OMB APPROVALOMB Number:3235-0420Expires:   March 31, 2007Estimated average burdenHours per response1646SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549Form 10-KSB   (Mark One)  SANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the fiscal year ended December 31, 2006  £TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the transition period from ______________ to________________  Commission file number 333-86711  AIMSTM WORLDWIDE, INC. (Name of small business issuer in its charter)  Nevada87-0567854(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)  10400 Eaton Place, Suite 203, Fairfax, VA22030(Address of principal executive offices)(Zip Code)  Issuers telephone number 703-621-3875  Securities registered under Section 12(b) of the Exchange Act: None  Securities registered under Section 12(g) of the Exchange Act: Common Stock   Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.  £  Note Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.  SEC 2337 (12-05) Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.  1   Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes S     No £  Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of registrant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.  S  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes £     No S  State issuers operating revenues for its most recent fiscal year:  $1,742,387  State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.)  The aggregate market value (market cap) of the issuers common stock held by non-affiliates at March 31, 2007 is deemed to be $17,554,156 (27,006,394 shares at 65 cents per share).  Note: If determining whether a person is an affiliate will involve an unreasonable effort and expense, the issuer may calculate the aggregate market value of the common equity held by non-affiliates on the basis of reasonable assumptions, if the assumptions are stated.  (ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)  Check whether the issuer has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes £   No £  (APPLICABLE ONLY TO CORPORATE REGISTRANTS)  State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date.  At March 31, 2007 there were 41,432,748 shares of common stock of the registrant outstanding, par value $.001.  DOCUMENTS INCORPORATED BY REFERENCE  If the following documents are incorporated by reference, briefly describe them and identify the part of the Form 10-KSB (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) any annual report to security holders; (2) any proxy or information statement; and (3) any prospectus filed pursuant to Rule 424(b) or (c) of the Securities Act of 1933 (Securities Act). The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1990).  Transitional Small Business Disclosure Format (Check one): Yes £ ; No  S  2   PART I  Item 1.  Description of Business  Forward-Looking Statement Notice  When used in this report, the words may, will, expect, anticipate, continue, estimate, project, intend, and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding events, conditions, and financial trends that may affect the Companys future plans of operations, business strategy, operating results, and financial position.  Persons reviewing this report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and that actual results may differ materially from those included within the forward-looking statements as a result of various factors.  General  We incorporated in the State of Nevada on March 7, 1996, under the name B & R Ventures, Inc.  On March 28, 1999, we acquired all of the common stock of Enjoy The Game, Inc., a Missouri corporation, and changed our name to EtG Corporation.  At that time we began operating as a media and merchandising company to promote the positive aspects of athletic competition.  EtG Corporation conducted its operations through its subsidiary, Enjoy the Game, Inc., which had been incorporated in the state of Missouri on May 28, 1998.  Enjoy the Game, Inc. failed to achieve profitable operations, and on November 15, 2002, we sold the Subsidiary back to its president.  On December 17, 2002, we acquired AIMS Worldwide, Inc.  AIMS Worldwide, Inc. incorporated in Nevada on October 7, 2002 as Accurate Integrated Marketing Solutions Worldwide, Inc., to act as the successor to AIMSTM Group, LLC which was organized in Virginia in November 2001.  As a result of this acquisition, we changed our name to AIMS Worldwide, Inc.  Our principal executive offices are at 10400 Eaton Place, Suite203, Fairfax, VA 22030.  Our telephone number is 703/621-3875 and our fax number is 703/621-3870.  Our URL is www.AIMSWorldwide.com  Our Business  AIMS Worldwide (AIMSTM) is a vertically integrated marketing communications consultancy providing organizations with its AIMSolutions branded focused marketing solutions at the lowest possible cost.  AIMSTM (Accurate Integrated Marketing Solutions) increases the accuracy of the strategic direction of its client's marketing program, improves results and reduces the cost, by refocusing "mass marketing" to a more strategic "One-2-OneTM" relationship with the ideal customer. To further differentiate from the rest of the market, AIMSTM places intense focus on the Return on Marketing Investment, or "ROMITM." The Company's goal is to provide clients with a measurable return by first conducting an audit of the client's existing marketing strategy in order to deliver an increased return on their investment.  AIMSTM is accelerating its growth by targeting and acquiring a group of core competency media and marketing communications services companies.   3   It is our intention to structure the Company into seven major business units ("MBUs"):  AIMSolutions Consulting, Advertising Services, Strategy and Planning, Public Affairs, Public Relations, Digital Marketing and Media Properties. To this end we have entered strategic partnerships, acquired certain subsidiaries, and are in the process of acquiring additional core competency companies to achieve our desired organization.  - AIMSolutions Consulting Group will focus on the use and application of the AIMSTM ROMITM process to provide marketing strategies, plans, and manage AIMSTM marketing programs for its clients.  - AIMSTM Advertising Services Group and strategic partner Brad W. Baker Advertising Services will focus on full service advertising, creative design, advertising production, direct response and strategic media planning for its clients.  - AIMSTM Strategy and Planning Group has teamed with subsidiary Harrell Woodcock Linkletter and strategic partners Street Fighter Marketing, Inc., and Bill Main & Associates, Inc. This group will provide marketing research, strategy, planning, consulting and training programs that provide cost effective methods and techniques to clients in advertising their services and products, plus effective selling and telemarketing skills.  - AIMSTM Public Affairs Group and strategic partner IKON Holdings, Inc. will concentrate on bringing the best and latest information and ideas from around the United States concerning candidates, public issues, public policy, legislation, state and local ballot measures.  This group will provide solutions to finding information on issues and organizations concerning local, state and national governments.  - AIMSTM Public Relations Group and a strategic partner, a New York City public relations firm, will concentrate on creating public relations, publicity and special events through various media, networking, and promotions for its clients.  - AIMSTM Digital Marketing Group and its strategic partners Target America, Inc., and Advocast, Inc., will focus its activities on using and applying digital technologies for improving ROMITM for AIMSolutions Consulting Group clients.  - AIMSTM Media Group includes the Company’s subsidiaries AIMSTM Interactive, Inc., its subsidiary Prime Time Broadband, Inc., a private cable TV delivery system in Florida, and ATB Media which owns a 40% controlling interest in Radio Station KCAA in Loma Linda/San Bernadino, California, and minority interest in Group One Broadcasting, Inc., a Scottsdale, Arizona operator of the Talk One Radio Network.   4   AIMSolutions during the past four years has been a research and development consulting practice refining its accurate integrated marketing solutions processes to go to market and sell the marketing solution product to fee-paid clients.  AIMSolutions has undertaken a number of client beta-tests in the on-going development of its vertically integrated marketing solution process.  Beta-test clients have been in a number of applications industries including but not limited to public policy issues, political campaign marketing, consumer electronics, medical and health care, distribution services, consumer package goods, restaurant, food service, and hospitality, etc.  The scope of these industry development activities has established a platform of knowledge, processes, and intellectual properties, sufficient as a proof-of-concept to introduce AIMSolutions and go to market in 2007.  Based on the aforementioned, management believes that we have completed our research and development stage, and AIMSolutions will be entering its going-concern revenue-driven consulting practice.  Trademarks and Licenses  We hold common law trademarks on AIMSTM and ROMITM, and One-2-OneTM.  AIMSTM is a unique doctrine, process, intellectual property, delivery system and corporate development method integrated into what we believe is a powerful client/customer centric professional service model.  AIMSTM is an audio-logical-acronym for Accurate Integrated Marketing Solutions. AIMSTM is a proprietary marketing service, process, and delivery system designed to improve the aim, reduce the cost and focus the reach to target a market on a “one-to-one” basis. We believe AIMSTM and its consultancy brand AIMSolutions will achieve a client company’s goals and objectives, maximizing the client’s Return On Marketing Investment (“ROMITM”).  AIMSTM is a marketing system and process that is designed to vertically integrate horizontal services into a focused “one-to-one” marketing program/campaign. One-2-OneTM is also a trademark/service mark owned by AIMS.  We believe this system can meet and exceed a client company’s goals and objectives to expand their top line revenues, market and Customer Relationship Management (“CRM”TM) at lower cost than legacy advertising and marketing communications programs.  Myaims.com is an intellectual property for our online business and delivery service of our products.  Our websites, www.myaims.com and www.aimsworldwide.com are registered internet domain names owned and controlled by AIMS.  We also hold a technology license agreement with Advocast, Inc., a proprietary public issues digital marketing application service provider.  Subsidiaries  As part of its corporate development core competency acquisition strategy, AIMS Worldwide, Inc., owns the following subsidiaries:   5   Harrell Woodcock Linkletter & Vincent, Inc.  On  April 15, 2005, AIMSTM Worldwide, Inc. (“AIMS”) completed its previously announced plan to acquire Harrell Woodcock Linkletter & Vincent, Inc., a Florida corporation (“HWL&V”). The purchase price for the transaction was 500,000 shares of restricted common stock of AIMSTM in exchange for all of the issued and outstanding shares of HWL&V in cash and stock.  The Company relied on an exemption from registration pursuant to Section 4.2 of the Securities Act and Regulation D, Rule 506 to effect the transaction.  There were no commissions paid and the value of the transaction was determined by the board of directors.  Mr. B. Joseph Vincent, AIMSTM Vice Chair and Secretary, was also a principal in HWL&V.  For this reason, Mr. Vincent recused himself from sharing in any financial gain from this transaction and did not share in the distribution of  AIMSTM stock to the other principals of HWL&V.  Immediately after acquisition the company was renamed "Harrell, Woodock, and Linkletter," dropping the "V" which represented Mr. Vincent's former interest.  As part of the transaction, AIMSTM agreed to pay certain expenses of HWL&V in the amount of $8,922.44.  Included in the transaction are letters of intent issued by HWL&V to two specialty-marketing consulting firms, which AIMSTM expects to acquire.  HWL&V is a strategy, planning and marketing consulting group offering innovative new business and new market development services.  At the time of the HWL&V acquisition, we determined this acquisition not to be significant because HWL&V assets were valued at approximately $183,000, an amount less than 10% of the assets of the combined companies. In addition, the equity paid for HWL&V was less than 10% of the outstanding equity and HWL&V had not generated operating income from continuing operations before income taxes.  We reported this acquisition on April 18, 2005 on Form 8-K, along with a copy of the acquisition agreement.  AIMS Interactive, Inc.  AIMS Interactive, Inc., owns 100% of Prime Time Broadband, Inc., with assets consisting of cable programming services, field-deployed cable TV service equipment consisting of cable wire, head-end facilities and routing, equipment inventory, customer lists that include cable program subscription fees, contractual backlogs to design, construct and manage cable systems, various intellectual properties, office equipment, fleet vehicles, vendor agreements, operating leases, employment arrangements with staff, and membership interests in four limited liability companies that own and operate cable systems.  Prime Time Broadband, including its predecessor, Prime Time Cable, Inc. ("PTC"), is a pioneer in private cable systems and currently serves more than 3,000 households and resort rooms in premier master planned communities and major resorts in greater Orlando, Florida.   6   On February 1, 2005, AIMSTM Worldwide, Inc. completed its previously announced plan to acquire certain assets owned by William Strickler, specifically, certain assets of Prime Time Cable, Inc.  The transaction included the purchase of field-deployed cable TV service equipment consisting of cable wire, head-end facilities and routing, equipment inventory, customer lists that include cable program subscription fees, contractual backlogs to design, construct and manage cable systems, various intellectual property, office equipment, fleet vehicles, vendor agreements, operating leases, employment arrangements with staff, and membership interests in three (a fourth added 2nd quarter 2005) limited liability companies that own and operate cable systems.  The purchase price for the transaction was $1,800,000 in cash and stock (1,576,086 [@92 cents] shares of our common stock and $400,000 in cash and notes payable).  The cash portion of $150,000 was paid at closing, an additional $50,000 in four installments in consideration of a non-compete agreement with the seller, and $100,000 plus 5% simple interest on each of the anniversary dates of closing in 2006 and 2007.  At the time of the acquisition, we determined this acquisition to be significant because PTC held assets were valued at approximately $1,586,000, an amount in excess of 40% of the assets of the combined companies, after eliminations, of approximately $2,397,000.  The acquisition of PTC included fixed assets, limited liability company investments, renewable customer base and ongoing construction, planning, programming and maintenance operations.  We determined that the primary value of the business was the ongoing operations with the earning value and the earning potential of the operation in place.  Other than the value assigned to the agreement not to compete, we were not able to identify specific intangible components of this value separate from the Goodwill that we could identify to a specific life or expiration.  One factor, among others, in negotiating the value of businesses in this industry is in reference to the number of subscribers in the system served by the company.  In recent years, the prices buyers have been willing to pay for businesses have been increasingly higher per subscriber and have not been altered due to the remaining term of specific subscriber agreements.  A renewable and cancelable contract is obtained with each subscriber, however, no amortizing value was assigned to contracts when we recorded the acquisition of Prime Time Cable because of the undeterminable term and appreciating value.  Accordingly, cost of the acquisition is in excess of the fair value of tangible assets and liabilities and the value assigned to the non-compete agreement was included in Goodwill at the time of the acquisition.  The stock portion of the transaction consists of 1,576,086 shares of AIMS Worldwide restricted common stock (Rule 144 applies).  1,050,000 shares of stock were paid immediately with the balance paid in June 2005.  William Strickler, owner of PTC, is the sole recipient of the consideration paid for the assets.  The Company relied on an exemption from registration pursuant to Section 4.2 of the Securities Act and Regulation D, Rule 506 to effect the transaction.  There were no commissions paid and the value of the transaction was determined by the board of directors.  We reported this acquisition on February 16, 2005, on Form 8K, along with a copy of the acquisition agreement.  On September 30, 2005, we submitted audited financial statements for PTC with an amended Form 8K and on October 7, 2005, we submitted pro forma financial information with an amended Form 8K.  7    AIMS Interactive, Inc., was incorporated under the laws of Nevada on December 29, 2004, to serve as the appropriate media property subsidiary of AIMS Worldwide, Inc., to manage and address the growth opportunities resident in private cable technologies and to incorporate Prime Time Broadband, Inc., and PTC.  Veteran broadcast executive Chris Petersen is group president of AIMSTM Interactive, Inc., the wholly-owned subsidiary of AIMS Worldwide, Inc.  Under terms of an employment agreement, PTC founder William Strickler will continue to serve the company in the role of general manager for systems and new technology.  The operations acquired from PTC include the design, construction, ownership and management of cable, internet and communication systems.  A part of the business includes investments in limited liability companies that operate under contractual arrangements to build and operate systems in new mixed-use residential developments and provide the same services to specific communities.  Generally, these services are provided under contractual arrangements with homeowner associations or individual developers for a term of ten years with available renewal terms.  Service is billed through the association at per unit rates and additionally billed for pay-per-view and premium features.  We own and update the underlying infrastructure as required and expect to continue to renew the subscriber agreements indefinitely.  The Company recently decided to sell its unconsolidated interests in the limited liability companies operated by Prime Time Broadband while retaining certain marketing rights and the core construction and operating business of Prime Time Broadband.  The Company intends to use the cash proceeds from the sale to further acquire marketing communications companies.  The Companys management solicited and entertained offers for the majority interest from six suitable and qualified potential buyers.  Currently, the Company holds a Letter of Intent executed February 28, 2007, for the sale of certain assets held and operated by the unconsolidated limited liability companies of Prime Time Broadband and is now in negotiation stages to complete an asset purchase agreement.  ATB Media, Inc.  On April 19, 2004, we acquired ATB Media, Inc. ("ATB").  ATB was formed to acquire radio broadcast properties and/or invest in companies that had previously acquired radio broadcast properties in small and medium-sized markets and to use innovative techniques and low cost, engineering-driven strategies to upgrade these properties into successful radio stations by relocating such properties to larger markets, increasing authorized power and/or authorized hours of operation.  ATB owns rights to receive income participation from one or more radio stations and other businesses.  Due to the profit participation agreements, the Company determined that the current fair value of these advances and investments has increased to an amount in excess of $5,400,000; however, the merger has been recorded at book value because the companies were under common control.  Our shareholder, officer, and founder Michael Foudy and shareholder and founder Denison Smith were control shareholders of and are each owed substantial amounts by ATB; and, shareholder, officer and founder Gerald Garcia, Jr., was a shareholder and is a debtholder of ATB.  The assets of ATB secure portions of the ATB debt to Foudy and Smith. As part of the Agreement, we are to arrange repayment/refinance/assumption of up to $5,000,000 (Five Million Dollars) in loan obligations of the Company, including obligations owed to Foudy, Garcia and Smith.  8    Under the terms of the Agreement, we issued 1,926,891 shares of Common Stock for all of the issued and outstanding shares of the ATB Common Stock.  In addition, we will issue an additional 1,500,000 shares of our Common Stock to former ATB shareholders upon KCAA receiving FCC approval of a power upgrade to at least 10,000 watts daytime as long as FCC approval is received within 36 months of Closing Date.  The shares of our Common Stock will be issued in reliance on an exemption from registration provided by Section 4(2) of the Securities Act.  The availability of Section 4(2) is contingent upon the satisfaction of certain criteria thereunder.  ATB currently owns a 40% participating interest in Radio Station KCAA in Loma Linda/San Bernadino, California and owns rights to receive income participation from one or more radio stations if and when acquired.  Currently, KCAA, a daytime station only, has received construction approval from the FCC to become a 24-hour broadcasting station.  Station management is considering, once the station becomes a 24-hour broadcasting entity, to apply for a 10,000 watt broadcasting license.  ATB holds a minority interest in Group One Broadcasting, Inc. that was organized to, among other matters, meet the needs and demands for quality radio programming.  Group One Broadcasting, Inc. is the operator of the Talk One Radio Network in Scottsdale, Arizona.  In conjunction with the acquisition of ATB Media, AIMSTM issued 1,206,221 shares for the extinguishments of $1,326,842 of outstanding debt and accrued interest.  The number of shares to be issued and the amount of debt to be extinguished were determined as part of the negotiation of the acquisition of ATB.  Per agreement, the debt was to be extinguished by issuing stock valued at 110% of the current market price, or $1.10 per share based on the market price of $1.00 per share on June 25, 2004.  We determined fair value of the common stock to be $0.67 per share by comparison to cash prices paid for shares.  The difference of $0.43 per share between the agreed price and fair value resulted in a gain from the extinguishments of debt of $518,675 that was recorded as a capital transaction because the transaction was between related parties.  The total of the fair value of the stock issued and the gain on the extinguishments of debt, a total of $1,326,842 was added to paid-in capital.  ATB Media was an entity under common control prior to the acquisition.  We believe that exchange of shares of entities under common control are not business combinations as defined by paragraph 11 of SFAS 141 and are properly accounted for using methods similar to a pooling of interests and, as such, are excluded from certain requirements of SFAS 141.  We believe this transaction is properly reported, in accordance with Appendix D, paragraphs D11-D18, as a significant related party transaction.  We reported this acquisition on May 7, 2004 on Form 8K, along with a copy of the acquisition agreement.  On September 15, 2004, we submitted audited financial statements for ATB and pro forma financial information as an exhibit to Form 10Q filed for the quarter ended June 30, 2004.   9   Certain advances and investments reported in the purchase transaction were made by ATB prior to 2004 and prior to our acquisition of ATB on April 19, 2004, and a portion had been written off before our acquisition.  At the time of our acquisition of ATB, the balance recorded for advances and investments was $988,073.  We made no additional advances or investments during 2004 and ATB had no operations other than accrual of interest expense on notes payable.  The decision was made to write off these investments at year end due to the continued passage of time without activity and our inability to document assurance of recovery of the amount invested.  AIMSTM is currently in negotiation with Broadcast Management Systems in Houston, the majority interest and operating owner of KCAA-AM Radio Station in Loma Linda, Calif., to list the station for sale upon obtaining a 24-hour broadcast license and filing an FCC 10,000 watt application and to sell the station no later than December 31, 2007.  Streetfighter Marketing, Inc.  On October 24, 2006, the Company entered an agreement with the shareholders of Streetfighter Marketing, Inc. whereby the Company acquired 100% of the issued and outstanding stock of Streetfighter in exchange for 722,222 shares of the Companys restricted common stock in a transaction valued at $650,000.  The agreement requires the Company to enter into employment agreements with two Streetfighter employees.  Streetfigher Marketing, Inc., headquartered in Columbus, Ohio, specializes in training businesses how to market, promote and increase sales on a shoestring budget.  The Streetfighter client list includes AT&T, American Express, Walt Disney, Pizza Hut, Honda, Sony, Goodyear, Marvel Comics, The City of Dallas, the State of Arkansas, and the Country of India.  Bill Main and Associates  On January 18, 2007, the Company went into escrow for the purchase of Barbara Overhoff, Inc., d/b/a Bill Main and Associates, in Chico, Calif.  Total AIMS Worldwide, Inc., capital in escrow is 850,000 shares (743,000 shares at time of initial purchase and balance distributed at a later date) of restricted common stock and $175,000 in cash.  Bill Main and Associates is a leading strategy, planning, and consulting firm in the restaurant, food service, and hospitality industry.  A published author and noted speaker, Chairman Tucker Wm. Main is a recognized authority in restaurant marketing, operations, and management.  He is a former President of the California Restaurant Association.  Their client roster includes Johnny Rockets, Hooters, Popeyes, Shakeys, Taco Johns, Famous Daves, and Buffalo Wild Wings.  Among distributor clients are SYSCO Food Services, Abbott Foods, Nabisco, and US Foodservice.  Competition  Marketing and Media services in its various forms are one of the most competitive segments of business, commerce and enterprise management.  With its recent introduction, changes and dynamics caused by new online/ interactive communication technologies to the traditional/offline communications mediums (broadcast, satellite cast, print, post and telephone) the marketing landscape has become one of the most complex competitive tapestries in the world.   10   Our internal research indicates that an estimated worldwide $1 trillion dollars is spent annually on the full range of marketing, marketing communications, marketing services and delivery systems this is a massive, diverse and fragmented service industry.  As such, globally there can be little doubt as to the competition in the marketing services space in which the leading companies, agencies and firms are better established, positioned, branded, staffed and capitalized than our Company.  AIMSTM management has undertaken comprehensive industry research including evaluation of the full scope of marketing services including, but not limited to, advertising (Top 100), direct marketing (Top 20), sales promotion (Top 20), public relations (Top 20), market research (Top 25) and marketing support services (Top 200).  Based on our analysis, AIMSTM believes that traditional media and marketing services, while with far greater financial and human resources than the company, do not currently offer the integrated solutions AIMSTM provides.  Regulation  Our business is not regulated by any governmental agency and approval from any governmental agency is not required for us to market or sell our products. However, some of our acquisitions may be subject to regulatory oversight. For example, the Federal Communications Commission regulates the radio and television properties.  Employees  AIMS Worldwide, Inc., corporate headquarters has five employees, and, including our wholly-owned and operating subsidiary AIMS Interactive, Inc., has a total of approximately fifteen employees.  We plan to hire additional personnel on an as-needed basis as our operations expand.  As of March 31, 2007, we continued to have no formal employment agreements in place.  Item 2.  Description of Property  Our executive offices are located at 10400 Eaton Place, Suite 203, Fairfax, Virginia 22030.  We have an additional office in Tampa, Florida at a cost of $303 per month under a month-to-month arrangement.  Prime Time Broadband, a subsidiary of AIMSTM Interactive, Inc., has operations (office and a small warehouse) on Taft-Vineland Road in Orlando, Fla.  Item 3.  Legal Proceedings  Jose R. Trujillo v. AIMS Worldwide, Inc., American Institute for Full Employment, Michael Foudy, The Committee for Good Common Sense, et al., in the Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida, case No. 502005CA005603XXXXMB, affidavit filed December 9, 2005.  In this case, an individual in Florida named Jose Trujillo sued several corporations and individuals across the country, including AIMSTM, alleging breach of contract.  He seeks total damages of about $36,000.  Regarding AIMSTM, we expect this case to be dismissed in the immediate future.  Florida does not have jurisdiction over AIMSTM regarding this matter, and a motion to dismiss for lack of jurisdiction has been filed.  Moreover, AIMSTM never had any contractual relationship (written, oral, or implied) with Trujillo and his complaint fails to allege facts showing any such contract with AIMSTM.  Therefore, management believes that his complaint can be dismissed in regard to AIMSTM for failure to state a claim.  However, to date the court has not responded to AIMS’ request for dismissal.  11    The case is being handled by the following local Florida counsel:  Carl A. Cascio, Esquire, Carl A. Cascio, P.A., 525 N.E. Third Avenue, #102, Delray Beach, Florida 33444, Phone is 561-274-7473.  561-274-8305 is facsimile; e-mail: casciolw@bellsouth.net.  Item 4.  Submission of Matters to a Vote of Security Holders  None.  PART II  Item 5.  Market for Common Equity and Related Stockholder Matters  Our common stock is listed on the Over the Counter Bulletin Board under the symbol AMWW.  At March 31, 2007, there were 263 shareholders of record holding 41,432,748 shares of common stock with 41,086,435 distributed.  Holders of the common stock have no preemptive rights and no right to convert their common stock into any other securities.  There are no redemption or sinking fund provisions applicable to the common stock.  The following table shows the highs and lows of the closing bid and ask on the Companys stock for the previous two years.  CLOSING BIDCLOSING ASK2005HighLowHighLowJan 2 thru March 31.85.521.00.69April 1 thru June 28.65.301.00.51July 1 thru September 301.25.302.00.65October 1 thru December 31.74.30.88.59CLOSING BIDCLOSING ASK2006HighLowHighLowJan. 2 thru March 31.67.22.74.56April 1 thru June 30.70.25.71.40July 1 thru Sept. 30.85.201.01.45Oct. 1 thru Dec. 31.45.11.65.15  The above quotations, as provided by Pink Sheets, LLC, represent prices between dealers and do not include retail markup, markdown or commission.  In addition, these quotations do not represent actual transactions.  We have not paid or declared any dividends since inception and do not intend to declare any such dividends in the foreseeable future.  Our ability to pay dividends is subject to limitations imposed by Nevada law. Under Nevada law, dividends may be paid to the extent that a corporations assets exceed its liabilities and it is able to pay its debts as they become due in the usual course of business.   12   Recent Sales of Unregistered Securities  During the first quarter of 2006, we issued 1,100,000 shares of common stock to six shareholders for a total proceeds of $440,000 and paid $9,023 in offering costs.  Also, we received $39,750 in payment on stock subscriptions.  In addition we paid 54,000 shares of common stock for services valued at $26,117.  The fair value of shares issued for services was determined by the Board of Directors based on recent cash transactions.  The price of shares sold for cash were negotiated with the unrelated investors.  During the second quarter of 2006, we issued 710,714 shares of common stock to five shareholders for a total price of $275,000, paid $10,555 in offering costs and obtained subscriptions for an additional 1,125,000 shares of common stock for a total price of $450,000.  Also, we received $24,000 in payments on previous stock subscriptions.  In addition we paid 88,000 shares of common stock for services valued at $60,639.  The fair value of shares issued for services was determined based on the quoted market price of the stock.  The price of shares sold for cash were negotiated with the unrelated investors.  Effective May 1, 2006, we issued a warrant to purchase 500,000 shares of our common stock in conjunction a proposed private sale of common stock.  The warrant has a term of five years and an exercise price of $1.75 per share.  The quoted market price of the stock on May 1, 2006 was $0.64 per share.  The Company determined the value of the issued warrant to be $0.316 per share, or $158,000, in accordance with SFAS 123(R).  The value of the warrant was recorded as prepaid offering cost and an increase to paid-in capital.  Upon completion of the private equity offering, the prepaid offering cost will be charged to paid-in capital.  If the offering is not completed the prepaid offering costs will be charged to operations.  The fair value of the warrant was estimated at the date of issue using the Black-Scholes option-pricing model with the following assumptions:  Risk-free interest rate3.50%Dividend yield0.00%Volatility factor110.00%Weighted average expected life3 years  During the third quarter of 2006, we issued a warrant to purchase 1,000,000 shares of common stock to a shareholder for services provided.  The warrant carries an exercise price of $0.41 per share and is available for up to five years.  The value of the warrant was determined to be $588,499 at the date of issue using the Black-Scholes pricing model with the following assumptions:  Risk-free interest rate4.50%Dividend yield0.00%Volatility factor258.0%Weighted average expected life3 years   13   Also during the third quarter of this year, we issued 2,020,000 shares of common stock to shareholders for a total price of $510,000, cancelled subscriptions for 975,000 shares of common stock, valued at $390,000 and received $17,000 in payments on previous stock subscriptions.  We issued 1,927,778 shares of common stock valued at $1,735,000 to pursue acquisitions.  These shares were held in escrow pending the completion of the purchase transactions at December 31, 2006.  In addition we paid 153,803 shares of common stock for services valued at $95,916.  The fair value of shares issued for services was determined based on the quoted market price of the stock.  The price of shares sold for cash were negotiated with the unrelated investors.  During the fourth quarter of 2006, we sold 464,286 shares of our newly issued common stock for total proceeds of $150,000, cancelled subscriptions for 75,000 shares of common stock valued at $30,000 and provided a reserve for an additional stock subscription in the amount of $243,000. We issued 722,222 shares of our common stock, valued at $361,111 in conjunction with the acquisition of Streetfighter Marketing.  We issued 410,000 shares of our common stock valued at $61,500 as bonuses to employees and related parties.  We issued 569,000 shares of our common stock valued at $181,159 as compensation for services.  The shares issued for services and bonuses were recorded at fair value based on the market price on the date of the grant.  We reacquired 108,486 shares of common stock from an employee and shareholder for a negotiated cash price of $69,432.  At December 31, 2006, stock subscriptions totaling $50,000 remained receivable and were collected in 2007.  During the three months ended December 31, 2005, we issued 50,000 shares of restricted common stock valued at $26,465 as compensation for services.  We issued 16,000 shares of restricted common stock valued at $6,325 as a bonus to a staff member.  During the three months ended September 30, 2005, we issued 250,000 shares of our common stock valued at $142,375 as additional interest to holders of notes payable.  We issued 32,500 shares of our common stock valued at $16,432 as compensation for services rendered and we issued 1,100,000 shares of our common stock for $412,500 cash.  During the three months ended June 30, 2005, we issued 511,539 shares of previously authorized but unissued common stock for services and employee bonuses valued at $287,837.  We sold 1,250,000 shares of our newly issued common stock for total proceeds of $437,500.  We issued 1,021,870 shares of our common stock, valued at $515,696 in conjunction with the acquisitions of Prime Time Broadband and Harrell Woodcock Linkletter.  During the three months ended March 31, 2005, we issued 80,000 shares of previously authorized but unissued common stock for services valued at $45,076.  During the three months ended June 30, 2005, we issued 50,000 shares of previously authorized but unissued common stock for services valued at $24,991 and another 461,539 shares related to equity financing valued at $262,846. During the three months ended September 30, 2005, we issued 282,500 shares of previously authorized but unissued common stock for services valued at $158,557.  During the three months ended March 31, 2005, we issued 1,800,000 shares of previously authorized but unissued common stock primarily to our officers to reduce accrued expenses for 2004 services totaling $1,123,380  During the three months ended March 31, 2005, we issued 165,000 shares of previously authorized but unissued common stock to extinguish notes payable and related accrued interest totaling $82,500.  14   During the three months ended March 31, 2005, we sold 2,453,571 shares of previously authorized but unissued common stock in a private offering to accredited investors for net proceeds of $925,000.  During the three months ended June 30, 2005, we sold 1,250,000 shares of previously authorized but unissued common stock in a private offering to accredited investors for net proceeds of $33,750 and a subscription receivable of $403,750.  During the three months ended September 30, 2005, we sold 1,100,000 shares of previously authorized but unissued common stock in a private offering to accredited investors for net proceeds of $412,500.  On January 28, 2005, we purchased certain assets of Prime Time Cable, Inc. in exchange for cash and 1,576,086 shares of previously authorized but unissued common stock.  Of the shares, we issued 1,050,000 in February 2005 and the remaining 526,086 in June. We negotiated the right to re-purchase 788,030 of the shares for $1.50 each for up to three years from the purchase date.  On April 15, 2005, we purchased the common stock of Harrell Woodcock Linkletter & Vincent, Inc. (HWL) in exchange for 500,000 shares of previously authorized but unissued common stock.  Common Stock  Unless otherwise noted, common shares were sold in private transactions and issued in reliance of the exemption provided by Section 4(2) of the Securities Act of 1933.  The transactions do not involve any public offering or broker and no commissions were paid on the transaction.  Item 6.  Managements Discussion and Analysis or Plan of Operation  The managements discussion and analysis should be read in conjunction with the audited financial statements appearing at the end of this report.  Results of Operations for the Years Ended December 31, 2006 and 2005  We generated $1,742,387 in revenue, all from AIMSolutions continuing operations, from Prime Time Broadband, and from Streetfighter Marketing in 2006 compared to $1,161,440 in 2005, a gain of more than 50% in 2006 over 2005.  None of the revenue generated in 2006 or 2005 were from related party transactions.  The company in February 2006 received payment of $155,000 from a client that was invoiced in January 2005.  Because payment was more than 120 days past due, the invoice was 'written off.'  When payment was received, the payment was applied to expenses rather than to revenue.  If payment had been received in accordance with the Companys accounts receivable policy, the Company would have generated revenue of $1,316,440 in 2005 instead of the reported $1,161,440.  Although an AIMSTM shareholder of 5% or more, Mr. Denison Smith, was Chairman of the client's organization at the time services were rendered, he resigned his affiliation with the organization soon afterward.  Since his resignation, all activities with that organization are not considered to be with a related party.   15   General and administrative operating expenses for the year ended December 31, 2006 were $4,457,634 compared to $2,378,085 in 2005, an increase of more than 87% year-over-year.  The primary reasons for the increase are the cost of a warrant granted for services rendered by a shareholder and allowances for uncollectible receivables (see four paragraphs below for explanations).  Interest expenses in 2006 continued to accumulate because of the ATB Media acquisition in 2004.  Interest expense booked in 2006 for this transaction is $127,449 to non related party debt holders and $107,360 to related party debt holders. The company has initiated negotiations for the sale of ATB Media and its associated holding in radio station KCAA-AM in Loma Linda, CA.  Upon a successful completion of the sale, AIMSTM anticipates the elimination of most of its debt resulting from its acquisition of ATB in April 19, 2004.  For the year ending December 31, 2006, we had an operating loss of $3,166,580 compared to $1,646,713 in 2005, an increase of $1,519,867 or 92% (see four paragraphs below for explanations).  AIMSolutions contributions to client beta-test research and development projects including but not limited to consumer electronics and medical and health care, are estimated to be valued at $1.4 million.  In addition, AIMSolutions recognized more than $857,000 in revenue from beta-test clients in the application fields of public policy issues, distribution services, consumer package goods, restaurant, food service, and hospitality.  Management took a $613,858 allowance for an uncollectible receivable for one public policy client organization even though the client and its predecessor organizations have a history of payments, albeit extended.  In the previous two years, the beta-test client and its predecessor organizations paid more than 85% of balances due to the Company, albeit again extended.  In fact, one invoice was paid 13 months after billing, which management understood because of the R&D nature of the client relationship although a 13-month receivable does not conform to standard payment terms and other accounting practices.  With this adjusted allowance and additional non-recurring expenses included in our income statement, the Company booked $1,500,140 of allowance expense and non-recurring expenses, inflating the bottom line income number to the reported ($3,202,663).  With neither the non-recurring expenses nor the $52,500 in expenses (due to stock grants and awards to employees), the Companys EBITDA would be ($1,702,523), an improvement of $1,500,140 over the reported annual net income.  In addition, the Companys EBITDA, without the non-recurring expenses and without the stock grants and awards expense, would have an improvement of $224,204 over 2005.   16   Critical Accounting Policies, Judgments and Estimates  General  The preparation of our Consolidated Financial Statements and related notes requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.  We have based our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.  An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.  We believe the following critical accounting policies reflect the more significant estimates and assumptions used in the preparation of the Consolidated Financial Statements.  The following descriptions of critical accounting policies, judgments and estimates should be read in conjunction with our Consolidated Financial Statements and other disclosures included in this report.  Provisions for Doubtful Accounts and Authorized Credits  We are exposed to losses due to uncollectible accounts receivable.  Provisions for these items represent our estimate of actual losses based on our historical experience and are made at the time the related revenue is recognized.  The provision for doubtful accounts is recorded as a charge to operating expense.  Historically, we have had no losses.  However, unexpected or significant future changes in trends could result in a material impact to future statements of income and cash flows.  Legal Contingencies  In connection with certain pending litigation and other claims, we have estimated the range of probable loss and provided for such losses through charges to our income statement.  These estimates have been based on our assessment of the facts and circumstances at each balance sheet date and are subject to change based upon new information and future events.  From time to time, we are involved in disputes that arise in the ordinary course of business, and we do not expect this trend to change in the future.  We are currently involved in one legal proceeding as discussed in Item 3: Legal Proceedings.  We believe that we have meritorious defenses to the claims against us.  However, even if successful, our defense against certain actions will be costly and could divert our managements time.  If the plaintiffs were to prevail on certain claims, we might be forced to pay significant damages and licensing fees, modify our business practices or even be prohibited from conducting a significant part of our business.  Any such results could materially harm our business and could result in a material adverse impact on the financial position, results of operations or cash flows of all or any of our three segments.   17   Accounting for Income Taxes  We are required to recognize a provision for income taxes based upon the taxable income and temporary differences for each of the tax jurisdictions in which we operate.  This process requires a calculation of taxes payable and an analysis of temporary differences between the book and tax bases of our assets and liabilities, including various accruals, allowances, depreciation and amortization.  The tax effect of these temporary differences and the estimated tax benefit from our tax net operating losses are reported as deferred tax assets and liabilities in our consolidated balance sheet.  We also assess the likelihood that our net deferred tax assets will be realized from future taxable income.  To the extent we believe that it is more likely than not that some portion, or all of, the deferred tax asset will not be realized, we establish a valuation allowance.  To the extent we establish a valuation allowance or change the allowance in a period, we reflect the change with a corresponding increase or decrease in our tax provision in our income statement.  Historically, these provisions have adequately provided for our actual income tax liabilities.  However, unexpected or significant future changes in trends could result in a material impact to future statements of income and cash flows.  Asset Impairments  We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate.  If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value.  We assess the recoverability of our long-lived and intangible assets by determining whether the unamortized balances can be recovered through undiscounted future net cash flows of the related assets.  The amount of impairment, if any, is measured based on projected discounted future net cash flows.  Impairment estimates have been based on our assessment of the facts and circumstances at each balance sheet date and are subject to change based upon new information and future events.  Liquidity and Capital Resources.  Risk Factors  We have incurred losses since inceptionandmay incur future losses.  We incurred net operating losses of $3,202,663 in 2006.  We do not expect to have consistent profitable operations until 2008 and we cannot assure that we will ever achieve or attain profitability.  If we cannot achieve operating profitability, we will not be able to meet our working capital requirements, which would have a material adverse effect on our business and impair our ability to continue as a going concern.  We will encounter risks and difficulties frequently encountered by early-stage companies.  Some of these risks include the need to:  - attract new AIMSolutions marketing clients and maintain current client relationships, - offer competitive pricing, - maintain and expand our network of advertising space through which we deliver the advertising component of our AIMSolutions, - achieve marketing solution campaign results that meet our clients objectives,  18    - identify, attract, retain and motivate qualified personnel, - successfully implement our organic and acquisition business model, - manage our expanding operations, and - maintain our reputation and build trust with our clients. - locate, negotiate, and assimilate core competency acquisitions - attract and package the appropriate corporate finance and investment capital to underwrite our core competency acquisition corporate development.  AIMSolutions  Because AIMSolutions (our consulting service offered at the corporate level) client contracts generally can be cancelled by the client with little or no notice or penalty in accordance with the terms and conditions specified in the professional consulting service contract, the termination of one or more large contracts could result in an immediate decline in our revenues.  Prime Time Broadband, Inc.  Our AIMSTM Interactive, Inc., subsidiary, Prime Time Broadband, Inc., derives substantially all of its revenues from marketing services under short-term contracts, most of which are cancelable upon 90 days or less notice. In addition, these contracts generally do not contain penalty provisions for cancellation before the end of the contract term. The non-renewal, re-negotiation, cancellation or deferral of large contracts, or a number of contracts that in the aggregate account for a significant amount of revenues, could cause an immediate and significant decline in our revenues and harm our business.  Harrell, Woodcock, and Linkletter  Although Harrell, Woodcock, and Linkletter has no current on-going operation, we may ultimately get no return on our investment due to lack of acquisitions.  We must introduce new products and services to grow our business.  Our success depends on our ability to develop and introduce new services that address our clients changing demands.  Any new products or services that we develop will need to meet the requirements of our current and prospective clients and may not achieve significant market acceptance.  The introduction of new products and services by our competitors, and the emergence of new industry standards, could render our existing products and services obsolete and unmarketable or require unanticipated investments in research and development.  If revenues generated from the use of our technologies do not cover these development costs, our operating results could be adversely affected.  19    Our failure to protect our intellectual property rights could diminish the value of our services, weaken our competitive position and reduce our revenues.  Our success depends in large part on our proprietary rights.  In addition, we believe that our service marks and trademarks are key to identifying and differentiating our products and services from those of our competitors.  We rely on a combination of copyright, patent, trademark and trade secret laws, confidentiality procedures and licensing arrangements to establish and protect our proprietary rights.  These steps taken by us to protect our intellectual property may not prevent misappropriation of our technology or deter independent third-party development of similar technologies.  Our intellectual property currently includes AIMSTM (Accurate Integrated Marketing Solutions) “One-2-One”, referring to one to one marketing relationship in that the trade expression provides a stepped-up marketing power to the number 2, strengthening our clients’ relationship with their customers, end-users, households and communities.  Also included is our trademark “ROMITM”, our trade expression providing out clients with a measurable, accountable return on their marketing dollars which are invested in building sales and revenues.  If we do not retain our senior management and key employees, we may not be able to achieve our business objectives.  Our future success is substantially dependent on the continued service of our senior management and other key employees, particularly Gerald Garcia, our chief executive officer, Michael Foudy, our board chairman, Joe Vincent, our vice chairman and secretary, and Patrick Summers, our chief financial officer.  We do not have key-person insurance on any of our employees.  We may be unable to retain existing management, technical, sales and client support personnel that are critical to our success, resulting in harm to key client relationships, loss of key information, expertise or know-how and unanticipated recruitment and training costs.  The loss of the services of our senior management or other key employees could make it more difficult to successfully operate our business and pursue our business goals.  We expect to pursue acquisitions or other investments, which may require significant resources and may be unsuccessful.  Part of our business strategy is to acquire or make investments in other businesses, or acquire products and technologies, to complement our current business.  Any future acquisition or investment may require us to use significant amounts of cash, issue potentially dilutive equity securities or incur debt.  We may not be able to identify, negotiate or finance any future acquisition successfully.  Even if we do succeed in acquiring a business, product or technology, we have limited experience in integrating an acquisition into our business.  Acquisitions involve numerous risks, any of which could disrupt our business and reduce the likelihood that we will receive the expected benefits of the acquisition, including:  - difficulties in integrating the operations, technologies, services and personnel of acquired businesses, - ineffectiveness or incompatibility of acquired technologies or services, - diversion of managements attention from other business concerns, - unavailability of favorable financing for future acquisitions,  20    - potential loss of key employees of acquired businesses, - inability to maintain the key business relationships and the reputations of acquired businesses, - responsibility for liabilities of acquired businesses, and - increased fixed costs.  We may need additional financing in the future, which may not be available on favorable terms, if at all.  We may need additional funds to finance our operations, as well as to enhance our services, fund our expansion, respond to competitive pressures or acquire complementary businesses or technologies.  However, our business may not generate the cash needed to finance such requirements.  If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our existing shareholders would be reduced, and these securities may have rights, preferences or privileges senior to those of our common stock.  If adequate funds are not available or are not available on acceptable terms, our ability to enhance our services, fund our expansion, respond to competitive pressures or take advantage of business opportunities would be significantly limited, and we might need to significantly restrict our operations.  Item 7.  Financial Statements  The financial statements of the Company appear at the end of this report beginning with the Index to Financial Statements.  Item 8.  Changes In and Disagreements With Accountants on Accounting and Financial Disclosure  None.  Item 8A.  Controls and Procedures  (a) Evaluation of Disclosure Controls and Procedures.  The Company's management, with the participation of the chief executive officer and the chief financial officer, carried out an evaluation of the effectiveness of the Company's "disclosure, controls and procedures" (as defined in the Securities Exchange Act of 1934 (the "Exchange Act") Rules 13a-15(e) and 15-d-15(e) as of the end of the period covered by this annual report (the "Evaluation Date").  Based upon that evaluation, the chief executive officer and the chief financial officer concluded that, as of the Evaluation Date, the Company's disclosure, controls and procedures are effective, providing them with material information relating to the Company as required to be disclosed in the reports the Company files or submits under the Exchange Act on a timely basis.  (b) Changes in Internal Control over Financial Reporting.  There were no changes in the Company's internal controls over financial reporting, known to the chief executive officer or the chief financial officer, that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.   21   Item 8B.  Other Information  There are no further disclosures. No information was required to be disclosed in a Form 8-K during the fourth quarter 2006.  PART III  Item 9.  Directors, Executive Officers, Promoters and Control Persons, Compliance With Section 16(a) of the Exchange Act.  The following table sets forth the name, age, position and office term of each executive officer and director of the Company.  NameAgePositionsSinceGerald Garcia Jr.63CEO and President2002B. Joseph Vincent63Vice Chairman and Secretary2002Michael L. Foudy55Chairman2002Patrick J. Summers51Chief Financial Officer2003  Following is a brief summary of the business experience of our officers and directors:  Gerald Garcia Jr., CEO and President.  Mr. Garcia has been President and CEO of AIMSTM since inception in October 7, 2002.  In December of 2000, Mr. Garcia became Chief Operating Officer of Gregory Welteroth Advertising in Montoursville, Pennsylvania, and has served as President of that company since June of 2001.  Previously, Mr. Garcia was editor of the San Bernardino County Sun newspaper from September 1999 to May 2000.  From 1995 to 1999, Mr. Garcia served as President and CEO of Heartland Capital Corp. in McLean, Virginia.  Mr. Garcia has more than 35 years experience in advertising and newspaper publishing and has worked in various capacities for several newspapers including the Houston Post, the Los Angeles Daily News, the Kansas City Star and the Knoxville Journal.  Mr. Garcia was recently honored by National Association of Hispanic Journalists, of which he was a founder and the founding president, by induction into the NAHJ Hall of Fame.  B. Joseph Vincent, Vice Chairman and Secretary. Mr. Vincent has been an officer and director of AIMSTM since inception on October 7, 2002.  Since 1996, Mr. Vincent has been self employed as a business STRATEGIST for several major corporations including St. Joe Company/Arvida, Firehouse Subs, and Founder Service Corporation, and currently serves on the Boards of Directors of several companies including Integrated Power Group, Ltd., The Ozone Group, Inc., and Acacia Historical Arts, Inc.  Prior, Mr. Vincent as a founder, director, and chief operating officer of Businesship International, Inc., and from 1979 to 1990 was President and COO of The Communications Group.  In the past he has served as an executive with Control Data Corporation (NYSE), Recognition Equipment, Inc. (NASDAQ), and Visual Graphics Corporations (AMEX).   22   Michael L. Foudy, Chairman. Mr. Foudy was graduated from the University of Arizona in 1973 and received his JD from the University of Arizona Law School in 1976.  Mr. Foudy has been a member of the Board of Directors of AIMSTM since inception in October of 2002.  Mr. Foudy has practiced law in Arizona between 1977 and 1982, and is a principal founder and managing member of ATB Productions, LLC and the Heartland Group of Companies.  Mr. Foudy currently serves on the boards of UCI Web Group Inc, a consolidator of Internet website design and marketing firms and ATB Media, Inc.  Previously, Mr. Foudy hosted ATBs America The Beautiful nationally syndicated talk radio show from February 1995 until February 1997 and co-hosted Newsmaker which was syndicated to 119 radio stations by the United Broadcasting Network from September 1996 until March 1999.  Mr. Foudy has been active in a variety of charitable and community organizations including the Tucson Free Clinic, Tucson Community Food Bank, Arizona Opera Company and Southwestern Film Consortium.  Patrick J. Summers, Chief Financial Officer.  Mr. Summers has been the Controller and Chief Financial Officer of AIMSTM since 2002.  Since 1994, Mr. Summers has been an independent consultant, focusing his practice on strategic planning and financial management.  From 1998 to 2000 he was also the Controller and Chief Financial Officer of News USA, Inc., a privately owned public relations and publicity firm.  Mr. Summers holds a Master of Science degree in Management from Louisiana State University; his undergraduate degree is in International Relations with an emphasis on systems theory.  All officers hold their positions at the will of the Board of Directors. All directors hold their positions for one year or until their successors are elected and qualified.  The Company has no audit committee financial expert, as defined under Section 228.401, serving on its audit committee because it has no audit committee and is not required to have an audit committee because it is not a listed security as defined in Section 240.10A-3.  Compliance with Section 16  Section 16(a) of the Securities Exchange Act of 1934 requires officers and directors of the Company and persons who own more than ten percent of a registered class of its equity securities to file reports of ownership and changes in their ownership on Forms 3, 4, and 5 with the Securities and Exchange Commission, and forward copies of such filings to the Company.  Based on the copies of filings received by the Company during the most recent fiscal year the directors, officers, and beneficial owners of more than ten percent of the equity securities of the Company registered pursuant to Section 12 of the Exchange Act have filed on a timely basis all required Forms 3, 4, and 5 and any amendments thereto.   23   Item 10.  Executive Compensation.  Executive compensation for the previous three years is as follows:  SUMMARY COMPENSATION TABLE  Summary Compensation Table for 2006 and 2005Change inPensionNon-EquityValue andStockOptionIncentiveNonqualifiedName andPlanDeferredAll OtherPrincipalSalaryBonusAwardsAwardsCompensationCompensationCompensationTotalPositionYear($)($)($)($)($)Earnings ($)($)($)(a)(b)( c)(d)(e)(f)(g)(h)(i)(j)Gerald Garcia2006193,179-7,500----200,679Principal Executive2005180,000------180,000OfficerMichael Foudy2006172,500-7,500----180,000Director200545,000-----133,500178,500Patrick Summers200683,914-7,500----91,414Principal Financial200595,490------95,490OfficerJoseph Vincent2006189,842-7,500----197,342Director200545,000-----132,500177,500(e)Each individual was awarded 50,000 shares of common stock, with a fair value of $0.15 per share.(I)Consulting fees paid in 2005 prior to becoming employees.   24    EquityIncentiveOutstanding Equity Awards At December 31, 2006PlanEquityPlanIncentiveAwards:PlanMarketEquityNumberMarketPlanor PayoutIncentiveofValue ofAwards:Value ofPlanSharesSharesNumber ofUnearnedAwards:or Unitsor UnitsUnearnedShares,Number ofNumber ofNumber ofof Stockof StockShares,UnitsSecuritiesSecuritiesSecuritiesThatThatUnits oror OtherUnderlyingUnderlyingUnderlyingHaveHaveOtherRightsUnexercisedUnexercisedUnexercisedOptionOptionNotNotRights ThatThatOptions (#)Options (#)UnearnedExerciseExpirationVestedVestedHave NotHave NotExercisableUnexercisableOptions (#)Price ($)Date(#)($)Vested (#)Vested ($)(a)(b)( c)(d)(e)(f)(g)(h)(i)(j)Gerald Garcia200,000--$  -12/11/2008----Principal200,000--$  -12/11/2009Executive200,000--$  -12/11/2010Officer200,000--$  -12/11/2011500,000--$  -5/31/2010500,000--$  -5/31/2011Michael Foudy200,000--$  -12/11/2008----Director200,000--$  -12/11/2009200,000--$  -12/11/2010200,000--$  -12/11/2011500,000--$  -5/31/2010500,000--$  -5/31/2011Patrick Summers200,000--$  -12/11/2008----Principal200,000--$  -12/11/2009Financial200,000--$  -12/11/2010Officer200,000--$  -12/11/201124,000--$ 0.5011/16/2009Joseph Vincent200,000--$  -12/11/2008----Director200,000--$  -12/11/2009200,000--$  -12/11/2010200,000--$  -12/11/2011500,000--$  -5/31/2010500,000--$  -5/31/2011(e) Option exercise price for each 200,000 share grant is 125% of the average market price for the five days preceding the exercise of the options.(e) Option exercise price for each 500,000 share grant is 110% of the average market price for the five days preceding the exercise of the options.  25    Director Compensation For 2006Change inPension ValueandFeesNonqualifiedEarnedNon-EquityDeferredor PaidStockOptionIncentive PlanCompensationAll Otherin CashAwardsAwardsCompensationEarningsCompensationTotalName($)($)($)($)($)($)($)(a)(b)( c)(d)(e)(f)(g)(h)Gerald Garcia-------Joe Vincent-------Mike Foudy-------No compensation is provided other than reported on Executive compensation table.  We have not established any pension, profit sharing or insurance programs for the benefit of our employees.  Item 11.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters  The following table sets forth as of March 27, 2007, the name and shareholdings of each person who is an officer or is known to us that either directly or beneficially (includes options and warrants) holds more than 5% of our 41,432,748 outstanding shares of common stock, par value $.001.  The table also lists the name and shareholdings of each director and of all officers and directors as a group. Except as otherwise indicated, the persons named in the table have sole voting and dispositive power with respect to all shares beneficially owned, subject to community property laws where applicable.  26    Name and AddressTitle of ClassNumber of Shares Beneficially Owned% of SharesGerald Garcia Jr., (1)(3)
10400 Eaton Place, #203
Fairfax, VA 22030

B. Joseph Vincent (1)(3)
10400 Eaton Place, #203
Fairfax, VA 22030

Michael Foudy (1)(2)(3)
10400 Eaton Place, #203
Fairfax, VA 22030

Max Miller (6)
9746 South Park Circle
Fairfax Station, VA 22039

Patrick Summers (1)(4)
10400 Eaton Place, #203
Fairfax, VA 22030

Charles H. Brunie (5)
21 Elm Rock Road
Bronxville, NY  10708Common



Common



Common



Common



Common



Common4,058,567



4,700,000



6,362,117



2,299,113



965,500



5,142,8579.4%



10.9%



14.7%



5.5%



2.3%



12.1%Officers and Directors as a group: 4 peopleCommon16,086,18433.7%  (1) Officer and/or Director (2) Mr. Foudys shares are held by Gramercy Investments, LLC.  Mr. Foudy is owner of Gramercy Investments, LLC. 102,049 shares are held in the name of Erin Maried Foudy Trust, Michael L. Foudy, Trustee (3) Includes 1,800,000 options available within 60 days (4) Includes 824,000 options available within 60 days (5) Includes 1,000,000 options available within 60 days. (6) 1,750,000 of Mr. Millers shares are held by Media Partners, LLC, of which he is the managing member; he holds 540,910 shares directly.  Item 12.  Certain Relationships and Related Transactions  In 2006 and 2005, respectively, we paid consulting fees totaling $-0- and $266,000 to Directors, acting in the capacity of consultants.  Although in 2006 and 2005 we accrued no additional legal fees to a related party shareholder acting in the capacity of an attorney, we continue to be indebted to the shareholder in the amount of $47,500 as of December 31, 2006 for services rendered prior to 2005.  27    In 2006, we expensed consulting fees which we paid or plan to pay in cash totaling $276,000 to five individual shareholders, none of whom were officers or directors.  In 2006, we expensed consulting fees totaling $101,554 which we paid or plan to pay in cash to three organizations which held equity interest in AIM S Worldwide, Inc., for professional services.  We were indebted to some of these parties as of December 31, 2006, for a portion of these services.  Anthony P. Mikes$11,000David A. Woodcock30,000Denison E. Smith140,000Thomas W. Cady60,000William Strickler35,000276,000Arthur H. Stevens/Stevens Gould36,000KassUehling22,243Sterling, Gregory, & Plotkin43,311101,554$377,554  As of December 31, 2006, ATB Media, Inc., was indebted to related parties in amounts as follows:  Accounts Payable$12,264Long Term Debt-Principal$975,971Long Term Debt-Interest$755,166  As of December 31, 2006, AIM Worldwide Corporate was in debt to three related parties in the form of Accounts Payable in the amount of $101,777:  GMMJ Partners$29,277Max Miller, PC47,500Media Partners25,000$101,777  As of December 31, 2005, AIMS Worldwide Corporate was in debt to three related parties (the same parties as those noted for 12/31/06) in the form of Accounts Payable in the amount of $90,183.  In 2004, we acquired a company under common control, ATB Media, Inc. (ATB).  ATB was formed in 1997 in Delaware to participate in the acquisition and operation of radio and television stations.  Prior to the acquisition, ATB had advanced $1,010,573 to entities acquiring certain of these radio stations.  In addition, ATB had acquired a $201,659 interest in Group One Broadcasting, Inc. Because of uncertainty in recovering these investments, management has written them off.   28   Unsecured notes payable, due on demand, and related accrued interest to related parties as of December 31, 2005, and December 31, 2006, follow:  December 31, 2005BalanceBalancePrincipalInterestDenison Smith, 12% interest$248,710$173,324Gerald Garcia, Jr., 10% interest30,00030,000Max Miller, 15% interest on fee only125,00061,522Media Partners, 6.5%164,51750,601Michael Foudy, -0-% interest125,000-Michael Foudy, 15% interest, excl. fee282,744342,135Total$975,971$657,582  December 31, 2006BalanceBalancePrincipalInterestDenison E. Smith, 12% interest$248,710$200,424Gerald Garcia, 10% interest30,00033,000Max E. Miller, 15% interest125,00080,272Media Partners, 6.5% interest164,51767,052Michael Foudy, -0-% interest125,000-Michael Foudy, 15% interest282,744384,193$975,971$764,941  We have a license agreement with GMMJ General Partnership.  The constituent partners of GMMJ are B. Joseph Vincent, Gerald Garcia Jr., Max Miller and Michael Foudy.  Under the agreement, we will pay an initial fee of $1,500 and a royalty of one percent of revenue for the use of any business methods, processes and intellectual property developed by GMMJ including the Accurate Integrated Marketing Solutions business services model and related trade secret systems and processes, URLs, logos and trade names.  Messrs Vincent, Garcia and Foudy are officers and directors of AIMS.  Mr. Miller is an affiliate by shareholdings.  GMMJ General Partners has agreed to waive payment of said compensation until such time as the Company has suitable revenues, income and cash flow and received no payments from the Company in 2002, 2003, 2004, 2005, or 2006.  Item 13.  Exhibits  The Company has adopted a code of ethics that applies to the Companys principal executive officer, principal financial officer, principal accounting officer or controller which was attached as Exhibit 99.3 to its 2002 Form 10KSB.  The Company will provide, at no cost, a copy of the Code of Ethics to any shareholder of the Company upon receiving a written request sent to the Companys address shown on Page 1 of this report.  29    Exhibit #DescriptionLocationExhibit 3(I)Articles of Incorporation as Amended*Exhibit 3(ii)Bylaws*Exhibit 14Code of Ethics**Exhibit 31.1Certification of the Principal Executive Officerpursuant to Section 302 of the Sarbanes-Oxley Act of 2002AttachedExhibit 31.2Certification of the Principal Financial Officerpursuant to Section 302 of the Sarbanes-Oxley Act of 2002AttachedExhibit 32.1Certification of the Principal Executive Officerpursuant to U.S.C. Section 1350 as adopted pursuant toSection 906 of the Sarbanes-Oxley Act of 2002***AttachedExhibit 32.2Certification of the Principal Financial Officerpursuant to U.S.C. Section 1350 as adopted pursuant toSection 906 of the Sarbanes-Oxley Act of 2002***Attached  * Incorporated by reference. Filed as exhibit to SB-2 filed September 8, 1999  **Incorporated by reference. Filed as exhibit to 2002 10KSB filed March 4, 2003  ***The Exhibit attached to this Form 10-KSB shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.  Item 14.  Principal Accountant Fees and Services.  Audit Fee  The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of AIMS annual financial statement and review of financial statements included in AIMS 10-KSB reports and services normally provided by the accountant in connection with statutory and regulatory filings or engagements were $45,929 for fiscal year ended 2005 and $72,603 for fiscal year ended 2006.  Audit-Related Fees  The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of AIMS financial statements that are not reported above were $-0- for fiscal year ended 2005 (included review of the Prime Time and HWL&V acquisition agreements [estimated]), and $-0- for fiscal year ended 2006.  30    Tax Fees  There were no fees for tax compliance, tax advice and tax planning for the fiscal years 2005 and 2006.  All Other Fees  There were no other aggregate fees billed in either of the last two fiscal years for products and services provided by the principal accountant, other than the services reported above.  We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee.  Our board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services.  We do not rely on pre-approval policies and procedures.  31   SIGNATURES  In accordance with the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.    AIMSTM Worldwide, Inc.  /s/ Gerald Garcia Jr. Gerald Garcia Jr., Chief Executive Officer April 17, 2007   /s/ Patrick J. Summers Patrick J. Summers, Chief Financial Officer April 17, 2007    In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.     /s/ Michael Foudy Michael Foudy, Chairman April 17, 2007   /s/ B. Joseph Vincent B. Joseph Vincent, Vice Chairman April 17, 2007   /s/ Gerald Garcia, Jr. Gerald Garcia, Jr., Director April 17, 2007      32   AIMS WORLDWIDE, INC. CONSOLIDATED FINANCIAL STATEMENTS TABLE OF CONTENTS   PageReport of Independent Registered Public Accounting firmF-2Consolidated Balance Sheet at December 31, 2006F-3Consolidated Statements of Operations for the Years Ended Dec. 31, 2006 and 2005F-4Consolidated Statements of Stockholders Deficit for the periodfrom Jan. 1, 2005, through Dec. 31 2006F-5Consolidated Statements of Cash Flows for the Years Ended Dec. 31, 2006 and 2005F-6Notes to Consolidated Financial StatementsF-7  F-1   REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  The Board of Directors and Shareholders of AIMS Worldwide, Inc. We have audited the accompanying consolidated balance sheet of AIMS Worldwide, Inc. as of December 31, 2006, and the related consolidated statements of operations, changes in shareholders deficit, and cash flows for the years ended December 31, 2006 and 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 audit. We conducted our audit in accordance with auditing standards of the Public Companies Accounting Oversight Board (United States). Those standards require that we plan and perform the audit 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 made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of AIMS Worldwide, Inc. as of December 31, 2006, and the consolidated results of their operations and their cash flows for the years ended December 31, 2006 and 2005 in conformity with accounting principles generally accepted in the United States of America. As disclosed in Note 1 to the consolidated financial statements, effective January 1, 2006, AIMS Worldwide, Inc. adopted Statement of Financial Accounting Standards No. 123R, Share-based Payment. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 1 to the financial statements, the Company has not fully realized the potential of its business plan and, accordingly, has experienced limited revenues related to the sale of its products and services.    Additionally, the Company continues to experience net operating losses, relies upon outside sources of working capital to meet current obligations and is plans to sell assets to execute its business plan.  The Companys existence is dependent upon the successful execution of its business plan and the ability to raise working capital from outside sources.  These circumstances create substantial doubt about the Company's ability to continue as a going concern and Management's plans in regard to these matters are also described in Note 1.  The financial statements do not contain any adjustments that might result from the outcome of these uncertainties.  /s/ Cordovano and Honeck LLP Cordovano and Honeck LLP Englewood, Colorado April 17, 2007   F-2   AIMS Worldwide, Inc. Consolidated Balance Sheet December 31, 2006  AssetsCurrent assetsCash$16,942Accounts receivable, net of allowances252,246Inventory6,658Prepaid expense30,287Total current assets306,133Property and equipmentAt cost, net of accumulated depreciation of $77,240245,430Other assetsDeposit on acquisition target260,000Equity investments held for sale661,283Prepaid offering costs158,000Goodwill606,548Intangible assets, net of amortization of $110,379588,864Total assets$2,826,258Liabilities and Stockholders' DeficitCurrent liabilitiesAccounts payable$301,235Accounts payable - related parties114,241Accrued expense6,471Deferred revenue20,625Notes payable1,489,905Notes payable - related parties975,971Accrued interest payable805,995Accrued interest payable - related parties764,941Total current liabilities4,479,384Deferred income tax161,762Total liabilities4,641,146Stockholders' deficitPreferred stock, $.001 par value, 10,000,000 sharesauthorized, no shares issued and outstanding-Common stock, $.001 par value, 100,000,000 sharesauthorized, 40,044,248 shares issued and 36,025,962 outstanding40,044Additional paid-in capital9,011,069Stock subscription receivable(50,000)Stock held in escrow(1,735,000)Deficit retained(9,081,001)Total stockholders' deficit(1,814,888)Total liabilities and stockholders' deficit$2,826,258  See accompanying notes to consolidated financial statements  F-3   AIMS Worldwide, Inc. Consolidated Statements of Operations  Year endedYear endedDec. 31, 2006Dec. 31, 2005Revenue$1,742,387$1,161,440Operating expensesCost of sales451,333430,068General and administrative expenses3,395,8191,999,080General and administrative expenses - related parties151,595368,775Bad debt expense910,22010,230Total operating expenses4,908,9672,808,153Operating loss(3,166,580)(1,646,713)Interest expense, net(134,363)(277,505)Interest expense, net - related parties(107,360)(110,104)Loss on disposition of fixed assets(14,494)-Loss before discontinued operations andprovision for income taxes(3,422,797)(2,034,322)Earnings from equity investments held for salenet of income taxes220,134107,594Loss before provision for income taxes(3,202,663)(1,926,728)Income taxes--Net Loss$(3,202,663)$(1,926,728)Basic and diluted loss per share$(0.09)$(0.07)Weighted average number of shares outstanding36,423,01128,478,113  See accompanying notes to consolidated financial statements   F-4   AIMS Worldwide, Inc. Consolidated Statement of Changes in Shareholders Deficit  StockCommon StockAddl.StockHeldParPaid-inSubscr.InDeficitSharesValueCapitalRec'vbleEscrowRetainedTotalBalance, January 1, 200522,077,452$22,077$              -$             -$               -$(3,942,688)$(3,920,611)Common stock issued forcash, less offering costsof $13,3264,803,5714,8041,756,870(403,750)--1,357,924Common stock issuedfor services690,038690381,444---382,134Common stock issuedfor debt165,00016582,335---82,500Common stock issued asadditional interest250,000250142,125---142,375Common stock issued foraccrued expenses1,800,0001,8001,121,580---1,123,380Reduction in accts. payable--50,575---50,575Common stock issuedfor acquisitions2,071,8702,0721,143,625--(8,922)1,136,775Net Loss for year-----(1,926,728)(1,926,728)Balance, December 31, 200531,857,93131,8584,678,554(403,750)-(5,878,338)(1,571,676)Common stock issued forcash, less offering costsof $19,8094,370,0004,3701,380,82230,000--1,415,192Common stock issuedfor services1,274,8031,275424,056---425,331Warrant issued for commonstock in anticipationof stock offering--158,000---158,000Warrant issued for commonstock as compensation--588,499---588,499Payment on subscribedshares---80,750--80,750Reserve for subscribed shares--(243,000)243,000---Return of shares toauthorized(108,486)(109)(69,323)---(69,432)Common stock issuedfor acquisitions2,650,0002,6502,093,461-(1,735,000)-361,111Net Loss for year----(3,202,663)(3,202,663)Balance, December 31, 200640,044,248$40,044$9,011,069$(50,000)$(1,735,000)$(9,081,001)$(1,814,888) See accompanying notes to consolidated financial statements  F-5   AIMS Worldwide, Inc. Consolidated Statements of Cash Flows  Year endedYear endedDec. 31, 2006Dec. 31, 2005Cash flows from operating activitiesNet loss$(3,202,663)$(1,926,728)Adjustments to reconcile net loss to net cash used inoperating activitiesDepreciation and amortization106,10679,132Income from equity investments(220,134)(107,594)Stock options issued588,499-Stock issued to employees and others for services425,331524,509Changes in current assets and liabilitiesAccounts receivable and other current assets549,271(774,952)Accounts payable and other current liabilities144,063396,198Net cash used in operating activities(1,609,527)(1,809,435)Cash flows from investing activitiesPurchase of equipment-(21,941)Deposit on acquisition(235,000)(50,000)Distributions from equity investments282,064107,500Investment in subsidiaries and equity investments(110,000)(185,000)Net cash used in investing activities(62,936)(149,441)Cash flows from financing activitiesProceeds from sale of common stock1,435,0001,371,250Offering costs for sale of common stock(19,809)(13,326)Proceeds from stock subscriptions80,750-Repurchase of common stock(69,432)-Proceeds from notes payable10,00010,000Repayments of notes payable(29,670)(50,000)Net cash provided by financing activities1,406,8391,317,924Net change in cash(265,624)(640,952)Cash, beginning of year282,566923,518Cash, end of year$16,942$282,566Cash paid during the year for:Interest$11,695$-Income Taxes$-$-Non-cash investing and financing activitiesStock in escrow for acquisition IKON and Target America1,735,000-Stock issued for acquisition Streetfighter Marketing, Inc361,111-Warrant issued for services158,000-Stock issued to acquire Prime Time-971,500Stock issued to acquire HWL-174,200Stock issued to settle debt-82,500Stock issued to settle debt - related parties-1,173,955  See accompanying notes to consolidated financial statements  F-6   AIMS WORLDWIDE, INC. Notes to Consolidated Financial Statements  Note 1:  Organization, Basis of Presentation and Summary of Significant Accounting Policies  Organization  Description of Operations  AIMS Worldwide (AIMSTM) is a vertically integrated marketing communications consultancy providing organizations with its AIMSolutions branded focused marketing solutions at the lowest possible cost.  AIMSTM (Accurate Integrated Marketing Solutions) increases the accuracy of the strategic direction of its client's marketing program, improves results and reduces the cost, by refocusing "mass marketing" to a more strategic "One-2-OneTM" relationship with the ideal customer. To further differentiate from the rest of the market, AIMSTM places intense focus on the Return on Marketing Investment, or "ROMITM."  The Company's goal is to provide clients with a measurable return by first conducting an audit of the client's existing marketing strategy in order to deliver an increased return on their investment.  AIMSTM is accelerating its growth by targeting and acquiring a group of core competency media and marketing communications services companies.  We commenced operations in 2002.  In 2005 we acquired certain assets of a company to acquire, design, construct and manage private cable and Internet systems.  The acquired subsidiary company provides cable and Internet services to more than 3,000 households and resort rooms in premier master planned communities and major resorts in greater Orlando, Florida.  Also in 2005, we acquired a company in the marketing development service industry.  In 2006 we acquired a strategy and planning organization in Gahanna, Ohio.  We are headquartered in Fairfax, Virginia.  Basis of Presentation  The consolidated financial statements include the accounts of AIMS Worldwide, Inc. and its subsidiaries.  All significant inter-company transactions and balances have been eliminated in consolidation.  When we refer to we, our, or us in this document, we mean AIMS Worldwide, Inc. and its subsidiaries.  We have incurred significant operating losses since our inception and we have a net working capital deficiency at December 31, 2006.  However, we have raised sufficient capital to fund our on-going obligations.  We are currently seeking equity capital in order to proceed with our business plan.  While we have been successful in the past in raising equity capital, the unique nature of our business concept has limited our ability to acquire additional equity capital.  We believe that we are not a viable candidate for commercial bank debt financing due to our lack of operating history and our lack of tangible assets.  There is no assurance that we will meet the objectives of our business plan or that we will be successful in obtaining additional financing.  Because there is no guarantee that we will succeed in accomplishing our objectives, substantial doubt exists about our ability to continue as a going concern.  These financial statements do not contain any adjustments that may be required should we be unable to continue as an on-going concern.   F-7   Use of Estimates  The preparation of financial statements in conformity with generally accepted accounting principals requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period.  Accordingly, actual results could differ from those estimates.  Reclassifications  Certain prior-year amounts have been reclassified for comparative purposes to conform to the current-year presentation.  Cash and cash equivalents  For financial accounting purposes and the statement of cash flows, cash equivalents include all highly liquid debt instruments purchased with an original maturity of three months or less.  We had $-0- incash equivalents as of December 31, 2006.  Fair Value of Financial Instruments  Our financial instruments consist of cash, receivables, and accounts payable and accrued expenses.  The carrying values of cash, receivables, and accounts payable and accrued expenses approximate fair value because of their short maturities.  The carrying value of the term loans and demand note payable approximates fair value since the interest rate associated with the debt approximates the current market interest rate.  Accounts Receivable  A reserve for losses has been established in an amount of $920,450 at December 31, 2006.  We review receivable accounts quarterly and adjust reserves as appropriate.  Accounts receivable consists of amounts due from customers located in the United States.  The Company considers accounts more than 90 days old to be past due although special exceptions are made for certain clients at the discretion of only top management.  The Company uses the allowance method for recognizing bad debts.  When an account is deemed uncollectible, it is written off against allowance.  The Company generally does not require collateral for its accounts receivable.  As of December 31, 2006, management believes the allowance for uncollectible accounts is fairly stated.  The recorded investment in trade receivable past due 90 days or more as of December 31, 2006, is $12,203.   F-8   Inventory  Inventory, which consists of supplies, parts and equipment on hand to maintain equipment and provide continuous service to customers in the cable business in Florida as well as books, presentation, promotion, and other materials to sell at Street Fighter presentations, is stated at the lower of cost or market, with costs determined using the average-cost method.  The Company conducts a physical inventory annually and routinely reviews the inventory for any impairment either because of technical obsolescence or because the inventory exceeds by a material amount the forecasts for company requirements.  The Company records a provision for obsolete or excess inventory whenever impairment has been identified.  Prepaid Expenses  Prepaid expenses consist primarily of pre-payments of insurance, rent, maintenance and trade deposits which will be reflected as an expense during the periods benefited.  Property and Equipment  Property and equipment are stated at cost.  Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, generally ranging from three to seven years.  The recoverability of property and equipment is evaluated whenever indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets carrying amount.  No impairment charges have been recorded for the years ended December 31, 2006 and 2005.  Impairment or Disposal of Long-Lived Assets  We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value. We assess the recoverability of our long-lived and intangible assets by determining whether the unamortized balances can be recovered through undiscounted future net cash flows of the related assets. The amount of impairment, if any, is measured based on projected discounted future net cash flows.  Investments in Unconsolidated Subsidiaries  Certain investment interest in limited liability companies are accounted for using the equity method of accounting if the investments give the company the ability to exercise significant influence, but not control, over an investee.  Significant influence is generally deemed to exist if the Company has an ownership voting interest in the investee between 20% and 50%, although other factors, such as representation of the investees Board of Managers and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate.  The Company records its investments in equity-method investees on the consolidated balance sheet as Equity investments and its share of the investees earnings or losses as Earnings from equity investments, net on the statements of operations.   F-9   The accompanying financial statements include investments in the following limited liability companies.  The Company provides video and Internet services to the LLCs and has constructed various head-end facilities for the LLCs.  See footnote 2.  Intangible assets  We have acquired intangible assets in conjunction with acquisitions.  These assets have been originally stated at cost, subsequently reduced by amortization and impairment, if required.  We have letters of intent related to the HWL acquisition that are being amortized over their four year expected life. In addition, we have a non-compete agreement related to the Prime Time acquisition that is being amortized over its five year term.  In 2006, we acquired the Street Fighter brand, trademark, copyrights, published materials, and intellectual property as part of the Streetfighter acquisition that are being amortized over their expected ten year economic life.  Revenue Recognition  Our revenue policies meet the criteria for realizing and earning revenues set forth in SEC Staff Bulletin (SAB) 101 because, when applicable, we recognize revenue and earnings only when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) our vendors price is fixed or determinable, and (4) collectibility is reasonably assured.  Revenue for service fees is recognized at the time the service is performed.  Revenue for product sales is recognized at the time the product is delivered.  Advertising revenue is earned as the advertisements are aired or published.  Revenue from speaking engagements is recognized when the speech is delivered.  Concentrations  The Company received AIMSolutions consulting revenue from one customer during the year ended December 31, 2006, representing approximately 70% ($601,909 of the $857,056 total) and represents less than 40% of the AIMS Worldwide, Inc., total revenue of $1,742,387 in 2006.  At December 31, 2006, amounts due for consulting services from three customers represented 86% ($652,067 of $760,129) of the companys accounts receivable.  Concentration of Credit Risk and Financial Instruments  SFAS No. 105, "Disclosure of Information About Financial Statements with Off-Balance Sheet Risk and Financial Instruments with Concentrations of High Risk," required disclosure of significant concentrations of credit risk regardless of the degree of such risk.  Financial instruments with significant credit risk include cash.  The Company deposits its cash with high quality financial institutions in amounts less than the federal insurance limit of $100,000 in order to limit credit risk.  As of December 31, 2005, the Company's bank deposits did not exceed the insured limit.  Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily accounts receivable.  Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Companys customer base.   F-10   Share-based Payment Arrangements  Effective January 1, 2006, the Company adopted SFAS No. 123 (Revised 2004),Share-based payment, which requires that compensation related to all stock-based awards, including stock options and restricted common stock, be recognized in the financial statements based on their estimated grant-date fair value. The Company previously recorded stock compensation pursuant to the intrinsic value method under APB Opinion No. 25, whereby compensation was recorded related to performance share and unrestricted share awards and no compensation was recognized for most stock option awards. The Company is using the modified prospective application method of adopting SFAS No. 123R, whereby the estimated fair value of unvested stock awards granted prior to January 1, 2006 will be recognized as compensation expense in periods subsequent to December 31, 2005, based on the same valuation method used in our prior pro forma disclosures. The Company has estimated expected forfeitures, as required by SFAS No. 123R, and is recognizing compensation expense only for those awards expected to vest. Compensation expense is amortized over the estimated service period, which is the shorter of the awards time vesting period or the derived service period as implied by any accelerated vesting provisions when the common stock price reaches specified levels. All compensation must be recognized by the time the award vests. The cumulative effect of initially adopting SFAS No. 123R was immaterial.  Advertising Expenses  All advertising expenditures will be expensed as incurred.  Advertising expenses for 2006 and 2005 were $0 and $0, respectively.  Income Taxes  We report income taxes in accordance with SFAS No. 109, "Accounting for Income Taxes", which requires the liability method in accounting for income taxes.  Deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount on the financial statements.  Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid or refunds received, as provided under currently enacted law.  Valuation allowances are established when necessary to reduce the deferred tax assets to the amounts expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change during the period in the deferred tax assets and liabilities.  Earnings/(loss) Per Share  Basic net income per share is computed by dividing the net income available to common shareholders (the numerator) for the period by the weighted average number of common shares outstanding (the denominator) during the period.  The computation of diluted earnings is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued.  At December 31, 2006, there was no variance between basic and diluted loss per share as the exercise of outstanding warrants to purchase common stock would be potentially anti-dilutive.   F-11   New Accounting Standards  SFAS No. 151, "Inventory Costs," is effective for fiscal years beginning after June 15, 2005.  This statement amends the guidance in Accounting Research Bulletin ("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).  The adoption of SFAS 151 had no impact on the Company's financial statements.  SFAS No. 152, Accounting for Real Estate Time-Sharing Transactions, is effective for fiscal years beginning after June 15, 2005. This statement amends SFAS No. 66, Accounting for Sales of Real Estate, to reference the financial accounting and reporting guidance for real estate time-sharing transactions that is provided in American Institute of Certified Public Accountants Statement of Position 04-2, Accounting for Real Estate Time-Sharing Transactions. The adoption of SFAS No. 152 had no impact on the Companys financial statements.  SFAS No. 153, Exchanges of Nonmonetary Assetsan amendment of APB Opinion No. 29, is effective for fiscal years beginning after June 15, 2005. This statement addresses the measurement of exchange of nonmonetary assets and eliminates the exception from fair-value measurement for nonmonetary exchanges of similar productive assets in paragraph 21(b) of APB Opinion No. 29, Accounting for Nonmonetary Transactions, and replaces it with an exception for exchanges that do not have commercial substance. The adoption of SFAS No. 153 had no impact on the Companys financial statements.  In May 2005, the FASB issued SFAS No. 154, Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB Statement No. 3. SFAS 154 requires retrospective application to prior period financial statements for changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. SFAS 154 also requires that retrospective application of a change in accounting principle be limited to the direct effects of the change. Indirect effects of a change in accounting principle should be recognized in the period of the accounting change. SFAS 154 is effective for accounting changes made in fiscal years beginning after December 15, 2005. The adoption of SFAS 154 had no impact on the Companys financial statements.  In June 2005, the EITF reached a consensus on Issue No. 04-10, Determining Whether to Aggregate Operating Segments That Do Not Meet the Quantitative Thresholds. EITF Issue 04-10 confirmed that operating segments that do not meet the quantitative thresholds can be aggregated only if aggregation is consistent with the objective and basic principles of SFAS 131, Disclosure about Segments of an Enterprise and Related Information. The consensus in this issue should be applied for fiscal years ending after September 30, 2005, and the corresponding information for earlier periods, including interim periods, should be restated unless it is impractical to do so. The adoption of EITF Issue 04-10 did not have a material impact on our disclosures.  In September 2005, the Emerging Issues Task Force (EITF) reached a consensus on Issue No. 04-13, Accounting for Purchases and Sales of Inventory with the Same Counterparty. EITF Issue 04-13 requires that purchases and sales of inventory with the same counterparty in the same line of business should be accounted for as a single non-monetary exchange, if entered into in contemplation of one another. The consensus is effective for inventory arrangements entered into, modified or renewed in interim or annual reporting periods beginning after March 15, 2006. The adoption of EITF Issue 04-13 did not have a material impact on our financial statements.  F-12   In February 2006, the FASB issued Statement No. 155, Accounting for Certain Hybrid Financial Instruments (SFAS No. 155), which amends FASB Statements No. 133 and 140. SFAS No. 155 permits fair value remeasurement for any hybrid financial instrument containing an embedded derivative that would otherwise require bifurcation, and broadens a Qualified Special Purpose Entitys permitted holdings to include passive derivative financial instruments that pertain to other derivative financial instruments. SFAS No. 155 is effective for all financial instruments acquired, issued or subject to a remeasurement event occurring after the beginning of an entitys first fiscal year beginning after September 15, 2006. SFAS No. 155 has no current applicability to the Companys financial statements.  Management plans to adopt SFAS No. 155 on January 1, 2007 and it is anticipated that the initial adoption of this statement will not have a material impact on the our financial statements.  In June 2006, the FASB issued Interpretation 48, Accounting for Uncertainty in Income Taxes (FIN 48), an interpretation of FASB Statement No. 109, Accounting for Income Taxes.  FIN 48 clarifies the accounting and reporting for income taxes where interpretation of the law is uncertain. FIN 48 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of income tax uncertainties with respect to positions taken or expected to be taken in income tax returns. FIN 48 is effective for fiscal years beginning after December 15, 2006 and has no current applicability to the Companys financial statements.  Management plans to adopt FIN 48 on January 1, 2007 and it is anticipated that the initial adoption of FIN 48 will not have a material impact on the Companys financial statements.  In September 2006, the FASB issued Statement No. 157, Fair Value Measurements (SFAS No. 157). SFAS No. 157 addresses how companies should measure fair value when they are required to use a fair value measure for recognition or disclosure purposes under GAAP. SFAS No. 157 defines fair value, establishes a framework for measuring fair value and expands the required disclosures about fair value measurements. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007, with earlier adoption permitted. Management is assessing the impact of the adoption of SFAS No. 157.  In September 2006, the Securities Exchange Commission issued Staff Accounting Bulletin No. 108 (SAB No. 108). SAB No. 108 addresses how the effects of prior year uncorrected misstatements should be considered when quantifying misstatements in current year financial statements. SAB No. 108 requires companies to quantify misstatements using a balance sheet and income statement approach and to evaluate whether either approach results in quantifying an error that is material in light of relevant quantitative and qualitative factors. When the effect of initial adoption is material, companies will record the effect as a cumulative effect adjustment to beginning of year retained earnings and disclose the nature and amount of each individual error being corrected in the cumulative adjustment. SAB No. 108 will be effective beginning January 1, 2007 and it is anticipated that the initial adoption of SAB No. 108 will not have a material impact on the Companys financial statements.  In February 2007, the FASB issued Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (SFAS No. 159), an amendment of FASB Statement No. 115. SFAS No. 159 addresses how companies should measure many financial instruments and certain other items at fair value.  The objective is to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. SFAS No. 159 is effective for fiscal years beginning after November 15, 2007, with earlier adoption permitted. Management is assessing the impact of the adoption of SFAS No. 159.   F-13   Note 2:  Acquisition of Subsidiaries, Investments and Disposition  As of December 2006, the Company was anticipating closing on two, possibly three, acquisitions in 2007.  The Company had presented two stock purchase agreements to two companies and placed $260,000 in deposits that will be applied to purchase if the transactions are completed; none of the transactions are imminent.  The purchases are contingent on the sale of assets of the equity investments and securing adequate corporate financing.  On October 26, 2006, the Company acquired 100% of the outstanding common stock of Streetfighter Marketing, Inc., (an Ohio Corporation) in exchange for 722,222 shares of our own restricted common stock.  The transaction is recorded as a purchase and the acquired operations  are included in the consolidated financial statements from the date of acquisition.  The Company determined the fair value of this acquisition to be $361,111 using the market price of the shares issued at the time of the transaction of $0.50 per share.  For our consolidated financial statements, we determined the fair value of tangible and intangible assets acquired and liabilities assumed and allocated the fair value of the common shares issued in payment accordingly.  Tangible and intangible asset values will be depreciated or amortized over the estimated economic lives of the assets which is estimated to be five years for tangible and ten years for intangible assets.  The acquisition is included in our consolidated financial statements at the following initial values:  Current assets$54,595Property and equipment43,737Streetfighter brand300,000Published materials and trademarks175,044Total assets acquired573,376Current liabilities(212,265)Total liabilities assumed(212,265)Net assets acquired$361,111  Pro forma results of operations had Streetfighter been included in operations for the years ended December 31, 2006 and 2005 are as follows:  AIMS
Worldwide
As ReportedStreetfighter
January 1 to
October 25, 2006Pro FormaStatement of operations  2006Revenue1,742,387212,0041,954,391Operating loss(3,166,580)18,105(3,148,475)Net loss(3,202,663)9,549(3,193,114)AIMS
Worldwide
As ReportedStreetfighter
2005Pro FormaStatement of operations - 2005Revenue1,161,440233,9611,395,401Operating loss(1,646,713)46,198(1,600,515)Net loss(1,926,728)39,746(1,886,982)   F-14   AIMS business purpose for acquiring Streetfighter Marketing, Inc., (d/b/a Street Fighter Marketing), is to expand the Street Fighter brand which is a federal trademark intellectual property. AIMS and Streetfighter Marketing management plan to, among other anticipated business activities, release a new Simon and Schuster published book in the Fall of 2007 entitled Street Fighter Marketing Solution, plan to participate in a national book tour to promote the title, and plan to prepare, release and sell new Street Fighter published materials, workshops and seminars. The Company hopes to commence research into a Street Fighter Marketing franchise system.  Additional matters considered in the negotiations of the value to be paid to acquire Streetfighter Marketing in addition to the book value of the tangible assets were the prospects of the brand expansion of Street Fighter and the proposed franchise system,  the Street Fighter trademarks, intellectual properties, published materials including books, tapes, workshop and seminar copyrighted curricula, the Street Fighter brand, and the anticipated future value of Street Fighter brand creative products authored by Jeff and Marc Slutsky. The Company determined that the intangible assets acquired can be summarized into two classes as brand and published materials and trademarks.  The cost of the assets in these classes is being amortized over a weighted-average amortization period of ten years without residual value.  All intangible assets acquired are being amortized.  The following information summarizes the unconsolidated limited liability corporations in which Prime Time Broadband has non-controlling interests as of December 31, 2006:  PercentageOwnershipAvalon Communications, LLC50%Bellavida Communications, LLC50%Belmere Communications, LLC33%Emerald Island Communications, LLC50%Encantada Communications50%Terra Verde Communications, LLC50%Solana Communications, LLC50%  The following condensed information reflects the summarized financial position of the limited liability companies in which the company owns non-controlling interests.  The companys interests of 33% to 50% in these entities is included in the company financial statements on the equity method of accounting.  Company revenues for the years ended December 31, 2006 and 2005 include $384,192 and $302,915, respectively, in revenue from these limited liability companies and accounts receivable at December 31, 2006 of $59,970.  A summary of the financial position of the limited liability companies is as follows:  Year endYear endDec. 31, 2005Dec. 31, 2006Balance sheetCurrent assets$97,545$139,575Property and equipment, net533,149643,658Current liabilities(53,498)(118,213)Equity$577,196$665,020Income statementRevenue$690,593$659,536Net income271,133264,594  F-15     The Company recently decided to sell its unconsolidated interests in the limited liability companies while retaining certain marketing rights and the core construction and operating business of Prime Time Broadband.  The assets considered for sale have been reported as equity investments on a single line in both the balance sheet and statement of operations.  The company has reported the investment in these assets as held for sale and has separated the results of operations of these assets from ongoing operations.  Company revenues for services provided to these assets are not expected to change as a result of this proposed transaction other than by the amount reported as earnings from equity investment.  These assets and operations are included in the Media Services segment of our business.  The Company intends to use the cash proceeds from the sale to further acquire marketing communications companies.  The Companys management solicited and entertained offers for the majority interest from six suitable and qualified potential buyers.  Currently, the Company holds a Letter of Intent executed February 28, 2007, for the sale of certain assets held and operated by the unconsolidated limited liability companies of Prime Time Broadband and is now in negotiation stages to complete an asset purchase agreement.  A summary of the financial position of the company without the limited liability companies or proceeds of a potential sale is as follows:  AIMS
Worldwide
As ReportedLimited
Liability
CompaniesPro FormaBalance sheet - December 31, 2006Current assets306,133-306,133Property and equipment, net245,430-245,430Total Assets2,826,258(661,283)2,164,975Total liabilities4,641,146-4,641,146Equity(1,814,888)-(1,814,888)Statement of operations - year ended December 31, 2006Revenue1,742,387-1,742,387Operating loss(3,166,580)-(3,166,580)Net loss(3,202,663)(220,134)(3,422,797)Statement of operations - year ended December 31, 2005Revenue1,161,440-1,161,440Operating loss(1,646,713)-(1,646,713)Net loss(1,926,728)(107,594)(2,034,322)    F-16   Note 3:  Related Party Transactions  Repurchase of shares from William Strickler  In April 2006, we acquired 108,486 shares of our own common stock from Mr. William Strickler, our media services operations manager, for a total of $69,432.  In 2005, we acquired Mr. Stricklers company, PrimeTime Broadband, Inc. for cash, stock and notes.  We bought the shares in order to provide Mr. Strickler with the necessary liquidity to pay the capital gain tax resulting from the sale of his business to us.  We were under no obligation to buy back the shares.  We did so solely to accommodate Mr. Strickler, a valued member of our management team.  We booked the transaction at cost and no gain or loss was recorded.  We retired the shares of common stock and canceled the stock certificate upon receipt, and accordingly, the shares were returned and cancelled, and are considered authorized but unissued shares.  Clawback  In April 2006, we discovered that one location of our media services operating division was unable to comply with certain terms and conditions under which we had originally purchased the subsidiary in 2005.  We negotiated a settlement with the seller totaling $72,842.  We accounted for this transaction as contingent consideration and reduced both our carrying cost of the equity investment and our current installment payment to the seller by the $72,842.  Sale of Cable Operations  In April 2006, a limited liability company included in our Equity Investments sold its assets and business to Adelphia Communications Corp. for cash consideration.  We recorded a gain of $34,497 on our share of the gain from the sale.  This gain is included in Minority Interest in other income in the accompanying condensed, consolidated financial statements.  Other Issues  In January 2005, we issued three officers a total of 1.8 million shares of common stock valued at $1,123,380 in satisfaction of our liability for accrued compensation.  The shares were valued by the board of directors based on recent cash transactions.  There was no gain or loss recorded on the transaction.  The Company in February 2006 received payment of $155,000 from a client to repay an expense that had been incurred in January 2005.  This amount had been invoiced in 2005, bur because payment was more than 120 days past due, the invoice had been reversed in 2005.  When payment was received in 2006, the payment was recorded as expense reimbursement rather than as revenue.  If payment had been received in accordance with the Companys accounts receivable policy, the Company would have reported revenue of $1,316,440 in 2005 instead of the reported $1,161,440.  Although an AIMSTM shareholder of 5% or more, Mr. Denison Smith, was Chairman of the client's organization at the time services were rendered, he resigned his affiliation with the organization soon afterward.  Since his resignation, all activities with that organization are not considered to be with a related party.   F-17   As of December 31, 2006, the balance in accounts payable due to related parties:  Michael Foudy$12,464GMMJ Partners29,277Max Miller, PC47,500Media Partners25,000$114,241  Unsecured notes payable, due on demand, and related accrued interest to related parties as of December 31, 2006 follow:  ATB Media - Notes Payable-Related PartiesPrincipalInterestFoudy, Michael (early loans)$-$13,404Foudy fee, 0% (reduced debt)125,000-Foudy,14.875% (reduced debt)282,745370,789Garcia, Gerald, Jr. 10% (reduced debt)30,00033,000Media Partners, 6.5%164,51567,052Miller, Max (early loan)-3,351Miller, Max fee, 15% (reduced debt)125,00076,921Smith, Denison 12% (reduced debt)248,711200,424Total$975,971$764,941  In 2006 and 2005 we paid consulting fees totaling $151,595 and $266,000, respectively, to Directors and related parties, acting in the capacity of consultants.  We have a license agreement with a partnership that includes our officers and shareholders under which the partnership will pay an initial fee of $1,500 and a royalty of one percent of revenue for the use of business methods, processes and intellectual property developed by the constituent partners, including the Accurate Integrated Marketing Solutions business services model and related trade secret systems and processes, URLs, logos and trade names.  Note 4:  Property and Equipment  Listed below are the major classes of property and equipment as of December 31, 2006:  Furniture, fixtures, and computing equipment$322,670Less accumulated depreciation(77,240)Net property and equipment:$245,430  Depreciation expense for the years ended December 31, 2006 and 2005 is $37,556 and $37,304, respectively.   F-18   Note 5:  Intangible Assets  Listed below are the major classes of intangible assets as of December 31, 2006:  Letters of intent$174,200Non-compete agreement50,000Street Fighter brand300,000Published materials and trademarks175,044699,243Less accumulated amortization(110,379)Net value intangible assets$588,264  Amortization expense was $68,551 and $41,828 for the years ended December 31, 2006 and 2005, respectively.  The estimated aggregate amortization expense for the five succeeding years are:  2007$107,721200894,925200962,021201047,504201147,504$359,675   F-19   Note 6:  Notes Payable  Notes payable and accrued interest consist of the following amounts at December 31, 2006:  Notes PayableAccruedPrincipalInterestRelated to ATB Media acquisitionDeBolt, 10% interest rate (reduced debt)$40,000$44,000Hulse, Ms. Marlin, 10% interest20,00012,041Jewett, Gene, 10% interest rate4,4922,770Monesson, Morris, 10% interest20,00011,987Noble, 11% interest500,000330,000Phillips, 11% interest500,000330,000Riyamy, Armor M., 10% interest20,00016,666Schonrock, F. Tracy, 10% interest10,0006,025Scofield, Terrence J., 10% interest10,0006,011Smith, Janice, 10% interest10,0006,025Stein, Keith, 10% interest rate30,00018,637Thomas, John C., 10% interest10,0006,000Related to Prime Time acquisitionWilliam Strickler, 5% interest100,00015,833Suntrust45,000-Related to Streetfighter acquisitionBank One75,000-US Bank71,769-Jeff Slutsky11,538-Mark Slutsky12,106-Totals$1,489,905$805,995  We expect certain notes related to the ATB Media acquisition and accrued interest, totaling $3,705,566 (principal and interest) including $975,971 of related party notes to be repaid from proceeds of the sale of the radio station for which the loans were made and we have negotiated a tolling agreement with the two substantial note holders to provide time for the sale to be completed.  The full balance is reflected as a current liability.  These notes are uncollateralized, due on demand and in default.  In February 2005, we acquired Prime Time Cable, part of the compensation for which was a note payable to the seller, William Strickler.  At December 31, 2006, $100,000 remains payable on that note, accruing interest at 5% per annum, secured by assets of Prime Time Cable and due February 2007.  In November, 2005, we obtained a line of credit from Suntrust to provide working and acquisition capital to PTB in the total amount of $50,000 secured by assets of our subsidiary PTB and guaranteed by the parent company AIMS.  At December 31, 2006, the balance outstanding on the line of credit was $45,000 bearing an interest rate of prime +1%.   F-20   With the acquisition of Streetfighter Marketing, Inc. in 2006 we acquired   two bank loans.   A loan with BankOne has a balance of $75,000 at December 31, 2006 and currently bears an interest rate of 9.75%.  A loan with US Bank has a balance of $71,769 at December 31, 2006 and currently bears an interest rate of 6.99%.  Both  loans are collateralized by personal assets of the two former Streetfighter Marketing, Inc., principals Jeffrey Slutsky and Marc Slutsky.    The Company also has unsecured, non-interest bearing loans to Jeff and Marc Slutsky totaling $23,644.  Note 7:  Income Taxes  Because we underwent an ownership change in 2002, as defined in Section 382 of the Internal Revenue Code, our tax net operating loss carryforwards generated prior to the ownership change will be subject to an annual limitation, which could reduce or defer the utilization of those losses.  A reconciliation of U.S. statutory federal income tax rate to the effective rate follows for the years ended December 31, 2006 and 2005 follows:  Year endedYear endedDec. 31, 2006Dec. 31, 2005U.S. statutory federal rate31.96%31.96%State income tax rate, net6.00%6.00%NOL for which no taxbenefit is currently available-37.96%-37.96%0.00%0.00%  The benefit for income taxes from operations consisted of the following components at December 31, 2006: current tax benefit of $3,447,000 resulting from a net loss before income taxes, and deferred tax expense of $3,447,000 resulting from the valuation allowance recorded against the deferred tax asset resulting from net operating losses.  The benefit for income taxes from operations consisted of the following components at December 31, 2005: current tax benefit of $2,210,000 resulting from a net loss before income taxes, and deferred tax expense of $2,210,000 resulting from the valuation allowance recorded against the deferred tax asset resulting from net operating losses.  The change in the valuation allowance for the year ended December 31, 2006 was $1,237,000.  The change in the valuation allowance for the year ended December 31, 2005 was $746,000.  Net operating loss carryforwards at December 31, 2006 will expire in 2026.  The valuation allowance will be evaluated at the end of each year, considering positive and negative evidence about whether the asset will be realized. At that time, the allowance will either be increased or reduced; reduction could result in the complete elimination of the allowance if positive evidence indicates that the value of the deferred tax asset is no longer impaired and the allowance is no longer required.  Note 8:  Stockholders' Deficit  Preferred stock  The preferred stock may be issued in series as determined by the Board of Directors. As required by law, each series must designate the number of shares in the series and each share of a series must have identical rights of (1) dividend, (2) redemption, (3) rights in liquidation, (4) sinking fund provisions for the redemption of the shares, (5) terms of conversion and (6) voting rights.  F-21    Common stock  In January 2005, we issued 115,000 shares of our common stock to extinguish a note payable and related accrued interest totaling $57,500.  We also issued 50,000 shares of our common stock to settle an account payable in the amount of $25,000. Shares issued were valued by our Board of Directors based on recent cash transactions.  In January 2005, we issued officers of the company a total of 1,800,000 shares of common stock valued at $1,123,380 in satisfaction of our accrued liability for services they performed in 2004.  In addition we recorded a reduction in an account payable to an organization that we managed as a contribution to paid-in capital in the amount of $50,575.  Shares issued were valued by our Board of Directors based on recent cash transactions.  In February and June 2005, we issued a total of 1,576,086 shares of our common stock valued at $971,500 in conjunction with the acquisition of certain assets of Prime Time Cable.  Shares issued were valued by our Board of Directors based on recent cash transactions.  In April 2005, we issued 500,000 shares of common stock, valued at $174,200 to acquire a 100 percent interest in the common stock of Harrell Woodcock Linkletter & Vincent, Inc. (HWL), a Florida corporation engaged in the marketing development service industry Shares issued were valued by our Board of Directors based on recent cash transactions.  In September 2005, we issued 250,000 shares of common stock valued at $142,375 to two holders of notes payable from our subsidiary, ATB to obtain agreement to extend maturity of their notes.  Shares issued were valued by our Board of Directors based on recent cash transactions.  During 2005, we issued 690,038 shares of our common stock valued at $382,134 as compensation for services rendered, and we issued 4,803,571 shares of our common stock for $1,775,000 cash, from which we deducted $13,326 of offering costs.  Shares issued were valued by our Board of Directors based on recent cash transactions. The price of shares sold for cash were negotiated with the unrelated investors.  At December 31, 2005, stock subscriptions totaling $403,750 remained receivable.  During 2006, we sold 4,445,000 shares of our newly issued common stock for total proceeds of $1,435,000 reduced by offering costs of $19,809.  We issued 722,222 shares of our common stock in conjunction with the acquisition of Streetfighter Marketing.  We issued 1,927,778 shares of our common stock in conjunction with our proposed acquisition of IKON and TargetAmerica, which are held in escrow at December 31, 2006.  We issued 445,000 shares of our common stock valued at $82,324 as bonuses to employees and related parties.  We issued 829,803 shares of our common stock valued at $343,007 as compensation for services.  The shares issued for services and bonuses were recorded at fair value based on the market price on the date of the grant.  We reacquired 108,486 shares of common stock from an employee and shareholder for a negotiated cash price of $69,432.  At December 31, 2006, stock subscriptions totaling $323,000 remained receivable.  F-22   The shares issued during 2006 for services and bonuses were as follows:  Four individuals headed four of the Companys major business units throughout 2006459,000Seven individuals or organizations provided legal, financial,
and marketing consulting services on a contractual basis370,803Bonuses for twelve full-time staff members
and two heads of major business units445,000Total shares1,274,803Total fair value$  425,331  Fair value was determined for all shares based on closing price on the day of Board approval.  Contingent common shares  We are contractually bound to issue 1,500,000 common shares to an unrelated third-party should certain conditions relating to expansion of the capability of a radio station be met by ATB Media by April 2008.  Conditions required to be met are primarily an increased license capacity (air coverage) for the radio station.  Options and warrants to purchase common stock  Stock and Incentive Compensation Plans  Total compensation cost for share-based payment arrangements at December 31, 2006 and 2005:  20062005Stock grants$425,331$524,509Stock warrants588,499-Total compensation cost1,013,830524,509Income tax--Net compensation cost$1,013,830$524,509  All compensation cost has been recognized as of December 31, 2006.   F-23   A summary of the status of the Companys stock options issued as of December 31, 2006 and 2005:  Weighted AverageWeighted-AverageRemainingAggregate# of SharesExercise PriceContractural TermIntrinsic ValueOutstanding at December 31, 20041,600,000Variable--Granted2,300,000Variable--Exercised----Forfeited----Expired----Outstanding at December 31, 20053,900,000Variable--Granted2,300,000Variable--Exercised----Forfeited----Expired----Outstanding at December 31, 20066,200,000Variable3.8 years-Exercisable at December 31, 20066,200,000Variable3.8 years-  In 2005 and again in 2006, options to purchase 200,000 shares of common stock for a period of five years were given to each of four officers or directors of the Company. The options, totaling 800,000 shares each year can be exercised at a price that is 125% of the market price at the time the options are exercised.  The exercise price of these options will continue to remain above the market price of these shares, introducing a complexity such that it is not possible to estimate the fair value of these options using option pricing models. Accordingly, under SFAS 123R, (paragraph 25) the intrinsic model will be applied to these options. Compensation cost reported each accounting period is based on the change in the intrinsic value. Total compensation cost under the intrinsic model is the excess of the fair value of the stock over the option price.  No compensation expense was reported for these options in 2005 or 2006.  In 2005 and again in 2006, options to purchase 500,000 shares of common stock for a period of five years were given to each of three directors at the Company.  The options, totaling 1,500,000 shares each year can be exercised at a price that is 110% of the market price at the time the options are exercised.  The exercise price of these options will continue to remain above the market price of these shares, introducing a complexity such that it is not possible to estimate the fair value of these options using option pricing models.  Accordingly, under SFAS 123R, (paragraph 25) the intrinsic model will be applied to these options.  Compensation cost reported each accounting period is based on the change in the intrinsic value.  Total compensation cost under the intrinsic model is the excess of the fair value of the stock over the option price.  No compensation expense was reported for these options in 2005 or 2006.  20062005Total fair value of options vested
during the period$-$-Total intrinsic value of options
exercised during the period--  A summary of the status of the Companys outstanding common stock warrants as of December 31, 2006 and 2005:  F-24    Number of
SharesWeighted-
Average
Exercise PriceWeighted-
Average
Remaining
Contractual
TermAggregate
Intrinsic
ValueOutstanding at December 31, 200436,000$0.50Granted--Exercised--Forfeited--Expired--Outstanding at December 31, 200536,0000.50Granted1,500,0000.86Exercised--Forfeited--Expired--Outstanding and Exercisable at December 31, 20061,536,0000.873.7 years$86,120  In May 2006, the Company granted a consultant a warrant to purchase a total of 500,000 shares of the Companys common stock at an exercise price of $1.75 per share. The warrant vested immediately and expires May 2011. The quoted market price of the stock was $0.65 per share. The Company valued the option at $0.32 per share, or $158,000, in accordance with SFAS 123(R). The fair value of $158,000 was recorded as a share-based payment in the accompanying financial statements as a prepaid offering cost and will be offset against proceeds of a possible future capital raise or charged to expense if the effort is unsuccessful. The fair value of the warrant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:  Risk-free interest rate3.5%Dividend yield0.00%Volatility factor110%Weighted average expected life3 years  In September and October 2006, the Company granted a consultant warrants to purchase a total of 1,000,000 shares of the Companys common stock at an exercise price of $0.41 per share. The warrant is vested and expires October 2011. The quoted market price of the stock was $0.65 and $0.55 per share. The Company valued the warrants at an average of $0.59 per share, or $588,499, in accordance with SFAS 123(R). The expense of $588,499 was recorded as share-based payments in the accompanying financial statements. The fair value of the options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:  Risk-free interest rate4.5%Dividend yield0.00%Volatility factor258%Weighted average expected life3 years   F-25   Note 9:  Segment Information  We report the following information on our business segments as of and for the twelve months ended December 31, 2006:  MediaMediaConsultingStrategyCorporateServicesPropertiesServices& PlanningOverheadTotalRevenues$846,847$-0-$857,056$38,484$-$1,742,387Income (loss) fromoperations$(173,985)$(12,194)$771,972$(56,314)$(3,696,058)$(3,166,580)Income fromequity investments$220,134$-$-$-$-$220,134Net income (loss)$38,596$(247,003)$762,258$(60,456)$(3,696,058)$(3,202,663)Identifiable assets$260,749$-$-$47,487$14,434$322,670Depreciation accum.$(67,200)$-$-$(2,000)$(8,040)$(77,240)Goodwill$606,548$-$-$-$-$606,548Unconsolidatedequity investments$661,283$-$-$-$-$661,283  We report the following information on our business segments as of and for the twelve months ended December 31, 2005:  MediaMediaConsultingCorporateServicesPropertiesServicesOverheadTotalRevenues$848,860$-$312,580$-$1,161,440Income (loss) fromoperations$(253,558)$(10,558)$214,120$(1,596,717)$(1,646,713)Income fromequity investments$107,594$-$-$-$107,594Net income (loss)$(145,964)$(376,971)$214,120$(1,617,913)$(1,926,728)Identifiable assets$250,600$-$-$28,592$279,192Depreciation accumulated$33,592$-$-$6,093$39,685Goodwill$606,548$-$-$-$606,548Unconsolidatedequity investments$739,293$-$-$-$739,293  Note 10: Subsequent Events  Currently, the Company holds a Letter of Intent executed February 28, 2007, for the sale of certain assets of the unconsolidated limited liability companies that represent the equity investments in the Media Services segment of our business and is now in negotiations to complete an asset purchase agreement  F-26