----

----

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D. C.  20549**

**FORM      10-K/A**

**Annual      Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934**

**For      the fiscal year ended June 24,      2007**

**Commission      File Number 0-12919**

**PIZZA      INN, INC.**

| **Missouri**                                              | **47-0654575**                            |
|-----------------------------------------------------------|-------------------------------------------|
| (State                  or jurisdiction of                | (I.R.S.                  Employer         |
| incorporation                  or organization)           |  Identification                  No. |
|                                                      |                                      |
|                                                      |                                      |
|                                                           |                                           |
| **3551                  Plano Parkway**                   |                                      |
| **The                  Colony, Texas**                    | **75056**                                 |
| (Address                  of principal executive offices) | (Zip                  Code)               |

**(469)      384-5000**

| Title                  of each class               | Name                  of each exchange on which registered |
|----------------------------------------------------|------------------------------------------------------------|
| **Common                  stock, par value $0.01** | **NASDAQ                  Capital Market**                 |

**None**

----

----

**EXPLANATORY      NOTE**

**PART      III**

**Item      10.                      Directors,      Executive Officers and Corporate Governance.**

**Directors**

**Steven      J. Pully**
**, **
** **
** **

**Steven      M. Johnson**

**James      K. Zielke**

**Robert      B. Page**

**Ramon      D. Phillips**

**Mark      E. Schwarz**

**Clinton      J. Coleman**

**Director      Nominees**

**W.C.      Hammett, Jr.**

**Executive      Officers**

| **Name**                             | **Age** | **Position**                                                                                         | **Executive****Officer****Since** |
|--------------------------------------|---------|------------------------------------------------------------------------------------------------------|-----------------------------------|
|                                 |    |                                                                                                 |                              |
| Charles                R. Morrison   | 39      | Chief                Financial Officer, Interim President and Chief Executive                Officer | 2007                              |
| Ward                T. Olgreen       | 48      | Senior                Vice President of World Wide Franchising                                       | 1995                              |
| Darrell                G. Smith      | 52      | Vice                President of Development                                                         | 2006                              |
| Danny                K. Meisenheimer | 48      | Vice                President of Brand Management                                                    | 2003                              |

**Charles      R. Morrison**

**Ward      T. Olgreen**

**Darrell      G. Smith**

**Danny      K. Meisenheimer**

**Section      16(a) Beneficial Ownership Reporting Compliance**

**Code      of Ethics**

  The      Company has posted such code of ethics on its Internet website athttp://www.pizzainn.com.
 The Company      intends to satisfy the disclosure requirement under Item 10 of Form 8-K      regarding an amendment to, or a waiver from, a provision of its code of ethics      that applies to the Company’s principal executive officer, principal financial      officer, principal accounting officer or controller, or persons performing      similar functions and that relates to any element of the code of ethics      definition enumerated in Item 406(b) of Regulation S-K by posting such      information on its Internet website athttp://www.pizzainn.com.

**Audit      Committee**

**Audit      Committee Financial Expert**

has at least one audit committee financial      expert serving on its      audit committee.  The Company’s board of directors has determined that      Mr. Phillips is an audit committee financial expert.  Mr. Phillips      qualifies as an audit committee financial expert through relevant      experience.  A brief listing of his relevant experience is provided      herein under “*Directors,**Executive**Officers and Corporate      Governance – Directors*”.  Mr. Phillips is      independent,** **as independence for audit committee members      is defined in the listing standards applicable to the Company.

**Compensation      Committee Interlocks and Insider Participation**

**Compensation      Committee Report**

The      compensation committee has reviewed and discussed the      Compensation Discussion and Analysis required by Item 402(b) of Regulation      S-K      with management and, b
ased on the review and discussions,      the compensation committee recommended to the board of directors that the      Compensation Discussion and Analysis be included herein.

**                    Compensation      Committee**

**Item      11.                      Executive      Compensation.**

**COMPENSATION      DISCUSSION AND ANALYSIS**

*Summary Compensation Table*

**Introduction      and Summary**

| ·   | Charles                R. Morrison, our CFO, Interim President and                CEO; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Ward                T. Olgreen, our Senior Vice President of World Wide                Franchising; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Danny                K. Meisenheimer, our Vice President of Brand Management;                and |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | Darrell                G. Smith, our Vice President of                Development. |
|--------------------|------------------------------------------------------------------------------------|

**The      Compensation Committee**

**Role      of Executives in Determining Executive Compensation**

**Significant      Compensation Events in Fiscal 2007**

*Employment Agreements*

**Compensation      Philosophy and Objectives**

| ·   | align                the interest of executives and employees with those of the Company’s                shareholders; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | reward                performance and further the long-term interests of its                shareholders; |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | attract,                motivate and retain executives and employees with competitive compensation                for the Company’s industry and the labor markets in which it                operates; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | build                and encourage ownership of the Company’s shares;                and |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | balance                short-term and long-term strategic                goals. |
|--------------------|---------------------------------------------------------------------------------|

**Compensation      Program Structure and Elements**

*Compensation      Program Structure in the Fiscal Year Ended June 24, 2007*

*Base      Salary*

*Discretionary      Cash Bonuses*

*Equity-Based      Compensation*

*Other      Compensation*

*Tax      Code Considerations*

**SUMMARY      COMPENSATION TABLE**

| **Name                and Principal Position**                                                 | **Year** | **Salary****($)** | **Bonus****($)** | **Stock                Awards****($)                (1)** | **Option                Awards****($)                (2)** | **All                Other Compensation****($)                (3)** | **Total                ($)** |
|------------------------------------------------------------------------------------------------|----------|-------------------|------------------|-----------------------------------------------------------|------------------------------------------------------------|---------------------------------------------------------------------|------------------------------|
|                                                                                                |     |              |             |                                                      |                                                       |                                                                |                         |
| **Current                Officers**                                                            |     |              |             |                                                      |                                                       |                                                                |                         |
| Charles                R. Morrison(CFO                and Interim President and CEO)(4)        | 2007     | 99,038            | 40,000           | --                                                        | --                                                         | --                                                                  | 139,038                      |
| Ward                T. Olgreen(Senior                Vice President of World Wide Franchising) | 2007     | 154,929           | 18,150           | --                                                        | --                                                         | --                                                                  | 173,079                      |
| Danny                K. Meisenheimer(Vice                President of Brand Management)        | 2007     | 138,825           | 17,298           | --                                                        | --                                                         | --                                                                  | 156,123                      |
| Darrell                G. Smith(Vice                President of Development)                  | 2007     | 150,000           | 16,406           | --                                                        | --                                                         | --                                                                  | 166,406                      |
|                                                                                                |          |                   |                  |                                                           |                                                            |                                                                     |                              |
| **Former                Officers**                                                             |     |              |             |                                                      |                                                       |                                                                |                         |
| Timothy                P. Taft(President                and CEO)(5)                            | 2007     | 229,852           | 188,000          | --                                                        | --                                                         | --                                                                  | 403,852                      |
| Jack                A. Odachowski(Vice                President of Supply Chain)(6)            | 2007     | 185,000           | --               | --                                                        | --                                                         | 35,577                (7)                                           | 220,577                      |
| Kevin                A. Kleiner(Controller                and CFO)(8)                          | 2007     | 3,820             | --               | --                                                        | --                                                         | --                                                                  | 3,820                        |
| Clinton                J. Coleman(CFO)(9)                                                      | 2007     | 112,000           | --               | --                                                        | --                                                         | --                                                                  | 112,000                      |

|   | (2)                Reflects dollar amount recognized for financial statement reporting                purposes with respect to the fiscal year in accordance with FAS                123R. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)                Includes all other compensation not reported in the preceding columns,                including (i) perquisites and other personal benefits, or property,                unless                the aggregate amount of such compensation is less than $10,000; (ii)                any                "gross-ups" or other amounts reimbursed during the fiscal year for                the                payment of taxes; (iii) discounts from market price with respect                to                securities purchased from the company except to the extent available                generally to all security holders or to all salaried employees; (iv)                any                amounts paid or accrued in connection with any termination (including                without limitation through retirement, resignation, severance or                constructive termination, including change of responsibilities) or                change                in control; (v) contributions to vested and unvested defined contribution                plans; (vi) any insurance premiums paid by, or on behalf of, the                company                relating to life insurance for the benefit of the named executive                officer;                and (vii) any dividends or other earnings paid on stock or option                awards                that are not factored into the grant date fair value required to                be                reported in a preceding column. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)                Mr. Morrison was appointed Interim Chief Executive Officer and President                on August 15, 2007.  Mr. Morrison was appointed Chief Financial                Officer on January 31, 2007.  Mr. Morrison’s Employment Letter                dated January 31, 2007 provides for a base salary of $250,000, a                bonus of                $40,000 due on June 24, 2007 and an annual bonus based on the fiscal                year                performance. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5)                Mr. Taft served as the Company’s President and CEO from March 31, 2005                through his resignation on August 15,                2007. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6)                Mr. Odachowski was appointed Vice President of Supply Chain Management                on                September 6, 2005.  Figures shown for fiscal 2007 are through                June 22, 2007, Mr. Odachowski’s last date of employment with the                Company. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7)                Amount represents severance equal to three months of base salary,                or                $35,577 payable in one lump sum. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8)                Mr. Kleiner served as the Company’s CFO from January 11, 2006 through his                resignation on July 7, 2006. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9)                Mr. Coleman served as Interim CFO from July 5, 2006 through February                8,                2007 |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | **GRANTS                OF PLAN-BASED AWARDS** |
|--------|------------------------------------------------|

**EMPLOYMENT      AGREEMENTS**

**Current      Officers**

| ·   | Charles                R. Morrison received a base salary of $99,038 and a bonus of                $40,000; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Ward                T. Olgreen received a base salary of $154,929 and a bonus of                $18,150; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Danny                K. Meisenheimer received a base salary of $138,825 and a bonus of                $17,298;                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Darrell                G. Smith received a base salary of $150,000 and a bonus of                $16,406. |
|--------------------|-----------------------------------------------------------------------------------------------------------|

**Former      Officers**

**OUTSTANDING      EQUITY AWARDS AT FISCAL YEAR-END**

|                                                                                            | **Option                Awards**                                                                                   | **Stock                Awards**                                                                            |
|-------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
| **Name**                                                                                        | **Number****ofSecurities                  Underlying Unexercised Options****(#) ****Exercisable  ** | **Number                of Securities Underlying Unexercised Options****(#)  ****Unexercisable** | **Equity                Incentive Plan Awards: Number of Securities Underlying Unexercised                Unearned Options****(#)  ** | **Option                Exercise Price****($)  ** | **Option                Expiration Date** | **Number                of Shares or Units of Stock That Have Not Vested****(#)  ** | **Market                Value of Shares or Units of Stock That Have Not Vested****($)  ** | **Equity                Incentive Plan Awards: Number of Unearned Shares, Units or Other                Rights                That Have Not Vested****(#)  ** | **Equity                Incentive Plan Awards: Market or Payout Value of Unearned Shares,                Units or                Other Rights That Have Not Vested****($)** |
|                                                                                                 |                                                                                                                    |                                                                                                            |  |  |  |  |  |  |  |
| **Current                Officers**                                                             |                                                                                                               |                                                                                                       |   |   |   |   |   |   |
| Charles                R. Morrison (CFO and Interim President and CEO)                          | --                                                                                                                 | --                                                                                                         | -- | -- | -- | -- | -- | -- | -- |
| Ward                T. Olgreen (Senior Vice President of World Wide                Franchising) | --                                                                                                                 | --                                                                                                         | -- | -- | -- | -- | -- | -- | -- |
| Danny                K. Meisenheimer (Vice President of  Brand Management)                 | --                                                                                                                 | --                                                                                                         | -- | -- | -- | -- | -- | -- | -- |
| Darrell                G. Smith(Vice                President of Development)                   | --                                                                                                                 | --                                                                                                         | -- | -- | -- | -- | -- | -- | -- |
|                                                                                                 |                                                                                                                    |                                                                                                            |  |  |  |  |  |  |  |
| **Former                Officers**                                                              |                                                                                                               |                                                                                                       |   |   |   |   |   |   |
| Timothy                P. Taft(President                and CEO)                                | 300,000                (1)                                                                                         | 200,000                (2)                                                                                 | -- | $2.50 | 3/31/2015 | -- | -- | -- | -- |
| Jack                A. Odachowski (Vice President of Supply Chain)                              | --                                                                                                                 | --                                                                                                         | -- | -- | -- | -- | -- | -- | -- |
| Kevin                A. Kleiner(Controller                and CFO)                              | --                                                                                                                 | --                                                                                                         | -- | -- | -- | -- | -- | -- | -- |
| Clinton                J. Coleman(Interim                CFO)                                   | --                                                                                                                 | --                                                                                                         | -- | -- | -- | -- | -- | -- | -- |

|   |   |
|--------|--------|
| (1) | These                options were granted on March 31, 2005 and became exercisable (vested)                as                follows: 50,000 vested immediately on March 31, 2005; 100,000 vested                on                March 31, 2006 and 150,000 vested on March 31,                2007 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)These                options were granted on March 31, 2005 and were to become exercisable                (vested) on March 31, 2008.  These options never vested due to                the resignation of the former President and CEO on August 15,                2007. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**OPTION      EXERCISES AND STOCK VESTED**

|                                                                                           | **Option                Awards**                                                        | **Stock                Awards**                                        |
|------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| **Name**                                                                                       | **Number                of****Shares****Acquired****on                Exercise****(#)** | **Value                Realized****on                Exercise****($)** | **Number                of****Shares****Acquired****on                Vesting****(#)** | **Value                Realized****on                Vesting****($)** |
|                                                                                                |                                                                                         |                                                                        |  |  |
| **Current                Officers**                                                            |                                                                                    |                                                                   |   |
| Charles                R. Morrison(CFO                and Interim President and CEO)           | --                                                                                      | --                                                                     | -- | -- |
| Ward                T. Olgreen(Senior                Vice President of World Wide Franchising) | 30,000                                                                                  | 12,614                                                                 | -- | -- |
| Danny                K. Meisenheimer(Vice                President of Brand Management)        | --                                                                                      | --                                                                     | -- | -- |
| Darrell                G. Smith(Vice                President of Development)                  | --                                                                                      | --                                                                     | -- | -- |
|                                                                                                |                                                                                         |                                                                        |  |  |
| **Former                Officers**                                                             |                                                                                    |                                                                   |   |
| Timothy                P. Taft(President                and CEO)                               | --                                                                                      | --                                                                     | -- | -- |
| Jack                A. Odachowski(Vice                President of Supply Chain)               | --                                                                                      | --                                                                     | -- | -- |
| Kevin A.                Kleiner(Controller                and CFO)                        | --                                                                                      | --                                                                     | -- | -- |
| Clinton                J. Coleman(CFO)                                                         | --                                                                                      | --                                                                     | -- | -- |

**PENSION      BENEFITS**

**NONQUALIFIED      DEFERRED COMPENSATION**

**EQUITY      COMPENSATION PLAN INFORMATION**

| **Plan                Category**                                                                 | **Number                of securities to be issued upon exercise of outstanding options,                warrants                and rights (a)** | **  Weighted-average exercise                price of outstanding options, warrants and                rights** | **Number                of securities remaining available for future issuance under equity                compensation plans (excluding securities reflected in column (a)                (b)** |
|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                  |                                                                                                                                                  |                                                                                                                                          |                                                                                                                                                                                                 |
| **Equity                compensation plans approved by security holders**                        | 88,358                                                                                                                                           | $2.77                                                                                                                                    | 1,433,759                                                                                                                                                                                       |
| **Equity                compensation plans not approved by security holders                (c)** | 500,000                                                                                                                                          | $2.50                                                                                                                                    | 0                                                                                                                                                                                               |
| **Total**                                                                                        | 588,358                                                                                                                                          | $2.54                                                                                                                                    | 1,433,759                                                                                                                                                                                       |

|   | (a)   Under                the 2005 Plan 1,000,000 shares are authorized and available for future                option grants.  Under the 2005 Director Plan 500,000 shares were                authorized and 437,758 are available for future option grants as                of June                24, 2007.  There are no shares available for grant under the                1993 Employee Stock Award Plan and the 1993 Outside Directors Stock                Award                Plan, both of which expired in September                2003. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)    Reflects                shares granted to Mr. Taft in March 2005 pursuant to a Nonqualified                Stock                Option Agreement described in “*Compensation Committee Report on                Executive Compensation – Executive Employment Agreements*”                below. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Item                12.** | **Security                Ownership of Certain Beneficial Owners and Management and Related                Stockholder Matters.** |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------|

**SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS,**

**DIRECTORS      AND EXECUTIVE OFFICERS**

| §   | Holders                of more than 5% of the Company’s Common                Stock; |
|--------------------|--------------------------------------------------------------------------------------------|

| §   | Company                directors and each of the Named Executive Officers set forth in the                Summary Compensation Table set forth herein;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Company                directors and executive officers as a group (seven directors and                four                executive officers). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| **Name                of****Beneficial                Owner**                                                                                                                                                                                                                                                                                                                                                                             | **Shares****Beneficially****Owned**                        | **Percent****of                Class**            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|---------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                       |                                              |
| **Beneficial                owners of more than 5%**                                                                                                                                                                                                                                                                                                                                                                                      |                                                       |                                              |
| Newcastle                Partners,                L.P.(a)Newcastle                Capital                Management,L.P.Newcastle                Capital Group,                L.L.C.300                Crescent Court, Ste.                1110Dallas,                TX                75201                                                                                                                                            | 4,760,550                                                  | 47.0%                                             |
| Hoak                Public Equities,                L.P.(b)Hoak                Fund Management,                L.P.500                Crescent Court, Ste.                220Dallas,                TX                75201                                                                                                                                                                                                               |  525,000                                              |  5.2%                                        |
| **Current                directors and named executive officers**                                                                                                                                                                                                                                                                                                                                                                         |                                                       |                                              |
| Mark                E. Schwarz                (a)(c)Robert                B. PageSteve                JohnsonRamon                D. Phillips                (d)Steven                J. Pully                (c)Jim                ZeilkeClinton                ColemanWard                T. OlgreenDarrell                G. SmithDanny                K.                MeisenheimerCharles                R.                Morrison | 4,805,550--10,00011,59026,78710,000--48,5067,5007,2289,000 | 47.4                %--****--******************** |
| **New                nominee directors**                                                                                                                                                                                                                                                                                                                                                                                                  |                                                       |                                              |
|                       W.C. Hammett, Jr.                                                                                                                                                                                                                                                                                                                                                                     | --                                                         | --                                                |
| **All                directors, nominees and executive officers as a                group**                                                                                                                                                                                                                                                                                                                                               | 4,936,161                                                  | 48.7%                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                            |                                                   |

| (a)   | Newcastle                Capital Management, L.P. is the general partner of Newcastle Partners,                L.P., Newcastle Capital Group, L.L.C. is the general partner of Newcastle                Capital Management, L.P., and Mark E. Schwarz is the managing member                of                Newcastle Capital Group, L.L.C.  Accordingly, each of Newcastle                Capital Management, L.P., Newcastle Capital Group, L.L.C. and Mr.                Schwarz                may be deemed to beneficially own the shares of Common Stock beneficially                owned by Newcastle Partners, L.P.  In addition, Newcastle                Partners, L.P., Newcastle Capital Management, L.P., Newcastle Capital                Group, L.L.C. and Mr. Schwarz are members of a Section 13d reporting                group                and may be deemed to beneficially own shares of Common Stock owned                by the                other members of the group.  Newcastle Partners, L.P. and Mr.                Schwarz also directly own shares of Common Stock.  Mr. Schwarz                directly owns 15,000 shares of Common Stock, including options to                acquire                30,000 shares of Common Stock. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Hoak                Fund Management, L.P. is the general partner of Hoak Public Equities,                L.P., James M. Hoak & Co. is the general partner of Hoak Fund                Management, L.P., and J. Hale Hoak is the President of James M. Hoak&                Co.  Accordingly, each of Hoak Fund Management, L.P., Hoak                Public Equities, L.P, James M. Hoak & Co., and Mr. Hoak may be deemed                to own the shares of Common Stock beneficially owned by Hoak Public                Equities, L.P.  Dorothy Tyson Hoak, the spouse of J. Hale Hoak,                beneficially owns 5,000 shares of Common Stock as to which beneficial                ownership is disclaimed by Hoak Public Equities,                L.P. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Includes                vested options and options vesting as of January 4, 2008 (60 days                after                November 5, 2007) under the Company’s stock option plans, as follows:                30,000 shares for Mr. Schwarz, and 17,858 shares for Mr.                Pully. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Mr.                Phillips shares voting and investment power for 5,333 shares with                the                other shareholders of Wholesale Software International,                Inc. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Item                13.** | **Certain                Relationships and Related                Transactions.** |
|-----------------------------|-----------------------------------------------------------------------------------|

**Transactions      with Related Persons**

**Review,      Approval or Ratification of Transactions with Related      Persons**

| **Item                14.** | **Principal                Accounting Fees and                Services.** |
|-----------------------------|---------------------------------------------------------------------------|

|                                      | **BDO                Seidman**            |
|-------------------------------------------|-------------------------------------------|
|                                      | 2006                                      | 2007 |
| Audit                Fees                 | $175,194                                  | $175,434 |
| Audit-Related                Fees         |     15,149            | 25,000 |
| Tax                Fees                   |       7,950 | -- |
| All                Other Fees             |     --                | 17,833 |
|       Total |  $198,293                            | $218,267 |

**Audit      Fees**

**Audit-Related      Fees**

**Tax      Fees**

**All      Other Fees**

**Audit      Committee's Pre-Approval Policies and Procedures**

**Part      IV**

**Item      15.                      Exhibits, Financial Statement Schedules**

| 31.1   | Rule                13a-14(a)/15d-14(a) Certification of Principal Executive                Officer. |
|------------------|------------------------------------------------------------------------------------------------------|

| 31.2   | Rule                13a-14(a)/15d-14(a) Certification of Principal Financial                Officer. |
|------------------|------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

| /s/Mark                E. Schwarz |   | November                16, 2007 |
|-----------------------------------|--------|----------------------------------|

| /s/Ramon                D. Phillips |   | November                16, 2007 |
|-------------------------------------|--------|----------------------------------|

| /s/                Steven M. Johnson |   | November                16, 2007 |
|--------------------------------------|--------|----------------------------------|

| /s/                James K. Zielke |   | November16                , 2007 |
|------------------------------------|--------|----------------------------------|

| /s/Robert                B. Page |   | November                16, 2007 |
|----------------------------------|--------|----------------------------------|

| /s/                Steven J. Pully |   | November16,                2007 |
|------------------------------------|--------|---------------------------------|