**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**




**FORM
      10-QSB**


Commission
        file : 000-52712




x
            **Quarterly
                Report under Section 13 or 15(d) of the Securities Exchange Act of
                1934**
              For
                the quarterly period ended: September 30, 2007o
            **Transition
                Report under Section 13 or 15(d) of the Exchange Act of
                1934**For
                the transition period
              from
                ________ to _________Commission
                File Number:




**PEER
      REVIEW MEDIATION AND ARBITRATION** , **INC.**


(Exact
      Name of Small Business Issuer as specified in its charter)




**FLORIDA**
            
            **65-1126951**(State
                or other Jurisdiction of
            
            (IRS
                EmployerIncorporation
                or Organization)
            
            Identification
                No.)





**1450
      S. Dixie Highway, Ste. 201**


**Boca
      Raton, Florida 33432**


(Address
      of principal executive offices)




**(561)
      347-1178**


(Issuer’s
      telephone number, including area code)




(Former
      name, former address and former fiscal year, if changed since last
      report)


**Copies
        to:**
 Brooks
        Law Firm, PA
 1515
        N.
        Federal Hwy, Ste. 300
 Boca
        Raton, Florida 33432
 Tel.
        (561) 394-8886




Check
      whether the Issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes x No o




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


Yes o No x




The
      Issuer had 8,095,615 shares of Common Stock, par value $.001, outstanding as
      of
      September 30, 2007.




Transitional
      Small Business Disclosure format (Check one): Yes oNo x










**TABLE
                OF CONTENTS**




Item
                1.
            
            Financial
                Statements
            
            3Balance
                Sheet
            
            5Statements
                of Operations
            
            6Statements
                of Cash Flows
            
            7Notes
                to Financial Statements
            
            9Item
                2.
            
            Management’s
                Discussion and Analysis or Plan of Operation
            
            12Item
                3.
            
            Controls
                and Procedures
            
            16PART
                II
            
            
            
            16Item
                1.
            
            Legal
                Proceedings
            
            16Item
                2.
            
            Unregistered
                Sales of Equity Securities and Use of Proceeds
            
            17Item
                3.
            
            Defaults
                Upon Senior Securities
            
            17Item
                4.
            
            Submission
                of Matters to a Vote of Security Holders
            
            17Item
                5.
            
            Other
                Information
            
            17Item
                6.
            
            Exhibits
            
            18SIGNATURES
            
            
            
            19





2





**PEER
      REVIEW MEDIATION AND ARBITRATION, INC.**


**CONSOLIDATED
      FINANCIAL STATEMENTS**


**(Unaudited)**





**Quarter
      Ended September 30, 2007**




3







**PEER
      REVIEW MEDIATION AND ARBITRATION, INC.**


**Consolidated
      Financial Statements**





**TABLE
      OF CONTENTS**








FINANCIAL
      STATEMENTS


PageBalance
                  sheet
              
              5Statements
                  of operation
              
              6Statements
                  of cash flows
              
              7Notes
                  to financial statements
              
              9





4


**PEER
          REVIEW MEDIATION AND ARBITRATION, INC.**
 **CONSOLIDATED
          BALANCE SHEET**
  **Sept.
                    30, 2007****(Unaudited)****ASSETS****Current
                    assets**Cash
                
                $
                179,875Accounts
                    receivable
                
                
                2,600Marketable
                    securities
                
                
                3,426**Total
                    current assets**
                
                
                185,901Fixed
                    assets
                
                
                64,777Less
                    accumulated depreciation
                
                
                (42,022
                )Other
                    assets
                
                
                50023,255**Total
                    Assets**
                
                $
                209,156**LIABILITIES
                    AND STOCKHOLDERS' EQUITY****Current
                    liabilities**Accrued
                    payables
                
                $
                62,229Due
                    to related parties
                
                
                2,344,583Notes
                    payable - current portion
                
                
                19,868**Total
                    current liabilties**
                
                
                2,426,680Notes
                    payable**Total
                    Liabilities**
                
                
                2,426,680**Stockholders'
                    Equity**Preferred
                    stock, Series II, $.001 par value;1,000,000
                    shares authorized; convertible;1,000,000
                    issued and outstanding
                
                
                1,000Common
                    stock, $.001 par value;45,000,000
                    shares authorized;7,776,300,
                    8,036,040 & 8,079,765issued
                    and outstanding
                
                
                8,096Additional
                    paid in capital
                
                
                6,260,660Accumulated
                    deficit
                
                
                (8,475,806
                )Accumulated
                    other comprehensive income (loss)
                
                
                (11,474
                )**Total
                    Stockholders' Equity**
                
                
                (2,217,524
                )**Total
                    Liabilities and Stockholders' Equity**
                
                $
                209,156
  The
                    accompanying notes are an integral part of the consolidated financial
                    statements.
   5
 **PEER
            REVIEW MEDIATION AND ARBITRATION, INC.**
 **CONSOLIDATED
            STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**
  **Three
                      Months**
                  
                  **Three
                      Months**
                  
                  **Nine
                      Months**
                  
                  **Nine
                      Months****Ended**
                  
                  **Ended**
                  
                  **Ended**
                  
                  **Ended****Sept.
                      30, 2006**
                  
                  **Sept.
                      30, 2007**
                  
                  **Sept.
                      30, 2006**
                  
                  **Sept.
                      30, 2007****(Unaudited)**
                  
                  **(Unaudited)**
                  
                  **(Unaudited)**
                  
                  **(Unaudited)**Revenue
                  
                  $
                  18,625
                  
                  $
                  19,200
                  
                  $
                  41,695
                  
                  $
                  99,356Cost
                      of sales
                  
                  
                  12,855
                  
                  
                  6,489
                  
                  
                  24,477
                  
                  
                  58,5945,770
                  
                  
                  12,711
                  
                  
                  17,218
                  
                  
                  40,762Expenses:Depreciation
                  
                  
                  2,828
                  
                  
                  3,473
                  
                  
                  8,298
                  
                  
                  9,717Selling,
                      general and administrative
                  
                  
                  278,980
                  
                  
                  342,036
                  
                  
                  1,121,812
                  
                  
                  1,076,535281,808
                  
                  
                  345,509
                  
                  
                  1,130,110
                  
                  
                  1,086,252Loss
                      from operations
                  
                  
                  (276,038
                  )
                  
                  (332,798
                  )
                  
                  (1,112,892
                  )
                  
                  (1,045,490
                  )Other
                      income (expense)Interest
                      incomeInterest
                      (expense)
                  
                  
                  (696
                  )
                  
                  (497
                  )
                  
                  (2,087
                  )
                  
                  (1,765
                  )Realized
                      gain (loss) on securities
                  
                  
                  -
                  
                  
                  34,009
                  
                  
                  -
                  
                  
                  39,733(696
                  )
                  
                  33,512
                  
                  
                  (2,087
                  )
                  
                  37,968Income
                      (loss) before provisionfor
                      income taxes
                  
                  
                  (276,734
                  )
                  
                  (299,286
                  )
                  
                  (1,114,979
                  )
                  
                  (1,007,522
                  )Provision
                      for income tax
                  
                  
                  -
                  
                  
                  -
                  
                  
                  -
                  
                  
                  -**Net
                      income (loss)**
                  
                  $
                  (276,734
                  )
                  $
                  (299,286
                  )
                  $
                  (1,114,979
                  )
                  $
                  (1,007,522
                  )**Other
                      comprehensive income (loss) -****net
                      of tax**Unrealized
                      gain (loss) on securities
                  
                  
                  
                  
                  
                  (20,023
                  )
                  
                  
                  
                  
                  2,228**Comprehensive
                      income (loss)**
                  
                  $
                  (276,734
                  )
                  $
                  (319,309
                  )
                  $
                  (1,114,979
                  )
                  $
                  (1,005,294
                  )**Net
                      income (loss) per share**(Basic
                      and fully diluted)
                  
                  $
                  (0.04
                  )
                  $
                  (0.04
                  )
                  $
                  (0.14
                  )
                  $
                  (0.12
                  )Weighted
                      average number ofcommon
                      shares outstanding
                  
                  
                  7,845,495
                  
                  
                  8,087,690
                  
                  
                  7,819,339
                  
                  
                  8,065,503
  The
                      accompanying notes are an integral part of the consolidated
                      financial
                      statements.
  6
 **PEER
            REVIEW MEDIATION AND ARBITRATION, INC.**
 **CONSOLIDATED
              STATEMENTS OF CASH FLOWS**
 **Nine
                      Months**
                  
                  
                  **Nine
                      Months****Ended**
                  
                  
                  **Ended****Sept.
                      30, 2006**
                  
                  
                  **Sept.
                      30, 2007****(Unaudited)**
                  
                  
                  **(Unaudited)****Cash
                      Flows From Operating Activities:**Net
                      income (loss)
                  
                  $
                  (1,114,979
                  )
                  $
                  (1,007,522
                  )Adjustments
                      to reconcile net income tonet
                      cash provided by (used for)operating
                      activities:Depreciation
                  
                  
                  8,298
                  
                  
                  9,717Accounts
                      receivable
                  
                  
                  313
                  
                  
                  1,097Other
                      assets
                  
                  
                  1,065
                  
                  
                  (500
                  )Accrued
                      payables
                  
                  
                  8,743
                  
                  
                  9,946Due
                      to related parties
                  
                  
                  244,311
                  
                  
                  473,655Compensatory
                      stock issuances
                  
                  
                  254,000
                  
                  
                  20,800Realized
                      (gain) loss on sale of securities
                  
                  
                  
                  
                  
                  (39,733
                  )**Net
                      cash provided by (used for)****operating
                      activities**
                  
                  
                  (598,249
                  )
                  
                  (532,540
                  )**Cash
                      Flows From Investing Activities:**Fixed
                      assets
                  
                  
                  (3,533
                  )
                  
                  (7,027
                  )Sales
                      of marketable securities
                  
                  
                  
                  
                  
                  154,998**Net
                      cash provided by (used for)****investing
                      activities**
                  
                  
                  (3,533
                  )
                  
                  147,971
  (Continued
                      On Following Page)
  The
            accompanying notes are an integral part of the consolidated financial
            statements.
  7
  **PEER
                REVIEW MEDIATION AND ARBITRATION, INC.**
 **CONSOLIDATED
                STATEMENTS OF CASH FLOWS**
  
 (Continued
              From Previous Page)
  **Nine
                      Months**
                  
                  
                  **Nine
                      Months****Ended**
                  
                  
                  **Ended****Sept.
                      30, 2006**
                  
                  
                  **Sept.
                      30, 2007****(Unaudited)**
                  
                  
                  **(Unaudited)****Cash
                      Flows From Financing Activities:**Notes
                      payable - borrowingsNotes
                      payable - payments
                  
                  
                  (5,495
                  )
                  
                  (2,250
                  )Sales
                      of common stock
                  
                  
                  509,654
                  
                  
                  275,343Sales
                      of options
                  
                  
                  
                  
                  
                  2,783**Net
                      cash provided by (used for)****financing
                      activities**
                  
                  
                  504,159
                  
                  
                  275,876**Net
                      Increase (Decrease) In Cash**
                  
                  
                  (97,623
                  )
                  
                  (108,693
                  )**Cash
                      At The Beginning Of The Period**
                  
                  
                  100,953
                  
                  
                  288,568**Cash
                      At The End Of The Period**
                  
                  $
                  3,330
                  
                  $
                  179,875
 Schedule
                        of Non-Cash Investing and Financing ActivitiesIn
                        2005 the Company issued 75,000 common shares for all the
                        outstanding
                        common shares ofIndependent
                        Review, Inc., valued at $(114,191).In
                        2006 the Company recorded paid in capital of $114,958 from
                        related party
                        debt relief, and acquired $136,468 in marketable securities
                        from a related
                        party in exchange for a related party payable in the same
                        amount.
 Supplemental
                      DisclosureCash
                      paid for interest
                  
                  $
                  2,087
                  
                  $
                  1,106Cash
                      paid for income taxes
                  
                  $
                  -
                  
                  $
                  -
  The
                      accompanying notes are an integral part of the consolidated
                      financial
                      statements.
  
 8


**PEER
      REVIEW MEDIATION AND ARBITRATION, INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(Unaudited)**





**NOTE
      1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
      POLICIES:**





Peer
      Review Mediation And Arbitration, Inc. (“PRMA”, the “Company”), was incorporated
      in the State of Florida on April 16, 2001. The Company provides peer review
      services and expertise to law firms, medical practitioners, insurance companies,
      hospitals and other organizations in regard to personal injury, professional
      liability and quality review.





Basis
      of Presentation





The
      accompanying unaudited financial statements have been prepared in accordance
      with the instructions to Form 10-QSB and do not include all of the information
      and disclosures required by generally accepted accounting principles for
      complete financial statements. All adjustments which are, in the opinion of
      management, necessary for a fair presentation of the results of operations
      for
      the interim periods have been made and are of a recurring nature unless
      otherwise disclosed herein. The results of operations for such interim periods
      are not necessarily indicative of operations for a full year.





Principles
      of consolidation





The
      accompanying consolidated financial statements include the accounts of PRMA
      and
      its wholly owned subsidiary. All intercompany accounts and transactions have
      been eliminated in consolidation.





Use
      of
      Estimates





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





Cash
      and cash equivalents





The
      Company considers all highly liquid investments with an original maturity of
      nine months or less as cash equivalents.




9




**PEER
      REVIEW MEDIATION AND ARBITRATION, INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(Unaudited)**





**NOTE
      1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Continued):**





Income
      tax





The
      Company accounts for income taxes under Statement of Financial Accounting
      Standards No. 109 (“SFAS 109”). Under SFAS 109 deferred taxes are provided on a
      liability method whereby deferred tax assets are recognized for deductible
      temporary differences and operating loss carryforwards and deferred tax
      liabilities are recognized for taxable temporary differences. Temporary
      differences are the differences between the reported amounts of assets and
      liabilities and their tax bases. Deferred tax assets are reduced by a valuation
      allowance when, in the opinion of management, it is more likely than not that
      some portion or all of the deferred tax assets will not be realized. Deferred
      tax assets and liabilities are adjusted for the effects of changes in tax laws
      and rates on the date of enactment.





Net
      income (loss) per share





The
      net
      income (loss) per share is computed by dividing the net income (loss) by the
      weighted average number of shares of common outstanding. Warrants, stock
      options, and common stock issuable upon the conversion of the Company's
      preferred stock (if any), are not included in the computation if the effect
      would be anti-dilutive and would increase the earnings or decrease loss per
      share.





Property
      and equipment





Property
      and equipment are recorded at cost and depreciated under the straight line
      method over each item's estimated useful life.





Revenue
      recognition





Revenue
      is recognized on an accrual basis after services have been performed under
      contract terms, the service price to the client is fixed or determinable, and
      collectibility is reasonably assured. The Company's revenues to date have been
      earned primarily from consulting fees for arranging medical expert insurance
      case review.





Financial
      Instruments





The
      carrying value of the Company’s financial instruments, including cash and cash
      equivalents, accounts receivable, accounts payable, and due to related parties,
      as reported in the accompanying balance sheets, approximates fair value.




10




**PEER
      REVIEW MEDIATION AND ARBITRATION, INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(Unaudited)**





**NOTE
      1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Continued):**





Long-Lived
      Assets





In
      accordance with Statement of Financial Accounting Standard 144 “Accounting for
      the Impairment or Disposal of Long-Lived Assets”, the Company regularly reviews
      the carrying value of intangible and other long-lived assets for the existence
      of facts or circumstances, both internally and externally, that may suggest
      impairment. If impairment testing indicates a lack of recoverability, an
      impairment loss is recognized by the Company if the carrying amount of a
      long-lived asset exceeds its fair value.





Products
      and services, geographic areas and major customers





The
      Company derives revenue from fees paid by users and subscribers for access
      to
      and


insurance
      cases, although it does not separate these activities into operating segments.





Marketable
      Securities





The
      Company's marketable securities are classified as available-for-sale, are
      presented in the balance sheets at fair market value, and consist entirely
      of
      equity securities. Gains and losses are determined using the specific
      identification method.





Comprehensive
      income (loss)





The
      Company accounts for comprehensive income (loss) under Statement of Financial
      Accounting Standards No. 130, “Reporting Comprehensive Income” (“SFAS 130”).
      SFAS 130 establishes standards for reporting and display of comprehensive income
      and its components. Unrealized gains (losses) from marketable securities are
      reported as other comprehensive income (loss) in the consolidated statements
      of
      income and comprehensive income and as accumulated other comprehensive income
      (loss) in stockholders’ equity.





Stock
      based compensation





The
      Company accounts for employee and non-employee stock awards under SFAS 123(r),
      whereby equity instruments issued to employees for services are recorded based
      on the fair value of the instrument issued and those issued to non-employees
      are
      recorded based on the fair value of the consideration received or the fair
      value
      of the equity instrument, whichever is more reliably measurable.




11




**Item 2.
      Management’s Discussion and Analysis of Operations.**





***Forward
      Looking and Cautionary Statements***





*This
      Form 10QSB contains certain forward-looking statements. Statements regarding
      our
      financial position, business strategy and other plans and objectives for future
      operations, and assumptions and predictions about future product demand, supply,
      manufacturing, costs, marketing and pricing factors are all forward-looking
      statements. These statements are generally accompanied by words such as
“intend,” “anticipate,” “believe,” “estimate,” “potential(ly),” “continue,”
“forecast,” “predict,” “plan,” “may,” “will,” “could,” “would,” “should,”
“expect” or the negative of such terms or other comparable terminology. We
      believe that the assumptions and expectations reflected in such forward-looking
      statements are reasonable, based on information available to us on the date
      hereof, but we cannot assure you that these assumptions and expectations will
      prove to have been correct or that we will take any action that we may presently
      be planning. However, these forward-looking statements are inherently subject
      to
      known and unknown risks and uncertainties. Actual results or experience may
      differ materially from those expected or anticipated in the forward-looking
      statements. Factors that could cause or contribute to such differences include,
      but are not limited to, regulatory policies, competition from other similar
      businesses, and market and general policies, competition from other similar
      businesses, and market and general economic factors. This discussion should
      be
      read in conjunction with the condensed consolidated financial statements and
      notes thereto included in this prospectus.*




*If
      one or more of these or other risks or uncertainties materialize, or if our
      underlying assumptions prove to be incorrect, actual results may vary materially
      from what we project. Any forward-looking statement you read in this prospectus
      reflects our current views with respect to future events and is subject to
      these
      and other risks, uncertainties and assumptions relating to our operations,
      results of operations, growth strategy, and liquidity. All subsequent
      forward-looking statements attributable to us or individuals acting on our
      behalf are expressly qualified in their entirety by this paragraph. You should
      specifically consider the factors identified in this prospectus, which would
      cause actual results to differ before making an investment decision. We are
      under no duty to update any of these forward-looking statements after the date
      of this prospectus or to conform these statements to actual
      results.*





***Overview
      and Corporate History***





Peer
      Review Mediation and Arbitration, Inc., (“Peer Review“, “PRMA”, “We”, “Our” or
      the “Company”) was organized under the laws of the State of Florida on April 16,
      2001. We have been conducting business operations ever since, primarily focused
      on the creation and continual development of our proprietary Private Network
      Application (“PNA”) which allows direct access to our Peer Review Data Archival
      resource via our www.peerreviewboard.com web
      site.





On
      February 11, 2005, Peer Review acquired all of the outstanding common shares
      of
      Independent Review, Inc. (“IRI”), Texas corporation, in exchange for 75,000
      unregistered shares of our Common Stock. IRI is engaged in providing medical
      case reviews to the Texas Insurance Commission, pursuant to a license from
      the
      State of Texas.




**Business
      Plan**




Peer
      Review Mediation And Arbitration, Inc., offers independent advisory and support
      services to insurance, healthcare companies, attorneys and consumers. Clients
      may assemble a panel of experts for medical case management, quality review,
      and
      legal case evaluation. Over the past 6 years our medical and computer experts
      have brought together software technology in order to create our proprietary
      technology platform. Our service gives subscribers the ability to efficiently
      gain relevant input and information regarding specific medical cases, obtain
      detailed analysis and reports, and gather corroborating evidence in support
      of
      many matters relating to dispute resolution, personal injury and medical
      malpractice.





12




**Results
      of Operations**




**For
      the three months ended September 30, 2007.** **





***Revenue.***


Revenue
        was $19,200 for the three months ended September 30, 2007, as compared to
        revenue of $18,625 for the comparable period of 2006. The
        fees
        from our division RI handling the review of medical denied insurance cases
        under
        the guidance of the Texas Department of Insurance stayed remained
        essentially the same from the same
        quarter a year earlier.





***Cost
      of revenue.***





Cost
      of
      revenue was $6,489 for the three months ended September 30, 2007, as
      compared to Cost of revenue of $12,855 for the comparable period of 2006. Cost
      of Revenue decreased 50% this last quarter compared to the same quarter last
      year.




***Total
      Cost and Expenses***




For
      the
      three month period ended September 30, 2007, the Company incurred total costs
      and expenses of $(332,798), compared to (276,038) for the same period last
      year.
      Even though our Cost of Revenue decreased for this quarter compared to the
      same
      quarter in 2006, our Selling, General & Administrative expenses
      increased.




***Selling,
      General and Administration***




For
      the
      three month period ended September 30, 2007, the Company incurred selling,
      general and administration expenses of $342,036, compared to $278,980 for the
      same periods last year, or 23% increase. The Selling, General and Administrative
      Expenses was broken up between Physician Recruitment, Administrative Expense,
      Operational Expense, Maintenance, Rent, Officers & Directors Compensation,
      Consulting fees, telephone, legal & professional fees,
      utilities/maintenance, office supplies, licenses/permits, advertising ,and
      miscellaneous fees. The Company has undertaken a review of corporate overhead
      and implemented measures to reduce corporate overhead to a level more
      sustainable in relation to current revenue volume and management’s
      expectations.





***Loss
      from operations*** .





Loss
      from
      operations was $332,798 for the three months ended September 30, 2007,
      compared to $276,038 for the same period last year. We experienced an increase
      loss of 20% for the quarter-to-quarter comparison, primarily from staff
      increases.





***Net
      loss*** .





Net
      loss
      for the three months ended September 30, 2007 was $299,286 or $0.04
      per share, compared to $276,734 or $0.04 per share for the same period last
      year.  The
      net
      loss for the quarter-to-quarter comparison stayed relatively the
      same.





**For
      the nine months ended September 30, 2007.** **


***Revenue.*** Revenue
        was $99,356 for the nine months ended September 30, 2007, compared to $41,695
        for the same period last year, an
        increase in fees from the our division IRI handling the review of medical
        denied insurance cases under the guidance of the Texas Department of
        Insurance.





13




***Cost
      of revenue.***





Cost
      of
      revenue was $58,594 for the nine months ended September 30, 2007, as
      compared to Cost of revenue of $24,477 for the comparable period of 2006, an
      increase of 140%.




***Selling,
      General and Administration***




For
      the
      nine month period ended September 30, 2007, the Company incurred selling,
      general and administration expenses of $1,076,535 showed a decrease of $136,277
      or 11% from the SG&A of $1,212,812 for the same period last year. The
      Selling, General and Administrative Expenses was broken up between Physician
      Recruitment, Administrative Expense, Operational Expense, Maintenance, Rent,
      Officers & Directors Compensation, Consulting fees, telephone, legal &
professional fees, utilities/maintenance, office supplies, licenses/permits,
      advertising ,and miscellaneous fees.




***Total
      Cost and Expenses***




For
      the
      nine month period ended September 30, 2007, the Company incurred total costs
      and
      expenses of $(1,045,490), a decrease of $67,402 or 6% from the total cost and
      expenses of ($1,112,892) for the same period last year. The loss from operations
      was identical to the Total Cost and Expenses.




***Net
      loss*** .





Net
      loss
      for the nine months ended September 30, 2007 was $1,007,522 or $0.12
      per share, compared to $1,114,979 or $0.14 per share for the same period last
      year, a savings of $107,457 or 10%. The decrease in net loss is primarily
      attributable to a decrease of personnel.




**Depreciation
      and Amortization**




Depreciation
      for the three and nine month periods ended September 30, 2007 was $3,373 and
      $9,717.




**Interest**




At
      December 31, 2006, and September 30, 2007 the Company had a note payable to
      a
      bank of $22,118 and $19,868. The note bears interest at 8% per annum, is secured
      by various Company assets, and requires monthly principal and interest payments
      of $750 with a balloon payment of approximately $21,000 due in November 2007
      to
      retire the note. The note is also due on demand at the lender's discretion.
      Interest expense for the years ended December 31, 2006, and for the nine months
      ended September 30, 2007 amounted to $2,452 and $1,765 respectively. Accrued
      interest related to the note payable was $0, and $659 at December 31, 2006,
      and
      September 30, 2007.




The
      Company calculates interest in accordance with the respective note payable.
      For
      the three and nine month periods ended September 30, 2007, the Company incurred
      a charge of $497 and $1,765 respectively.





14




**Liquidity
      and Capital Resources**




At
      September 30, 2007, the Company had $183,301 in cash and marketable securities,
      as opposed to $405,031 in cash and marketable securities at December 31, 2006.
      In 2006, pursuant to a court ruling over a control dispute, the Company was
      relieved of debt obligations to two former officers in the amount of $114,958,
      which the Company recorded as paid in capital. In 2006 the Company acquired
      $136,468 in marketable securities from a related party in exchange for a
      recorded payable to the related party in the same amount.




As
      a
      result of certain measures implemented to reduce corporate overhead, management
      estimates that cash requirements through the end of the fiscal year ended
      December 31, 2007 will be between $1.0 million to $1.2 million. As of the date
      of this Report, the Company does not have available resources sufficient to
      cover the expected cash requirements through the end of the balance of the
      year.
      As a result, there is substantial doubt that we can continue as an ongoing
      business without obtaining additional financing. Management's plans for
      maintaining Company operations and continued existence include selling
      additional equity securities to pay operational expenses. There is no assurance
      that the Company will be able to generate sufficient cash from operations,
      or
      sell additional shares of Common Stock. The Company's inability to obtain
      additional cash could have a material adverse effect on our financial position,
      results of operations and the Company's ability to continue its existence.
      If
      our losses continue and we are unable to secure additional financing, we may
      ultimately be required to seek protection from creditors under applicable
      bankruptcy laws.




At
      September 30, 2007, the Company had total assets of 209,156 compared to total
      assets of $434,173 at December 31, 2006. The decrease is mainly due to general
      and administration expenses.




At
      September 30, 2007, the Company had total current liabilities of $2,426,680
      compared to total current liabilities of $1,945,329 at December 31, 2006. The
      liabilities are mainly due to accrued operational costs; (ii) loan notes from
      shareholders.




The
      financial conditions of the Company raise substantial doubt about the Company's
      ability to continue as a going concern. Management's plan for the Company's
      continued existence includes selling additional stock through private placements
      to pay overhead expenses. The future success of the Company is dependent upon
      its ability to achieve profitable operations, generate cash from operating
      activities and obtain additional financing. There is no assurance that the
      Company will be able to generate sufficient cash from operations, sell
      additional shares of Common Stock or borrow additional funds. The inability
      of
      the Company to obtain additional cash could have a material adverse effect
      on
      its financial position, results of operations and its ability to continue as
      a
      going concern.




**Off-Balance
      Sheet Arrangements**




The
      Company is not a party to any off-balance sheet arrangements.




RECENT
      ACCOUNTING PRONOUNCEMENTS





In
      July
      2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation
      (FIN) No. 48, "Accounting for Uncertainty in Income Taxes-an interpretation
      of
      FASB Statement No. 109." This interpretation provides guidance for recognizing
      and measuring uncertain tax positions, as defined in SFAS No. 109, "Accounting
      for Income Taxes." FIN No. 48 prescribes a threshold condition that a tax
      position must meet for any of the benefit of an uncertain tax position to be
      recognized in the financial statements. Guidance is also provided regarding
      de-recognition, classification, and disclosure of uncertain tax positions.
      FIN
      No. 48 is effective for fiscal years beginning after December 15, 2006. The
      Company does not expect that this interpretation will have a
      material


impact
      on
      its financial position, results of operations, or cash flows.





In
      September 2006, the FASB issued Statement of Financial Accounting Standards
      No.
      157, "Fair Value Measurements" ("FAS 157"). This Statement defines fair value
      as
      used in numerous accounting pronouncements, establishes a framework for
      measuring fair value in generally accepted accounting principles and expands
      disclosure related to the use of fair value measures in financial statements.
      The Statement is to be effective for the Company's financial statements issued
      in 2008; however, earlier application is encouraged. The Company is currently
      evaluating the timing of adoption and the impact that adoption might have on
      its
      financial position or results of operations.




15





In
      December 2006, FASB Staff Position No. EITF 00-19-2, "Accounting for
      Registration Payment Arrangements," was issued. The FSP specifies that the
      contingent obligation to make future payments or otherwise transfer
      consideration under a registration payment arrangement, whether issued as a
      separate agreement or included as a provision of a financial instrument or
      other
      agreement, should be separately recognized and measured in accordance with
      SFAS
      No. 5, "Accounting for Contingencies." The Company believes that its
      current


accounting
      is consistent with the FSP.





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", under which entities will now be permitted to measure many
      financial instruments and certain other assets and liabilities at fair value
      on
      an instrument-by-instrument basis. This Statement is effective as of the
      beginning of an entity's first fiscal year that begins after November 15, 2007.
      Early adoption is permitted as of the beginning of a fiscal year that begins
      on
      or before November 15, 2007, provided the entity also elects to apply the
      provisions of SFAS 157. The Company is currently assessing the impact, if any,
      the adoption of SFAS 159 will have on its financial statements.





Other
      accounting standards that have been issued or proposed by the FASB or other
      standards-setting bodies that do not require adoption until a future date are
      not expected to have a material impact on the consolidated financial
      statements upon adoption .




**ITEM
      3.** **Controls
      and Procedures**




As
      of the
      end of the period covered by this Report, an evaluation was carried out under
      the supervision and with the participation of the Company’s management,
      including the Company’s Chief Executive Officer, of the effectiveness of the
      Company’s disclosure controls and procedures, as defined in Rule 13a-15(e)
      promulgated under the Securities and Exchange Act of 1934 (the “Exchange Act”).
      Based on their evaluation, the Company’s Chief Executive Officer have concluded
      that the Company’s disclosure controls and procedures are effective to ensure
      that information required to be disclosed by the Company in reports that it
      files or submits under the Exchange Act is accumulated and communicated to
      the
      Company's management, including the Company's Chief Executive Officer, to allow
      timely decisions on required disclosure and is recorded, processed, summarized
      and reported within the time periods specified in Securities and Exchange
      Commission rules and forms. There have been no changes in the Company’s internal
      controls over financial reporting during the Company’s most recently completed
      fiscal quarter that have materially affected, or are reasonably likely to
      materially affect, our internal controls over financial reporting.




**PART
      II   OTHER INFORMATION**




**Item
      1.** **Legal
      Proceedings**




In
      October 2005 the Company commenced legal action in the District Court of the
      62nd Judicial District, Hopkins County, Texas against a former officer of the
      Company's subsidiary Independent Review, Inc., alleging, among other things,
      that the former officer had breached his fiduciary duties to the Company and
      was
      attempting to operate IRI without proper authority. A control dispute ensued
      between the parties, until in September 2006 the District Court of the 345th
      Judicial District, Travis County, Texas, where the case had been moved, ruled
      that PRMA owned 100% of IRI. A law firm which represented the Company
      temporarily during the proceedings, has asserted that the Company owes the
      firm
      approximately $31,500 in legal fees, which the Company disputes as unearned.




As
      of the
      filling of the present Quarterly report on form 10QSB and during the
      quarter-ended September 30 2007, there was no other pending or threatened
      litigation, claims, or assessments against the Company.




16




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




During
      the nine months ended September 30, 2007, the Company issued 55,625 shares
      of
      Common Stock respectively to 27 accredited investors at $4.95 per Common Share,
      for an aggregate of $275,288. The shares of the Company's common stock, with
      an
      included Common Stock Purchase Option, were issued during the fiscal quarter
      and
      nine months pursuant to the exemption from registration provided by Section
      4(2)
      and Section 4(6) of the Act, and in connection with Regulation D Rule 506 of
      the
      Act, under a Private Placement Agreement. During the nine months ended September
      30, 2007 the Company issued 55,625 common stock purchase options for $2,783
      in
      cash, allowing the holder to purchase one share of common stock per option,
      exercisable within 90 days of an effective registration statement at the initial
      public offering price. No options were exercised, expired while 3,300 were
      cancelled, leaving a September 30, 2007 balance of 168,915 non-employee stock
      options outstanding.





*Lock-Up
      Agreements* As
      a
      condition to closing under the placement agent agreement, the Company’s
      shareholders, entered into agreements whereby each agreed not to sell any shares
      owned directly or indirectly by any of them for a period of 18 months after
      the
      Common Stock has been quoted on a public stock exchange.




**Item
                3.****Defaults
                Upon Senior Securities**None.**Item
                4.****Submission
                of Matters to a Vote of Security Holders**None.




**Item
                5.****Other
                Information**None.





17




**Item
        6.**  **Exhibits**




See
      the
      attached exhibit index.




Exhibit
                No.
            
            Description
                of ExhibitsExhibit
                31.1
            
            Certification
                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
                Act of2002.Exhibit
                32.1
            
            Certification
                of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350,
                as
                adoptedpursuant
                to Section 906 of the Sarbanes-Oxley Act of 2002.





18




**SIGNATURES**




In
      accordance with the requirements of the Exchange Act, the Registrant has caused
      this report to be signed on its behalf by the undersigned thereunto duly
      authorized.


**PEER
                REVIEW MEDIATION & ARBITRATION**By:
            /s/*WILLIS
              HALE*Name:Willis
                HaleTitle:Chief
                executive Officer




19