------------------- ------------
   ASSETS (JCMD)
   ---------------------------------------------------------------- ------------
   Cash and cash equivalents                                           $154,347
   Accounts receivable, prepaid expenses and other current assets        91,386
                                                                   ------------
     Total current assets                                               245,733

   Property Plant and equipment,  net of accumulated  depreciation
   of $63,521                                                         1,313,824
                                                                   ------------

   Total assets                                                       1,559,557
                                                                   ------------

   ---------------------------------------------------------------- ------------
   LIABILITIES:
   ---------------------------------------------------------------- ------------
   Current portion of long term debt                                     36,859
   Accounts payable and accrued liabilities                                   -
                                                                   ------------
     Total current liabilities                                           36,859

   Long term debt                                                     1,290,407
                                                                   ------------

   Net assets:                                                         $232,291
                                                                   ============
Consolidated results of operations include the following:

   ---------------------------------------------------------------- ------------
   Revenues - Real Estate/other                                        $115,561

   Costs and expenses - real estate:
   Operating expenses                                                     5,835
   Depreciation                                                          26,000
   Interest, net                                                         66,405
                                                                   ------------
     Total costs and expenses                                            98,240

   Operating income-Real estate                                         $17,321
                                                                   ------------

                                    Page 18



<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

THIS REPORT ON FORM 10-QSB CONTAINS FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING
STATEMENTS IN THIS REPORT ARE INDICATED BY WORDS SUCH AS "ANTICIPATES,"
"EXPECTS," "BELIEVES," "INTENDS," "PLANS," "ESTIMATES," "PROJECTS" AND SIMILAR
EXPRESSIONS. THESE STATEMENTS REPRESENT OUR EXPECTATIONS BASED ON
CURRENTINFORMATION AND ASSUMPTIONS. FORWARD-LOOKING STATEMENTS ARE INHERENTLY
SUBJECT TO RISKS AND UNCERTAINTIES. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY
FROM THOSE WHICH ARE ANTICIPATED OR PROJECTED AS A RESULT OF CERTAIN RISKS AND
UNCERTAINTIES, INCLUDING, BUT NOT LIMITED TO A NUMBER OF FACTORS, SUCH AS
ECONOMIC AND MARKET CONDITIONS; THE PERFORMANCE OF THE AUTOMOTIVE AFTERMARKET
SECTOR; CHANGES IN BUSINESS RELATIONSHIPS WITH OUR MAJOR CUSTOMERS AND IN THE
TIMING, SIZE AND CONTINUATION OF OUR CUSTOMERS' PROGRAMS; THE ABILITY OF OUR
CUSTOMERS TO ACHIEVE THEIR PROJECTED SALES; COMPETITIVE PRODUCT AND PRICING
PRESSURES; INCREASES IN PRODUCTION OR MATERIAL COSTS THAT CANNOT BE RECOUPED IN
PRODUCT PRICING; SUCCESSFUL INTEGRATION OF ACQUIRED BUSINESSES; PRODUCT
LIABILITY, AS WELL AS OTHER RISKS AND UNCERTAINTIES, SUCH AS THOSE DESCRIBED

UNDER QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK AND THOSE
DETAILED HEREIN AND FROM TIME TO TIME IN OUR FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION. THOSE FORWARD-LOOKING STATEMENTS ARE MADE ONLY AS OF THE
DATE HEREOF, AND WE UNDERTAKE NO OBLIGATION TO UPDATE OR REVISE THE
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE. THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH
THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, INCLUDING THE NOTES
THERETO, INCLUDED ELSEWHERE IN THIS FORM 10-QSB.

BUSINESS OVERVIEW

MWWLLC, a Michigan limited liability company ("MWWLLC"), was formed in 1998 as a
marketing and sales platform for the automotive accessories market. Marketing
Worldwide Corporation ("MWW") was formed by filing its certificate of
incorporation in Delaware on July 23, 2003. On October 1, 2003, MWW acquired
100% of the membership interests in Marketing Worldwide LLC; in a tax-free
exchange whereby MWWLLC became a wholly owned subsidiary of MWW.

MWW is a so called "Direct-To-Port Provider", a full service, designer,
manufacturer and wholesale supplier of original equipment manufacturer ("OEM")
components in the automotive accessory market. MWW provides a number of large
foreign and domestic automobile manufacturers' and independently owned port and
vehicle processing centers in the US with MWW's components directly at their
domestic port locations, without the use of a whole seller. At the instruction
of MWW, the processing centers' technical teams install MWW's accessory products
on new automobiles at these port or vehicle processing centers, as soon as these
new vehicles arrive at the port from foreign or domestic automobile
manufacturers. From the vehicle processing centers the accessorized automobiles
are then delivered into the domestic car dealer distribution system throughout
the Continental US.

MWW's marketing/sales/service organization initially commenced business (as
MWWLLC) with limited staff, buying and selling finished goods in bulk to
suitable clients. Increasing demand for the company's products and services
prompted an expansion of MWW's infrastructure and staff and warranted the
diversification of its activities into the design and manufacturing of its
products in order to support newly arising market opportunities. Drawing from
the experience of its principals and strategically utilizing longstanding
relationships in the industry, the company has steadily expanded its product
range, client and employees/contractor base and is currently aggressively
pursuing the expansion of its client roster, in addition to its currently
existing major clients such as South East Toyota, Gulf States Toyota and Toyota
Canada.

                                    Page 19



<PAGE>

We have established initial relationships with several other major foreign and
domestic automobile manufacturers. We have recently begun delivering accessory
programs to KIA Motors America and have received additional Request for Quotes
from KIA Motors America, MOBIS (KIA and Hyundai Worldwide) and Nissan. We have
been delivering product directly to the Toyota Motor Manufacturing Corporation
assembly plant in Canada for nearly twenty (20) months. . We are in various
stages of seeking to provide our accessory programs to other major foreign and
domestic automobile manufacturers such as Nissan, Subaru and Hyundai.

SEASONALITY. Historically, our operating results have fluctuated by quarter to
quarter, with the greatest sales occurring in the quarters of the fiscal year
with the largest number of automobile manufacturers new model releases. Revenues
are generally being recognized at the time of shipment. It is in these quarters
of new model releases that demand for our products is typically the highest.

The limited seasonality of our business offers significant operational
challenges in our manufacturing and distribution functions, based on a partial
dependency on manufacturing abroad. To limit these challenges and to provide a
rapid turnaround time of customer orders, we traditionally keep somewhat higher
inventory levels. New strategies to decrease inventory and improve inventory
turns over rates are currently being implemented.

LIQUIDITY AND CAPITAL RESOURCES

OPERATING ACTIVITIES. During the nine months ended June 30, 2007, cash flow used
in operations amounted to $308,122. The cash was used for program development
and general operating activities.

FINANCING ACTIVITIES. During the nine months ended June 30, 2007, net cash flow
provided (used) in financing activities amounted to $2,639,971.

MWW currently has a $1,500,000 line of credit, which is used to fund seasonal
working capital requirements and other financing needs. On March 1, 2005, MWW
entered into an asset based loan agreement with Key Bank N.A. to borrow up to
$750,000 (the "Loan"). The Loan matured on January 31, 2006 and was increased to
$1,150,000 and extended to February 1, 2007.The loan was again extended with a
maximum borrowing limit increased from $1,150,000 to $1,500,000, expiring on
February 1, 2008. MWW pledged all of its inventory, equipment, accounts, chattel
paper, instruments, and letters of credit, documents, deposit accounts,
investment property, money, rights to payment and general intangibles to secure
the Loan. The Loan with Key Bank N.A. is a standard asset based loan agreement.
The Loan requires MWW to attain a ratio of Total Debt to Tangible Net Worth of
less than 3.50 to 1.00 tested at the end of each fiscal year and a ratio of
Operating Cash Flow to Fixed Charges of not less than 1.50 to 1.00 tested at the
end of each fiscal year for the preceding 12-month period. . Interest on
advances is charged at a rate of .25 percentage points under the Key Bank's
announced Prime Rate. Borrowings under the agreement are collateralized by
substantially all the Company's assets. The current outstanding balance on the
line of credit with Key Bank is approximately $600,000. MWW is in compliance
with the terms and conditions of its agreement with Key Bank N.A. MWW does not
have restrictive covenants on any other indebtedness and believes that is has
satisfactory relationships with its creditors

MWW is the maker of an unsecured 11.5% interest bearing promissory note (the
"11.5% Note") in the principal amount of $130,000 that matures on January 31,
2008. The "11.5% Note is payable to TWM Trading, an overseas company. MWW has a
satisfactory relationship with TWM Trading, the holder of the 11.5% Note.

Our profitability and working capital requirements have become larger,
especially in this second quarter with newly awarded programs and arising
program development opportunities to secure additional large customers. These
increased working capital requirements are funded by partially utilizing our
existing line of credit and funds from the execution of a Private Placement for
$3.5 Million from an institutional round of private investment from Vision
Opportunity Capital Management, LLC in New York. We anticipate that these
sources of funds will continue to be adequate to meet our near term needs.
Details of this private placement are available through our 8K filing on April
27, 2007.

Management believes that available cash, the line of credit, private placement,
and cash generated from operations will be adequate to fund MWW's capital
requirements for the foreseeable future.

                                    Page 20



<PAGE>

INTERIM RESULTS OF OPERATIONS

COMPARISON OF THREE MONTHS ENDED JUNE 30, 2007 TO THE THREE MONTHS ENDED JUNE
30, 2006.

SALES. Net sales during the third quarter 2007 (three months ending June 30,
2007) were $1,556,379 a decrease of $825,208, or 34%, compared to $2,381,587
during the third quarter 2006. This reduction was due to delays in customer
program launches, the delay in the Tundra Exhaust System introduction delayed
the shipment of $745,000 in product for May and June.

GROSS MARGINS. Gross margins for the third quarter 2007 increased to 33 % from
27 % in the same period of 2006 due to improvements in material cost and product
mix.

OPERATING EXPENSES

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased by $ 630,843 to $1,125,375 in the third
quarter of 2007, compared to $494,532 in the third quarter of 2006. We
incorporated the activity of our new subsidiary, Colortek, Inc resulting in an
increase of $152,482 in SGA. Additionally we incurred an increase in
professional fees associated with the preparation and placement of our Series A
Preferred stock.

IMPAIRMENT EXPENSES, a onetime impairment charge to our operations of $955,897
was incurred in the quarter ended June 30, 2007 relating to the acquisition of
Colortek, Inc.

FINANCIAL EXPENSE. MWW incurred non cash financial charge of $3,500,000 in the
third quarter 2007 due the private placement financing of $3.5 Million of Series
A Preferred Stock and the associated costs for warrants and dividends attached
to this financing.

INTEREST EXPENSE for the three months ended June 30, 2007, MWW's portion of the
total interest amount was $33,246 and JCMD was $22,724. For the three months
ended June 30, 2006, MWW's portion of the total interest amount was $19,613 and
JCMD was $22,714. Based on MWW's anticipated growth and the resulting potential
need for additional financing, it is anticipated that interest costs may
continue to increase in the future.

OPERATING INCOME. Operating income decreased by $5,228,524 to a loss of
$5,121,703 in the third quarter of 2007, compared to $106,821 in the third
quarter of 2006. This decrease was due to primarily to a non-cash charge to our
interest expense of $3,500,000 for the conversion feature related to the Series
A Preferred stock issued during the three months ended June 30, 2007.
Additionally, we recorded a one-time impairment charge to our operations of
$955,897 relating acquisition of Colortek, Inc.

NET INCOME was reduced by $ 5,197,641. The majority of this decrease
($3,500,000) was associated with a non-cash expense associated with the private
placement financing of $3.5 Million of Series A Preferred Stock along with
additional cost such as, placement agent and other professional fees, an
increase in associated legal and consulting fees and the associated costs for
warrants and dividends attached to this financing. We also incurred a non cash
impairment loss of $955,897 relating to the acquisition of Colortek, Inc. A
smaller portion of the decrease was due to lower sales due to delays in several
customer program launches, and an increase in cost for professional consulting
services representing a non-cash expense, higher selling general and
administrative expenses, offset by improvements in Gross Margins.

                                    Page 21



<PAGE>

COMPARISON OF NINE MONTHS ENDED JUNE 30, 2007 TO THE NINE MONTHS ENDED JUNE 30,
2006

SALES. Net sales for the nine months ended June 30, 2007 were $5,959,328, a
decrease of $636,001 or 9.6 %, compared to $6,595,329 in the same period of
2006. The decrease was associated with the delayed launch of several new
programs, specifically the Tundra Exhaust program, which was delayed from an
April launch into the next quarter, and one time lower volume on other product
lines, caused by mid-term inventory adjustments at our large customers.

GROSS MARGINS. Gross margins, as a percentage of consolidated net sales,
increased by 5 % percentage points to 31% for the nine months ended June 30,
2007 from 26% in the same period of 2006. The increase was mainly due to product
mix and continued material cost improvements.

OPERATING EXPENSES

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased to $2,274,386 for the nine months ended June
30, 2007, compared to $1,411,143 in the same period of 2006. Our SGA increased
$152,482 due to incorporating the activity of our new subsidiary, Colortek, Inc.
Additionally, we incurred one-time costs such as legal and professional fees
associated with the preparation and placement of our Series A Preferred Stock.

IMPAIRMENT EXPENSES, we recorded an impairment charge to our operations
of $955,897 relating acquisition of Colortek, Inc.

FINANCIAL EXPENSE. MWW incurred non cash financial charge of $3,500,000 in the
third quarter 2007 due the private placement financing of $3.5 Million of Series
A Preferred Stock and the associated costs for warrants and dividends attached
to this financing.

INTEREST EXPENSE. Interest expenses for the nine months ended June 30, 2007,
MWW's portion of the total interest amount was $83,081 and JCMD was $68,133.

OPERATING INCOME. Operating income decreased to a loss of $ 5,046,166 for the
nine months ended June 30, 2007, compared to net income of $190,024 in the same
period in 2006. This decrease was due to primarily to a non-cash charge to our
interest expense of $3,500,000 for the conversion feature related to the Series
A Preferred stock issued during the three months ended June 30, 2007.
Additionally, we recorded a one-time impairment charge to our operations of
$955,897 relating acquisition of Colortek, Inc. Based on MWW's anticipated
growth and the potential need for additional financing, it is anticipated that
interest costs may continue to increase in the future.

NET INCOME was reduced by $ 5,177,409. The majority of this decrease
($3,500,000) was associated with non-reoccurring non-cash expense associated
with the private placement financing of $3.5 Million of Series A Preferred Stock
along with additional cost such as, placement agent and other professional fees,
an increase in associated legal and consulting fees and the associated costs for
warrants and dividends attached to this financing. We also incurred a non cash
impairment loss of $955,897 relating to the acquisition of Colortek, Inc. A
smaller portion of the decrease was due to lower sales due to delays in several
customer program launches, and an increase in cost for professional consulting
services representing a non-cash expense, higher selling general and
administrative expenses, offset by improvements in Gross Margins.

                                    Page 22





<PAGE>

                          CRITICAL ACCOUNTING POLICIES

We have identified the policies below as critical to our business operations and
the understanding of our results of operations. The impact and any associated
risks related to these policies on our business operations is discussed
throughout "Management's Discussion and Analysis of Financial Condition and
Results of Operations," where such policies affect our reported and expected
financial results. For a detailed discussion on the application of these and
other accounting policies see the Notes to the Financial Statements of our
Report on Form 10KSB. Note that our preparation of this Quarterly Report on Form
10-QSB requires us to make estimates and assumptions that affect the reported
amount of assets and liabilities, disclosure of contingent assets and
liabilities at the date of our financial statements, and the reported amounts of
revenue and expenses during the reporting period. There can be no assurance that
actual results will not differ from those estimates.

REVENUE RECOGNITION. Revenues on the sale of products, net of estimated costs of
returns and allowance, are recognized at the time products are shipped to
customers, legal title has passed, and all significant contractual obligations
of the Company have been satisfied. Products are generally sold on open accounts
under credit terms customary to the geographic region of distribution. The
Company performs ongoing credit evaluations of the customers and generally does
not require collateral to secure the accounts receivable.

ACCOUNTING FOR VARIABLE INTEREST ENTITIES. In December 2003, the FASB issued a
revision to FASB Interpretation ("FIN") No. 46, "Consolidation of Variable
Interest Entities" (FIN No. 46R). FIN No. 46R clarifies the application of ARB
No. 51, "Consolidated Financial Statements," to certain entities in which equity
investors do not have the characteristics of a controlling financial interest or
do not have sufficient equity risk for the entity to finance its activities
without additional subordinated financial support. FIN No. 46R requires the
consolidation of these entities, known as variable interest entities, by the
primary beneficiary of the entity. The primary beneficiary is the entity, if
any, that will absorb a majority of the entities expected losses, receive a
majority of the entity's expected residual returns, or both. Pursuant to the
effective date of a related party lease obligation, the Company adopted FIN 46R
on January 1, 2005. This resulted in the consolidation of one variable interest
entity (VIE) of which the Company is considered the primary beneficiary. The
Company's variable interest in this VIE is the result of providing certain
secured debt mortgage guarantees on behalf of a limited liability company that
leases warehouse and general offices located in the city of Howell, Michigan.

STOCK BASED COMPENSATION: Prior to January 1, 2006, we accounted for the Plans
under the recognition and measurement provisions of APB Opinion No. 25, as
permitted by SFAS No. 123. Consequently, no stock-based compensation cost
relating to stock options was recognized in the consolidated statement of income
for any period prior to 2006, as all options granted under the Plans had an
exercise price equal to the market value of the underlying common stock on the
date of grant. Effective January 1, 2006, we adopted the fair value provisions
for share-based awards pursuant to SFAS No. 123(R), using the
modified-prospective-transition method. Under that transition method,
compensation cost recognized in 2006 includes (a) compensation cost for all
share-based awards granted prior to, but not yet vested as of January 1, 2006,
based on the attribution method and grant date fair value estimated in
accordance with the original provisions of SFAS No. 123, and (b) compensation
cost for all share-based awards granted subsequent to January 1, 2006, based on
the grant-date fair value estimated in accordance with the provisions of SFAS
No. 123(R), all recognized on a straight line basis as the requisite service
periods are rendered. Results for prior periods have not been restated.

INVENTORY VALUATION. Inventories are valued at the lower of cost or market. Cost
is generally determined on the average cost method basis. Where appropriate,
standard cost systems are utilized for purposes of determining cost; the
standards are adjusted as necessary to ensure they approximate actual costs.
Estimates of lower of cost or market value of inventory are determined at the
reporting unit level and are based upon the inventory at that location taken as
a whole. These estimates are based upon current economic conditions, historical
sales quantities and patterns and, in some cases, the specific risk of loss on
specifically identified inventories.

We also evaluate inventories on a regular basis to identify inventory on hand
that may be obsolete or in excess of current and future projected market demand.
For inventory deemed to be obsolete, we provide a reserve on the full value of
the inventory. Inventory that is in excess of current and projected use is
reduced by an allowance to a level that approximates our estimate of future
demand.

                                    Page 23



<PAGE>

SALES RETURNS AND OTHER ALLOWANCES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS. The
preparation of financial statements requires our management to make estimates
and assumptions that affect the reported amount of assets and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reported period.
Specifically, our management must make estimates of potential future product
returns related to current period product revenue. Management analyzes
historical returns, current economic trends, and changes in customer demand when
evaluating the adequacy of the sales returns and other allowances. Significant
management judgments and estimates must be made and used in connection with
establishing the sales returns and other allowances in any accounting period. At
June 30, 2007, the allowance for sales returns totaled $0.

Similarly, our management must make estimates of the uncollectability of our
accounts receivables. Management specifically analyzes accounts receivable and
analyzes historical bad debts, customer concentrations, customer
credit-worthiness, current economic trends and changes in our customer payment
terms when evaluating the adequacy of the allowance for doubtful accounts. At
June 30, 2007, there were no determined requirements for the allowance for
doubtful accounts.

ACCOUNTING FOR INCOME TAXES. As part of the process of preparing our financial
statements, we are required to estimate our income taxes in each of the
jurisdictions in which we operate. This process involves estimating our actual
current tax exposure together with assessing temporary differences resulting
from differing treatment of items for tax and accounting purposes. These
differences may result in deferred tax assets and liabilities, which are
included within our consolidated balance sheet. We must then assess the
likelihood that our potential deferred tax assets will be recovered from future
taxable income, and to the extent we believe that recovery is not likely, we
must establish a valuation allowance. To the extent we establish a valuation
allowance or increase this allowance in a period, we must include an expense
within the tax provision in the statement of operations.

Significant management judgment is required in determining our provision for
income taxes, our deferred tax assets and liabilities and any valuation
allowance recorded against our net deferred tax assets. The valuation is based
on our estimates of taxable income by jurisdiction in which we operate.

In the event that actual results differ from these estimates, or we adjust these
estimates in future periods, we may need to establish an additional provision
for income taxes which could materially impact our business, financial condition
and results of operations.

VALUATION OF LONG-LIVED AND INTANGIBLE ASSETS AND GOODWILL. We assess the
impairment of identifiable intangibles and long-lived assets whenever events or
changes in circumstances indicate that the carrying value may not be
recoverable. Factors we consider important, which could trigger impairment
review, include the following: significant underperformance relative to expected
historical or projected future operating results; significant changes in the
manner of our use of the acquired assets or the strategy for our overall
business; and significant negative industry or economic trends.

We review the fair values of each of our reporting units using the discounted
cash flows method and market multiples.

The effect of inflation on our revenue and operating results was not
significant. Our operations are located in North America and there are no
seasonal aspects that would have a material effect on our financial condition or
results of operations.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements.

                                    Page 24



<PAGE>

ITEM 3. CONTROLS AND PROCEDURES

a) Evaluation of Disclosure Controls and Procedures. As of June 30, 2007, the
Company's management carried out an evaluation, under the supervision of the
Company's Chief Executive Officer and the Chief Financial Officer of the
effectiveness of the design and operation of the Company's system of disclosure
controls and procedures pursuant to the Securities and Exchange Act, Rule
13a-15(e) and 15d-15(e) under the Exchange Act). Based upon that evaluation, the
Chief Executive Officer and Chief Financial Officer concluded that the Company's
disclosure controls and procedures were effective, as of the date of their
evaluation, for the purposes of recording, processing, summarizing and timely
reporting material information required to be disclosed in reports filed by the
Company under the Securities Exchange Act of 1934.

b) Changes in internal controls. There were no changes in internal controls over
financial reporting, known to the Chief Executive Officer or Chief Financial
Officer that occurred during the period covered by this report that has
materially affected, or is likely to materially effect, the Company's internal
control over financial reporting.



                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no current legal proceedings.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters submitted to a vote of the security holders during the
quarter.

ITEM 5. OTHER INFORMATION

None.


                                    Page 25



<PAGE>

ITEM 6. EXHIBITS

(a) EXHIBIT(S) DESCRIPTION

Exhibits                                                                Page No.
--------                                                                --------

(3)(i)   Certificate of Incorporation *
(3)(ii)  Bylaws *
(4)(1)   Form of Common Stock Certificate *
(4)(2)   Common Stock Purchase Warrant with Wendover Investments
         Limited *
(4)(3)   Stock Option Agreement with Richard O. Weed *
(5)      Opinion on Legality *****
(10)(1)  Consulting Agreement with Rainer Poertner ***
(10)(2)  Fee Agreement with Weed & Co. LLP *
(10)(3)  Purchase Agreement MWW and MWWLLC *
(10)(4)  Amendment to Purchase Agreement between MWW and MWWLLC **
(10)(5)  Employment Agreement with CEO Michael Winzkowski **
(10)(6)  Employment Agreement with COO/CFO James Marvin **
(10)(7)  Loan Agreement with KeyBank N.A. ***
(10)(8)  Amendment to Consulting Agreement with Rainer Poertner ***
(10)(10) Real Property Lease Agreement for 11224 Lemen Road, Suite A
         ****
(10)(11) Real Property Lease Agreement for 11236 Lemen Road ****
(10)(12) Supplier and Warranty Agreement ****
(10)(13) Business Loan Agreement April 4, 2006 with KeyBank N.A. ******
(10)(14) Supplier and Warranty Agreement ****
(10)(15) Blanket Purchase Order, Non-Disclosure and Confidentiality
         Agreement ******
(10)(16) Lease Agreement and Amendment to Lease Agreement with JCMD
         Properties, LLC ******
(10)(17) Consulting Agreement with Rainer Poertner dated July 1, 2006
         ******
(10)(18) Waiver of Cashless Exercise Provisions in Warrant by Wendover
         Investments Ltd. *******
(10)(19) Waiver of Cashless Exercise Provisions in Stock Option by
         Richard O. Weed *******
(10)(20) Extension of Employment Agreement with Michael Winzkowski
         dated October 15, 2006
(10)(21) Extension of Employment Agreement with James Marvin dated
(21)     Subsidiaries of Registrant *
(31)(1)  Certification of Chief Executive Officer pursuant to Section
         302 of the Sarbanes-Oxley Act of 2002.
(31)(2)  Certification of Chief Financial Officer pursuant to Section
         302 of the Sarbanes-Oxley Act of 2002.
(32)(1)  Certification of Chief Executive Officer pursuant to Section
         906 of the Sarbanes-Oxley Act of 2002, furnished under Exhibit
         32 of Item 601 of Regulation S-K.
(32)(2)  Certification of Chief Financial Officer pursuant to Section
         906 of the Sarbanes-Oxley Act of 2002, furnished under Exhibit
         32 of Item 601 of Regulation S-K
-------------
* Previously filed on February 11, 2005 as part of the Registration Statement on
Form 10-SB12G of Marketing Worldwide Corporation SEC File 0-50586 Accession
Number 1019687-4-279.

** previously filed on August 10, 2005 as part of the Registration Statement on
Form 10-SB12G/A Amendment No. 1 of Marketing Worldwide Corporation SEC File
0-50586 Accession Number 0001019687-04-001719.

*** previously filed on November 9, 2005 as part of the Registration Statement
on Form 10-SB12G/A Amendment No. 2 of Marketing Worldwide Corporation SEC File
0-50586 Accession Number 0001019687-04-002436.

**** Previously filed on January 31, 2006 as part of the Form 10-KSB for the
year ended September 30, 2005 of Marketing Worldwide Corporation SEC File
0-50586 Accession Number 0001019687-05-000207.

***** previously filed on March 17, 2006 as part of the Form SB-2 of Marketing
Worldwide Corporation SEC File 333-123380 Accession Number 0001019687-05-000728.

****** previously filed on September 15, 2006 as part of the Form SB-2 of
Marketing Worldwide Corporation SEC File 333-123380 Accession Number
0001019687-05-002649.

******* previously filed on December 7, 2006 as part of the Form SB-2 of
Marketing Worldwide Corporation SEC File 333-123380 Accession Number
0001019687-05-003367.

                                    Page 26



<PAGE>


                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                         MARKETING WORLDWIDE CORPORATION
                                  (Registrant)

(Date): August 16, 2007               /s/  James Marvin
                                   --------------------------------------------
                                   James Marvin
                                   Vice President Finance,
                                   Chief Financial Officer
                                   (Principal Financial and Accounting Officer)


                                    Page 27



<PAGE>

EXHIBIT INDEX

(31)(1)  Certification of Chief Executive Officer pursuant to Section
         302 of the Sarbanes-Oxley Act of 2002.(31)(2)  Certification of Chief
         Financial Officer pursuant to Section
         302 of the Sarbanes-Oxley Act of 2002.
(32)(1)  Certification of Chief Executive Officer pursuant to Section 906 of
         the Sarbanes-Oxley Act of 2002, furnished under Exhibit 32 of Item
         601 of Regulation S-K.
(32)(2)  Certification of Chief Financial Officer pursuant to Section 906 of
         the Sarbanes-Oxley Act of 2002, furnished under Exhibit 32 of Item
         601 of Regulation S-K









                                    Page 28