|                                                  |                                   |
|-------------------------------------------------------|----------------------------------------|
| Delaware                                              | 98-0513637                             |
| (State      or other jurisdiction of incorporation or | (IRS      Employer Identification No.) |
| organization)                                         |                              |

|                                                                                                                                |                                                                                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Large      accelerated filer                                    | Accelerated      filer                                    |
| Non-accelerated      filer                       | Smaller      reporting company    X                                                                                                                         |

----

Part I - FinancialInformation

Balance Sheetsat June 30, 2008

Statementof Operations for the three and six months ended June 30, 2008 and2007

Statement ofCash Flows for the six months ended June 30, 2008

Notes toFinancial Statements

Part II - Other Information

Signatures

----

Part I - FinancialInformation

Balance Sheet as of June 30, 2008 and December 31,2007

Statements of Operations for the Three Months and Six MonthsEnded 

Statements of Cash Flows for the Six Months Ended

|   | June      30, 2008, and 2007, and Cumulative from  Inception |
|--------|--------------------------------------------------------------|

Notes to Financial Statements June 30, 2008, and 2007

----

(A DEVELOPMENT STAGE COMPANY)

| ASSETS                                                                               |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
|--------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
|                                                                                 |   |                                                                                                           | June      30,                                                                                                             |                                                                                                                       | December      31,                                                                                                                                                                                                              |
|                                                                                 |   |                                                                                                           | 2008                                                                                                                      |                                                                                                                       | 2007                                                                                                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Current      Assets:                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Cash      in bank                                                                    |   | $                                                                                                              | 57,230                                                                                                                    |                                                                                                                       |  $                                        2,772 |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
|    Total      current assets                                          |   |                                                                                                           |            57,230                                                  |                                                                                                                       |                2,772                                                                                                                                |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Property      and Equipment:                                                         |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Computer      equipment                                                              |   |                                                                                                           |            33,171                                                  |                                                                                                                       |              32,835                                                                                                                                           |
| Computer      software                                                               |   |                                                                                                           |              6,116                                       |                                                                                                                       |                5,300                                                                                                                                |
| Fleet      vehicles                                                                  |   |                                                                                                           |            47,146                                                  |                                                                                                                       |              46,124                                                                                                                                           |
| Furniture      and fixtures                                                          |   |                                                                                                           |            43,698                                                  |                                                                                                                       |              43,698                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Total      property and equipment                                                    |   |                                                                                                           |          130,131                                                             |                                                                                                                       |            127,957                                                                                                                                                      |
| Less      - Accumulated depreciation                                                 |   |                                                                                                           |          (60,423)                                                            |                                                                                                                       |            (48,991)                                                                                                                                                     |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Net      property and equipment                                                      |   |                                                                                                           |            69,708                                                  |                                                                                                                       |              78,966                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Other      Assets:                                                                   |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Software      development costs                                                      |   |                                                                                                           |       1,627,335                                                                             |                                                                                                                       |         1,627,335                                                                                                                                                                      |
| Lease      security deposit                                                          |   |                                                                                                           |                 750                       |                                                                                                                       |                   750                                                                                                                |
| Patent      pending                                                                  |   |                                                                                                           |                     - |                                                                                                                       |              15,560                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
|    Total      other assets                                            |   |                                                                                                           |       1,628,085                                                                             |                                                                                                                       |         1,643,645                                                                                                                                                                      |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Total      Assets                                                                    |   | $                                                                                                              | 1,755,023                                                                                                                 |                                                                                                                       |  $                                 1,725,383                                       |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                            |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Current      Liabilities:                                                            |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Accounts      payable and accrued expenses                                           |   | $                                                                                                              | 104,791                                                                                                                   |                                                                                                                       |  $                                       58,015      |
| Note      payable - Related parties                                                  |   |                                                                                                           |            24,409                                                  |                                                                                                                       |              33,000                                                                                                                                           |
| Convertible      notes                                                               |   |                                                                                                           |          492,088                                                             |                                                                                                                       |                      -                                                                                                |
| Notes      payable, current portion                                                  |   |                                                                                                           |              7,001                                       |                                                                                                                       |                6,864                                                                                                                                |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
|    Total      current liabilities                                     |   |                                                                                                           |          628,289                                                             |                                                                                                                       |              97,879                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Long-term      Liabilities:                                                          |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Notes      payable, less current portion                                             |   |                                                                                                           |            29,168                                                  |                                                                                                                       |              32,824                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Total      long-term liabilities                                                     |   |                                                                                                           |            29,168                                                  |                                                                                                                       |              32,824                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Total      liabilities                                                               |   |                                                                                                           |          657,457                                                             |                                                                                                                       |            130,703                                                                                                                                                      |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Commitments      and Contingencies                                                   |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Stockholders'      Equity:                                                           |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Series      A Preferred stock, par value $0.0001 per share, 1,000,000                |   |                                                                                                           |                                                                                                                      |                                                                                                                       |
| shares      authorized; 100,000 shares issued and outstanding for 2008 and      2007 |   |                   10 |                                                                                                                      |                     10 |
| Common      stock, par value $0.0001 per share, 500,000,000 shares                   |   |                                                                                                           |                                                                                                                      |                                                                                                                       |
| authorized;      43,361,255 shares issued and outstanding for 2008 and 2007          |   |              4,336                            |                                                                                                                      |                4,336                            |
| Additional      paid-in capital                                                      |   |                                                                                                           |       2,604,871                                                                             |                                                                                                                       |         2,602,807                                                                                                                                                                      |
| (Deficit)      accumulated during the development stage                              |   |                                                                                                           |     (1,511,651)                                                                                       |                                                                                                                       |       (1,012,473)                                                                                                                                                                                |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
|    Total      stockholders' equity                                    |   |                                                                                                           |       1,097,566                                                                             |                                                                                                                       |         1,594,680                                                                                                                                                                      |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |
| Total      Liabilities and Stockholders' Equity                                      |   | $                                                                                                              | 1,755,023                                                                                                                 |                                                                                                                       |  $                                  1,725,383                                 |
|                                                                                 |   |                                                                                                           |                                                                                                                      |                                                                                                                       |                                                                                                                                                                                                                           |

----

STATEMENTS OF OPERATIONS (NOTE 2)

|                                             |   | Three      Months Ended |       |   | Six      Months Ended |   |       | Cumulative |   |
|--------------------------------------------------|--------|-------------------------|------------|--------|-----------------------|--------|------------|------------|--------|
|                                             |   | June      30,           |       |   | June      30,         |   |       | From       |   |
|                                             |   | 2008                    |       |   | 2007                  |   |       | 2008       |   |   | 2007 |   |   | Inception |   |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |
| Revenues                                         |   | $                       | -          |   |                  | $      | -          |       |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                        |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative-                 |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and wages                          |   |                    | 194,036    |   |                  |   | 126,091    |       |   |   | 321,889 |   |   |   | 230,591 |   |   |   | 1,006,702 |   |
| Insurance                                        |   |                    | 7,397      |   |                  |   | 7,123      |       |   |   | 19,087 |   |   |   | 17,173 |   |   |   | 96,458 |   |
| Other      general and administrative            |   |                    | 26,364     |   |                  |   | 15,588     |       |   |   | 44,824 |   |   |   | 29,528 |   |   |   | 87,020 |   |
| Professional      fees                           |   |                    | 14,096     |   |                  |   | 2,560      |       |   |   | 33,998 |   |   |   | 2,560 |   |   |   | 80,460 |   |
| Office      rent                                 |   |                    | 8,400      |   |                  |   | 5,850      |       |   |   | 14,520 |   |   |   | 12,900 |   |   |   | 71,738 |   |
| Depreciation                                     |   |                    | 5,116      |   |                  |   | 2,858      |       |   |   | 11,432 |   |   |   | 5,716 |   |   |   | 60,423 |   |
| Website      hosting                             |   |                    | 6,663      |   |                  |   | 7,115      |       |   |   | 20,351 |   |   |   | 9,961 |   |   |   | 52,253 |   |
| Travel      and entertainment                    |   |                    | 188        |   |                  |   | 2,701      |       |   |   | 6,507 |   |   |   | 4,439 |   |   |   | 29,502 |   |
| Utilities                                        |   |                    | 1,220      |   |                  |   | 1,617      |       |   |   | 2,972 |   |   |   | 2,845 |   |   |   | 18,972 |   |
| Discontinuation      of patent pending           |   |                    | 15,560     |   |                  |   | -          |       |   |   | 15,560 |   |   |   | - |   |   |   | 15,560 |   |
| Office      expenses                             |   |                    | 2,918      |   |                  |   | 2,919      |       |   |   | 6,648 |   |   |   | 4,942 |   |   |   | 14,895 |   |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      general and administrative expenses   |   |                    | 281,958    |   |                  |   | 174,422    |       |   |   | 497,788 |   |   |   | 320,655 |   |   |   | 1,533,983 |   |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      from Operations                      |   |                    | (281,958   | )      |                  |   | (174,422   | )          |   |   | (497,788 | ) |   |   | (320,655 | ) |   |   | (1,533,983 | ) |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expense):                     |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                             |   |                    | -          |   |                  |   | 126        |       |   |   | - |   |   |   | - |   |   |   | 16,427 |   |
| Other      income                                |   |                    | -          |   |                  |   | -          |       |   |   | - |   |   |   | - |   |   |   | 7,801 |   |
| Interest      expense                            |   |                    | 1,390      |   |                  |   | -          |       |   |   | (1,390 | ) |   |   | 250 |   |   |   | (1,896 | ) |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      other income (expense)                |   |                    | 1,390      |   |                  |   | 126        |       |   |   | (1,390 | ) |   |   | 250 |   |   |   | 22,332 |   |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for Income Taxes                  |   |                    | -          |   |                  |   | -          |       |   |   | - |   |   |   | - |   |   |   | - |   |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                  |   | $                       | (280,568   | )      |                  | $      | (174,296   | )          |   | $ | (499,178 | ) |   | $ | (320,405 | ) |   | $ | (1,511,651 | ) |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      Per Common Share:                    |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      per common share - Basic and Diluted |   | $                       | (0.01      | )      |                  | $      | (0.01      | )          |   | $ | (0.01 | ) |   | $ | (0.01 | ) |   |   |   |   |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Average Number of Common Shares    |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding      - Basic and Diluted             |   |                    | 45,375,000 |   |                  |   | 30,251,370 |       |   |   | 44,911,406 |   |   |   | 30,126,375 |   |   |   |   |   |
|                                             |   |                    |       |   |                  |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |

----

STATEMENTS OF CASH FLOWS (NOTE 2)

|                                                                                |   | Six      Months Ended |     |   | Cumulative |   |
|-------------------------------------------------------------------------------------|--------|-----------------------|----------|--------|------------|--------|
|                                                                                |   | June      30,         |     |   | From       |   |
|                                                                                |   | 2008                  |     |   | 2007       |   |   | Inception |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |
| Operating      Activities:                                                          |   |                  |     |   |       |   |   |   |   |
| Net      (loss)                                                                     |   | $                     | (499,178 | )      |       | $      | (320,405 | ) |   | $ | (1,575,076 | ) |
| Adjustments      to reconcile net (loss) to net cash                                |   |                  |     |   |       |   |   |   |   |   |   |   |
|   (used      in) operating activities:                                    |   |                  |     |   |       |   |   |   |   |   |   |   |
| Depreciation                                                                        |   |                  | 11,432   |   |       |   | 5,716 |   |   |   | 60,423 |   |
| Transfer      agent fees paid by issued shares                                      |   |                  | -        |   |       |   | - |   |   |   | 2,000 |   |
| Changes      in net liabilities-                                                    |   |                  |     |   |       |   |   |   |   |   |   |   |
| Lease      security deposit                                                         |   |                  | -        |   |       |   | - |   |   |   | 4,285 |   |
| Accounts      payable and accrued liabilities                                       |   |                  | 46,776   |   |       |   | 11,492 |   |   |   | 99,756 |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Net      Cash (Used in) Operating Activities                                        |   |                  | (440,970 | )      |       |   | (303,197 | ) |   |   | (1,408,612 | ) |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Investing      Activities:                                                          |   |                  |     |   |       |   |   |   |   |   |   |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Software      development costs                                                     |   |                  | -        |   |       |   | - |   |   |   | (660,679 | ) |
| Purchases      of property and equipment                                            |   |                  | (2,174   | )      |       |   | (10,791 | ) |   |   | (90,131 | ) |
| Acquisition      and costs of patent pending                                        |   |                  | -        |   |       |   | - |   |   |   | (15,560 | ) |
| Discontinuation      of patent pending                                              |   |                  | 15,560   |   |       |   | - |   |   |   | 15,560 |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Net      Cash (Used in) Investing Activities                                        |   |                  | 13,386   |   |       |   | (10,791 | ) |   |   | (750,810 | ) |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Financing      Activities:                                                          |   |                  |     |   |       |   |   |   |   |   |   |   |
| Issuance      of common stock for cash                                              |   |                  | 2,064    |   |       |   | 421,618 |   |   |   | 101,952 |   |
| Payments      on notes payable                                                      |   |                  | (3,519   | )      |       |   | - |   |   |   | 1,631,453 |   |
| Partner      contribution                                                           |   |                  |     |   |       |   | - |   |   |   | 33,000 |   |
| Deferred      offering costs                                                        |   |                  | -        |   |       |   | (23,250 | ) |   |   | (33,250 | ) |
| Payments      on loans from related parties - Directors and stockholders            |   |                  | (8,591   | )      |       |   | 20,000 |   |   |   | (8,591 | ) |
| Convertible      notes                                                              |   |                  | 492,088  |   |       |   | - |   |   |   | 492,088 |   |
| Loans      from related parties - Former Directors and stockholders                 |   |                  | -        |   |       |   | - |   |   |   | 39,800 |   |
| Payment      of loans from related parties - Former Directors and      stockholders |   |                  | -        |   |       |   | - |   |   |   | (39,800 | ) |
| Loan      from third-party entity related to consultant                             |   |                  | -        |   |       |   | - |   |   |   | 15,000 |   |
| Repayment      of loan from third-party entity related to consultant                |   |                  | -        |   |       |   | - |   |   |   | (15,000 | ) |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Net      Cash Provided by Financing Activities                                      |   |                  | 482,042  |   |       |   | 418,368 |   |   |   | 2,216,652 |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Net      Increase in Cash                                                           |   |                  | 54,458   |   |       |   | 104,380 |   |   |   | 57,230 |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Cash      - Beginning of Period                                                     |   |                  | 2,772    |   |       |   | 96,866 |   |   |   | - |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Cash      - End of Period                                                           |   | $                     | 57,230   |   |       | $      | 201,246 |   |   | $ | 57,230 |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |
| Supplemental      Disclosure of Cash Flow Information:                              |   |                  |     |   |       |   |   |   |   |   |   |   |
| Cash      paid during the period for:                                               |   |                  |     |   |       |   |   |   |   |   |   |   |
| Interest                                                                            |   | $                     | -        |   |       | $      | - |   |   |   |   |   |
| Income      taxes                                                                   |   | $                     | -        |   |       | $      | - |   |   |   |   |   |
|                                                                                |   |                  |     |   |       |   |   |   |   |   |   |   |

----

NOTES TO FINANCIAL STATEMENTS

----

----

----

----

----

|                                                            |   | Six      Months Ended |     |
|-----------------------------------------------------------------|--------|-----------------------|----------|
|                                                            |   | June      30,         |     |
|                                                            |   | 2008                  |     |   | 2007 |   |
|                                                            |   |                  |     |   |   |   |
| Current      Tax Provision:                                     |   |                  |     |   |   |   |
| Federal      and state-                                         |   |                  |     |   |   |   |
|   Taxable      income                                 |   | $                     | -        |   |   | $ | - |   |
|                                                            |   |                  |     |   |   |   |   |   |
|      Total      current tax provision  |   | $                     | -        |   |   | $ | - |   |
|                                                            |   |                  |     |   |   |   |   |   |
| Deferred      Tax Provision:                                    |   |                  |     |   |   |   |   |   |
| Federal      and state-                                         |   |                  |     |   |   |   |   |   |
|   Loss      carryforwards                             |   | $                     | 114,491  |   |   | $ | 73,693 |   |
|   Change      in valuation allowance                  |   |                  | (114,491 | ) |   |   | (73,693 | ) |
|                                                            |   |                  |     |   |   |   |   |   |
|      Total      deferred tax provision |   | $                     | -        |   |   | $ | - |   |
|                                                            |   |                  |     |   |   |   |   |   |

|                                |   |                                                                        | 2008    |   |
|-------------------------------------|--------|-----------------------------------------------------------------------------|---------|--------|
|                                |   |                                                                        |    |   |
|   Loss      carryforwards |   | $                                                                           | 347,680 |   |
| Less      - Valuation allowance     |   |            (347,680) |    |
|                                |   |                                                                        |    |   |
| Total      net deferred tax assets  | $      | -                                                                           |    |
|                                |   |                                                                        |    |   |

----

----

|   | ● | Disclosure      of the objectives for using derivative instruments be disclosed in terms      of underlying risk and accountingdesignation; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Disclosure      of the fair values of derivative instruments and their gains and losses in      a tabular format; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------|

|   | ● | Disclosure      of information about credit-risk-related contingent features;      and |
|--------|---------|----------------------------------------------------------------------------------------|

|   | ● | Cross-reference      from the derivative footnote to other footnotes in which      derivative-related information isdisclosed. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|

| a)   | FASB      Statements of Financial Accounting Standards and Interpretations, FASB      Statement 133 Implementation Issues, FASB Staff Positions, and American      Institute of Certified Public Accountants (AICPA) Accounting Research      Bulletins and Accounting Principles Board Opinions that are not superseded      by actions of the FASB. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | FASB      Technical Bulletins and, if cleared by the FASB, AICPA Industry Audit and      Accounting Guides and Statements ofPosition. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| c)   | AICPA      Accounting Standards Executive Committee Practice Bulletins that have been      cleared by the FASB, consensus positions of the FASB Emerging Issues Task      Force (EITF), and the Topics discussed in Appendix D of EITF Abstracts      (EITF D-Topics). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Implementation      guides (Q&As) published by the FASB staff, AICPA Accounting      Interpretations, AICPA Industry Audit and Accounting Guides and Statements      of Position not cleared by the FASB, and practices that are widely      recognized and prevalent either generally or in the    industry. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| •       | COPsync,      Inc. is poised and in a unique position to become one of the fastest      growing Software Technology Providers to Law Enforcement and Emergency      Service professionals. COPsync, Inc. is the only Law Enforcement software      provider to have full information sharing networking available to all      subscribing agencies. The Law Enforcement officer of the future will be      armed, in REAL TIME, with critical information necessary to protect the      public and themselves. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| •       | COPsync,      Inc. currently has over 3600+ Police Officers committed to utilize      COPsyncTM Software Technology on a daily basis in the performance of their      duties. Beta testing is complete and COPsyncTM is available for general      release, as a result the number of committed officers will rapidly      grow.                                                                                                                                                                     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  • |  COPsync,      Inc. continues to garner support from Law Enforcement agencies; during the      past quarter 8 additional agencies expressed interest and gave their      commitment to utilize COPsyncTM in their respective agencies.                                                                                                                                                                                                                                                               |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  • |  COPsync,      Inc. has successfully assisted more than 20 Law Enforcement agencies in      drafting and submitting applications for various funding options during      the past quarter, and will continue to assist agencies in the future with      their capital needs.                                                                                                                                                                                                                              |

| • | COPsync,      Inc. must obtain funding to establish a favorable balance sheet to      implement the existing contracts with 79 Law Enforcement agencies      currently subscribed to COPsyncTM.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| • | COPsyncTM      provides an innovative and open architecture software platform. Most      software vendors in this space continue to maintain and support closed      architecture systems with archaic methodologies related to providing      information to the officer on the street and interagency information      sharing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| • | Law      Enforcement agencies and Associations at the Federal, State and Local      levels are pushing information sharing initiatives. Global Justice XML      standards were developed and have been published by the US Federal      Government since 1997. To date, interoperability between Law Enforcement      agencies in the United States fails to exist. This failure is directly      related to software vendors that have remained focused on their existing      methods of doing business including proprietary development, which does      not focus on global information sharing. COPsync, Inc. will fulfill the      interoperability role through the deployment of COPsyncTM. COPsyncTM is an      overlay product to existing technologies that can be deployed without      jeopardizing the existing vendor relationships. COPsync, Inc.'s method of      data integration will bring existing vendors into compliance with federal      mandates established after 9/11. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| • | COPsync,      Inc. has successfully been approved to utilize government provided funding      and Homeland Security funds for the integration and implementation of its      technology in Law Enforcement Agencies. This is a true milestone, being      that NO other software vendors in this space have qualified for      Information Sharing Grants. These grants currently maintain billions of      dollars to be utilized for informational sharing  purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| • | COPsync,      Inc. is poised to rapidly expand in the trillion Dollar Law Enforcement,      Emergency Service and Fire District profession. This growth can be quickly      realized leveraging Homeland Security grant initiatives. COPsync, Inc.      will see this growth through the culmination of technology and strategic      partnerships with marquee corporations such as General Dynamics, Dell,      Intergraph, NavTec, CDWG, Panasonic, Lockheed Martin, Remington Arms and      Tyler Technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| • | COPsync,      Inc. provides the first real-time worldwide information sharing network      for Law Enforcement officers to identify criminals, communicate with other      officers on a unified system, and access life saving and/or mission      critical information at the point of incident via Laptop Computer or      Handheld devices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|   |          |                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | −  | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect the transactions and dispositions of the assets of the      company;                                                                                                                                                                                                                                  |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | −  | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with accounting      principles generally accepted in the United States of America and that      receipts and expenditures of the company are being made only in accordance      with authorizations of management and directors of the      company; and |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | −  | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of the company’s assets that      could have a material effect on the financial  statements.                                                                                                                                                                            |

PART II - OTHER INFORMATION

|                         |                                                                                                    |                 |
|------------------------------|---------------------------------------------------------------------------------------------------------|----------------------|
|  Exhibit      No.  |  Description                                                                                  |  Location  |
| 31.1                         | Certification of Chief Executive Officer pursuant      to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed      herewith  |
| 31.2                         | Certification of Chief Financial Officer pursuant      to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed      herewith  |
| 32.1                         | Certification of Chief Executive Officer pursuant      to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed      herewith  |
| 32.2                         | Certification of Chief Financial Officer pursuant      to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed      herewith  |

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 SIGNATURES

| Date:      August 19, 2008 | By      /s/      Russell      Chaney                                                 |   |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                       |       Russell      Chaney                                                                                                                                                                                                                                                                              |   |
|                       |       Chief      Executive Officer                                                                                                                                                                                                                                                                     |   |

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