FORM 10-KSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

[x ] ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF
   THE SECURITIES EXCHANGE ACT OF 1934
    For the fiscal year ended: December 31, 2007
                       OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from

Commission file number:       000-27251

DALE JARRETT RACING ADVENTURE, INC.
(Exact name of Small Business Issuer in its charter)



FLORIDA                         59-3564984
  (State or other jurisdiction of           (I.R.S. Employer
    incorporation or organization           Identification No.)

120A N. Main Avenue
Newton, North Carolina                28658
 (Address of principal executive offices)            (Zip Code)

Registrant's Telephone number, including area code:  (888) 467-2231


Securities registered pursuant to Section 12(b) of the Act:       None
Securities registered pursuant to Section 12(g) of the Act:
   Common Stock, $.01 par value

Check whether the issuer is not required to file reports pursuant to
Section 13 or 15(d) of the Exchange Act   [   ]

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

Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, and no
disclosure will be contained, to the best of Corporation's knowledge,
in definitive proxy or information statements incorporated by reference
in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.
[ 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]

The Corporation's revenues for its most recent fiscal year were
$2,738,352.  As of December 31, 2007, the market value of the
Corporation's voting $.0l par value common stock held by non-affiliates
of the Corporation was $39,074,521.

<PAGE>2

The number of shares outstanding of Corporation's only class of common
stock, as of December 31, 2007 was 25,245,502 shares of its $.01 par
value common stock.

No documents are incorporated into the text by reference.

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



<PAGE>3
PART I
ITEM 1.   BUSINESS

The Corporation was formed as a C corporation and incorporated November
24, 1998.  The Corporation is currently not involved with any
proceedings, bankruptcy or receiverships.

The Corporation is in the operational stage and offers entertainment
based oval driving schools and events.  These classes are conducted at
various racetracks throughout the country.

The Corporation completed its first driving classes in Rockingham, NC
July of 1999.  Since July 4th, 1999 the Corporation has run classes at
over forty NASCAR tracks.

The Corporation currently owns fifteen (15) race cars.  These race cars
are classified as stock cars and are equipped for oval or round tracks
only.   They are fully loaded with brand new race engines, six (6)
point harnesses, neck and head restraints, communications, track
specific gears and complete safety cages.

The Corporation has negotiated terms with over forty (40) racetracks
where, for a fee ranging from $0 to $10,000 a day, we can rent their
tracks.

Products and Services.  The Corporation offers five(5) types of ride or
drive programs for individuals and corporations.  The "Qualifier" is a
three(3) lap ride with a professional driver which lasts about five(5)
minutes, depending on the length of the track.  The "Season Opener" is
a half day training class culminating in the student driving for
ten(10) laps.  The "Rookie Adventure" and "Happy Hour" are also half
day driving classes with the students driving twenty(20) or thirty(30)
laps respectively.  The "Advanced Stock Car Adventure" is a full day
sixty (60) lap class.

The operation is similar to that of a traveling show in that we
transport the stock cars, the mechanics, the sales staff and the
instructors from event to event.

The main purpose of each event is the thrill of actually driving the
race car.

The Corporation's objective is to utilize this first "hub" of fifteen
(15) race cars on the east coast to their full potential.  It is in the
Corporation's plans that once this first hub becomes utilized at least
fifteen(15) days per month and is profitable, to then add another "hub"
on the West Coast.  This would entail the purchase of another ten(10)
race cars and the support equipment necessary to maintain them.

The Corporation has purchased fifteen (15) stock cars at an approximate
price of $50,000 per car.   Parts will be nominal due to the lack of
any sustained stress on the cars, approximately $10,000 per month per
site.  Staffing costs will be approximately $20,000 per month at each
active "hub".  The Corporation owns a Miller Semi Tractor Trailer to
haul the cars from track to track.  The transporting of staff to the
event and their food and lodging costs average $4000 per day.

<PAGE>4

The Corporation also offers a number of add-on sale items including CDs
from its Adventure Cam located in the car (four cameras and complete
GPS data), clothing, souvenirs and photography.

The Corporation is currently developing its logos and marketing
materials and will commence the trademarking process for its name and
various products and services.

Marketing.   The Corporation offers its products and services at
various tracks throughout the country.   The Corporation employs a
marketing director.  This individual is primarily responsible with
closing the prospects created through promotion.   These services will
be sold as corporate outings and directly to the public through various
marketing and advertising mediums with an emphasis on radio.

Promotional and Licensing Agreements.  In December 1998, the
Corporation entered into promotional and licensing agreements with Dale
Jarrett, Ned Jarrett, Glenn Jarrett, Jason Jarrett and Brett Favre
(individually, the "Licensor") whereby these individuals have granted
the Corporation the use of their names and likeliness in advertising,
products and promotional materials, as well as an agreed upon number of
appearances per year and an agreed upon number of radio and/or
television commercials as set out in each agreement.   Ned Jarrett is
the father of Dale Jarrett and Glenn Jarrett.   Dale Jarrett is the
father of Jason Jarrett.

Pursuant to these agreements, the Corporation has issued an aggregate
of 5,500,000 Common Shares of the Corporation.  The term of each
agreement is Ten (10) years unless sooner terminated by the occurrence
of any of the following:

(a)  a material breach by the Corporation of the agreement which breach
has not been satisfied within thirty (30) days of receipt of written
notice from the Licensor;

(b)  upon receipt of written notice from the Licensor if, as a result
of (i) any act or omission of the Corporation, (ii) any claim or charge
against the Corporation or (iii) any other occurrence or circumstances
involving the Corporation, the continued association of Licensor with
the Corporation would be detrimental to the value of the Licensed
Material or to Licensor's image or reputation;

(c)  the failure of the Corporation to continually operate and manage
the business according to the policies, practices and standards agreed
to by the parties;

(d)  the failure of the Corporation to comply with any laws and
regulations, the consequences of which are material adverse to the
Corporation.



<PAGE>5

The unearned services under the contracts aggregate $25,000 at December
31, 2007, and are classified as a reduction of stockholders' equity.
Services charged to expense during the years ended December 31, 2006, and
December 31, 2007, amounted to $41,000 and $25,000, respectively. The
services will be charged to expense ratably over the remaining terms of
the contracts.

During the term of the agreements, the Licensor agreed not to directly
or indirectly (whether for compensation or otherwise), provide
promotional appearances or services to any business which competes with
the Corporation's business of owning and managing driving schools.

The Corporation has also agreed not to issue any additional common
shares in the Corporation's stock to insiders, directors without the
Licensor's approval.  Additionally, any and all future financings will
be offered to the Licensor prior to being offered to third parties.  On
June 2, 2003, the Corporation's Board of Directors approved the
exchange of all or a portion of the indebtedness to its officers and
directors and a consultant for restricted common stock at an exchange
price of $.14 per share.  The fair value of the stock subject to the
exchange price was $.41 as of December 31, 2007 and the aggregate
amount of debt subject to exchange was $200,000 at December 31, 2007.
If all of the debt as of December 31, 2007, were converted, the
Corporation would be required to issue an additional 1,428,571 shares.

Competition.  The driving schools industry is currently experiencing a
limited degree of competition with regard to availability, price,
service, quality and location.  There is one well-established market
leader (Richard Petty Driving Experience) that is nationally recognized
and which possess substantially greater financial, marketing personnel
and other resources than the Corporation.  There are also a small
number of local or regional schools.  Virtual reality driving
experiences are also becoming more and more realistic and therefore a
growing competitor.   It is also likely that other competitors will
emerge in the near future.  There is no assurance that the Corporation
will compete successfully with other established driving schools.  The
Corporation shall compete on the basis of availability, price, service,
quality and location.  Inability to compete successfully might result
in increased costs, reduced yields and additional risks to the
investors herein.

Employees.  The Corporation employs seven full time employees
responsible for securing the Driving Adventure locations, procurement
of equipment, racecars, and the development and implementation of the
Corporation's marketing plan.  Each active location has up to 25
employees including but not limited to a mechanic, four to ten driving
instructors, two administrators, a flagman and a site manager.

Additional employees and/or independent contractors will be obtained as
required.

Seasonal Nature of Business Activities.   The Corporation's operations
have shown to be seasonal partly because some track locations may only
operate on certain days or certain times of the year.  Primarily, this



<PAGE>6

is due to the weather.  It is the Corporation's plans to run more
tracks in the south during the winter.  The Corporation expects a
steady revenue stream throughout the year.

Government Regulation.  The Corporation does not currently need any
government approval of our services.  The Corporation is not aware of
any existing or probable governmental regulations on our business or
industry.  The Corporation is required to maintain a minimum of five
million dollars($5,000,000) of liability insurance, worker's
compensation and property and casualty insurance.


ITEM 2.  PROPERTIES.

The Corporation's executive offices which consist of 1,500 square feet
are located at 120A North Main Avenue, Newton, North Carolina 28658.
The Corporation's garage which consists of 7,500 square feet is located
at 2615 West Jefferson Street, Anniston, Alabama 36201.  These
facilities are leased on a month to month basis for a combined rent of
$2,800 per month.


ITEM 3.  LEGAL PROCEEDINGS.

The Corporation is not involved in any legal proceedings at this date.


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

During the last quarter of the fiscal year ended December 31, 2007, no
matters were submitted to a vote of Dale Jarrett Racing Adventure, Inc.
security holders, through the solicitation of proxies.





<PAGE>7
PART II

ITEM 5.  MARKET FOR CORPORATION'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS

Market Information.  The Corporation began trading publicly on the NASD
Over the Counter Bulletin Board on June 22, 2000 under the symbol
"DJRT".

The following table sets forth the range of high and low bid quotations
for the Corporation's common stock as reported on the NASD Bulletin
Board, by Wienstock Securities, Paragon Securities, Sharpe Capital,
Herzog Securities, Nite Securities, Mayer Shweitzer, GVR Capital, Fleet
Securities and Program.  The quotations represent inter-dealer prices
without retail markup, markdown or commission, and may not necessarily
represent actual transactions.
<TABLE>
<CAPTION>
        Quarter  Ended                 High Bid             Low Bid
              
                        <c>                  <c>
             3/31/05                     .28                   .28
             6/30/05                     .20                   .17
             9/30/05                     .18                   .18
            12/31/05                     .30                   .23
             3/31/06                     .50                   .44
             6/30/06                     .19                   .18
             9/30/06                     .22                   .22
            12/31/06                     .195                  .15
             3/31/07                     .23                   .19
             6/30/07                     .20                   .18
             9/30/07                     .43                   .39
            12/31/07                     .45                   .40

</TABLE>
The Corporation has never paid any cash dividends nor does it intend,
at this time, to make any cash distributions to its shareholders as
dividends in the near future.

As of February 28, 2008, the number of holders of Corporation's common
stock is 244.


ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.

Trends and Uncertainties.  Demand for the Corporation's products are
dependent on, among other things, general economic conditions which are
cyclical in nature.  Inasmuch as a major portion of the Corporation's
activities are the receipt of revenues from its driving school services
and products, the Corporation's business operations may be adversely
affected by the Corporation's competitors and prolonged recessionary
periods.



<PAGE>8

There are no known trends, events or uncertainties that have or are
reasonably likely to have a material impact on the corporation's short
term or long term liquidity.  Sources of liquidity both internal and
external will come from the sale of the corporation's products as well
as the private sale of the Corporation's stock.  There are no material
commitments for capital expenditure at this time.  There are no trends,
events or uncertainties that have had or are reasonably expected to
have a material impact on the net sales or revenues or income from
continuing operations.  There are no significant elements of income or
loss that do not arise from the Corporation's continuing operations.
There are no known causes for any material changes from period to
period in one or more line items of the corporation's financial
statements.

The Corporation currently has classes planned through December 2008.

Capital and Source of Liquidity.  The Corporation currently has no
material commitments for capital expenditures.  The Corporation has no
plans for future capital expenditures such as additional race cars at
this time.

The Corporation believes that there will be sufficient capital from
revenues to conduct operations for the next twelve(12) months.

Presently, the Corporation's revenue comprises one hundred(100) percent
of the total cash necessary to conduct operations.  Future revenues
from classes and events will determine the amount of additional
financing necessary to continue operations.

The board of directors has no immediate offering plans in place.  The
board of directors shall determine the amount and type of financing as
the Corporation's financial situation dictates.

For the year ended December 31, 2007, the Corporation acquired plant
and equipment of $192,514 resulting in net cash used in investing
activities of $192,514.

For the year ended December 31, 2006, the Corporation acquired plant
and equipment of $89,710 resulting in net cash used in investing
activities of $89,710.

The Corporation continues to look for ways to decrease its cash
expenditures and still retain quality management and consultants.   On
October 22, 2004, the Corporation's board of directors approved the
issuance of options to certain officers and directors and a consultant
for the purchase of 3,500,000 common shares at an exercise price of
$.15 per common share for a period of 5 years.



<PAGE>9

The following table summarizes the stock option activity:

                                    Stock          Weighted-average
                                   Options         Price per Share
                                   -------         ----------------
Outstanding at December 31, 2005
 and December 31, 2006             6,949,654                 $0.15
Exercised                           (125,571)                $0.14
Expired                           (1,895,512)                $0.14
                                   ---------
Balance December 31, 2007          4,928,571                 $0.15
                                   =========

At December 31, 2007, the Corporation has the following options
outstanding all of which are exercisable:

Exercise price: $0.14; Outstanding: 1,428,571; Contractual life: .5
years

Exercise price: $0.15; Outstanding: 3,500,000; Contractual life: 2.8
years

For the year ended December 31, 2007, the Corporation reduced its
outstanding debt by repaying shareholder advances of $41,800, notes
payable of $40,061 and long-term debt of $22,171.  For the year ended
December 31, 2007, the Corporation issued common shares for cash of
$886,360.

For the year ended December 31, 2006, the Corporation reduced its
outstanding debt by repaying shareholder advances of $60,074, notes
payable of $77,939 and long-term debt of $26,467.

On June 2, 2003, the Corporation's Board of Directors approved the
exchange of all or a portion of the indebtedness to its officers and
directors and a consultant for restricted common stock at an exchange
price of $.14 per share.  The fair value of the stock subject to the
exchange price was $.41 as of December 31, 2007 and the aggregate
amount of debt subject to exchange was $200,000 at December 31, 2007.
If all of the debt as of December 31, 2007, were converted, the
Corporation would be required to issue an additional 1,428,571 shares.

On a long term basis, liquidity is dependent on continuation of
operation and receipt of revenues.

Results of Operations.

For the year ended December 31, 2007, the Corporation had sales of
$2,738,352 with cost of sales of $958,283 for a gross profit of
$1,780,069.

For the year ended December 31, 2007, the Corporation had general and
administrative expenses of $1,615,660 and non-cash stock compensation
of $1,104,400.  The percentage of general and administrative expenses



<PAGE>10

to revenues for the year ended December 31, 2007 increased to 59% from
54% for the year ended December, 2006 in spite of management's ongoing
effort to maintain and/or reduce these types of expenses.

The non-cash stock compensation consisted of 2,510,000 shares of common
stock issued for services valued at $1,014,400. The value assigned to the
shares issued was based upon the trading value of the Corporation's
common stock at the date the shares were authorized by the Corporation's
Board of Directors.

For the year ended December 31, 2006, the Corporation had sales of
$2,144,327 with cost of sales of $873,441 for a gross profit of
$1,270,886.

For the year ended December 31, 2006, the Corporation had general and
administrative expenses of $1,112,809 and non-cash stock compensation
of $49,339.

Plan of Operation.  The Corporation may experience problems; delays,
expenses and difficulties sometimes encountered by an enterprise in the
Corporation's stage, many of which are beyond the Corporation's
control.  These include, but are not limited to, unanticipated problems
relating to additional costs and expenses that may exceed current
estimates and competition.

The Corporation is not delinquent in any of its obligations even though
the Corporation has generated limited operating revenues.  The
Corporation intends to market its products and services utilizing cash
made available from the private sale of its securities and operations.
The Corporation's management is of the opinion that the proceeds of the
sales of its securities and future revenues will be sufficient to pay
its expenses for the next twelve months.

Our auditors have expressed reservations concerning our ability to
continue as a going concern.  The Corporation has incurred significant
losses from operations.  This factor raises substantial doubt about our
ability to continue as a going concern.

Our ability to continue as a going concern is contingent upon our ability
to increase revenues, increase ownership equity and attain profitable
operations.  In addition, the Corporation's ability to continue as a
going concern must be considered in light of the problems, expenses and
complications frequently encountered by entrance into established markets
and the competitive environment in which the Corporation operates.

The Corporation is not currently pursuing financing for its operations.
The Corporation is seeking to expand its revenue base.  Failure to expand
its revenue base may result in the Corporation depleting its available
funds and not being able pay its obligations.



<PAGE>11

Critical Accounting Policies

     Revenue Recognition

In general, the Corporation records revenue when persuasive evidence of
an arrangement exists, services have been rendered or product delivery
has occurred, the sales price to the customer is fixed or determinable,
and collectability is reasonably assured.  The following policies reflect
specific criteria for the various revenues streams of the Corporation:

Revenue is recognized at the time the product is delivered or the service
is performed. Provision for sales returns will be estimated based on the
Corporation's historical return experience however, sales returns have
not been significant due to the nature of the services provided by the
Corporation.

Deferred revenue is recorded for amounts received in advance of the time
at which services are performed and included in revenue at the completion
of the related services.  Deferred revenue aggregated $832,166 at
December 31, 2007.

     Property, Plant and Equipment

Property, plant and equipment are recorded at cost and are depreciated
based upon estimated useful lives using the straight-line method.
Estimated useful lives range from 3 to 5 years for furniture and fixtures
and from 5 to 10 years for equipment.

Recent Accounting Pronouncements

In July 2006, the FASB issued FASB Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109"
("FIN 48"), which became effective for us on January 1, 2007. The
Interpretation prescribes a recognition threshold and a measurement
attribute for the financial statement recognition and measurement of tax
positions taken or expected to be taken in a tax return. For those
benefits to be recognized, a tax position must be more-likely-than-not to
be sustained upon examination by taxing authorities. The amount
recognized is measured as the largest amount of benefit that is greater
than 50 percent likely of being realized upon ultimate settlement. The
adoption of FIN 48 did not have a material impact on our financial
statements for the year ended December 31, 2007.

In September 2006, the FASB issued Statement No. 157, "Fair Value
Measurements". This Statement defines fair value, establishes a framework
for measuring fair value in generally accepted accounting principles and
expands disclosure about fair value measurement. The implementation of
this guidance is not expected to have any impact on the Company's
financial statements.

In September 2006, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 158, "Employers'
Accounting for Defined Benefit Pension and Other Postretirement Plans, an
amendment of FASB Statements No. 87, 106, and 132(R)" ("SFAS No. 158").

<PAGE>12

SFAS No. 158 requires companies to recognize a net liability or asset and
an offsetting adjustment to accumulated other comprehensive income to
report the funded status of defined benefit pension and other
postretirement benefit plans. SFAS No. 158 requires prospective
application, recognition and disclosure requirements effective for the
Company's fiscal year ending December 31, 2007. Additionally, SFAS No. 158
requires companies to measure plan assets and obligations at their year-
end balance sheet date. This requirement is effective for the Company's
fiscal year ending December 31, 2009. The Company is currently evaluating
the impact of the adoption of SFAS No. 158 and does not expect that it
will have a material impact on its financial statements.

In February 2007, the FASB issued Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities, including an amendment of FASB Statement No. 115
("FAS 159").  FAS 159 permits companies to choose to measure many
financial instruments and certain other items at fair value that are not
currently required to be measured at fair value and establishes
presentation and disclosure requirements designed to facilitate
comparisons between companies that choose different measurement attributes
for similar types of assets and liabilities. The provisions of FAS 159
will become effective as of the beginning of our 2009 fiscal year. The
adoption of these new Statements is not expected to have a material effect
on the Company's financial position, results of operations, or cash flows.

In December 2007, the FASB issued SFAS No. 141 (R) Business Combinations.
SFAS 141R establishes principles and requirements for how the acquirer of
a business recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree. SFAS 141R also provides guidance
for recognizing and measuring the goodwill acquired in the business
combination and determines what information to disclose to enable users
of the financial statements to evaluate the nature and financial effects
of the business combination. The guidance will become effective as of the
beginning of the Company's fiscal year beginning after December 15, 2008.
Management believes the adoption of this pronouncement will not have a
material impact on the Company's consolidated financial statements.

In December 2007, the FASB issued SFAS No. 160 Noncontrolling Interests
in Consolidated Financial Statements-an amendment of ARB No. 51. SFAS 160
establishes accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary. The
guidance will become effective as of the beginning of the Company's
fiscal year beginning after December 15, 2008. Management believes the
adoption of this pronouncement will not have a material impact on the
Company's consolidated financial statements.

Forward-Looking Statements

This Form 10-KSB contains forward-looking statements within the meaning
of the federal securities laws.  These statements include those
concerning the following:


<PAGE>13

-   our intentions, beliefs and expectations regarding the fair
value of all assets and liabilities recorded;
-   our strategies; growth opportunities;
-   product development and introduction relating to new and
existing products;
-   the enterprise market and related opportunities;
-   competition and competitive advantages and disadvantages;
-   industry standards and compatibility of our products;
-   relationships with our employees;
-   our facilities,
-   operating lease and our ability to secure additional space;
-   cash dividends;
-   excess inventory;
-   our expenses;
-   interest and other income;
-   our beliefs and expectations about our future success and
results;
-   our operations results;
-   our belief that our cash and cash equivalents will be sufficient
to satisfy our anticipated cash requirements;
-   our expectations regarding our revenues and customers; and
-   investments and interest rates.

These statements are subject to risk and uncertainties that could cause
actual results and events to differ materially.

The Corporation undertakes no obligation to update forward-looking
statements to reflect events or circumstances occurring after the date
of this Form 10-KSB.


ITEM 7. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Financial Statements

The response to this item is being submitted as a separate section of
this report beginning on page 23.


ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

None


ITEM 8A.  CONTROLS AND PROCEDURES

Changes in Internal Controls

During the year ended December 31, 2007, there were no changes in our
internal controls over financial reporting (as defined in Rule 13a-
15(f) and 15d-15(f) under the Exchange Act) that have materially
affected, or are reasonably likely to materially affect, our internal
control over financial reporting.



<PAGE>14

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management,
including our chief executive officer and chief financial officer, we
conducted an evaluation of our disclosure controls and procedures, as
such term is defined under Rule 13a-15(e) and Rule 15d-15(e)
promulgated under the Securities Exchange Act of 1934, as amended, as
of December 31, 2007.  Based on this evaluation, our chief executive
officer and chief principal financial officers have concluded such
controls and procedures to be effective as of December 31, 2007 to
ensure that information required to be disclosed by the issuer in the
reports that it files or submits under the Act is recorded, processed,
summarized and reported, within the time periods specified in the
Commission's rules and forms and to ensure that information required to
be disclosed by an issuer in the reports that it files or submits under
the Act is accumulated and communicated to the issuer's management,
including its principal executive and principal financial officers, or
persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.

Management's Report on Internal Control over Financial Reporting

Management of the Corporation is responsible for establishing and
maintaining adequate internal control over financial reporting as
derived in Rule 13a-15(f) under the Securities Exchange Act of 1934.
We have assessed the effectiveness of those internal controls as of
December 31, 2007, using the Committee of Sponsoring Organizations of
the Treadway Commission ("COSO") Internal Control0 Intergrated
Framework as a basis for our assessment.

Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements.  Projections of any
evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may
deteriorate.  All internal control systems, no matter how well
designed, have inherent limitations.  Therefore, even those systems
determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation.

A material weakness in internal controls is a deficiency in internal
control, or combination of control deficiencies, that adversely affects
the Corporation's ability to initiate, authorize, record, process, or
report external financial data reliably in accordance with accounting
principles generally accepted in the United States of America such that
there is more than a remote likelihood that a material misstatement of
the Corporation's annual or interim financial statements that is more
than inconsequential will not be prevented or detected.  In the course
of making our assessment of the effectiveness of internal controls over
financial reporting, we did not identify any material weakness in our
internal control over financial reporting.  Therefore, it is our
conclusion that the Corporation's internal controls over financial
reporting were effective as of December 31, 2007.


<PAGE>15

This annual report does not include an attestation report of the
Corporation's registered public accounting firm regarding internal
control over financial reporting.  Management's report was not subject
to attestation by the Corporation's registered public accounting firm
pursuant to temporary rules of the Securities and Exchange Commission
that permit the Corporation to provide only management's report in this
annual report.


ITEM 8B.  OTHER INFORMATION

None




<PAGE>16
PART III

ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS
AND CORPORATION GOVERANCE; COMPLIANCE WITH SECTION 16(a) OF THE
EXCHANGE ACT

Board of Directors.  The following persons listed below have been
retained to provide services as director until the qualification and
election of his successor.  All holders of common stock will have the
right to vote for Directors of the Corporation.  The board of directors
has primary responsibility for adopting and reviewing implementation of
the business plan of the Corporation, supervising the development
business plan, review of the officers' performance of specific business
functions.  The board is responsible for monitoring management and from
time to time, to revise the strategic and operational plans of the
Corporation.  Directors receive no cash compensation or fees for their
services rendered in such capacity.

Mr. Shannon is a full time employee of the Corporation.

The Executive Officers and Directors are:
<TABLE>
<CAPTION>
Name                                Position                      Term(s) of Office

                                   <c>                                <c>
Timothy B. Shannon, age 44        President, Director            Inception to Present
                               Chief Executive Officer
                                                                     June 13, 2002
to September 1, 2004
                                 Chief Financial Officer       June 1, 2005 to present

Glenn Jarrett, age 54             Vice President                  Inception to Present
                                   Director

Kenneth J. Scott, age 51             Director                     January 26, 2007
                                                                      to present
</TABLE>
Resumes:

Timothy B. Shannon.   Mr. Shannon has been President, Director and
Chief Executive Officer of the Corporation since its inception in 1998.
Mr. Shannon became Chief Financial Officer in June 2005.   Mr. Shannon
spent six years as a systems engineer and marketing representative with
IBM after graduating in 1983 from the University of South Florida's
Engineering College with a degree in Computer Science.  From 1990 until
1994 Mr. Shannon was an investment advisor with Great Western
Securities and Hearn Financial Services in Orlando, FL.  In 1995, he
co-founded Shannon/Rosenbloom Marketing with Brian Rosenbloom, a
Director of Dale Jarret Racing Adventure, Inc.

Glenn Jarrett.  Mr. Jarrett has been a Director of the Corporation
since its inception.  Mr. Jarrett works as an auto racing announcer and
consultant.  Mr. Jarrett has been a senior motorsports announcer for
TNN since 1991.  He is a motorsports announcer (Pits) at contracted
events and is the co-producer and co-host of the "World of Racing"
radio program on MRN radio which airs weekdays.   Mr. Jarrett has an

<PAGE>17

extensive background in auto racing.   He drove in the NASCAR Busch
Series from 1982 to 1988 and ran a total of eighteen (18) NASCAR
Winston Cup Races from 1977 to 1983.   Mr. Jarrett is the acting
consultant and marketing coordinator for DAJ Racing, Inc. and has been
a guest speaker at many auto racing and related functions.  Mr. Jarrett
graduated from the University of North Carolina in 1972 with a Bachelor
of Science degree in Business Administration.

Kenneth J. Scott.  Since 1985, Mr. Scott has bee President of Kenneth
J. Scott, P.A., an accounting firm that provides financial, tax and
advisory services to a wide range of businesses and not-for-profit
organizations throughout the state of Florida.  Mr. Scott has been a
certified public accountant in the state of Florida since 1979.  He
graduated from Rollins College with a Bachelor of Arts degree in
Business Administration in 1978.

Section 16(a) Beneficial Ownership Reporting Compliance

To the Corporation's knowledge, no director, officer or beneficial
owner of more than ten percent of any class of equity securities of the
Corporation, other than Timothy Shannon, CEO and Brian Rosenbloom,
beneficial owner of more than ten percent and prior director, failed to
file on a timely basis reports required by Section 16(a) of the
Exchange Act during 2006.

Code of Ethics Policy

We have not yet adopted a code of ethics that applies to our principal
executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.

Corporate Governance.

There have been no changes in any state law or other procedures by
which security holders may recommend nominees to our board of
directors.  In addition to having no nominating committee for this
purpose, we currently have no specific audit committee and no audit
committee financial expert.  Based on the fact that our current
business affairs are simple, any such committees are excessive and
beyond the scope of our business and needs.

Indemnification.

The Corporation shall indemnify to the fullest extent permitted by, and
in the manner permissible under the laws of the State of Florida, any
person made, or threatened to be made, a party to an action or
proceeding, whether criminal, civil, administrative or investigative,
by reason of the fact that he is or was a director or officer of the
Corporation, or served any other enterprise as director, officer or
employee at the request of the Corporation.  The board of directors, in
its discretion, shall have the power on behalf of the Corporation to
indemnify any person, other than a director or officer, made a party to
any action, suit or proceeding by reason of the fact that he/she is or
was an employee of the Corporation.

<PAGE>18

Insofar as indemnification for liabilities arising under the Act may be
permitted to directors, officers and controlling persons of the
Corporation, the Corporation has been advised that in the opinion of
the Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the Corporation of expenses incurred or paid
by a director, officer or controlling person of the Corporation in the
successful defense of any action, suit or proceedings) is asserted by
such director, officer, or controlling person in connection with any
securities being registered, the Corporation will, unless in the
opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of
such issues.

INDEMNIFICATION OF OFFICERS OR PERSONS CONTROLLING THE CORPORATION FOR
LIABILITIES ARISING UNDER THE SECURITIES ACT OF 1933, IS HELD TO BE
AGAINST PUBLIC POLICY BY THE SECURITIES AND EXCHANGE COMMISSION AND IS
THEREFORE UNENFORCEABLE.

ITEM 10.  EXECUTIVE COMPENSATION

Since inception, the following cash compensation has been paid by the
Corporation to its executive officers, during which there were two
officers.
<TABLE>
<CAPTION>
                                                                    Long Term Compensation
                       Annual Compensation                            Awards               Payouts
 (a)                    (b)     (c)            (d)      (e)      (f)     (g)      (h)            (i)
                                                       Other                                    All
Name                                                   Annual Restricted         LTIP           Other
and                                                    Compen-   Stock  Options/ Pay-          Compen-
Principal                       Salary        Bonus    sation    Awards  SARs    Outs          sation
Position                Year      ($)          ($)       ($)       ($)   ($)     ($)             ($)

                     <c>       <c>          <c>       <c>       <c>    <c>    <c>             <c>

Timothy B. Shannon
President
Chief Executive Officer  2005     $60,000       -         -         -      -      -               -
                         2006     $75,000       -         -         -      -      -               -
                         2007    $110,000       -         -         -      -      -               -

Glenn Jarrett
COO                      2005       -           -         -         -      -      -               -
                         2006       -           -         -         -      -      -               -
                         2007       -           -         -         -      -      -               -
</TABLE>
The Corporation retains the right to increase or decrease the cash
compensation of its employees as necessitated by business conditions.
At December 31, 2007, the Corporation had accrued salary for Timothy
Shannon aggregating $100,000.

The Corporation has not entered into employment agreements with its
officers.



<PAGE>19

Board of Directors Compensation.  Currently board members receive no
special compensation for meetings or time incurred.  Director liability
insurance may be provided to all members of the Board of Directors.  No
differentiation shall be made for any further compensation of "outside
directors" and those officers of the Corporation serving in that
capacity.

On June 2, 2003, the Corporation's Board of Directors approved the
exchange of all or a portion of the indebtedness to its officers and
directors and a consultant for restricted common stock at an exchange
price of $.14 per share.  The fair value of the stock subject to the
exchange price was $.41 as of December 31, 2007 and the aggregate
amount of debt subject to exchange was $200,000 at December 31, 2007.
If all of the debt as of December 31, 2007, were converted, the
Corporation would be required to issue an additional 1,428,571 shares.

Stock Option Plan.  The Corporation shall implement an employee stock
option program.  The specifics of the plan have yet to be determined.


ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following tabulates holdings of shares of the Corporation by each
person who, subject to the above, holds of record or is known by
management to own beneficially more than 5.0% of the common shares and,
in addition, by all directors and officers of the Corporation
individually and as a group.  Each named beneficial owner has sole
voting and investment power with respect to the shares set forth
opposite his name.

              Shareholdings at February 28, 2008
<TABLE>
<CAPTION>
                                                      Percentage of
                            Number & Class(1)          Outstanding
Name and Address                  of Shares           Common Shares

   
                             <c>                    <c>
Timothy Shannon                  1,875,000                7.43%
1197 Fox Chase Drive
Newton, NC 28658

Glenn Jarrett                    1,000,000                3.96%
3182 9th Tee Drive
Newton, NC 28658

Kenneth J. Scott                   509,260                2.02%
120A North Main Avenue
Newton, NC 28658

All Directors & Officers
as a group (3 persons)           2,875,000               13.41%



<PAGE>20

Brian Rosenbloom                 2,204,900                8.73%
9632 Maywood Drive
Windermere, FL 34786

Dale Jarrett                     1,500,000                5.94%
3182 9th Tee Drive
Newton, NC 28658

Brett Favre                      1,500,000                5.94%
132 Westover Drive
Hattiesburg, MS 39402

Ned Jarrett                      1,905,000                7.55%
3182 9th Tee Drive
Newton, NC 28658
</TABLE>
(1)Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as
amended, beneficial ownership of a security consists of sole or shared
voting power (including the power to vote or direct the voting) and/or
sole or shared investment power (including the power to dispose or
direct the disposition) with respect to a security whether through a
contract, arrangement, understanding, relationship or otherwise.

Unless otherwise indicated, each person indicated above has sole power
to vote, or dispose or direct the disposition of all shares
beneficially owned, subject to applicable unity property laws.


ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE.

The Corporation made $60,074 and $41,800 of cash repayments of
shareholder advances during the years ended December 31, 2006 and
December 31, 2007, respectively.  The aggregate balance of all advances
amounted to $205,610 including accrued interest at December 31, 2007.
The advances bear interest at 6% per annum and are expected to be repaid
currently. Interest recorded was $14,760 and $13,560 for the years ended
December 31, 2006 and December 31, 2007, respectively.

At December 31, 2007, the Corporation had accrued salary for Timothy B.
Shannon, its officer, aggregating $100,000. The officer is due $75,000
per year in annual salary.

Director Independence.

The Corporation's Board of Directors consists of Timothy Shannon, Dale
Jarrett and Kenneth Scott.  Neither Timothy Shannon nor Dale Jarrett is
independent as such term is defined by a national securities exchange or
an inter-dealer quotation system.  During the fiscal year ended December
31, 2007, there were no transactions with related persons other than as
described in the section above entitled "Item 10.  Executive
Compensation".




<PAGE>21

ITEM 13.  EXHIBITS

List of Exhibits

The following exhibits are filed with this report:

  Exhibit 31 - 302 certification
  Exhibit 32 - 906 certification


ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees.  We incurred aggregate fees and expenses of approximately
$24,000 and $20,000 respectively, from Stark Winter Schenkein and Co.,
LLP for the 2007 and 2006 fiscal years.  Such fees included work
completed for our annual audits and for the review of our financial
statements included in our Form 10-QSB.

Tax Fees. We did not incur any aggregate tax fees and expenses from
Stark Winter Schenkein and Co., LLP for the 2007 and 2006 fiscal years
for professional services rendered for tax compliance, tax advice, and
tax planning.

All Other Fees. We did not incur any other fees from Stark Winter
Schenkein and Co., LLP during fiscal 2007 and 2006.

The board of directors, acting as the Audit Committee considered
whether, and determined that, the auditor's provision of non-audit
services was compatible with maintaining the auditor's independence.
All of the services described above for fiscal years 2006 and 2007 were
approved by the Board of Directors pursuant to its policies and
procedures.  We intend to continue using Stark Winter Schenkein and
Co., LLP solely for audit and audit-related services, tax consultation
and tax compliance services, and, as needed, for due diligence in
acquisitions.



<PAGE>22

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the Corporation has duly caused this
Report to be signed on its behalf by the undersigned duly authorized
person.

Date:    March 28, 2008

Dale Jarrett Racing Adventure, Inc.

/s/ Timothy Shannon
------------------------------
By: Timothy Shannon, President

Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following persons on
behalf of the Corporation and in the capacities and on the dates
indicated.
<TABLE>

                                                               <c>
/s/Timothy B. Shannon                CEO/CFO              March 28, 2008
-------------------             President/Director

/s/Kenneth J. Scott                  Director             March 28, 2008
-------------------

/s/Glenn Jarrett                     Director             March 28, 2008
-------------------               Vice President
</TABLE>



<PAGE>23

DALE JARRETT RACING ADVENTURE, INC.
INDEX TO FINANCIAL STATEMENTS

The following financial statements and schedules are filed as part of
this report:

Report of Independent Registered Public Accounting Firm          24
Balance Sheet                                                    25
Statements of Operations                                         26
Statement of Changes in Stockholders' (Deficit)                  27
Statements of Cash Flows                                         28
Notes to Financial Statements                                    31




<PAGE>24
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors
Dale Jarrett Racing Adventure, Inc.

We have audited the accompanying balance sheet of Dale Jarrett Racing
Adventure, Inc. as of December 31, 2007, and the related statements of
operations, stockholders' (deficit), and cash flows for the years ended
December 31, 2006 and December 31, 2007. These financial statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Dale Jarrett
Racing Adventure, Inc. as of December 31, 2007, and the results of its
operations, and its cash flows for the years ended December 31, 2006 and
December 31, 2007, in conformity with accounting principles generally
accepted in the United States of America.

The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern.  As discussed in Note 2 to
the financial statements, the Company has incurred significant losses
from operations and has working capital and stockholder deficiencies.
These factors raise substantial doubt about the Company's ability to
continue as a going concern. Management's plans in regard to this matter
are also discussed in Note 2. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.



Stark Winter Schenkein & Co., LLP


Denver, Colorado
March 18, 2008



<PAGE>25
                  Dale Jarrett Racing Adventure, Inc.
                             Balance Sheet
                           December 31, 2007

                   ASSETS
                   ------

Current assets:
  Cash                                                     $1,323,215
  Accounts receivable                                          43,594
  Inventory                                                     7,510
  Prepaid expenses and other current assets                   153,417
                                                           ----------
    Total current assets                                     1,527,736
                                                           ----------

Property and equipment, at cost, net of accumulated
 depreciation of $715,435                                     393,531
                                                           ----------
                                                           $1,921,267
                                                           ==========

          LIABILITIES AND STOCKHOLDERS' (DEFICIT)
          ---------------------------------------

Current liabilities:
  Current portion of long-term debt                            19,027
  Accounts payable                                             30,512
  Accrued expenses                                            253,433
  Accrued salaries - officers                                 100,000
  Deferred revenue                                            832,166
  Shareholder advances                                        205,610
                                                           ----------
    Total current liabilities                               1,440,748
                                                           ----------

Long-term debt                                                 42,562
                                                           ----------

Stockholders' (deficit):
  Common stock, $.01 par value, 100,000,000 shares
   authorized, 25,245,502 shares issue and outstanding        252,455
  Additional paid-in capital                                5,953,976
  Unearned services                                           (25,000)
  Accumulated (deficit)                                    (5,743,474)
                                                           ----------
                                                              437,957
                                                           ----------
                                                           $1,921,267
                                                           ==========


See accompanying notes to financial statements.




<PAGE>26

                  Dale Jarrett Racing Adventure, Inc.
                  Statements of Operations
      For The Years Ended December 31, 2007 and December 31, 2006

                                                 2007         2006
                                              ----------   -----------
Sales                                         $2,738,352   $2,144,327
Cost of sales and services                       958,283      873,441
                                              ----------   ----------
Gross profit                                   1,780,069    1,270,886
                                              ----------   ----------

General and administrative -
  Non cash stock compensation                  1,104,400       49,339
  General and administrative expenses          1,615,660    1,112,809
                                              ----------   ----------
                                               2,720,060    1,162,148
                                              ----------   ----------

Income (loss) from operations                   (939,991)     108,738

Other income and (expense):
  Interest income                                 10,627        3,702
  Other income                                     5,344        1,952
  Interest expense - shareholders                (13,560)     (14,760)
  Interest expense                                (3,865)     (11,233)
                                              ----------   ----------

Income (loss) before taxes                      (941,445)      88,399
Income taxes                                           -            -
                                              ----------   ----------

  Net income (loss)                           $ (941,445)  $   88,399
                                              ==========   ==========

Per share information basic and diluted:

  Income (loss) per share                     $    (0.05)  $     0.00
                                              ==========   ==========
  Weighted average shares outstanding         20,743,038   19,135,215
                                              ==========   ==========





See accompanying notes to financial statements.




<PAGE>27

                  Dale Jarrett Racing Adventure, Inc.
                 Statement of Stockholders' (Deficit)
      For the Years Ended December 31, 2007 and December 31, 2006
<TABLE>
<CAPTION>
                                                                 Additional
                                         Common       Stock        Paid-in
          ACTIVITY                       Shares       Amount       Capital
                                       ----------   ----------   ----------

                                    <c>          <c>          <c>
Balance December 31, 2005              18,999,876      189,999    3,958,753

Shares issued for services                488,055        4,880       44,459
Amortization of unearned services               -            -            -
Net income for the year ended
 December 31, 2006                              -            -            -
                                       ----------   ----------   ----------
Balance December 31, 2006              19,487,931      194,879    4,003,212

Shares issued for services              2,510,000       25,100    1,079,300
Shares purchased for cash               3,122,000       31,220      855,140
Shares exchanged for debt                 125,571        1,256       16,324
Amortization of unearned services               -            -            -
Net (loss) for the year ended
  December 31, 2007                             -            -            -
                                       ----------   ----------   ----------
Balance December 31, 2007              25,245,502   $  252,455   $5,953,976
                                       ==========   ==========   ==========



<PAGE>28

                  Dale Jarrett Racing Adventure, Inc.
(CONTINUED)      Statement of Stockholders' (Deficit)
      For the Years Ended December 31, 2007 and December 31, 2006

                                        Unearned    Accumulated
          ACTIVITY                      Services     (Deficit)      Total
                                       ----------   ----------   ----------

Balance December 31, 2005              $  (91,000)  $(4,890,428) $ (832,676)

Shares issued for services                      -            -       49,339
Amortization of unearned services          41,000            -       41,000
Net income for the year ended
 December 31, 2006                              -       88,399       88,399
                                       ----------   ----------   ----------
Balance December 31, 2006              $  (50,000) $(4,802,029)  $ (653,938)
                                       ==========  ===========   ==========

Shares issued for services                      -            -    1,104,400
Shares purchased for cash                       -            -      886,360
Shares exchanged for debt                       -            -       17,580
Amortization of unearned services          25,000            -       25,000
Net (loss) for the year ended
  December 31, 2007                             -     (941,445)    (941,445)
                                       ----------  -----------   ----------
Balance December 31, 2007              $  (25,000) $(5,743,474)  $  437,957
                                       ==========  ===========   ==========


</TABLE>





See accompanying notes to financial statements.




<PAGE>29

                  Dale Jarrett Racing Adventure, Inc.
                       Statements of Cash Flows
      For The Years Ended December 31, 2007 and December 31, 2006

                                                 2007         2006
                                              ----------   ----------
Net income (loss)                             $ (941,445)   $   88,399
  Adjustments to reconcile net income (loss) to net
   cash provided by operating activities:
    Depreciation and amortization                101,847       107,148
    Common stock issued for services           1,104,400        49,339
    Interest added to officer loans               13,560        14,760
Changes in assets and liabilities:
    (Increase) decrease in accounts receivable   (43,594)            -
    (Increase) decrease in inventory              (6,508)        7,993
    (Increase) decrease in prepaid expenses       46,094       (81,809)
    Increase (decrease) in deferred revenue      (34,866)      175,123
    Increase (decrease) in accrued officer
     compensation                                (37,285)      (30,000)
    Increase in accounts payable and accrued
     expenses                                    155,925       (15,066)
                                              ----------    ----------
      Total adjustments                        1,299,573       227,488
                                              ----------    ----------
    Net cash provided by operating activities    358,128       315,887
                                              ----------    ----------

Cash flows from investing activities:
  Acquisition of plant and equipment            (192,514)      (89,710)
                                              ----------    ----------
    Net cash (used in) investing activities     (192,514)      (89,710)
                                              ----------    ----------

Cash flows from financing activities:
  Repayment of shareholder advance               (41,800)      (60,074)
  Advance on note payable                        886,360             -
  Repayment of notes payable                     (40,061)      (77,939)
  Repayment of long-term debt                    (22,171)      (26,467)
                                              ----------    ----------
    Net cash (used in) financing activities      782,328      (164,480)
                                              ----------    ----------

Increase in cash and cash equivalents            947,942        61,697
Cash and cash equivalents, beginning             375,273       313,576
                                              ----------    ----------
Cash and cash equivalents, ending             $1,323,215    $  375,273
                                              ==========    ==========




<PAGE>30

                  Dale Jarrett Racing Adventure, Inc.
(CONTINUED)            Statements of Cash Flows
      For The Years Ended December 31, 2007 and December 31, 2006

                                                 2006         2005
                                              ----------   ----------

Supplemental cash flow information:
   Cash paid for interest                     $    3,865   $   61,307
                                              ==========   ==========
   Cash paid for income taxes                 $        -   $        -
                                              ==========   ==========

Non-cash Investing and Financing Activities:
  Common stock issued for retirement of debt  $   17,580   $        -
  Vehicles acquired for notes payable         $   49,172   $        -
                                              ==========   ==========





See accompanying notes to financial statements.




<PAGE>31

Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2007

Note 1. Organization and Significant Accounting Policies.

The Company was incorporated in Florida on November 24, 1998. The Company
offers the "NASCAR" driving experience to the public.  The Company owns
several 'NASCAR" type automobiles and has secured several racetrack
locations at which it offers these services at various dates during the
year.

Reclassifications

Certain amounts in the prior year's financial statements have been
reclassified to conform to the current year presentation.

Revenue Recognition

In general, the Company records revenue when persuasive evidence of an
arrangement exists, services have been rendered or product delivery has
occurred, the sales price to the customer is fixed or determinable, and
collectability is reasonably assured. The following policies reflect
specific criteria for the various revenues streams of the Company:

Revenue is recognized at the time the product is delivered or the service
is performed. Provision for sales returns will be estimated based on the
Company's historical return experience, however sales returns have not
been significant due to the nature of the services provided by the
Company.

Deferred revenue is recorded for amounts received in advance of the time
at which services are performed and included in revenue at the completion
of the related services. Deferred revenue aggregated $832,166 December
31, 2007.

Cash

For purposes of the statement of cash flows, the Company considers all
highly liquid debt instruments purchased with a maturity of three months
or less to be cash equivalents. Cash at a single financial institution
aggregated $1,183,243 at December 31, 2007.

Accounts Receivable

Accounts receivable are stated at estimated net realizable value.
Accounts receivable are comprised of balances due from customers net of
estimated allowances for uncollectible accounts.  In determining
collectability, historical trends are evaluated and specific customer
issues are reviewed to arrive at appropriate allowances.



<PAGE>32

Inventory

Inventory is valued at the lower of cost or market on a first-in
first-out basis and consists primarily of finished goods and includes
primarily promotional items that bear the Company's logo.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost and are depreciated
based upon estimated useful lives using the straight-line method.
Estimated useful lives range from 3 to 5 years for furniture and fixtures
and from 5 to 10 years for equipment.

Intangible Assets and Long Lived Assets

The Company makes reviews for the impairment of long-lived assets and
certain identifiable intangibles whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. An impairment loss would be recognized when estimated future
cash flows expected to result from the use of the asset and its eventual
disposition is less than its carrying amount. No such impairment losses
have been identified by the Company for the years ended December 31, 2006
and December 31, 2007.

Estimates

The preparation of the Company's financial statements requires management
to make estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes.  Actual results could differ
from these estimates.

Advertising costs

Advertising costs are charged to operations when the advertising first
takes place. Advertising costs charged to operations were $264,762 and
$457,401 for the years ended December 31, 2006 and December 31, 2007,
respectively.

Fair value of financial instruments

The Company's short-term financial instruments consist of cash, accounts
receivable, accounts payable and accrued expenses and notes payable. The
carrying amounts of these financial instruments approximates fair value
because of their short-term maturities. Financial instrument that
potentially subjects the Company to a concentration of credit risk
consists principally of cash. During the year the Company maintained cash
deposits at financial institutions in excess of the $100,000 limit
covered by the Federal Deposit Insurance Corporation. The Company does
not hold or issue financial instruments for trading purposes nor does it
hold or issue interest rate or leveraged derivative financial
instruments.

The carrying value of the Company's long-term debt approximated its fair
value based on the current market conditions for similar debt
instruments.

<PAGE>33

Segment Information

The Company follows Statement of Financial Accounting Standard ("SFAS")
131, Disclosures about Segments of an Enterprise and Related
Information." Certain information is disclosed, per SFAS No. 131, based
on the way management organizes financial information for making
operating decisions and assessing performance. The Company currently
operates in a single segment and will evaluate additional segment
disclosure requirements as it expands its operations.

Income Taxes

The Company follows SFAS 109 "Accounting for Income Taxes" for recording
the provision for income taxes. Deferred tax assets and liabilities are
computed based upon the difference between the financial statement and
income tax basis of assets and liabilities using the enacted marginal tax
rate applicable when the related asset or liability is expected to be
realized or settled. Deferred income tax expenses or benefits are based
on the changes in the asset or liability each period. If available
evidence suggests that it is more likely than not that some portion or
all of the deferred tax assets will not be realized, a valuation
allowance is required to reduce the deferred tax assets to the amount
that is more likely than not to be realized. Future changes in such
valuation allowance are included in the provision for deferred income
taxes in the period of change.
Beginning January 1, 2007, we adopted FASB Interpretation No. 48,
"Accounting for Uncertainty in Income Taxes - an interpretation of FASB
Statement No. 109" ("FIN 48"). The Interpretation prescribes a
recognition threshold and a measurement attribute for the financial
statement recognition and measurement of tax positions taken or expected
to be taken in a tax return. For those benefits to be recognized, a tax
position must be more-likely-than-not to be sustained upon examination by
taxing authorities. The amount recognized is measured as the largest
amount of benefit that is greater than 50 percent likely of being
realized upon ultimate settlement.

Stock-Based Compensation

In December 2004, the FASB issued SFAS 123 (revised 2004) "Share-Based
Payment". This Statement requires that the cost resulting from all share-
based transactions be recorded in the financial statements. The Statement
establishes fair value as the measurement objective in accounting for
share-based payment arrangements and requires all entities to apply a
fair-value-based measurement in accounting for share-based payment
transactions with employees. The Statement also establishes fair value as
the measurement objective for transactions in which an entity acquires
goods or services from non-employees in share-based payment transactions.
The Statement replaces SFAS 123 "Accounting for Stock-Based Compensation"
and supersedes APB Opinion No. 25 "Accounting for Stock Issued to
Employees". The provisions of this Statement were effective for the
Company beginning with its fiscal year ending December 31, 2006.



<PAGE>34

Net Income (Loss) Per Common Share

The Company calculates net income (loss) per share as required by SFAS
128, "Earnings per Share."  Basic earnings (loss) per share is calculated
by dividing net income (loss) by the weighted average number of common
shares outstanding for the period.  Diluted earnings (loss) per share is
calculated by dividing net income (loss) by the weighted average number
of common shares and dilutive common stock equivalents outstanding.
During periods in which the Company incurs losses common stock
equivalents, if any, are not considered, as their effect would be anti-
dilutive or have no effect on earnings per share.

Recent Pronouncements
In July 2006, the FASB issued FASB Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109"
("FIN 48"), which became effective for us on January 1, 2007. The
Interpretation prescribes a recognition threshold and a measurement
attribute for the financial statement recognition and measurement of tax
positions taken or expected to be taken in a tax return. For those
benefits to be recognized, a tax position must be more-likely-than-not to
be sustained upon examination by taxing authorities.  The amount
recognized is measured as the largest amount of benefit that is greater
than 50 percent likely of being realized upon ultimate settlement. The
adoption of FIN 48 did not have a material impact on our financial
statements for the year ended December 31, 2007.

In September 2006, the FASB issued Statement No. 157, "Fair Value
Measurements". This Statement defines fair value, establishes a framework
for measuring fair value in generally accepted accounting principles and
expands disclosure about fair value measurement. The implementation of
this guidance is not expected to have any impact on the Company's
financial statements.

In September 2006, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 158, "Employers'
Accounting for Defined Benefit Pension and Other Postretirement Plans, an
amendment of FASB Statements No. 87, 106, and 132(R)" ("SFAS No. 158").
SFAS No. 158 requires companies to recognize a net liability or asset and
an offsetting adjustment to accumulated other comprehensive income to
report the funded status of defined benefit pension and other
postretirement benefit plans. SFAS No. 158 requires prospective
application, recognition and disclosure requirements effective for the
Company's fiscal year ending December 31, 2007. Additionally, SFAS No. 158
requires companies to measure plan assets and obligations at their year-
end balance sheet date. This requirement is effective for the Company's
fiscal year ending December 31, 2009. The Company is currently evaluating
the impact of the adoption of SFAS No. 158 and does not expect that it
will have a material impact on its financial statements.

In February 2007, the FASB issued Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities, including an amendment of FASB Statement No. 115
("FAS 159").  FAS 159 permits companies to choose to measure many
financial instruments and certain other items at fair value that are not

<PAGE>35

currently required to be measured at fair value and establishes
presentation and disclosure requirements designed to facilitate
comparisons between companies that choose different measurement attributes
for similar types of assets and liabilities. The provisions of FAS 159
will become effective as of the beginning of our 2009 fiscal year. The
adoption of these new Statements is not expected to have a material effect
on the Company's financial position, results of operations, or cash flows.

In December 2007, the FASB issued SFAS No. 141 (R) Business Combinations.
SFAS 141R establishes principles and requirements for how the acquirer of
a business recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree. SFAS 141R also provides guidance
for recognizing and measuring the goodwill acquired in the business
combination and determines what information to disclose to enable users
of the financial statements to evaluate the nature and financial effects
of the business combination. The guidance will become effective as of the
beginning of the Company's fiscal year beginning after December 15, 2008.
Management believes the adoption of this pronouncement will not have a
material impact on the Company's consolidated financial statements.

In December 2007, the FASB issued SFAS No. 160 Noncontrolling Interests
in Consolidated Financial Statements-an amendment of ARB No. 51. SFAS 160
establishes accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary. The
guidance will become effective as of the beginning of the Company's
fiscal year beginning after December 15, 2008. Management believes the
adoption of this pronouncement will not have a material impact on the
Company's consolidated financial statements.

Note 2. Basis of Reporting

The Company's financial statements are presented on a going concern
basis, which contemplates the realization of assets and satisfaction of
liabilities in the normal course of business.

The Company has experienced a significant loss from operations as a
result of its investment necessary to achieve its operating plan, which
is long-range in nature. For the year ended December 31, 2006, the
Company had net income of $88,399 and for the year ended December 31,
2007, the Company incurred a net loss of $941,445. In addition, the
Company has limited working capital at December 31, 2007.

The Company's ability to continue as a going concern is contingent upon
its ability to secure additional financing, increase ownership equity and
continue profitable operations. In addition, the Company's ability to
continue as a going concern must be considered in light of the problems,
expenses and complications frequently encountered by entrance into
established markets and the competitive environment in which the Company
operates.

The Company is pursuing financing for its operations and seeking
additional private investments. In addition, the Company is seeking to
expand its revenue base. Failure to secure such financing or to raise

<PAGE>36

additional equity capital and to expand its revenue base may result in
the Company depleting its available funds and not being able pay its
obligations.

The financial statements do not include any adjustments to reflect the
possible future effects on the recoverability and classification of
assets or the amounts and classification of liabilities that may result
from the possible inability of the Company to continue as a going
concern.

Note 3.  Property, Plant and Equipment.

Property, plant and equipment consist of the following at December 31,
2007:

Office furniture and equipment      $   60,026
Shop and track equipment               198,189
Race vehicles                          606,284
Vehicles - other                       321,314
                                   -----------
                                     1,185,813
Less accumulated depreciation         (792,282)
                                    ---------
                                    $  393,531
                                    ==========

Depreciation charged to operations was $66,148 and $76,847 for the years
ended December 31, 2006, and December 31, 2007, respectively.

Note 4. Stockholders' (Deficit)

During the periods covered by these financial statements the Company
issued shares of common stock and subordinated debentures without
registration under the Securities Act of 1933. Although the Company
believes that the sales did not involve a public offering of its
securities and that the Company did comply with the "safe harbor"
exemptions from registration, if such exemptions were found not to apply,
this could have a material impact on the Company's financial position and
results of operations.

During December 1998 the Company negotiated personal service contracts
with certain members of the Jarrett family and Bret Favre. The Jarretts
and Favre have had a prior business relationship related to automobile
racing. The contracts require the individuals to provide personal
appearances and to participate in the advertising and promotional efforts
of the Company for a period of ten years.  The Company issued an
aggregate of 5,500,000 shares in connection with the personal service
contracts.

The unearned services under the contracts aggregate $25,000 at December
31, 2007, and are classified as a reduction of stockholders' equity.
Services charged to expense during the years ended December 31, 2006, and



<PAGE>37

December 31, 2007, amounted to $41,000 and $25,000, respectively. The
services will be charged to expense ratably over the remaining terms of
the contracts.

On June 2, 2003, the Company's Board of Directors approved the exchange
of all or a portion of the indebtedness to its officers and directors and
a consultant for restricted common stock at an exchange price of $.14 per
share.  The fair value of the stock subject to the exchange price was
$.41 as of December 31, 2007 and the aggregate amount of debt subject to
exchange was $200,000 at December 31, 2007. If all of the debt as of
December 31, 2005, were converted, the Company would be required to issue
an additional 1,428,571 shares. During 2007 the Company converted $17,580
of debt into 125,571 shares of common stock pursuant to the exchange.

The following table summarizes the stock option activity:

                                    Stock          Weighted-average
                                   Options         Price per Share
                                   -------         ----------------
Outstanding at December 31, 2005
 and December 31, 2006             6,949,654                 $0.15
Exercised                           (125,571)                $0.14
Expired                           (1,895,512)                $0.14
                                   ---------
Balance December 31, 2007          4,928,571                 $0.15
                                   =========

At December 31, 2007, the Company has the following options outstanding
all of which are exercisable:

Exercise price: $0.14; Outstanding: 1,428,571; Contractual life: .5
years

Exercise price: $0.15; Outstanding: 3,500,000; Contractual life: 2.8
years

During the year ended December 31, 2006, the Company issued 488,055
shares of common stock for services valued at $49,339. The value assigned
to the shares issued was based upon the trading value of the Company's
common stock at the date the shares were authorized by the Company's
Board of Directors.

During the year ended December 31, 2007, the Company issued 2,510,000
shares of common stock for services valued at $1,014,400. The value
assigned to the shares issued was based upon the trading value of the
Company's common stock at the date the shares were authorized by the
Company's Board of Directors.

During the year ended December 31, 2007, the Company issued 2,122,000
shares of common stock for cash aggregating $806,360 pursuant to a
private placement. In addition to receiving common shares the investors
received 1,061,000 warrants to purchase one share of common stock at a
price of $.55 for a period of two years. The Company also issued



<PAGE>38

1,000,000 shares of common stock for cash of $80,000 pursuant to a
consulting agreement at a discount from market of $90,000 which has been
charged to operations during the year.

Note 5. Income Taxes.

Deferred income taxes may arise from temporary differences resulting from
income and expense items reported for financial accounting and tax
purposes in different periods. Deferred taxes are classified as current
or non-current, depending on the classifications of the assets and
liabilities to which they relate. Deferred taxes arising from temporary
differences that are not related to an asset or liability are classified
as current or non-current depending on the periods in which the temporary
differences are expected to reverse.  The Company had no significant
deferred tax items arise during any of the periods presented.

The Company has not provided for income taxes during any period presented
as a result of operating losses. The Company has a net operating loss
carryforward at December 31, 2007 of approximately $4,000,000 that will
expire through 2027. The Company has fully reserved the deferred tax
asset that would arise from the loss carryforward since the Company
believes that it is more likely than not that future income from
operations will not be available to utilize the deferred tax asset.  The
approximate deferred tax asset and the related reserve are as follows:

Deferred tax asset
 Tax benefit of net operating loss            $ 1,300,000
 Less valuation allowance                      (1,300,000)
                                              -----------
Net deferred tax asset                        $         -
                                              ===========
Note 6. Notes Payable and Long-term Debt

The Company has two vehicle purchase contracts outstanding at December
31, 2007, totaling $61,589. The loans are due in monthly installments of
$1,557 including interest at 0.0% to 5% through July 2012. Two support
vehicles collateralize the loans.  Principal repayments are due as
follows: $19,027 in 2008, $16,270 in 2009, $10,034 in 2010, $10,832 in
2011 and $5,156 in 2012.

Note 7. Commitments and contingencies

Operating leases

The Company leases its office and garage facilities on a month to month
or short term basis.

Rent expense amounted to $49,332 and $35,465 for the years ended December
31, 2006 and December 31, 2007, respectively.




<PAGE>39

Note 8.  Related Party Transactions

The Company made $60,074 and $41,800 of cash repayments of shareholder
advances during the years ended December 31, 2006 and December 31, 2007,
respectively. The aggregate balance of all advances amounted to $205,610
including accrued interest at December 31, 2007. The advances bear
interest at 6% per annum and are expected to be repaid currently.
Interest recorded was $14,760 and $13,560 for the years ended December
31, 2006 and December 31, 2007, respectively.

At December 31, 2007, the Company had accrued salary for its officer
aggregating $100,000. The officer is due $75,000 per year in annual
salary.