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, 2006
                       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
$2,144,327.  As of December 31, 2006, the market value of the
Corporation's voting $.0l par value common stock held by non-affiliates
of the Corporation was $3,539,109.

<PAGE>2

The number of shares outstanding of Corporation's only class of common
stock, as of December 31, 2006 was 19,487,931 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 $50,000 at December
31, 2006.  As of December 31, 2004, the Corporation determined that
certain of the service contracts no longer would provide continuing
contributions to the Corporation's operations.  The impairment amounted
to $272,224 for the six months ended December 31, 2004.

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 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 $.27 as of December 31, 2006 and the aggregate amount of debt
subject to exchange was $482,939 at December 31, 2006. If all of the
debt as of December 31, 2004, were converted, the Company would be
required to issue an additional 1,994,029 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, 2006, 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>
             3/31/04                     .36                   .36
             6/30/04                     .22                   .22
             9/30/04                     .20                   .20
            12/31/04                     .23                   .23
             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
</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, 2007, 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.

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

<PAGE>8

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 2007.

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

For the year ended December 31, 2005, the Corporation acquired plant
and equipment of $5,736 resulting in net cash used in investing
activities of $5,736.

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.

At December 31, 2006, the Corporation had the following options
outstanding, all of which are exercisable.

   Exercise price:  $0.14
     Outstanding:  3,449,654
     Remaining Exercise Period:  1.5 years

   Exercise price:  $0.15
     Outstanding:  3,500,000
     Remaining Exercise period:  3.8 years

<PAGE>9

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.

During the year ended December 31, 2006, the Corporation, in its
ongoing attempt to limit cash expenditures, issued 488,055 common
shares for services valued at $49,339.

For the year ended December 31, 2005, the Corporation reduced its
outstanding debt by repaying shareholder advances of $35,000, notes
payable of $7,000 and long-term debt of $35,011.  However, during that
same period, the Corporation received from proceeds from an unsecured
note payable to a bank in the amount of $25,000 bearing interest at 4.5
percent per annum due on February 6, 2006.  As of December 31, 2005,
the balance was $118,000.

During the year ended December 31, 2005, the Corporation, in its
ongoing attempt to limit cash expenditures, issued 1,048,000 common
shares for services valued at $118,400.

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 $.27 as of December 31, 2006 and the aggregate
amount of debt subject to exchange was $482,939 at December 31, 2006.
If all of the debt as of December 31, 2005, were converted, the
Corporation would be required to issue an additional 2,650,964 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, 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.  The percentage of general and administrative expenses to
revenues for the year ended December 31, 2006 decreased to 54% from 66%
for the year ended December, 2005 due to management's ongoing effort to
maintain and/or reduce these types of expenses.

For the year ended December 31, 2005, the Corporation had sales of
$1,785,356 with cost of sales of $896,479 for a gross profit of
$888,877.

For the year ended December 31, 2005, the Corporation had general and
administrative expenses of $1,067,896 and non-cash stock compensation
of $118,400.  The percentage of general and administrative expenses to



<PAGE>10

revenues for the year ended December 31, 2005 increased slightly to 66%
from 65% for the six months ended December, 2004 due to management's
ongoing effort to maintain and/or reduce these types of expenses.

During the year ended December 31, 2005, the Corporation agreed to
issue 100,000 common shares for prepaid rent valued at $16,000.

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 and has working capital and stockholder
deficiencies.  These factors raise 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.

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:



<PAGE>11


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 $867,032 at
December 31, 2006.

     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 November 2004, the Financial Accounting Standards Board (FASB)
issued SFAS 151 "Inventory Costs".  This Statement amends the guidance
in ARB No. 43, Chapter 4, "Inventory Pricing, to clarify the accounting
for abnormal amounts of idle facility expense, freight, handling costs,
and wasted material (spoilage).  In addition, this Statement requires
that allocation of fixed production overhead to the costs of conversion
be based on the normal capacity of the production facilities.  The
provisions of this Statement will be effective for the Company
beginning with its fiscal year ending December 31, 2007.  The Company
is currently evaluating the impact this new Standard will have on its
operations, but believes that it will not have a material impact on the
Company's financial position, results of operations or cash flows.

In December 2004, the FASB issued SFAS 153 "Exchanges of Non monetary
Assets - an amendment of APB Opinion No. 29".  This Statement amended
APB Opinion 29 to eliminate the exception for non monetary exchanges of
similar productive assets and replaces it with a general exception for
exchanges of non monetary assets that do not have commercial substance.
A non monetary exchange has commercial substance if the future cash
flows of the entity are expected to change significantly as a result of
the exchange.  The adoption of this Standard is not expected to have
any material impact on the Company's financial position, results of
operations or cash flows.

In August 2005, the FASB issued SFAS 154, "Accounting Changes and Error
Corrections."  This statement applies to all voluntary changes in
accounting principle and to changes required by an accounting
pronouncement if the pronouncement does not include specific transition
provisions, and it changes the requirements for accounting for and
reporting them.  Unless it is impractical, the statement requires
retrospective application of the changes to prior periods' financial
statements.  This statement is effective for accounting changes and
correction of errors made in fiscal years beginning after December 15,
2005.

<PAGE>12

SFAS 155 - "Accounting for Certain Hybrid Financial Instruments - an
amendment of FASB Statements No. 133 and 140".  This Statement, issued
in February 2006, amends FASB Statements No. 133, "Accounting for
Derivative Instruments and Hedging Activities", and No. 140,
"Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities".  This Statement resolves issues
addressed in Statement 133 Implementation Issue No. D1, "Application of
Statement 133 to Beneficial Interests in Securitized Financial Assets."

This Statement:
  a. Permits fair value remeasurement for any hybrid financial
instrument that contains an embedded derivative that otherwise would
require bifurcation

  b. Clarifies which interest-only strips and principal-only strips are
not subject to the requirements of Statement 133

  c. Establishes a requirement to evaluate interests in securitized
financial assets to identify interests that are freestanding
derivatives or that are hybrid financial instruments that contain an
embedded derivative requiring bifurcation

  d. Clarifies that concentrations of credit risk in the form of
subordination are not embedded derivatives

  e. Amends Statement 140 to eliminate the prohibition on a qualifying
special-purpose entity from holding a derivative financial instrument
that pertains to a beneficial interest other than another derivative
financial instrument.

This Statement is effective for all financial instruments acquired or
issued after the beginning of our fiscal year beginning January 1,
2007.

The fair value election provided for in paragraph 4(c) of this
Statement may also be applied upon adoption of this Statement for
hybrid financial instruments that had been bifurcated under paragraph
12 of Statement 133 prior to the adoption of this Statement.  Earlier
adoption is permitted as of the beginning of our fiscal year, provided
we have not yet issued financial statements, including financial
statements for any interim period, for that fiscal year.  Provisions of
this Statement may be applied to instruments that we hold at the date
of adoption on an instrument-by-instrument basis.

The Corporation is currently reviewing the effects of adoption of this
statement but it is not expected to have a material impact on our
financial statements.

SFAS 156 - "Accounting for Servicing of Financial Assets--an amendment
of FASB Statement No. 140".  This Statement, issued in March 2006,
amends FASB Statement No. 140, "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities", with respect
to the accounting for separately recognized servicing assets and
servicing liabilities.  This Statement:

<PAGE>13

  1. Requires an entity to recognize a servicing asset or servicing
liability each time it undertakes an obligation to service a financial
asset by entering into a servicing contract in certain situations.

  2. Requires all separately recognized servicing assets and servicing
liabilities to be initially measured at fair value, if practicable.

  3. Permits an entity to choose either the amortization method or the
fair value measurement method for each class of separately recognized
servicing assets and servicing liabilities.

  4. At its initial adoption, permits a one-time reclassification of
available-for-sale securities to trading securities by entities with
recognized servicing rights, without calling into question the
treatment of other available-for-sale securities under Statement 115,
provided that the available-for-sale securities are identified in some
manner as offsetting the entity's exposure to changes in fair value of
servicing assets or servicing liabilities that a servicer elects to
subsequently measure at fair value.

  5. Requires separate presentation of servicing assets and servicing
liabilities subsequently measured at fair value in the statement of
financial position and additional disclosures for all separately
recognized servicing assets and servicing liabilities.

Adoption of this Statement is required as of the beginning of the first
fiscal year that begins after September 15, 2006.  The adoption of this
statement is not expected to have a material impact on our financial
statements.

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
Corporation's fiscal year ending December 31, 2009.  The Corporation 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.

<PAGE>14

In September 2006, the United States Securities and Exchange Commission
("SEC") SAB No. 108, "Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in Current Year Financial
Statements."  This SAB provides guidance on the consideration of the
effects of prior year misstatements in quantifying current year
misstatements for the purpose of a materiality assessment.  SAB 108
establishes an approach that requires quantification of financial
statement errors based on the effects of each of the company's balance
sheet and statement of operations financial statements and the related
financial statement disclosures.  The SAB permits existing public
companies to record the cumulative effect of initially applying this
approach in the first year ending after November 15, 2006 by recording
the necessary correcting adjustments to the carrying values of assets
and liabilities as of the beginning of that year with the offsetting
adjustment recorded to the opening balance of retained earnings.
Additionally, the use of the cumulative effect transition method
requires detailed disclosure of the nature and amount of each
individual error being corrected through the cumulative adjustment and
how and when it arose.  The Corporation is currently evaluating the
impact, if any, that SAB 108 may have on the Corporation's results of
operations or financial position.

In July 2006, the FASB issued FASB Interpretation No. 48, "Accounting
for Uncertainty in Income Taxes-an interpretation of FASB Statement No.
109."  This Interpretation prescribes a recognition threshold and
measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax
return.  This Interpretation also provides guidance on derecognition,
classification, interest and penalties, accounting in interim periods,
disclosure, and transition.  The Interpretation is effective for fiscal
years beginning after December 15, 2006 and the Corporation is
currently evaluating the impact, if any, that FASB No. 48 may have on
the Corporation's results of operations or financial position.

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:

-   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;

<PAGE>15

-   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

Controls and Procedures.  Timothy B. Shannon, the Chief Executive
Officer and the Chief Financial Officer of the Corporation has made an
evaluation of the disclosure controls and procedures relating to the
annual report on Form 10KSB for the year ended December 31, 2006 as
filed with the Securities and Exchange Commission and has judged such
controls and procedures to be effective as of December 31, 2006 (the
evaluation date).

There have not been any significant changes in the internal controls of
the Corporation or other factors that could significantly affect
internal controls relating to the Corporation since the evaluation
date.


ITEM 8B.  OTHER INFORMATION

None




<PAGE>12
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                 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  2004     $30,000       -         -         -     (1)     -               -
                         2005     $60,000       -         -         -      -      -               -
                         2006     $75,000       -         -         -      -      -               -

Glenn Jarrett
COO                      2004       -           -         -         -     (1)     -               -
                         2005       -           -         -         -      -      -               -
                         2006       -           -         -         -      -      -               -
</TABLE>
(1)For the six months ended December 31, 2004, the Corporation awarded
Timothy Shannon 2,000,000 stock options at an exercise price of $.15
and Glenn Jarrett 1,000,000 stock options at an exercise price of $.15.

The Corporation retains the right to increase or decrease the cash
compensation of its employees as necessitated by business conditions.
At December 31, 2006, the Corporation had accrued salary for Timothy
Shannon aggregating $137,285.



<PAGE>19

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

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 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.

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 $.27 as of December 31, 2006 and no debt was
converted as of December 31, 2006. The aggregate amount of debt subject
to exchange was $482,939 at December 31, 2006. If all of the debt as of
December 31, 2004 were converted, the Corporation would be required to
issue an additional 2,136,814 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, 2007
<TABLE>
<CAPTION>
                                                      Percentage of
                            Number & Class(1)          Outstanding
Name and Address                  of Shares           Common Shares

   
                             <c>                    <c>
Timothy Shannon                  1,875,000                9.62%
1197 Fox Chase Drive
Newton, NC 28658

Glenn Jarrett                    1,000,000                5.13%
3182 9th Tee Drive
Newton, NC 28658

<PAGE>20

Kenneth J. Scott                         0                0.00%
120A North Main Avenue
Newton, NC 28658

All Directors & Officers
as a group (3 persons)           2,875,000               14.75%

Brian Rosenbloom                 2,204,900               11.31%
9632 Maywood Drive
Windermere, FL 34786

Dale Jarrett                     1,500,000                7.70%
3182 9th Tee Drive
Newton, NC 28658

Brett Favre                      1,500,000                7.70%
132 Westover Drive
Hattiesburg, MS 39402

Ned Jarrett                      1,905,000                9.78%
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.

Dale Jarrett Racing made $60,074 and $35,000 of cash repayments of
officer advances during the year ended December 31, 2006 and December 31,
2005, respectively.  The aggregate balance of all advances amounted to
$233,850 including accrued interest at December 31, 2006.  The advances
bear interest at 6 percent per annum and are expected to be repaid
currently.  Interest recorded was $14,760 and $15,010 for the year ended
December 31, 2006 and December 31, 2005, respectively.

At December 31, 2006, Dale Jarrett Racing had accrued salary for Timothy
B. Shannon, its officer aggregating $137,285.  The officer is due $75,000
per year in annual salary.



<PAGE>21

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, 2006, there were no transactions with related persons other than as
described in the section above entitled "Item 10.  Executive
Compensation".


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
$18,000 and $15,000, respectively, from Stark Winter Schenkein and Co.,
LLP for the 2006 and 2005 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 2006 and 2005 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 2006 and 2005.

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 year 2006 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 29, 2007

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 29, 2007
-------------------             President/Director

/s/Kenneth J. Scott                  Director             March 29, 2007
-------------------

/s/Glenn Jarrett                     Director             March 29, 2007
-------------------               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                                         29
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, 2006, and the related statements of
operations, stockholders' (deficit), and cash flows for the years ended
December 31, 2006 and December 31, 2005.  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, 2006, and the results
of its operations, and its cash flows for the years ended December 31,
2006 and December 31, 2005, 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 22, 2007



<PAGE>25
                  Dale Jarrett Racing Adventure, Inc.
                             Balance Sheet
                           December 31, 2006

                   ASSETS
                   ------

Current assets:
  Cash                                                     $  375,273
  Inventory                                                     1,002
  Prepaid expenses and other current assets                   199,511
                                                           ----------
    Total current assets                                      575,786
                                                           ----------

Property and equipment, at cost, net of accumulated
 depreciation of $715,435                                     228,692
                                                           ----------
                                                           $  804,478
                                                           ==========

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

Current liabilities:
  Note payable to bank                                     $   40,061
  Current portion of long-term debt                            19,228
  Accounts payable                                             85,600
  Accrued expenses                                             60,000
  Accrued salaries - officers                                 137,285
  Deferred revenue                                            867,032
  Shareholder advances                                        233,850
                                                           ----------
    Total current liabilities                               1,443,056
                                                           ----------

Long-term debt                                                 15,360
                                                           ----------

Stockholders' (deficit):
  Common stock, $.01 par value, 100,000,000 shares
   authorized, 19,487,931 shares issue and outstanding        194,879
  Additional paid-in capital                                4,003,212
  Unearned services                                           (50,000)
  Accumulated (deficit)                                    (4,802,029)
                                                           ----------
                                                             (653,938)
                                                           ----------
                                                           $  804,478
                                                           ==========


See accompanying notes to financial statements.




<PAGE>26

                  Dale Jarrett Racing Adventure, Inc.
                  Statements of Operations
      For The Years Ended December 31, 2006 and December 31, 2005

                                                 2006         2005
                                              ----------   ----------
Sales                                         $2,144,327   $1,785,356
Cost of sales and services                       873,441      896,479
                                              ----------   ----------
Gross profit                                   1,270,886      888,877
                                              ----------   ----------

General and administrative -
  Non cash stock compensation                     49,339      118,400
  General and administrative expenses          1,112,809    1,067,896
                                              ----------   ----------
                                               1,162,148    1,186,296
                                              ----------   ----------

Income (loss) from operations                    108,738     (297,419)

Other income and (expense):
  Interest income                                  3,702            -
  Other income                                     1,952            -
  Interest expense - shareholders                (14,760)     (15,010)
  Interest expense                               (11,233)     (10,507)
                                              ----------   ----------

Income (loss) before taxes                        88,399     (322,936)
Income taxes                                           -            -
                                              ----------   ----------

  Net income (loss)                           $   88,399   $ (322,936)
                                              ==========   ==========

Per share information basic and diluted:

  Income (loss) per share                     $     0.00   $    (0.02)
                                              ==========   ==========
  Weighted average shares outstanding         19,135,215   18,516,543
                                              ==========   ==========





See accompanying notes to financial statements.




<PAGE>27

                  Dale Jarrett Racing Adventure, Inc.
                 Statement of Stockholders' (Deficit)
      For the Years Ended December 31, 2006 and December 31, 2005
<TABLE>
<CAPTION>
                                                                 Additional
                                         Common       Stock        Paid-in
          ACTIVITY                       Shares       Amount       Capital
                                       ----------   ----------   ----------

                                    <c>          <c>          <c>
Balance December 31, 2004              18,151,876   $  181,519   $3,832,833

Shares issued for services                848,000        8,480       93,920
Shares subscribed for prepaid rent              -            -       16,000
Shares subscribed for services                  -            -       16,000
Amortization of unearned services               -            -            -
Net (loss) for the year ended
 December 31, 2005                              -            -            -
                                       ----------   ----------   ----------
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
                                       ==========   ==========   ==========




<PAGE>28

                  Dale Jarrett Racing Adventure, Inc.
(CONTINUED)      Statement of Stockholders' (Deficit)
      For the Years Ended December 31, 2006 and December 31, 2005

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

Balance December 31, 2004              $ (100,000) $(4,567,492)  $ (653,140)

Shares issued for services                      -            -      102,400
Shares subscribed for prepaid rent              -            -       16,000
Shares subscribed for services            (16,000)           -            -
Amortization of unearned services          25,000            -       25,000
Net (loss) for the year ended
 December 31, 2005                              -     (322,936)    (322,936)
                                       ----------   ----------   ----------
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)
                                       ==========  ===========   ==========
</TABLE>





See accompanying notes to financial statements.




<PAGE>29

                  Dale Jarrett Racing Adventure, Inc.
                       Statements of Cash Flows
      For The Years Ended December 31, 2006 and December 31, 2005

                                                 2006         2005
                                              ----------   ----------
Net income (loss)                             $   88,399   $ (322,936)
  Adjustments to reconcile net income (loss) to net
   cash provided by operating activities:
    Depreciation and amortization                107,148       95,716
    Common stock issued for services              49,339      118,400
    Interest added to officer loans               14,760       15,010
Changes in assets and liabilities:
    (Increase) decrease in accounts receivable         -       44,220
    (Increase) decrease in inventory               7,993          223
    (Increase) decrease in prepaid expenses      (81,809)     (13,953)
    (Increase) decrease in other current assets        -        1,359
    Increase (decrease) in deferred revenue      175,123      196,346
    Increase (decrease) in accrued officer
     compensation                                (30,000)     (16,500)
    Increase in accounts payable and accrued
     expenses                                    (15,066)      (9,762)
                                              ----------   ----------
      Total adjustments                          227,488      431,059
                                              ----------   ----------
    Net cash provided by operating activities    315,887      108,123
                                              ----------   ----------

Cash flows from investing activities:
  Acquisition of plant and equipment             (89,710)      (5,736)
                                              ----------   ----------
    Net cash (used in) investing activities      (89,710)      (5,736)
                                              ----------   ----------

Cash flows from financing activities:
  Repayment of shareholder advance               (60,074)     (35,000)
  Advance on note payable                              -       25,000
  Repayment of notes payable                     (77,939)      (7,000)
  Repayment of long-term debt                    (26,467)     (35,011)
                                              ----------   ----------
    Net cash (used in) financing activities     (164,480)     (52,011)
                                              ----------   ----------

Increase in cash and cash equivalents             61,697       50,376
Cash and cash equivalents, beginning             313,576      263,200
                                              ----------   ----------
Cash and cash equivalents, ending             $  375,273   $  313,576
                                              ==========   ==========




<PAGE>30

                  Dale Jarrett Racing Adventure, Inc.
(CONTINUED)            Statements of Cash Flows
      For The Years Ended December 31, 2006 and December 31, 2005

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

Supplemental cash flow information:
   Cash paid for interest                     $   61,307   $   10,507
                                              ==========   ==========
   Cash paid for income taxes                 $        -   $        -
                                              ==========   ==========

Non-cash Investing and Financing Activities:
  Vehicles acquired for notes payable         $   29,103   $        -
                                              ==========   ==========





See accompanying notes to financial statements.




<PAGE>31

                  Dale Jarrett Racing Adventure, Inc.
                     Notes to Financial Statements
                           December 31, 2006

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
$867,032 December 31, 2006.

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 $230,381 at December 31, 2006.

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
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 1.  Organization and Significant Accounting Policies.
(continued)

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, 2005.

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
$195,605 for the years ended December 31, 2006 and December 31, 2005,
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



<PAGE>33
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 1.  Organization and Significant Accounting Policies.
(continued)

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.

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.

Stock-Based Compensation

The Company accounts for equity instruments issued to employees for
services based on the fair value of the equity instruments issued and
accounts for equity instruments issued to other than employees based on
the fair value of the consideration received or the fair value of the
equity instruments, whichever is more reliably measurable.

The Company accounts for stock based compensation in accordance with
SFAS 123, "Accounting for Stock-Based Compensation."  The provisions of
SFAS 123 allow companies to either expense the estimated fair value of
stock options or to continue to follow the intrinsic value method set
forth in APB Opinion 25, "Accounting for Stock Issued to Employees"
("APB 25") but disclose the pro forma effects on net income  (loss) had

<PAGE>34
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 1.  Organization and Significant Accounting Policies.
(continued)


the fair value of the options been expensed.  The Company has elected
to continue to apply APB 25 in accounting for its stock option
incentive plans.

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.

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 November 2004, the Financial Accounting Standards Board (FASB)
issued SFAS 151 "Inventory Costs".  This Statement amends the guidance
in ARB No. 43, Chapter 4, "Inventory Pricing, to clarify the accounting
for abnormal amounts of idle facility expense, freight, handling costs,
and wasted material (spoilage).  In addition, this Statement requires
that allocation of fixed production overhead to the costs of conversion
be based on the normal capacity of the production facilities.  The
provisions of this Statement will be effective for the Company
beginning with its fiscal year ending December 31, 2007.  The Company
is currently evaluating the impact this new Standard will have on its
operations, but believes that it will not have a material impact on the
Company's financial position, results of operations or cash flows.


<PAGE>35
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 1.  Organization and Significant Accounting Policies.
(continued)

In December 2004, the FASB issued SFAS 153 "Exchanges of Non monetary
Assets - an amendment of APB Opinion No. 29".  This Statement amended
APB Opinion 29 to eliminate the exception for non monetary exchanges of
similar productive assets and replaces it with a general exception for
exchanges of non monetary assets that do not have commercial substance.
A non monetary exchange has commercial substance if the future cash
flows of the entity are expected to change significantly as a result of
the exchange.  The adoption of this Standard is not expected to have
any material impact on the Company's financial position, results of
operations or cash flows.

In August 2005, the FASB issued SFAS 154, "Accounting Changes and Error
Corrections."  This statement applies to all voluntary changes in
accounting principle and to changes required by an accounting
pronouncement if the pronouncement does not include specific transition
provisions, and it changes the requirements for accounting for and
reporting them.  Unless it is impractical, the statement requires
retrospective application of the changes to prior periods' financial
statements.  This statement is effective for accounting changes and
correction of errors made in fiscal years beginning after December 15,
2005.

SFAS 155 - "Accounting for Certain Hybrid Financial Instruments - an
amendment of FASB Statements No. 133 and 140".  This Statement, issued
in February 2006, amends FASB Statements No. 133, "Accounting for
Derivative Instruments and Hedging Activities", and No. 140,
"Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities".  This Statement resolves issues
addressed in Statement 133 Implementation Issue No. D1, "Application of
Statement 133 to Beneficial Interests in Securitized Financial Assets."

This Statement:
  a. Permits fair value remeasurement for any hybrid financial
instrument that contains an embedded derivative that otherwise would
require bifurcation

  b. Clarifies which interest-only strips and principal-only strips are
not subject to the requirements of Statement 133

  c. Establishes a requirement to evaluate interests in securitized
financial assets to identify interests that are freestanding
derivatives or that are hybrid financial instruments that contain an
embedded derivative requiring bifurcation

  d. Clarifies that concentrations of credit risk in the form of
subordination are not embedded derivatives



<PAGE>36
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 1.  Organization and Significant Accounting Policies.
(continued)

e. Amends Statement 140 to eliminate the prohibition on a qualifying
special-purpose entity from holding a derivative financial instrument
that pertains to a beneficial interest other than another derivative
financial instrument.

This Statement is effective for all financial instruments acquired or
issued after the beginning of our fiscal year beginning January 1,
2007.

The fair value election provided for in paragraph 4(c) of this
Statement may also be applied upon adoption of this Statement for
hybrid financial instruments that had been bifurcated under paragraph
12 of Statement 133 prior to the adoption of this Statement.  Earlier
adoption is permitted as of the beginning of our fiscal year, provided
we have not yet issued financial statements, including financial
statements for any interim period, for that fiscal year.  Provisions of
this Statement may be applied to instruments that we hold at the date
of adoption on an instrument-by-instrument basis.

The Company is currently reviewing the effects of adoption of this
statement but it is not expected to have a material impact on our
financial statements.

SFAS 156 - "Accounting for Servicing of Financial Assets--an amendment
of FASB Statement No. 140".  This Statement, issued in March 2006,
amends FASB Statement No. 140, "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities", with respect
to the accounting for separately recognized servicing assets and
servicing liabilities.  This Statement:

  1. Requires an entity to recognize a servicing asset or servicing
liability each time it undertakes an obligation to service a financial
asset by entering into a servicing contract in certain situations.

  2. Requires all separately recognized servicing assets and servicing
liabilities to be initially measured at fair value, if practicable.

  3. Permits an entity to choose either the amortization method or the
fair value measurement method for each class of separately recognized
servicing assets and servicing liabilities.

  4. At its initial adoption, permits a one-time reclassification of
available-for-sale securities to trading securities by entities with
recognized servicing rights, without calling into question the
treatment of other available-for-sale securities under Statement 115,
provided that the available-for-sale securities are identified in some
manner as offsetting the entity's exposure to changes in fair value of
servicing assets or servicing liabilities that a servicer elects to
subsequently measure at fair value.

<PAGE>37
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 1.  Organization and Significant Accounting Policies.
(continued)

  5. Requires separate presentation of servicing assets and servicing
liabilities subsequently measured at fair value in the statement of
financial position and additional disclosures for all separately
recognized servicing assets and servicing liabilities.

Adoption of this Statement is required as of the beginning of the first
fiscal year that begins after September 15, 2006.  The adoption of this
statement is not expected to have a material impact on our financial
statements.

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 September 2006, the United States Securities and Exchange Commission
("SEC") SAB No. 108, "Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in Current Year Financial
Statements."  This SAB provides guidance on the consideration of the
effects of prior year misstatements in quantifying current year
misstatements for the purpose of a materiality assessment.  SAB 108
establishes an approach that requires quantification of financial
statement errors based on the effects of each of the company's balance
sheet and statement of operations financial statements and the related
financial statement disclosures.  The SAB permits existing public
companies to record the cumulative effect of initially applying this
approach in the first year ending after November 15, 2006 by recording
the necessary correcting adjustments to the carrying values of assets
and liabilities as of the beginning of that year with the offsetting

<PAGE>38
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 1.  Organization and Significant Accounting Policies.
(continued)

adjustment recorded to the opening balance of retained earnings.
Additionally, the use of the cumulative effect transition method
requires detailed disclosure of the nature and amount of each
individual error being corrected through the cumulative adjustment and
how and when it arose.  The Company is currently evaluating the impact,
if any, that SAB 108 may have on the Company's results of operations or
financial position.

In July 2006, the FASB issued FASB Interpretation No. 48, "Accounting
for Uncertainty in Income Taxes-an interpretation of FASB Statement No.
109."  This Interpretation prescribes a recognition threshold and
measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax
return.  This Interpretation also provides guidance on derecognition,
classification, interest and penalties, accounting in interim periods,
disclosure, and transition.  The Interpretation is effective for fiscal
years beginning after December 15, 2006 and the Company is currently
evaluating the impact, if any, that FASB No. 48 may have on the
Company's results of operations or financial position.


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.  For the year ended December 31,
2005, the Company incurred a net loss of $322,936 and has working
capital and stockholder deficits of $867,270 and $653,938 at December
31, 2006.

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>39
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 2.  Basis of Reporting. (continued)

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 consists of the following at December 31,
2006:

     Office furniture and equipment           $   45,386
     Shop and track equipment                    123,378
     Race vehicles                               557,066
     Vehicles - other                            218,297
                                              ----------
                                                 944,127
     Less accumulated depreciation              (715,435)
                                              ----------
                                              $  228,692
                                              ==========

Depreciation charged to operations was $66,148 and $70,716 for the
years ended December 31, 2006, and December 31, 2005, 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



<PAGE>40
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 4.  Stockholders' (Deficit).  (continued)

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 $50,000 at December
31, 2006, and are classified as a reduction of stockholders' equity.
Services charged to expense during the years ended December 31, 2006,
and December 31, 2005, 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 $.27 as of December 31, 2006 and the aggregate amount of debt
subject to exchange was $482,939 at December 31, 2006.  If all of the
debt as of December 31, 2005, were converted, the Company would be
required to issue an additional 2,650,964 shares.

The following table summarizes the stock option activity:

                                                            Weighted
                                                             Average
                                                 Stock      Price per
                                                Options       Share
                                              ----------   ----------
Outstanding at December 31, 2004, 2005
  and 2006                                     6,949,654        $0.15
                                              ==========

At December 31, 2006, the Company has the following options outstanding
all of which are exercisable:

Exercise price: $0.14; Outstanding: 3,449,654; Contractual life: 1.5
years
Exercise price: $0.15; Outstanding: 3,500,000; Contractual life: 3.8
years

During the year ended December 31, 2005, the Company issued or agreed
to issue 1,048,000 shares of common stock for services valued at
$118,400. 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.



<PAGE>41
Dale Jarrett Racing Adventure, Inc.
Notes to Financial Statements
December 31, 2006

Note 4.  Stockholders' (Deficit).  (continued)

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.


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, 2006 of approximately
$4,000,000 that will expire through 2026.  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 three vehicle purchase contracts outstanding at
December 31, 2006, having an outstanding balance at that date of
$34,588.  The loans are due in monthly installments of $2,294 including
interest at from 0.0 percent to 5 percent through July 2009.  Three
support vehicles collateralize the loans.  Principal repayments are due
as follows: $19,228 in 2007, $9,761 in 2008 and $5,599 in 2009.

In addition, the Company has an unsecured note outstanding payable to a
bank in the amount of $40,061 bearing interest at 8.75 percent per
annum due on February 11, 2008.

<PAGE>42

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 $51,450 for the years ended
December 31, 2006 and December 31, 2005, respectively.


Note 8.  Related Party Transactions

The Company made $60,074 and $35,000 of cash repayments of shareholder
advances during the years ended December 31, 2006 and December 31,
2005, respectively.  The aggregate balance of all advances amounted to
$233,850 including accrued interest at December 31, 2006.  The advances
bear interest at 6 percent per annum and are expected to be repaid
currently.  Interest recorded was $14,760 and $15,010 for the years
ended December 31, 2006 and December 31, 2005, respectively.

At December 31, 2006, the Company had accrued salary for its officer
aggregating $137,285.  The officer is due $75,000 per year in annual
salary.