UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      DC 20549





FORM
      10-QSB


(Mark
      One)





**x**
            QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT
                OF
                1934





For
      the
      quarterly period ended June 30, 2007





OR





**£**
            TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934





For
      the
      transition period from ___________ to ______________.





Commission
      File Number 333-140204





IntelliHome,
      Inc .


(Exact
      name of small business issuer as specified in its charter)





Texas
              (State
                or other jurisdiction of
              incorporation
                or organization)
            
            76-0672176
              (IRS
                Employer
              Identification
                No.)





5150
      Franz Road, Suite 100, Katy, Texas 77493


(Address
      of principal executive offices)(Zip Code)





(281)
      391-4199


(Registrant's
      telephone number, including area code)




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





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





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).  Yes   ̈  No  x





As
      of
      August 10, 2007, we had 21,300,000 shares of $0.001 par value Common Stock
      outstanding.





Transitional
      Small Business Disclosure Format (check one)   Yes   ̈  No  x










IntelliHome,
      Inc .





FORM
      10-QSB





INDEX





Page
                  No.PART
                  I. FINANCIAL INFORMATIONItem
                  1. Financial Statements (Unaudited)Balance
                  Sheet as of June 30, 2007
              3Statements
                  of Operations for the three months and six months ended June 30,
                  2007 and
                  June 30, 2006
              4Statements
                  of Cash Flows for the six months ended June 30, 2007 and June 30,
                  2006
              5Notes
                  to Financial Statements
              6Item
                  2. Management's Discussion and Analysis of Financial Condition
                  and Results
                  of Operations
              7Item
                  3. Controls and Procedures
              12PART
                  II OTHER INFORMATIONItem
                  6. Exhibits
              13




2




PART
      I -
      FINANCIAL INFORMATION





ITEM
      1.  Financial
      Statements





IntelliHome,
      Inc.


BALANCE
      SHEET


June
      30,
      2007


(Unaudited)





ASSETSCURRENT
                ASSETSCash
                and cash equivalents
            
            $
            5,335Accounts
                receivable, net of allowance for doubtful accounts of $519
            
            
            69,593Inventories
            
            
            10,645Prepaid
                expenses
            
            
            2,125Total
                current assets
            
            
            87,698PROPERTY
                AND EQUIPMENT
            
            
            5,959OTHER
                ASSETS, Purchased accounts, net
            
            
            1,800Total
                assets
            
            $
            95,457LIABILITIES
                AND SHAREHOLDERS’ DEFICITCURRENT
                LIABILITIESAccounts
                payable
            
            $
            63,255Credit
                cards payable
            
            
            95,713Payroll
                and other accrued liabilities
            
            
            109,109Sales
                tax payable
            
            
            7,342Notes
                payable in default
            
            
            20,159Unearned
                revenue on contracts
            
            
            9,091Total
                current liabilities
            
            
            304,669NON-CURRENT
                LIABILITIESUnearned
                revenue on contracts
            
            
            1,293Total
                liabilities
            
            
            305,962COMMITMENTS
                AND CONTINGENCIESSHAREHOLDERS’
                DEFICITPreferred
                stock, $0.001 par value; 20,000,000 shares authorized:Series
                A convertible preferred stock, 6,000,000 shares authorized,
                issuedand
                outstanding, $300,000 liquidation value, no redemption
                value
            
            
            6,000Series
                B convertible preferred stock, 2,700,000 shares authorized,
                issuedand
                outstanding, $270,000 liquidation value, no redemption
                value
            
            
            2,700Common
                stock, $0.001 par value; 100,000,000 shares authorized;21,300,000
                shares issued and outstanding
            
            
            21,300Additional
                paid-in capital
            
            
            489,450Retained
                deficit
            
            
            (
                729,955
            )Total
                shareholders’ deficit
            
            
            (
                210,505
            )Total
                liabilities and shareholders’ deficit
            
            $
            95,457





The
      accompanying notes are an integral part of these  financial
      statements





3




IntelliHome,
      Inc.


STATEMENTS
      OF OPERATIONS


(Unaudited)




Six
                Months Ended
              June
                30,
            
            Three
                Months Ended
              June
                30,2007
            
            2006
            
            2007
            
            2006REVENUES:Installation
                and monitoring revenues
            
            $
            503,598
            
            $
            403,852
            
            $
            261,803
            
            $
            210,630EXPENSES:Cost
                of monitoring and installation
            
            
            224,596
            
            
            161,683
            
            
            111,375
            
            
            85,207Compensation
                and benefits
            
            
            231,765
            
            
            205,308
            
            
            110,415
            
            
            100,414Truck
                expenses
            
            
            37,381
            
            
            23,082
            
            
            20,486
            
            
            11,364Truck
                expenses - related party
            
            
            3,750
            
            
            3,750
            
            
            1,875
            
            
            2,500General
                and administrative
            
            
            119,880
            
            
            59,764
            
            
            62,821
            
            
            28,659TOTAL
                EXPENSES
            
            
            617,372
            
            
            453,587
            
            
            306,972
            
            
            228,144LOSS
                FROM OPERATIONS
            
            
            (113,774
            )
            
            (49,735
            )
            
            (45,169
            )
            
            (17,514
            )OTHER
                INCOME / EXPENSEInterest
                income
            
            
            377
            
            
            -
            
            
            116
            
            
            -Other
                income
            
            
            5,303
            
            
            -
            
            
            2,046
            
            
            -Interest
                expense and finance charges
            
            
            (11,573
            )
            
            (13,433
            )
            
            (5,677
            )
            
            (6,738
            )TOTAL
                OTHER EXPENSES
            
            
            (5,893
            )
            
            (13,433
            )
            
            (3,515
            )
            
            (6,738
            )PROVISION
                FOR INCOME TAXES
            
            
            -
            
            
            -
            
            
            -
            
            
            -NET
                LOSS
            
            
            (119,667
            )
            
            (63,168
            )
            
            (48,684
            )
            
            (24,252
            )Preferred
                dividends accrued
            
            
            (10,587
            )
            
            -
            
            
            (5,385
            )
            
            -NET
                LOSS AVAILABLE TOCOMMON
                SHARES
            
            $
            (130,254
            )
            $
            (63,168
            )
            $
            (54,069
            )
            $
            (24,252
            )Basic
                and diluted net loss per share
            
            $
            (0.01
            )
            $
            (0.00
            )
            $
            (0.00
            )
            $
            (0.00
            )Basic
                and diluted weighted
              average
                shares
            
            
            21,296,519
            
            
            21,000,000
            
            
            21,300,000
            
            
            21,000,000




The
      accompanying notes are an integral part of these financial
      statements




4




IntelliHome,
      Inc.


STATEMENTS
      OF CASH FLOWS


(Unaudited)





For
                the Six Months Ended June 30,2007
            
            2006CASH
                FLOWS FROM OPERATING ACTIVITIESNet
                loss
            
            $
            (119,667
            )
            $
            (63,167
            )Adjustments
                to reconcile net loss
              to
                net cash used in operating activitiesDepreciation
                and amortization
            
            
            2,716
            
            
            2,608Non-cash
                expenses
            
            
            50,807
            
            
            20,738Changes
                in operating assets and liabilities:Accounts
                receivable
            
            
            (15
            )
            
            6,586Inventories
            
            
            5,196
            
            
            4,944Prepaid
                expense
            
            
            (112
            )
            
            4Accounts
                payable
            
            
            (26,901
            )
            
            (15,591
            )Credit
                cards payable
            
            
            (2,012
            )
            
            (138
            )Payroll,
                sales tax and other accrued liabilities
            
            
            8,547
            
            
            668Unearned
                revenue on contracts
            
            
            (997
            )
            
            (320
            )NET
                CASH USED IN OPERATING ACTIVITIES
            
            
            (82,438
            )
            
            (43,668
            )CASH
                FLOWS FROM INVESTING ACTIVITIES
            
            
            -
            
            
            -NET
                CASH PROVIDED BY INVESTING ACTIVITIES
            
            
            -
            
            
            -CASH
                FLOWS FROM FINANCING ACTIVITIESSale
                of common and preferred stock
            
            
            45,000
            
            
            -Loan
                from Series A preferred shareholder
            
            
            -
            
            
            35,000Principal
                payment on notes payable
            
            
            (34,784
            )
            
            (7,062
            )NET
                CASH PROVIDED BY FINANCING ACTIVITIES
            
            
            10,216
            
            
            27,938NET
                DECREASE IN CASH
            
            
            (72,222
            )
            
            (15,730
            )Cash,
                beginning of period
            
            
            77,557
            
            
            15,706Cash,
                end of period
            
            $
            5,335
            
            $
            (24
            )SUPPLEMENTAL
                CASH FLOW INFORMATION:Interest
                paid
            
            $
            10,831
            
            $
            10,907Taxes
                paid
            
            
            -
            
            
            -SUPPLEMENTAL
                SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:Increase
                in paid-in capital resulting from:Deferred
                offering costs, expenses and assets paid for by aSeries
                A preferred shareholder
            
            
            50,807
            
            
            20,738Decrease
                in retained earnings for preferred stock dividend
            
            
            (10,587
            )
            
            -





The
      accompanying notes are an integral part of these financial
      statements





5




IntelliHome,
      Inc.


Notes
      to
      Financial Statements


June
      30,
      2007


(Unaudited)





**NOTE
      1. - BASIS OF PRESENTATION**




The
      accompanying unaudited financial statements of IntelliHome, Inc., a Texas
      corporation (the “Company”), have been prepared in accordance with accounting
      principles generally accepted in the United States of America for interim
      financial information and with the instructions to Form 10-QSB and Item 310(b)
      of Regulation S-B. They do not include all of the information and footnotes
      required by accounting principles generally accepted in the United States of
      America for a complete financial presentation. In the opinion of management,
      all
      adjustments, consisting only of normal recurring adjustments, considered
      necessary for a fair presentation, have been included in the accompanying
      unaudited financial statements. Operating results for the periods presented
      are
      not necessarily indicative of the results that may be expected for the full
      year.




These
      financial statements should be read in conjunction with the financial statements
      and footnotes for the year ended December 31, 2006, which are included as part
      of the Company’s Registration Statement on Form SB-2 (SEC File 333-140204)
      declared effective July 12, 2007.




**NOTE
      2. - GOING CONCERN**





The
      accompanying financial statements have been prepared assuming that the Company
      will continue as a going concern. As reflected in the accompanying financial
      statements, the Company has incurred a loss of $119,667 for the six months
      ended
      June 30, 2007 and has retained deficit of $729,955 at June 30, 2007. In
      addition, the Company has not generated cash flows from operations for the
      years
      ended December 31, 2006 and 2005, and for the six months ended June 30, 2007.
      The Company’s continued existence is dependent on its ability to achieve
      profitable operations and achieving a level of revenue adequate to support
      the
      Company’s cost structure. These factors raise substantial doubt about the
      Company’s ability to continue as a going concern. There is no assurance that the
      Company will be able to obtain profitable operations or additional financing
      to
      support the Company’s current operations. If management is not successful, the
      Company may have to substantially cut back its level of operations that could
      have an adverse effect on the financial position of the Company. The financial
      statements do not include any adjustments relating to the recoverability or
      classification of recorded asset amounts or the amount and classification of
      liabilities that might be necessary as a result of this going concern
      uncertainty.





**NOTE
      3. - PRIVATE PLACEMENT**





In
      January 2007, under the terms of the Private Placement Memorandum dated October
      19, 2005, 45 units were sold. Each unit consisted of 1,000 shares of the
      Company’s Common Stock, and 9,000 shares of the Company’s Preferred Series B
      convertible stock. The Company received $45,000 in cash for the units sold.





**NOTE
      4. - NOTES PAYABLE**





*Repayment
      of Line of Credit*





During
      the quarter ended June 30, 2007, the Company repaid in full the note payable
      relating to its existing bank line of credit and the line of credit was
      terminated. The Company is undertaking efforts to establish a new bank line
      of
      credit.




6




*Supplier
      Note Default*





At
      June
      30, 2007, the Company was in default on a note payable to an equipment supplier.
      The note was originally dated July 28, 2004 for $69,240 at 7% interest and
      re-negotiated on December 13, 2006, after a 14-month term of default, with
      a new
      principal amount of $46,495, interest at 7%, and monthly payments of $6,798
      beginning December 27, 2006. The balance owing on the note at June 30, 2007
      was
      $20,159. As a result of the default, the entire amount owing is due and payable.
      The note is uncollateralized and personally guaranteed by the President of
      the
      Company.





**NOTE
      5. - SUBSEQUENT EVENTS**




On
      July
      12, 2007, the Company’s Registration Statement on Form SB-2, relating to the
      resale of shares issued in its 2006/2007 private placement, was declared
      effective by the Securities and Exchange Commission. As a result, the Company
      became subject to the reporting requirements of Section 15(d) of the Securities
      Exchange Act of 1934.





**ITEM
      2.**  **MANAGEMENT'S
      DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS**





**Forward-Looking
      Information**





This
      Form
      10-QSB quarterly report of IntelliHome, Inc. (the “Company”) for the six months
      ended June 30, 2007, contains certain forward-looking statements within the
      meaning of Section 27A of the Securities Act of 1933, as amended, and Section
      21E of the Securities Exchange Act of 1934, as amended, which are intended
      to be
      covered by the safe harbors created thereby. To the extent that there are
      statements that are not recitations of historical fact, such statements
      constitute forward-looking statements that, by definition, involve risks and
      uncertainties. In any forward-looking statement, where the Company expresses
      an
      expectation or belief as to future results or events, such expectation or belief
      is expressed in good faith and believed to have a reasonable basis, but there
      can be no assurance that the statement of expectation or belief will be achieved
      or accomplished.




The
      actual results or events may differ materially from those anticipated and as
      reflected in forward-looking statements included herein. Factors that may cause
      actual results or events to differ from those anticipated in the forward-looking
      statements included herein include the factors described in herein and in the
      Company’s other filings with the SEC, including the Risk Factors discussion
      included in the Company’s Registration Statement on Form SB-2 (SEC File No.
      333-140204, declared effective July 12, 2007).




Readers
      are cautioned not to place undue reliance on the forward-looking statements
      contained herein, which speak only as of the date hereof. The Company believes
      the information contained in this Form 10-QSB to be accurate as of the date
      hereof. Changes may occur after that date, and the Company will not update
      that
      information except as required by law in the normal course of its public
      disclosure practices.




Additionally,
      the following discussion regarding the Company’s financial condition and results
      of operations should be read in conjunction with the financial statements and
      related notes contained in Item 1 of Part 1 of this Form 10-QSB, as well as
      the
      Risk Factors and the financial statements for the fiscal year ended December
      31,
      2006 included in the Company’s Registration Statement on Form SB-2.




7




**Critical
      Accounting Policies**





The
      Company’s discussion and analysis of its financial condition and results of
      operations are based upon the Company’s financial statements, which have been
      prepared in accordance with accounting principles generally accepted in the
      United States of America. The Company believes certain critical accounting
      policies affect its more significant judgments and estimates used in the
      preparation of its financial statements. A description of the Company’s critical
      accounting policies is set forth in the Company’s Registration Statement on Form
      SB-2. As of, and for the six months ended, June 30, 2007, there have been no
      material changes or updates to the Company’s critical accounting policies as
      compared to those described in the Company’s Registration Statement on Form
      SB-2.





**Current
      Year Developments**





In
      January 2007, we completed a private placement of units that was partially
      completed in 2006. As a result, we sold units comprised of 45,000 shares of
      common stock and 405,000 shares of Series B Convertible Preferred Stock for
      $45,000. We have utilized proceeds of January 2007 sale of units, along with
      the
      proceeds received from the sale of units during 2006, to support planned growth
      of our Home Builder Program and renewed sales growth under our security
      monitoring and Contract Funding programs. Specifically, we have invested in
      inventory and hired personnel to support increased volume in our Home Builder
      Program. Based on discussions with various builders, we believe that we can
      secure exclusive relationships with one or more large production builders within
      selected markets if we can demonstrate the financial ability to support
      substantial volume increases under our Six Month Advantage Program in which
      we
      provide six months of complimentary security monitoring services to home buyers.
      Additionally, we have reinstated certain employee benefit programs, including
      health insurance, in order to attract and retain sales personnel necessary
      to
      renew the growth in sales under our security monitoring and Contract Funding
      program. As a result, we hired 2 additional sales employees and 2 additional
      installation employees during late 2006. During the June 2007 quarter, we let
      go
      or reduced to part-time, certain of the newly hired personnel based on
      performance. There can be no assurance that we will be successful in securing
      additional builder participation, or exclusive relationships with any such
      builders, or that we will be successful in growing sales under our security
      monitoring and Contract Funding program.





In
      January 2007, following completion of our private placement and pursuant to
      the
      terms of that private placement, we filed a registration statement on Form
      SB-2
      covering the resale of shares issued in the private placement. The registration
      statement was declared effective by the Securities and Exchange Commission
      on
      July 12, 2007 and, as a result, we are now subject to the reporting requirements
      of Section 15(d) of the Securities Exchange Act of 1934. Pursuant to the terms
      of our outstanding Series A Convertible Preferred Stock, during the six months
      ended June 30, 2007, the principal holder of shares of our Series A Preferred
      Stock paid $50,807 of costs associated with the SB-2 registration statement.
      All
      such amounts paid by the holder of our Series A Preferred Stock are treated
      as
      increases in paid-in capital attributable to the Series A Preferred
      Stock.





**Results
      of Operations**





During
      the six months ended June 30, 2007, we realized a net loss of $119,667 as
      compared to a net loss of $63,168 during the six months ended June 30,
      2006.





The
      adverse change in operating results was principally attributable to increased
      operating costs associated with hiring of personnel, increased promotional
      activities and increases in general and administrative costs, all relating
      to
      our planned growth.





8




*Revenue.* Revenue
      for six months ended June 30, 2007 increased 24.7% to $503,598 from $403,852
      during six months ended June 30, 2006. The principal components of revenues
      for
      the periods were as follows:





Six
                Months Ended June 30,2006
            
            2007Installation
                Fees
            
            $
            340,413
            
            $
            430,730Monitoring
                Fees
            
            
            41,635
            
            
            46,464Contract
                Funding
            
            
            21,804
            
            
            26,404Total
            
            $
            403,852
            
            $
            503,598





The
      increase in Installation Fees was primarily attributable to increased marketing
      efforts facilitated by our hiring of additional installation and marketing
      personnel following the receipt of funding from our 2006 Private
      Placement.





The
      increase in Contract Funding revenues was primarily attributable to a renewed
      emphasis on our Contract Funding business which accompanied the commencement
      of
      sales of contracts to Central Security Group. The volume of monitoring contracts
      eligible to be purchased by Central Security Group is greater than that under
      our previous arrangement with ADT Security.





The
      increase in monitoring fees was attributable to the renewed emphasis on
      generation of monitoring contracts and higher retentions of monitoring contracts
      resulting from a decline in contracts sold to ADT Security prior to the
      commencement of our relationship with Central Security Group.





*Cost
      of Monitoring and Installation.* Cost
      of
      monitoring and installation for the six months ended June 30, 2007 increased
      38.9% to $224,596 from $161,683 during the six months ended June 30,
      2006.





As
      a
      percentage of revenues, cost of monitoring and installation increased to 44.6%
      in the six months ended June 30, 2007 from 40.0% in the six months ended June
      30, 2006. The increase in cost of monitoring and installation as a percentage
      of
      revenues was principally attributable to a decline in the portion of our
      revenues attributable to our Contract Funding business that historically has
      higher margins compared to our other operations





*Truck
      Expense.* Truck
      expense, reflecting the cost of ownership and operation of our installation
      and
      service vehicles, increased by 53.3% to $41,131 for the six months ended June
      30, 2007 from $26,832 for the six months ended June 30, 2006. As a percentage
      of
      revenues, truck expense increased from 6.6% in the 2006 period to 8.2% in the
      2007 period.





The
      increase in truck expense was principally attributable to higher gas costs
      and
      maintenance costs, the addition of a leased truck and costs arising from
      vehicles operated by additional personnel hired during the fourth quarter of
      2006.





*General
      and Administrative Expense.* General
      and administrative expense increased by 100.6% to $119,880 for the 2007 period
      from $59,764 for the 2006 period. As a percentage of revenues, G&A increased
      from 14.8% in the 2006 period to 23.8% in the 2007 period.





The
      increase in G&A during the 2007 period was principally attributable to the
      commencement of certain promotional efforts and investments to support planned
      growth in all market segments beginning the fourth quarter of 2006 following
      the
      receipt of funding from the 2006 Private Placement. As a result of those
      efforts, we anticipate that our G&A will continue at an increased level
      during 2007.





9





*Compensation
      and Benefits.* Compensation
      and benefit expenses increased by 12.9% to $231,765 for the 2007 period from
      $205,308 for the 2006 period. As a percentage of revenues, compensation and
      benefit expenses decreased from 50.8% in the 2006 period to 46.0% in
      2007.





The
      increase in compensation and benefit expense was principally attributable to
      the
      hiring of additional personnel and reinstating certain benefit programs during
      the fourth quarter of 2006 following the receipt of funding from the 2006
      Private Placement in order to attract personnel to support increased sales
      efforts under the security monitoring and Contract Funding programs and sales
      and service of additional builders in our Home Builder Program. During the
      June
      2007 quarter, we let go, or reduced to part-time, certain of the newly hired
      personnel for performance reasons. Accordingly, our compensation expense is
      expected to decline on a temporary basis but we plan to hire additional
      personnel to support planned growth and expect compensation expense to rise
      as
      additional personnel is hired.





*Interest
      Expense.* Interest
      and finance charges decreased 13.8% to $11,573 for the 2007 period from $13,433
      for the 2006 period. The decrease in interest expense was attributable to
      decreased debt levels.





**Financial
      Condition**





*Cash
      Position and Short-Term Liquidity.* At
      June
      30, 2007, we had a cash balance of $5,335 and a working capital deficit of
      $216,971 as compared to a cash balance of $77,557 and a working capital deficit
      of $184,473 at December 31, 2006.





Operations
      used cash in the amount of $82,438 during the six months ended June 30, 2007
      as
      compared to $43,668 used in operations during the six months ended June 30,
      2006. The increase in cash used in operations during the 2007 period was
      principally attributable to the increase in net loss during 2007 and reductions
      of various payables.





Our
      short-term financing requirements have, in recent periods, been financed
      primarily through short-term borrowing from our principal officer, Mark Trimble,
      borrowings on credit cards, borrowings under a line of credit and borrowings
      from a supplier. During the first six months of 2007 we paid off our existing
      line of credit and we are presently seeking to establish a new line of credit
      and we are evaluating the possible sale of a portion of our monitoring contracts
      to support short-term financing needs. With the receipt of funds from our 2006
      private placement, cost control measures, anticipated increases in revenues
      and
      proceeds from a new line of credit and/or sales of monitoring contracts, we
      anticipate that we will be able to meet our short-term financing requirements
      without additional borrowings from affiliates notwithstanding our continuing
      working capital deficit. We have no commitments from Mr. Trimble, bank lenders,
      prospective purchasers of monitoring contracts or others to provide any
      additional funding that may be necessary to support operations in the near
      term.





Included
      in our short-term debt at June 30, 2007 is credit card debt in the amount of
      $95,713 relating, primarily, to inventory purchases. Such amounts have no formal
      payment terms.





*Unearned
      Revenue on Contracts.* We
      routinely offer security monitoring services in conjunction with our sale and
      installation of security systems. Contracts for security monitoring services
      typically range from three months to thirty-six months. Proceeds received from
      the sale of such contracts relating to periods for which services have not
      yet
      been provided are classified as unearned revenue on contracts and are reflected
      in current or non-current liabilities based on the period in which services
      are
      required to be rendered. At June 30, 2007, unearned revenue on contracts
      totaling $9,091 was classified as current liabilities and $1,293 was classified
      as non-current liabilities.





*Financing
      Facilities* .
      At June
      30, 2007, financing of our business was provided through multiple sources,
      including a supplier loan and a variety of credit card lending
      arrangements.




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At
      June
      30, 2007, our bank line of credit had been repaid in full and we were seeking
      to
      establish a new bank line of credit.





At
      June
      30, 2007, we had a note payable in the amount of $20,159 payable to a supplier
      payable in monthly installments of $6,798 and providing for interest at 7%.
      We
      were not making payments on the note, and the note was in default, at June
      30,
      2007. The note is unsecured and is guaranteed by our President and principal
      shareholder.





At
      June
      30, 2007, we had available credit of approximately $114,000 under multiple
      credit card accounts, of which approximately $95,713 was borrowed, including
      interest. Those accounts each provide for varying interest rates and minimum
      monthly payments with no stated maturity.





*Financing
      Transactions.*  In
      order
      to finance certain short-term requirements and to facilitate our planned growth
      in our Home Builder Program and efforts to grow revenues from our Contract
      Funding, during 2005 and 2006 and the first quarter of 2007, we entered into
      several transactions.





In
      September 2005, Mr. Trimble agreed to convert all amounts owing to him, totaling
      $38,400, into 2,101,645 shares of common stock, or an effective conversion
      price
      of $0.018 per share (after giving effect to the October 2005 stock
      split).





In
      September 2005, we issued a total of 2,462,832 shares of common stock (after
      giving effect to the October 2005 stock split) for aggregate consideration
      of
      $45,000. The proceeds from that offering were used to support working capital
      needs and to pay down certain debts.





In
      October 2005, we issued 6,000,000 shares of Series A Preferred Stock in exchange
      for an agreement by the purchaser to pay all expenses associated with conducting
      a private placement, filing a resale registration statement with the Securities
      and Exchange Commission and facilitating the development of a public market
      for
      our common stock, as well as preparing related corporate documents, at a total
      estimated cost of more than $200,000 but not to exceed $300,000.





In
      August
      2006, we sold Units in a private placement for total net proceeds of $255,000.
      The Units sold in the offering consisted of an aggregate of 255,000 shares
      of
      common stock and 2,295,000 shares of Series B Preferred Stock. Subsequently,
      in
      January 2007, we received an additional $45,000 from the sale of Units resulting
      in the issuance of an additional 45,000 shares of common stock and 405,000
      Shares of Series B Preferred Stock.





*Capital
      Requirements.*  We
      have,
      in recent years, required financial support of our principal shareholder to
      provide necessary working capital and have, in certain instances, extended
      payments of suppliers beyond their normal payment terms. In order to support
      our
      plan to grow our Home Builder Program and to restore our Contract Funding
      revenues, we must hire sales and installation personnel and invest in inventory.
      In order to facilitate planned hiring, we must reactivate certain benefit plans,
      including our health insurance plan. We undertook various financing transactions
      during 2005 and 2006 to support our planned operations, including raising
      $345,000 of equity pursuant to the 2005 sale of stock and the 2006 private
      placement. We are presently undertaking efforts to establish a new bank line
      of
      credit facility and sell certain monitoring contracts to support operations.
      We
      anticipate that the financing provided by the 2005 and 2006 sales of stock,
      together with funds from operations, cost control measures, establishment of
      a
      new bank line of credit and selected sales of monitoring contracts, will be
      adequate to meet our capital requirements for at least the next 12 months,
      including servicing our short-term debt and investments in personnel, inventory
      and assets. We have no commitments, however, to provide a new bank line of
      credit, sell monitoring contracts or otherwise provide additional funding to
      support operations.




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*Capital
      Expenditures and Commitments.*  Our
      capital expenditures have historically been limited to selected purchases of
      vehicles, equipment and furniture to support our operations. Additionally,
      we
      have previously purchased alarm monitoring accounts and may do so in the future.
      During the six months ended June 30, 2007, we had no capital
      expenditures.





At
      June
      30, 2007, we had no capital expenditure commitments but have budgeted
      approximately $2,000 for management software purchases and $25,000 for vehicles
      and outfitting of vehicles with tools and purchases of computers and office
      technology to support planned growth.





*Contractual
      Obligations.*  At
      June
      30, 2007, our contractual obligations requiring determinable future payments
      were limited to amounts payable under the promissory note and supplier loan
      as
      discussed above. We lease our executive offices from an unrelated third party
      under a month-to-month lease and lease a vehicle from our President pursuant
      to
      a lease running through September 2007. Office lease payments are presently
      $1,250 per month and vehicle rental payments are presently $625 per
      month.





In
      addition to the foregoing obligations, we may be subject to charge-backs from
      time to time based on collections and retention rates on monitoring accounts
      sold to monitoring service company. Moreover, we may elect to sell our rights
      under certain payment streams to the monitoring company subject to certain
      rights of the monitoring company to recover some or all payments made based
      on
      our ongoing compliance with various requirements and the actual collection
      results with respect to accounts covered by such arrangements. In either of
      those events, amounts owing to us in the future by the monitoring company may
      be
      reduced or, in the alternative, we may be obligated to repay to the monitoring
      company certain amounts previously paid us by the monitoring company. We have
      not historically experienced any material obligations to repay amounts paid,
      or
      offset future payments of, monitoring companies and no reasonable estimate
      can
      be made as to whether any such obligations will arise in the future and, if
      so,
      the amount of such obligations.





**Off-Balance
      Sheet Arrangements**





The
      Company had no off-balance sheet arrangements at June 30, 2007.





**Inflation**





The
      Company believes that inflation has not had a significant impact on operations
      since inception.





**ITEM
      3.**  **CONTROLS
      AND PROCEDURES**





As
      of the
      end of the period covered by this report, we have evaluated the effectiveness
      of
      the design and operation of our disclosure controls and procedures under the
      supervision and with the participation of our chief executive officer (“CEO”)
      who also serves as our chief financial officer. Based on this evaluation, our
      management, including our CEO, concluded that our disclosure controls and
      procedures were not effective at June 30, 2007.





During
      the quarter ended June 30, 2007, there were no changes in our internal controls
      over financial reporting that materially affected, or are reasonably likely
      to
      materially affect, internal controls over financial reporting.





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In
      connection with the quarterly review for the period ended June 30, 2007, our
      independent registered public accounting firm informed us that we have
      significant deficiencies constituting material weaknesses as defined by the
      standards of the Public Company Accounting Oversight Board. The accounting
      firm
      noted that adequate segregation of duties does not exist in our financial
      reporting process, as our President and CEO also functioned as our CFO. The
      President performed these duties with assistance from a part time consultant.
      Accordingly, the preparation of financial statements and the related monitoring
      controls surrounding this process were not segregated.





**PART
      II**





**ITEM
      6.**  **EXHIBITS**


Exhibit
                Number
              
              Description31.1
              
              Certification
                  of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of
                  200232.1
              
              Certification
                  of CEO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
                  to Section
                  906 of the Sarbanes-Oxley Act of
                  2002




**SIGNATURES**





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




INTELLIHOME,
              INC.By:
            /s/ Mark
              TrimbleMark
              TrimblePresident,
                Chief
                Executive Officer and
              Chief Financial
                Officer




Date:
      August 13, 2007





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