SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-KSB


Annual
Report Under Section 13 or 15(d) of


the
Securities Exchange Act of 1934





For the
Fiscal Year Ended: December 31, 2007





Commission
File No. 000-52530





Across
America Financial Services, Inc.


(Exact
Name of Small Business Issuer as specified in its charter)





Colorado
            20-8097969(State
      or other jurisdiction
            (IRS
      Employer File Number)of
      incorporation)




700
      Seventeenth Street, Suite 1200Denver,
      Colorado
            80202(Address
      of principal executive offices)
            (zip
      code)




(303)
893-1003


(Registrant's
telephone number, including area code)





Securities
to be Registered Pursuant to Section 12(b) of the Act: None




Securities
to be Registered Pursuant to Section 12(g) of the Act:





Common Stock, $.0.001 per
share par value





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




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




Check if
there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is 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.
[X]




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




Registrant's
revenues for its most recent fiscal year were $-0-. State the aggregate market
value of the voting stock held by nonaffiliates computed by reference to the
price at which the stock was sold, or the average bid and asked prices of such
stock, as of a specified date within the past 60 days: approximately $316,000.
The number of shares outstanding of the Registrant's common stock, as of the
latest practicable date, March 28, 2008, was 1,810,476.

















FORM
10-KSB


Across
America Financial Services, Inc.





INDEX


PagePART
      IItem
      1. Description of Business
              3Item
      2. Description of Property
              8Item
      3. Legal Proceedings
              8Item
      4. Submission of Matters to a Vote of Security Holders
              8PART
      IIItem
      5. Market for Common Equity, Related Stockholder Matters and Issuer
      Purchases of Equity Securities
              8Item
      6. Management's Discussion and Analysis of Financial Condition and Results
      of Operations
              10Item
      7. Financial Statements
              F-1Item
      8. Changes in and Disagreements with Accountants on Accounting and
      Financial Disclosures
              12Item
      8A. Controls and Procedures
              12Item
      8B. Other Information
              12PART
      IIIItem
      9. Directors, Executive Officers, Promoters and Control Persons;
      Compliance with Section 16(a) of the Exchange Act
              12Item
      10. Executive Compensation
              14Item
      11. Security Ownership of Certain Beneficial Owners and
      Management
              14Item
      12. Certain Relationships and Related Transactions
              15Item
      13. Exhibits and Reports on Form 8-K
              16Item
      14. Principal Accountant Fees and Services
              17Financial
      Statements pages
              F-1
      - F-12Signatures
              17





-
2 -




References
in this document to “Financial Services,” "us," "we," or "Company" refer to
Across America Financial Services, Inc.





Forward-Looking
Statements





The
following discussion contains forward-looking statements regarding us, our
business, prospects and results of operations that are subject to certain risks
and uncertainties posed by many factors and events that could cause our actual
business, prospects and results of operations to differ materially from those
that may be anticipated by such forward-looking statements. Factors that may
affect such forward-looking statements include, without limitation, our ability
to successfully develop new products and services for new markets; the impact of
competition on our revenues, changes in law or regulatory requirements that
adversely affect or preclude clients from using us for certain applications;
delays our introduction of new products or services; and our failure to keep
pace with our competitors.








When used
in this discussion, words such as "believes", "anticipates", "expects",
"intends" and similar expressions are intended to identify forward-looking
statements, but are not the exclusive means of identifying forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this report. We
undertake no obligation to revise any forward-looking statements in order to
reflect events or circumstances that may subsequently arise. Readers are urged
to carefully review and consider the various disclosures made by us in this
report and other reports filed with the Securities and Exchange Commission that
attempt to advise interested parties of the risks and factors that may affect
our business.





PART
I





Item
1. DESCRIPTION OF BUSINESS.





(a) RISK
FACTORS





You should carefully consider the
risks and uncertainties described below and the other information in this
document before deciding to invest in shares of our common
stock.





The occurrence of any of the
following risks could materially and adversely affect our business, financial
condition and operating result. In this case, the trading price of our common
stock could decline and you might lose all or part of your
investment.





If
we do not generate adequate revenues to finance our operations, our business may
fail.




We have not generated revenues
from our inception. As of December 31, 2007, we had a cash position of $5,388.
Operating costs are expected to range between $30,000 and $50,000, for the
fiscal year ending December 31, 2008. These operating costs include legal,
accounting and other contract services. We will use contract employees who will
be paid on a per transaction basis as each mortgage transaction is closed.
However, the operating costs and expected revenue generation are difficult to
predict. We expect to generate revenues in the next twelve months from mortgage
brokerage services using referrals from AARD and unrelated individuals and
entities that operate in the financial services business. Since there can be no
assurances that revenues will be sufficient to cover operating costs for the
foreseeable future, it may be necessary to raise additional funds. Due to our
lack of operating history, raising additional funds may be difficult. In
January, 2007, an organization named Safe Harbor Business Development Company
(“Safe Harbor”), which is affiliated with our President, Mr. Klemsz, and
our largest shareholder, GDBA Investments, LLLP, agreed to provide operating
capital in the form of a loan of $250,000 to cover operating expenses. This loan
is evidenced by an unsecured promissory note which is now due January 12,
2009. If we are unable to raise funds to cover any operating deficit after
fiscal year ending January 12, 2009, our business may fail.




-
3 -


Because
we had incurred a loss and have no current operations, our accountants have
expressed doubts about our ability to continue as a going concern.





For the fiscal years ended
December 31, 2007 and 2006, our accountants have expressed doubt about our
ability to continue as a going concern as a result of lack of history of
operations, limited assets, and operating losses since inception. Our ability to
achieve and maintain profitability and positive cash flow is dependent
upon:





-
            our
      ability to locate mortgage brokerage clients who will use our brokerage
      services; and





-
            our
      ability to generate revenues.





Based upon current plans, we
expect to incur operating losses in future periods because we will be incurring
expenses and not generating sufficient revenues. We expect
our operating costs to range between $30,000 and $50,000 for the fiscal
year ending December 31, 2008. We cannot guarantee that we will be
successful in generating sufficient revenues or other funds in the future to
cover these operating costs. Failure to generate sufficient revenues will cause
us to go out of business.





The
lack of a broker or dealer to create or maintain a market in our stock could
adversely impact the price and liquidity of our securities.




We have no agreement with any
broker or dealer to act as a market maker for our securities and there is no
assurance that we will be successful in obtaining any market makers. Thus, no
broker or dealer will have an incentive to make a market for our stock. The lack
of a market maker for our securities could adversely influence the market for
and price of our securities, as well as your ability to dispose of, or to obtain
accurate information about, and/or quotations as to the price of, our
securities.




As
our stock will not be listed on Nasdaq or another national exchange, trading in
our shares will be subject to rules governing "penny stocks," which will impair
trading activity in our shares.




As we do not intend to list our
stock on Nasdaq or another national exchange, our stock will therefore be
subject to rules adopted by the Commission regulating broker dealer practices in
connection with transactions in "penny stocks." Those disclosure rules
applicable to "penny stocks" require a broker dealer, prior to a transaction in
a "penny stock" not otherwise exempt from the rules, to deliver a standardized
list disclosure document prepared by the Commission. That disclosure document
advises an investor that investment in "penny stocks" can be very risky and that
the investor's salesperson or broker is not an impartial advisor but rather paid
to sell the shares. The disclosure contains further warnings for the investor to
exercise caution in connection with an investment in "penny stocks," to
independently investigate the security, as well as the salesperson with which
the investor is working and to understand the risky nature of an investment in
this security. The broker dealer must also provide the customer with certain
other information and must make a special written determination that the "penny
stock" is a suitable investment for the purchaser and receive the purchaser's
written agreement to the transaction. Further, the rules require that, following
the proposed transaction, the broker provide the customer with monthly account
statements containing market information about the prices of the
securities.




These disclosure requirements may
have the effect of reducing the level of trading activity in the secondary
market for our common stock. Many brokers may be unwilling to engage in
transactions in our common stock because of the added disclosure requirements,
thereby making it more difficult for stockholders to dispose of their shares.
You will also find it difficult to obtain accurate information about, and/or
quotations as to the price of, our common stock.




-
4 -


Issuances
of our stock could dilute current shareholders and adversely affect the market
price of our common stock, if a public trading market develops.




We have the authority to issue up
to 50,000,000 shares of common stock, 1,000,000 shares of preferred stock, and
to issue options and warrants to purchase shares of our common stock without
stockholder approval. Although no financing is planned currently, we may need to
raise additional capital to fund operating losses. If we raise funds by issuing
equity securities, our existing stockholders who receive shares in the spin-off
may experience substantial dilution. In addition, we could issue large blocks of
our common stock to fend off unwanted tender offers or hostile takeovers without
further stockholder approval.




The issuance of preferred stock
by our board of directors could adversely affect the rights of the holders of
our common stock. An issuance of preferred stock could result in a class of
outstanding securities that would have preferences with respect to voting rights
and dividends and in liquidation over the common stock and could, upon
conversion or otherwise, have all of the rights of our common stock. Our board
of directors' authority to issue preferred stock could discourage potential
takeover attempts or could delay or prevent a change in control through merger,
tender offer, proxy contest or otherwise by making these attempts more difficult
or costly to achieve.





Colorado
law and our Articles of Incorporation protect our directors from certain types
of lawsuits, which could make it difficult for us to recover damages from them
in the event of a lawsuit.




Colorado law provides that our
directors will not be liable to our company or to our stockholders for monetary
damages for all but certain types of conduct as directors. Our Articles of
Incorporation require us to indemnify our directors and officers against all
damages incurred in connection with our business to the fullest extent provided
or allowed by law. The exculpation provisions may have the effect of preventing
stockholders from recovering damages against our directors caused by their
negligence, poor judgment or other circumstances. The indemnification provisions
may require our company to use our assets to defend our directors and officers
against claims, including claims arising out of their negligence, poor judgment,
or other circumstances.




We
are Subject to Extensive Regulation.




Our proposed operations are
subject to extensive regulation, supervision and licensing by federal, state and
local governmental authorities and are subject to various laws and judicial and
administrative decisions imposing requirements and restrictions on part or all
of our operations. Our lending activities could be subject to the Federal
Truth-in-Lending Act and Regulation Z (including the Home Ownership and Equity
Protection Act of 1994), the Federal Equal Credit Opportunity Act, as amended,
and Regulation B, the Fair Credit Reporting Act of 1970, as amended, the Federal
Real Estate Settlement Procedures Act and Regulation X, the Home Mortgage
Disclosure Act, the Federal Debt Collection Practices Act and the National
Housing Act of 1934, as well as other federal and state statutes and regulations
affecting our activities.




We are also subject to the rules
and regulations of, and examinations by, state regulatory authorities with
respect to originating and processing loans. These rules and regulations, among
other things, impose licensing obligations on us, establish eligibility criteria
for mortgage loans, prohibit discrimination, govern inspections and appraisals
of properties and credit reports on loan applicants, collection, foreclosure and
claims handling, investment and interest payments on escrow balances and payment
features, mandate certain disclosures and notices to borrowers and, in some
cases, fix maximum interest rates, fees and mortgage loan amounts. Failure to
comply with these requirements can lead to loss of approved status, certain
rights of rescission for mortgage loans, class action lawsuits and
administrative enforcement action.




Competition
in the mortgage brokerage industry is intense.




Our
business plan involves acting as a mortgage broker for commercial real estate
transactions. This business is highly competitive. There are numerous similar
companies providing such services in the United States of America. Our
competitors will have greater financial resources and more expertise in this
business. Our ability to develop our mortgage brokerage business will depend on
our ability to successfully market our services in this highly competitive
environment.


-
5 -


We cannot
guarantee that we will be able to do so successfully.




The
combined share control position of GDBA Investments, LLLP and Mr. Klemsz’s and
his affiliates will limit the ability of other shareholders to influence
corporate actions.




After
distribution of our shares to the AARD shareholders, our largest shareholder,
GDBA Investments, LLLP, will own 1,178,144 shares and thereby control
approximately 65% of our outstanding shares. Mr. Klemsz, through Sarmat, LLC and
his family, will own 314,000 shares, or approximately 17%. Because these
entities together, and GDBA Investments, LLLP individually, will beneficially
control more than a majority of the outstanding shares, other shareholders,
individually or as a group, will be limited in their ability to effectively
influence the election or removal of our directors, the supervision and
management of our business or a change in control of or sale of our company,
even if they believed such changes were in the best interest of our shareholders
generally.




Our
future success depends, in large part, on the continued service of our President
and our Secretary-Treasurer.




We
depend almost entirely on the efforts and continued employment of Mr. Klemsz,
our President and Secretary-Treasurer. Mr. Klemsz is our primary executive
officer, and we will depend on him for nearly all aspects of our operations. In
addition, Safe Harbor, an entity affiliated with Mr. Klemsz, is our only
source of financing. We do not have an employment contract with Mr. Klemsz, and
we do not carry key person insurance on the life of either. The loss of the
services of Mr. Klemsz through incapacity or otherwise, would have a
material adverse effect on our business. It would be very difficult find
and retain qualified personnel such as Mr. Klemsz and a financing source to
replace Safe Harbor.





(b)
NARRATIVE DESCRIPTION OF THE BUSINESS





Across
America Financial Services, Inc. is a corporation which was formed under the
laws of the State of Colorado on December 1, 2005. We were a wholly-owned
subsidiary of Across America Real Estate Corp.(“AARD”).




On
January 10, 2007, the directors of AARD approved, subject to the effectiveness
of a registration with the Securities and Exchange Commission, the pro rata
spin-off of Real Estate Exchange to AARD shareholders of record on March 1, 2007
on a pro rata basis. Since AARD’s business is related to the proposed activities
of Real Estate Exchange, the AARD directors decided it was in the best interest
of AARD and Real Estate Exchange and AARD’s shareholders to spin-off Real Estate
Exchange to minimize any potential of conflict of interest. The shares of Real
Estate Exchange were owned by AARD, who distributed a total of 1,810,476 shares
to the AARD shareholders on or about March 23, 2007.





(c)
PROPOSED OPERATIONS





General




We are a development stage company. Our
development stage began when we approved our business plan on November 9, 2006.
Our plan is to act as a mortgage broker for commercial real estate transactions.
We will focus on built-to-suit real estate projects for specific retailers. We
will first attempt to establish an effective client lending base for which we
can provide services. We plan to utilize our relationship with AARD for
referrals and the expertise of third party independent contractors who we plan
to hire to develop lending opportunities. Each contractor will be expected to
utilize his previous contacts in business to develop potential
opportunities.





We are
presently planning to develop and implement an Internet based operation. We plan
to equip our offices with personal computers which will allow our contractors to
access e-mail, the Internet, and a collection of applications. We also plan to
utilize the most current loan processing software which interfaces directly with
the several credit reporting software companies. We believe that this technology
will expedite loan processing and closings.


-
6 -


In
addition, we plan to develop a web site which will allow realtors to send loan
applications directly to us for approval. In the future, we plan to develop
enhancements to the web site to permit realtors to use the site to fill out loan
applications for prospective borrowers, to check the status of a previously
submitted application, and to generally otherwise interact with us during the
loan process.





Our
proposed system will be established to operate at maximum efficiency to control
administrative and associated costs. Therefore, we plan to develop a system
which will allow for individual identification, appointment scheduling, credit
history records, payment records, itemized expenses as well as associated fees
and payment processing. With all data stored on the individual customized
electronic record formulated by us at the time of processing, the system would
also allow the periodic review of the clients current condition of the loan and
offer alternative solutions to loans that are structured for the short term. We
believe that sophisticated electronics data exchange systems are an essential
part of the future of mortgage brokerage operations.




We plan to operate out of one
office in the Denver Metropolitan area. We have no specific plans at this point
for additional offices.





(d)
MARKETS





We are
currently focused on to act as a mortgage broker for commercial real estate
transactions with build-to-suit single pad, small box retail projects for
national and regional retailers throughout the United States. To date, we have
had no active operations. During 2008 our strategy will focus on developing a
project pipeline.





(e) RAW
MATERIALS





The use
of raw materials is not a material factor in our operations at the present time.
We do not expect raw materials to be a material factor in the
future.





(f)
CUSTOMERS AND COMPETITION





Our business plan involves acting
as a mortgage broker for commercial real estate transactions. This business is
highly competitive. There are numerous similar companies providing such services
in the United States of America. Our competitors will have greater financial
resources and more expertise in this business. Our ability to develop our
mortgage brokerage business will depend on our ability to successfully market
our services in this highly competitive environment. Currently, we have no
customers for our services. We cannot guarantee that we will be able to do so
successfully.





(g)
BACKLOG





At
December 31, 2007, we had no backlogs.





(h)
EMPLOYEES





We have
no employees other than Mr. Klemsz, our President and Secretary-Treasurer. He
plans to devote less than 5% of his time to our business. We plan to reimburse
our executives for all necessary and customary business related
expenses.





Our
member of management who also serves on the Board receives no additional
compensation for attending Board meetings.





(i)
PROPRIETARY INFORMATION





We own no
proprietary information.





-
7 -


(j)
GOVERNMENT REGULATION





Since we
only act in the capacity of a broker, we do not expect government regulations or
laws to have any material impact on us.





(k)
RESEARCH AND DEVELOPMENT





We have
never spent any amount in research and development activities.





(l)
ENVIRONMENTAL COMPLIANCE





Since we
only act in the capacity of a broker, we do not expect environmental laws to
have any material impact on us.




(m)  HOW
TO OBTAIN OUR SEC FILINGS





We file
annual, quarterly, and special reports, proxy statements, and other information
with the Securities Exchange Commission (SEC). Reports, proxy statements and
other information filed with the SEC can be inspected and copied at the public
reference facilities of the SEC at 100 F Street N.E., Washington, DC 20549. Such
material may also be accessed electronically by means of the SEC's website at
www.sec.gov.





Our
investor relations department can be contacted at our principal executive office
located at our principal office 700 Seventeenth Street, Suite 1200, Denver,
Colorado 80202. Our phone number at our headquarters is (303) 893-1003. We
currently have no website.





ITEM
2. DESCRIPTION OF PROPERTY.





We
currently use the mailing address of the offices of AARD for company use. We
plan to occupy separate office facilities and obtain office furniture and
equipment in the near future. We own no real estate nor have plans to acquire
any real estate.





ITEM
3. LEGAL PROCEEDINGS.





We are not a party to any material
legal proceedings, nor is our property the subject of any material legal
proceeding.





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





We held
no shareholders meeting in the fourth quarter of our fiscal year.







PART
II





ITEM
5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.





(a)
PRINCIPAL MARKET OR MARKETS





Our
common stock currently trades on the Over-the-Counter Bulletin Board under the
trading symbol AAEX. The common stock began trading in December,
2007.  The high and low bid quotation for our common stock through
December 31, 2007 was $1.25 and $0.25.





-
8 -




(b)
APPROXIMATE NUMBER OF HOLDERS OF COMMON STOCK





As of
March 23, 2008, we had a total of 1,810,476 shares of our Common Stock
outstanding. The number of holders of record of our common stock at that date
was one hundred.





(c)
DIVIDENDS





Holders
of common stock are entitled to receive such dividends as may be declared by our
Board of Directors. No dividends on the common stock were paid by us during the
periods reported herein nor do we anticipate paying dividends in the foreseeable
future.





(d) THE
SECURITIES ENFORCEMENT AND PENNY STOCK REFORM ACT OF 1990





The
Securities Enforcement and Penny Stock Reform Act of 1990 requires additional
disclosure and documentation related to the market for penny stock and for
trades in any stock defined as a penny stock. Unless we can acquire substantial
assets and trade at over $5.00 per share on the bid, it is more likely than not
that our securities, for some period of time, would be defined under that Act as
a "penny stock." As a result, those who trade in our securities may be required
to provide additional information related to their fitness to trade our shares.
These requirements present a substantial burden on any person or brokerage firm
who plans to trade our securities and would thereby make it unlikely that any
liquid trading market would ever result in our securities while the provisions
of this Act might be applicable to those securities.





Any
broker-dealer engaged by the purchaser for the purpose of selling his or her
shares in us will be subject to Rules 15g-1 through 15g-10 of the Securities and
Exchange Act. Rather than creating a need to comply with those rules, some
broker-dealers will refuse to attempt to sell penny stock.





The penny
stock rules require a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from those rules, to deliver a standardized risk disclosure
document prepared by the Commission, which:





·
            contains
      a description of the nature and level of risk in the market for penny
      stocks in both public offerings and secondary
  trading;





·
            contains
      a description of the broker's or dealer's duties to the customer and of
      the rights and remedies available to the customer with respect to a
      violation to such duties or other requirements of the Securities Act of
      1934, as amended;





·
            contains
      a brief, clear, narrative description of a dealer market, including "bid"
      and "ask" prices for penny stocks and the significance of  the
      spread between the bid and ask
price;





·
            contains
      a toll-free telephone number for inquiries on disciplinary
      actions;





·
            defines
      significant terms in the disclosure document or in the conduct of trading
      penny stocks; and





·
            contains
      such other information and is in such form (including
      language,  type, size and format) as the Securities and Exchange
      Commission shall require by rule or
regulation;





·
            the
      broker-dealer also must provide, prior to effecting any transaction in a
      penny stock, to the customer:





·
            the
      bid and offer quotations for the penny
stock;





·
            the
      compensation of the broker-dealer and its salesperson in the
      transaction;





·
            the
      number of shares to which such bid and ask prices apply, or other
      comparable information relating to the depth and liquidity of the market
      for such stock; and





·
            monthly
      account statements showing the market value of each penny stock held in
      the customer's account.


-
9 -




In
addition, the penny stock rules require that prior to a transaction in a penny
stock not otherwise exempt from those rules; the broker-dealer must make a
special written determination that the penny stock is a suitable investment for
the purchaser and receive the purchaser's written acknowledgment of the receipt
of a risk disclosure statement, a written agreement to transactions involving
penny stocks, and a signed and dated copy of a written suitability statement.
These disclosure requirements will have the effect of reducing the trading
activity in the secondary market for our stock because it will be subject to
these penny stock rules. Therefore, stockholders may have difficulty selling
their securities.





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





Certain
statements in this Management's Discussion and Analysis of Financial Condition
and Results of Operations that are not historical facts are forward-looking
statements such as statements relating to future operating results, existing and
expected competition, financing and refinancing sources and availability and
plans for future development or expansion activities and capital expenditures.
Such forward-looking statements involve a number of risks and uncertainties that
may significantly affect our liquidity and results in the future and,
accordingly, actual results may differ materially from those expressed in any
forward-looking statements. Such risks and uncertainties include, but are not
limited to, those related to effects of competition, leverage and debt service
financing and refinancing efforts, general economic conditions, and changes in
applicable laws or regulations. The following discussion and analysis should be
read in conjunction with the consolidated financial statements and notes thereto
appearing elsewhere in this report.




Our activities have been
primarily focused on organization as a development stage enterprise since
planned principal operations have not yet commenced. Accordingly, management
does not consider the historical results of operations to be representative of
our future results of operation. Our development stage began when we approved
our business plan on November 9, 2006. Our plan is to act as a mortgage broker
for commercial real estate transactions. See “Business.”




Critical
Accounting Policies




We have identified the
following policies below as critical to our business and results of operations.
For further discussion on the application of these and other accounting
policies, see Note 1 to the accompanying audited financial statements for the
year ended December 31, 2007, included elsewhere in this document. Our reported
results are impacted by the application of the following accounting policies,
certain of which require management to make subjective or complex judgments.
These judgments involve making estimates about the effect of matters that are
inherently uncertain and may significantly impact quarterly or annual results of
operations. For all of these policies, management cautions that future events
rarely develop exactly as expected, and the best estimates routinely require
adjustment. Specific risks associated with these critical accounting policies
are described in the following paragraphs.




Use
of Estimates in the Preparation of Financial Statements




The preparation of financial
statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.





Revenue
Recognition




We have had no revenue during the years
ended December 31, 2007 and 2006.Anticipated
future operating revenue will represent services in connection acting as a
mortgage broker for commercial real estate transactions. Such revenues will be
recorded as the services are performed.


-
10 -


Plan
of Operation for December 31, 2007 to December 31, 2008




Financial Services intends to act
as a mortgage broker for commercial real estate transactions. Our operating
costs are expected to range between $30,000 and $50,000 for the fiscal year
ending December 31, 2007. These operating costs include insurance, taxes,
utilities, maintenance, contract services and all other costs of operations.
However, the operating costs and expected revenue generation are difficult to
predict. We expect to generate revenues in the next twelve months from mortgage
brokerage services using referrals from AARD and unrelated individuals and
entities that operate in the financial services business. Since there can be no
assurances that revenues will be sufficient to cover operating costs for the
foreseeable future, it may be necessary to raise additional funds. Due to our
lack of operating history, raising additional funds may be difficult. In
January, 2007, an organization named Safe Harbor Business Development Company
(“Safe Harbor”), which is affiliated with our President, Mr. Klemsz, and
our largest shareholder, GDBA Investments, LLLP, agreed to provide operating
capital in the form of a loan of $250,000 to cover operating expenses. This loan
is evidenced by an unsecured promissory note which was originally due January
12, 2008 but was extended to January 12, 2009.  If we are unable to
raise funds to cover any operating deficit after fiscal year ending January 12,
2009, our business may fail.




We generated no
revenues during the years ended December 31, 2007 and 2006, and management does
not anticipate any revenues until June 2008, at the
earliest.




Seasonality




We do not expect that our
business will be seasonal with nearly all revenue generated throughout the year.
However, with our startup phase, we do not anticipate any material revenue until
June, 2008.




Results
of Operations




We had no
revenue for the years ended December 31, 2007 and 2006. Operating expenses
during the years ended December 31, 2007  and 2006 totaled $60,611 and
$500, respectively. The operating expenses consisted of interest expense and
professional fees in 2007 and professional fees in 2006.





Liquidity
and Capital Resources




At December 31, 2007, we had an
unrestricted cash balance of $5,388.





Net cash used in operating
activities was $56,612 for the fiscal year ended December 31, 2007. This consisted of consisted of interest
expense and professional fees in 2007




Net cash
provided by financing activities was $60,000 for the fiscal year ended December
31, 2007. This amount represented the advance on our promissory
note.




Financial
Position




At December 31, 2007, we had no
commitments for capital expenditures. In January, 2007, Safe Harbor agreed
to provide operating capital in the form of a loan of $250,000 to cover
operating expenses. This loan is evidenced by an unsecured promissory note which
was originally due January 12, 2008 but was extended to January 12, 2009.
Management estimates it will take approximately $35,000 - $50,000 per year to
fund proposed operations. Since we have no operating history, it is uncertain
whether revenue from operations will be sufficient to cover our operating
expenses. We have no commitment for funding after fiscal year 2007. If we are
unable to raise funds to cover any operating deficit after fiscal year ending
December 31, 2007, our business may fail.




Trends




There are no known trends, events
or uncertainties that have had or that are reasonably expected to have a
material impact on the net sales or revenues or income from our proposed
operations. Our management has not made any commitments, which will require any
material financial resources.


-
11 -







ITEM
7. FINANCIAL STATEMENTS.













FINANCIAL
STATEMENTS





with





REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














F
- 1




Report
of Independent Registered Public Accounting Firm











To the
Board of Directors and Shareholders:


Across
America Financial Services, Inc.




We have
audited the accompanying balance sheet of Across America Financial Services,
Inc. as of December 31, 2007, and the related statements of operations, changes
in shareholders’ equity, and cash flows for the years ended December 31, 2007
and 2006, and the period from December 1, 2005 (inception) through December 31,
2007. These financial statements are the responsibility of the Company’s
management.  Our responsibility is to express an opinion on these
financial statements based on our audits.




We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  The
Company is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting.  Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting.  Accordingly, we express no
such opinion.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for our opinion.




In our
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Across America Financial Services,
Inc. as of December 31, 2007, and the results of its operations and its cash
flows for the years ended December 31, 2007 and 2006, and the period from
December 1, 2005 (inception) through December 31, 2007, in conformity with
accounting principles generally accepted in the United States of
America.




The
accompanying financial statements have been prepared assuming the Company will
continue as a going concern.  As discussed in Note 1 to the financial
statements, the Company has no history of operations, limited assets, and has
incurred operating losses since inception. These conditions raise substantial
doubt about the Company’s ability to continue as a going
concern.  Management’s plans in regard to these matters are also
described in Note 1.  The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.




/s/
Cordovano and Honeck LLP


Cordovano
and Honeck LLP


Englewood,
Colorado


March 28,
2008




F
- 2





Across
      America Financial Services, Inc.(A
      Development Stage Company)Balance
      SheetDecember
      31, 2007AssetsCash
      and cash equivalents  (note 1)
            
            $
            5,388Prepaid
      expenses
            
            
            1,910Total
      assets
            
            $
            7,298Liabilities
      and Shareholders' DeficitLiabilitiesAccrued
      liabilities  (note 1)
            
            $
            3,717Note
      payable, related party  (note 2)
            
            
            62,268Total
      liabilities
            
            
            65,985Shareholders'
      deficit (note 4)Preferred
      stock, $.10 par value; 1,000,000 shares authorized,
            
            
            --0-
      shares issued and outstandingCommon
      stock, $.001 par value; 50,000,000 shares authorized,
            
            
            1,8101,810,476
      shares issued and outstandingAdditional
      paid-in-capital
            
            
            614Deficit
      accumulated during development stage
            
            
            (61,111
            )Total
      shareholders' deficit
            
            
            (58,687
            )Total
      liabilities and shareholders' deficit
            
            $
            7,298





See
accompanying notes to financial statements


F
- 3







Across
      America Financial Services, Inc.(A
      Development Stage Company)Statements
      of OperationsFor
      the year endedDecember 31,
            
            
            December
      1,2007
            
            
            2006
            
            
            2005(Inception)ThroughDecember
      31,2007Operating
      expenses:Selling,
      general and administrative  (note 6)
            
            $
            54,389
            
            
            $
            500
            
            
            $
            54,889Total
      operating expenses
            
            
            54,389
            
            
            
            500
            
            
            
            54,889Loss
      from operations
            
            
            (54,389
            )
            
            
            (500
            )
            
            
            (54,889
            )Non-operating
      expense:Interest
      expense, related party (note 2)
            
            
            (6,222
            )
            
            
            -
            
            
            
            (6,222
            )Loss
      before income taxes
            
            
            (60,611
            )
            
            
            (500
            )
            
            
            (61,111
            )Net
      loss
            
            $
            (60,611
            )
            
            $
            (500
            )
            
            $
            (61,111
            )Basic
      and diluted loss per share
            
            $
            (0.03
            )
            
            $
            -Basic
      and diluted weighted average commonshares
      outstanding
            
            
            1,853,054
            
            
            
            2,000,000





See
accompanying notes to financial statements


F
- 4








Across
      America Financial Services, Inc.(A
      Development Stage Company)Statement
      of Changes in Shareholders' Deficitfor
      the years ended December 31, 2007 and 2006
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            DeficitAccumulatedPreferred
      Stock
            
            
            Common
      Stock
            
            
            Additional
            
            
            DuringPar
            
            
            
            
            
            Par
            
            
            Paid-in
            
            
            DevelopmentShares
            
            
            Value
            
            
            Shares
            
            
            Value
            
            
            Captial
            
            
            Stage
            
            
            TotalBalance
      at December 31, 2005
            
            
            -
            
            
            $
            -
            
            
            
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -December
      2006, shares sold to parent corporation($.001/share)
            
            
            -
            
            
            
            -
            
            
            
            2,000,000
            
            
            
            2,000
            
            
            
            -Net
      loss, year ended December 31, 2006
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (500
            )
            
            
            (500
            )Balance
      at December 31, 2006
            
            
            -
            
            
            
            -
            
            
            
            2,000,000
            
            
            
            2,000
            
            
            
            -
            
            
            
            (500
            )
            
            
            1,500January
      12, 2007 Warrant expense  (note 5)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            424
            
            
            
            -
            
            
            
            424March
      22, 2007 - AARD Spin Off  (note 4)
            
            
            -
            
            
            
            -
            
            
            
            (189,524
            )
            
            
            (190
            )
            
            
            190
            
            
            
            -
            
            
            
            -Net
      loss, year endedDecember
      31, 2007
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (60,611
            )
            
            
            (60,611
            )Balance
      at December 31, 2007
            
            
            -
            
            
            $
            -
            
            
            
            1,810,476
            
            
            $
            1,810
            
            
            $
            614
            
            
            $
            (61,111
            )
            
            $
            (58,687
            )





See
accompanying notes to financial statements


F
- 5





Across America Financial Services,
    Inc.(A
      Development Stage Company)
            
            
            
            
            
            
            
            December
      1,Statements
      of Cash Flows
            
            
            
            
            
            
            
            2005(Inception)Year
      ended
            
            
            ThroughDecember
      31,
            
            
            December
      31,2007
            
            
            2006
            
            
            2007Cash
      flows from operating activities:Net
      loss
            
            $
            (60,611
            )
            
            $
            (500
            )
            
            $
            (61,111
            )Adjustments
      to reconcile net loss to net cash used by operating
      activities:Warrant
      expense  (note 5)
            
            
            424
            
            
            
            -
            
            
            
            424Changes
      in operating assets and operating liabilities:Prepaid
      expenses
            
            
            (1,910
            )
            
            
            -
            
            
            
            (1,910
            )Accounts
      payable and accrued liabilities
            
            
            5,485
            
            
            
            500
            
            
            
            5,985Net
      cash (used in) operating activities
            
            
            (56,612
            )
            
            
            -
            
            
            
            (56,612
            )Cash
      flows from financing activities:Proceeds
      from sale of common stock
            
            
            -
            
            
            
            2,000
            
            
            
            2,000Proceeds
      from note payable, related party (note 2)
            
            
            60,000
            
            
            
            -
            
            
            
            60,000Net
      cash provided by financing activities
            
            
            60,000
            
            
            
            2,000
            
            
            
            62,000Net
      change in cash
            
            
            3,388
            
            
            
            2,000
            
            
            
            5,388Cash
      and cash equivalents, beginning of year
            
            
            2,000
            
            
            
            -
            
            
            
            —Cash
      and cash equivalents, end of year
            
            $
            5,388
            
            
            $
            2,000
            
            
            $
            5,388Supplemental
      disclosure of cash flow information:Cash
      paid during the period for:Income
      taxes
            
            $
            -
            
            
            $
            -
            
            
            $
            —Interest
            
            $
            3,953
            
            
            $
            -
            
            
            $
            3,953





See
accompanying notes to financial statements


F
- 6





ACROSS
AMERICA FINANCIAL SERVICES, INC.


(A
Development Stage Company)


Notes
to Financial Statements





(1)  
Nature of Organization and Summary of Significant Accounting
Policies


Nature
of Organization and Basis of Presentation


Across
America Financial Services, Inc. (the “Company”) was incorporated in the state
of Colorado on December 1, 2005 as a wholly-owned subsidiary of Across
America Real Estate Corp. (“AARD”).  The Company commenced operations on
November 9, 2006, after the approval of its business plan.





The
Company is a development stage enterprise in accordance with Statement of
Financial Accounting Standards (“SFAS”) No. 7, “Accounting and Reporting by
Development Stage Enterprises”. The Company was organized to provide a
nationwide, mortgage commercial brokerage operation. The Company plans to
incorporate traditional mortgage brokering with a web-based, automated
underwriting system which allows clientele to process loan applications
twenty-four hours a day, seven days a week.





The
accompanying financial statements have been prepared on a going concern basis,
which contemplates the realization of assets and the satisfaction of liabilities
in the normal course of business. As shown in the accompanying financial
statements, the Company is a development stage company with no history of
operations, limited assets, and has incurred operating losses since inception.
These factors, among others, raise substantial doubt about its ability to
continue as a going concern.





The
financial statements do not include any adjustments relating to the
recoverability of assets and classification of liabilities that might be
necessary should the Company be unable to continue as a going concern. The
Company’s continuation as a going concern is dependent upon its ability to
obtain additional operating capital, commence operations, provide competitive
services, and ultimately to attain profitability. The Company intends to acquire
additional operating capital through equity offerings. There is no assurance
that the Company will be successful in raising additional funds.





Use
of Estimates


The
preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.





Cash
and Cash Equivalents


The
Company considers all highly liquid securities with original maturities of three
months or less when acquired to be cash equivalents. There were no cash
equivalents at December 31, 2007.





Financial
Instruments


The
Company’s financial instruments consist of cash and accrued liabilities. At
December 31, 2007, the fair value of the Company’s financial instruments
approximate fair value due to the short-term maturity of the
instruments.


F
- 7





ACROSS
AMERICA FINANCIAL SERVICES, INC.


(A
Development Stage Company)


Notes
to Financial Statements








Loss
per Common Share


The
Company reports loss per share using a dual presentation of basic and diluted
loss per share. Basic loss per share excludes the impact of common stock
equivalents and is determined by dividing income available to common
shareholders by the weighted average number of common shares outstanding during
the period. Diluted loss per share reflects the potential dilution that could
occur if securities and other contracts to issue common stock were exercised or
converted into common stock. At December 31, 2007, there were no variances
between the basic and diluted loss per share as there were no potentially
dilutive securities outstanding.





Income
Taxes


The
Company accounts for income taxes under the provisions of SFAS No. 109,
“Accounting for Income Taxes” (“SFAS 109”). SFAS 109 requires recognition of
deferred tax liabilities and assets for the expected future tax consequences of
events that have been included in the financial statements or tax returns. Under
this method, deferred tax liabilities and assets are determined based on the
difference between the financial statement and tax bases of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse.





In July
2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation
No. 48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB
Statement No. 109” (FIN 48), which clarifies the accounting and disclosure for
uncertainty in tax positions, as defined.  FIN 48 seeks to reduce the
diversity in practice associated with certain aspects of the recognition and
measurement related to accounting for income taxes.  The Company is subject
to the provisions of FIN 48 as of its formation on November 13, 2007, and has
analyzed filing positions in all of the federal and state jurisdictions where it
is required to file income tax returns, as well as all open tax years in these
jurisdictions.  The Company has identified its federal tax return and its
state tax return in Colorado as “major” tax jurisdictions, as defined.  No
prior periods are yet subject to examination as the initial returns for the
Company have not yet been filed.  The Company believes that its income tax
filing positions and deductions will be sustained on audit and does not
anticipate any adjustments that will result in a material adverse effect on the
Company’s financial condition, results of operations, or cash flow. 
Therefore, no reserves for uncertain income tax positions have been recorded
pursuant to FIN 48.  In addition, the Company did not record a cumulative
effect adjustment related to the adoption of FIN 48.




Fiscal
Year-end


The
Company operates on a December 31 year-end.




(2) 
Related Party Transactions





On
December 28, 2006, the Company sold 2,000,000 shares of its common stock to its
parent corporation, Across America Real Estate Corp., for $2,000, or $.001 per
share.





Promissory Note and Warrants





In
January 2007, Safe Harbor I, LLC., formerly known as Safe Harbor Business
Development Company (“Safe Harbor”), a related party controlled by the Company’s
president, agreed to provide the Company operating capital in the form of a
$250,000 loan. This loan is evidenced by an unsecured promissory note dated
January 12, 2007. The note carries a 15% interest rate and matures on January
12, 2008. The maturity of the note has been extended to January 12,
2009.  The renewal fee of 1.5% of the then outstanding principal
balance due is payable April 2008. Interest payments are due every 90 days and
any payments not received by the due date will incur a default interest rate of
24%.


F
- 8


ACROSS
AMERICA FINANCIAL SERVICES, INC.


(A
Development Stage Company)


Notes
to Financial Statements







In
addition, on January 12, 2007, the Company issued Safe Harbor warrants to
purchase 200,000 shares of the Company’s common stock at a price of $.01 per
share. The warrants expire five years from the date of issuance (see Note
5).





As of
December 31, 2007 the total principal and accrued interest owed on our note
payable is as follows:





As
      of December 31, 2007Principal
            
            $
            60,000Accrued
      interest
            
            
            2,268$
            62,268





(3) 
Income Taxes


A
reconciliation of the U.S. statutory federal income tax rate to the effective
tax rate is as follows:





December
            
            
            December2007
            
            
            2006U.S.
      statutory federal rate
            
            
            16.35
            %
            
            
            15.00
            %State
      income tax rate, net of federal benefit
            
            
            3.87
            %
            
            
            3.94
            %Net
      operating loss for which no taxBenefit
      is currently available
            
            
            -20.22
            %
            
            
            -18.94
            %0.00
            %
            
            
            0.00
            %




At
December 31, 2007, deferred tax assets consisted of a net tax asset of $12,352,
based on an operating loss inception to date of $61,111, which was fully allowed
for, in the valuation allowance of $12,352. The valuation allowance offsets the
net deferred tax asset for which there is no assurance of
recovery.  The change in the valuation allowance for the periods ended
December 31, 2007 and 2006 totaled $12,257 and $95, respectively.  The
net operating loss carryforward expires through the year 2027.




The
valuation allowance will be evaluated at the end of each year, considering
positive and negative evidence about whether the deferred tax 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 assets is no longer
impaired and the allowance is no longer required.




Should
the Company undergo an ownership change as defined in Section 382 of the
Internal Revenue Code, the Company’s tax net operating loss carryforward
generated prior to the ownership change will be subject to an annual limitation,
which could reduce or defer the utilization of these losses.




F
- 9


ACROSS
AMERICA FINANCIAL SERVICES, INC.


(A
Development Stage Company)


Notes
to Financial Statements







(4)  
Stockholders Equity





On
January 10, 2007, the directors of Across America Real Estate Corp. (“AARD“)
approved, subject to the effectiveness of a registration with the Securities and
Exchange Commission, a spin off to its shareholders of record as of March 1,
2007 (the “Record Date”), on a pro rata basis, with one share each of Financial
Services to be issued for each ten shares issued and outstanding of common stock
or common stock upon conversion of AARD preferred stock owned by such AARD
shareholders as of the Record Date. Since AARD’s business is related to the
proposed activities of Financial Services, the AARD directors decided it was in
the best interest of AARD and Financial Services and AARD’s shareholders to
spin-off Financial Services to minimize any potential conflict of
interest.





The spin
off was completed on March 21, 2007.  As of December 31, 2007 the
total shares issued and outstanding is 1,810,476.  The remaining
189,524 shares after the spin-off were cancelled and the par value of those
shares is reflected in additional paid-in capital in the amount of
$190.





(5)   Warrant
Expense





On
January 12, 2007, the Company issued Safe Harbor warrants to purchase 200,000
shares of the Company’s common stock at a price of $.01 per share. The warrants
expire five years from the date of issuance.





The fair
value of the each warrant was calculated on the grant date of January 12, 2007
using the Black-Scholes model and was valued at $0.0021 using the following
assumptions and inputs:





Year
      endedDecember
      31,2007Risk
      free interest rate
            
            
            4.76
            %Expected
      life
            
            
            5.0Dividend
      yield
            
            
            0.00
            %Expected
      volatility
            
            
            0.00
            %Fair
      Value
            
            $
            0.0021




There are
a number of assumptions and estimates used in calculating the fair value of
warrants. These include the expected term of the warrant, the expected
volatility and the risk free interest rate. These assumptions are included in
the charts above. The basis for our expected volatility and expected term
estimates is a combination of our historical information.   The
risk-free interest rate is based upon yields of U.S. Treasury strips with terms
equal to the expected life of the warrants or award being valued. Across America
Financial Services, Inc. does not currently pay a dividend on its common
stock.




F
- 10




ACROSS
AMERICA FINANCIAL SERVICES, INC.


(A
Development Stage Company)


Notes
to Financial Statements







Warrants
      Outstanding
            
            
            
            
            
            
            
            
            Warrants
      ExercisableNumber
              of
      Warrants
            
            
            Weighted
      Average Exercise Price
            
            
            Weighted
      Remaining Contractual Term
            
            
            Aggregate
      Intrinsic Value
            
            
            Shares
      Exercisable
            
            
            Weighted
      Average Exercise Price
            
            
            Weighted
      Remaining Contractual Term
            
            
            Aggregate
      Intrinsic ValueBalance
      at December 31,2006
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Activity
      during 2007:Granted
            
            
            200,000
            
            
            
            0.01
            
            
            
            
            
            
            
            -
            
            
            
            200,000
            
            
            
            0.01
            
            
            
            -
            
            
            
            -Expired/Cancelled
            
            
            -
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Forfeited
            
            
            -
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Exercised
            
            
            -
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Balance,
      at December 31,2007
            
            
            200,000
            
            
            
            0.01
            
            
            
            4.0
            
            
            
            -
            
            
            
            200,000
            
            
            
            0.01
            
            
            
            4.0
            
            
            
            -




Warrant
expense was recorded in 2007, the period in which the warrants vested. The total
amount of expense calculated for the warrants issued totaled
$424.  This expense was recorded in Selling, general and
administrative on the Statements of Operations.




(6)   
Operating Expenses




The total
selling, general and administrative expense recorded on the financials for the
period ending December 31, 2007 and December 31, 2006 was $54,389 and $500
respectively.   The major components operating expense are as
follows:





For
      the year endedExpense
            
            December
            
            
            DecemberType
            
            2007
            
            
            2006Professional
      fees
            
            $
            52,595
            
            
            $
            500Warrant
      expense
            
            
            424
            
            
            
            -Other
            
            
            1,370
            
            
            
            -Total
      Selling, general and administrative
            
            $
            54,389
            
            
            $
            500


F
- 11





ACROSS
AMERICA FINANCIAL SERVICES, INC.


(A
Development Stage Company)


Notes
to Financial Statements






(7)   Subsequent
Events




The
maturity date for the Safe Harbor note payable has been extended to January 12,
2009.  The renewal fee is due and payable in April 2008.





F
- 12





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





We did not
have any disagreements on accounting and financial disclosures with our present
accounting firm during the reporting period.





ITEM
8A. CONTROLS AND PROCEDURES.





Management’s
Annual Report on Internal Control over Financial Reporting




As required by Rule 13a-15
under the Securities Exchange Act of 1934 (the “Exchange Act”), we carried out
an evaluation of the effectiveness of the design and operation of our disclosure
controls and procedures and our internal control over financial reporting as of
December 31, 2007, being the date of our most recently completed fiscal year
end. Based upon that evaluation, our Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures and our internal
control over financial reporting are effective to ensure, among other things,
that the information required to be disclosed by us in the reports that we file
or submit under the Exchange Act is accumulated, recorded, processed,
communicated, and reported within the time periods specified by the rules and
forms of the Securities and Exchange Commission.




The term
“internal control over financial reporting” is defined as a process designed by,
or under the supervision of, our principal executive and principal financial
officers, or persons performing similar functions, and effected by our board of
directors, management and other personnel, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles and includes those policies and procedures
that:




(1)
            Pertain
      to the maintenance of records that in reasonable detail accurately and
      fairly reflect our transactions and dispositions of
  assets;(2)
            Provide
      reasonable assurance that transactions are recorded as necessary to permit
      preparation of financial statements in accordance with generally accepted
      accounting principles, and that receipts and expenditures are being made
      only in accordance with authorizations of our management and directors;
      and(3)
            Provide
      reasonable assurance regarding prevention or timely detection of
      unauthorized acquisition, use or disposition of our assets that could have
      a material effect on our financial
statements.





Changes in
Internal Control over Financial Reporting




During our
most recently completed fiscal year ended December 31, 2007, there were no
changes that had a material effect on, or are reasonably likely to affect, our
internal control over financial reporting.




ITEM
8B. OTHER INFORMATION.




Nothing
to report.





PART
III





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


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Our sole
Director and Executive Officer, his age and positions held with us as of March
23, 2008 are as follows:





Name:
            Age
            Position:Brian
      L. Klemsz
            48
            President,
      Chief Executive Officer,
              Chief
      Financial Officer Secretary-Treasurer and Director




Mr. Klemsz
has been the Company’s President, Secretary-Treasurer, and a Director since
its inception. Since March, 2007, he has been the Chief Investment Officer of
BOCO Investments, LLC, one of our shareholders. He was Chief Investment
Officer for GDBA Investments, LLLP, a private investment partnership and the
principal shareholder of the Company, from May, 2000 until March, 2007. Mr.
Klemsz received a Masters of Science in Accounting and Taxation in 1993 and a
Masters of Science in Finance in 1990 from Colorado State University.
He received his Bachelor of Science degree from the University of Colorado in
1981.





Committees
of the Board of Directors




Currently,
we do not have any committees of the Board of Directors.




Director
and Executive Compensation




No
compensation has been paid and no stock options granted to any of our officers
or directors in the last three fiscal years.




Employment
Agreements




We have no
written employment agreements with any of our executive officer or key
employee.




Equity
Incentive Plan




We have not
adopted an equity incentive plan, and no stock options or similar instruments
have been granted to any of our officers or directors.




Indemnification
and Limitation on Liability of Directors




Our Articles
of Incorporation limit the liability of our directors to the fullest extent
permitted by Colorado law. Specifically, our directors will not be personally
liable to our company or any of its shareholders for monetary damages for breach
of fiduciary duty as directors, except liability for (i) any breach of the
director's duty of loyalty to the corporation or its shareholders; (ii) acts or
omissions not in good faith or which involve intentional misconduct or a knowing
violation of law; (iii) voting for or assenting to a distribution in violation
of Colorado Revised Statutes Section 7-106-401 or the articles of incorporation
if it is established that the director did not perform his duties in compliance
with Colorado Revised Statutes Section 7-108-401, provided that the personal
liability of a director in this circumstance shall be limited to the amount of
distribution which exceeds what could have been distributed without violation of
Colorado Revised Statutes Section 7-106-401 or the articles of incorporation; or
(iv) any transaction from which the director directly or indirectly derives an
improper personal benefit. Nothing contained in the provisions will be construed
to deprive any director of his right to all defenses ordinarily available to the
director nor will anything herein be construed to deprive any director of any
right he may have for contribution from any other director or other
person.




At present,
there is no pending litigation or proceeding involving any of our directors,
officers, employees or agents where indemnification will be required or
permitted. Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to our directors, officers and
controlling persons pursuant to the foregoing provisions, or otherwise, we have
been advised that in the opinion of the Commission such indemnification is
against public policy as expressed in the Securities Act of 1933 and is,
therefore, unenforceable.


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Item
10. EXECUTIVE COMPENSATION





No
compensation has been paid and no stock options granted to our officer and
director in the last three fiscal years.





ITEM
11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.





The
following table sets forth, as of March 28, 2008, information regarding the
anticipated future ownership of our common stock after the spin off
by:





*
            persons
      who own more than 5% of our common
stock;





*
            each
      of our directors and each of our executive officers;
  and





*
            all
      directors and executive officers as a
group.





As of
March 28, 2008, there were a total of 1,810,476 common shares issued and
outstanding.


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Name
      and AddressBeneficial
            No.
      of
            PercentageOwner
            Common
      Shares
            of Ownership(1)(2)Brian
      L. Klemsz(3)
            314,000
            17%700
      17th Street, Suite 1200Denver,
      Colorado 80202GDBA
      InvestmentsLLLP (4)(5)
            1,178,144
            65%700
      17th Street, Suite 1200Denver,
      Colorado 80202BOCO
      Investments, LLC(5)
            100,000
            6%103
      West Mountain Ave.Fort
      Collins, Colorado 80524____________________All
      Officers and (4)
            314,000
            17%Directors
      as a Group(one
      person)____________________




(1)
            All
      ownership is beneficial and of record, unless indicated
      otherwise.





(2)
            Beneficial
      owners listed above have sole voting and investment power with respect to
      the shares shown, unless otherwise
indicated.





(3)
            A
      total of 194,000 of these shares are owned of record by Sarmat, LLC, which
      is controlled by Mr. Brian Klemsz, our President. A total of 120,000
      shares are owned in the name of family members of Mr.
      Klemsz.





(4)
            A
      total 1,178,144 shares are owned of record by GDBA Investments,
      LLLP.  A total of 1,000 shares are owned in the name of adult
      children of the affiliate of this entity, for which it disclaims
      beneficial ownership.





(5)
            On
      September 28, 2006, GDBA Investments, LLLP and BOCO Investments, LLC each
      acquired 250,000 shares of AARD Series A Convertible Preferred Stock. Each
      share of Series A Convertible Preferred Stock is the equivalent of four
      common shares for conversion purposes. As a result, GDBA Investments, LLLP
      and BOCO Investments, LLC will each receive an additional 100,0000 common
      shares in us, in addition to any ownership of common shares. These
      additional shares are reflected in the total number of shares owned by
      each entity in us.  Since March, 2007, Mr. Klemsz has been the Chief
      Investment Officer of BOCO Investments,
LLC.








ITEM
12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.





On
January 12, 2007, an organization named Safe Harbor I, LLC., formerly known
as Safe Harbor Business Development Company (“Safe Harbor”), which is
affiliated with our largest shareholder, GDBA Investments, LLLP, agreed to
provide operating capital in the form of a loan of $250,000 to cover operating
expenses. This loan is evidenced by an unsecured promissory note which was
originally due January 12, 2008 but was extended to  January 12,
2009.  The Company paid a renewal fee equal to 1.5% of the then
outstanding principal balance due. However, the maturity date of this note will
not be extended past January 12, 2009. The note is at an interest rate of 15%
per annum, with interest payments to be made every ninety days, beginning ninety
days for the date of the promissory note.


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We
issued have a total of 200,000 warrants to Safe Harbor, exercisable at a price
of $0.01 per share subject to adjustment, for a period of five years from the
date of issuance. These warrants were issued as an additional inducement for
Safe Harbor to loan us $250,000. The warrants are subject to registration
rights.





GDBA
Investments, LLLP holds 1,178,144 shares of our issued and outstanding stock,
representing approximately 65% of our issued and outstanding common stock. Mr.
Klemsz was an employee of GDBA Investments, LLLP. GDBA Investments, LLLP may be
deemed a "parent" as defined under the rules and regulations promulgated under
the Securities Act. Mr. Klemsz, through Sarmat, LLC and his family, will own
314,000 shares, or approximately 17%.




We
use the mailing address of the offices of AARD for our mailing address. No
expense provision for this use has been provided since it has been determined
that it is immaterial.




ITEM
13. EXHIBITS AND REPORTS ON FORM 8-K.





The
following financial information is filed as part of this report:





(a)     
(1) FINANCIAL STATEMENTS




(2)
SCHEDULES




(3)
EXHIBITS. The following exhibits required by Item 601 to be filed herewith are
incorporated by reference to previously filed documents:





Exhibit
              Number
            Description3.1*
            Articles
      of Incorporation3.2*
            Bylaws4.1*
            Warrant
      dated January 12, 2007 for Safe Harbor Business Development
      Company10.1*
            Promissory
      note dated January 12, 2007 with Safe Harbor Business Development
      Company31.1
            Certification
      of CEO/CFO pursuant to Sec. 30232.1
            Certification
      of CEO/CFO pursuant to Sec. 906





*
Previously filed with Form SB-2 Registration Statement, March 2,
2007.





(b)  Reports
on Form 8-K. No reports were filed under cover of Form 8-K for the fiscal year
ended December 31. 2007.


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ITEM
14: PRINCIPAL ACCOUNTANT FEES AND SERVICES





Our
independent auditor, Cordovano and Honeck, LLP, Certified Public Accountants,
billed an aggregate of $7,775 for the year ended December 31, 2007 and $2,500
for the year ended December 31, 2006 for professional services rendered for the
audit of the Company's annual financial statements and review of the financial
statements included in its quarterly reports.




We do not
have an audit committee and as a result our entire board of directors performs
the duties of an audit committee. Our board of directors evaluates the scope and
cost of the engagement of an auditor before the auditor renders audit and
non-audit services.








SIGNATURES





In
accordance with Section 12 of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized on March 31, 2008.






ACROSS
      AMERICA FINANCIAL SERVICES, INC.,
              a Colorado
      corporationDate:  March 31, 2008
            By:
            /s/ Brian L. KlemszBrian L. Klemsz, President, Chief Executive
      Officer,
              Chief Financial Officer and Director (Principal
      Executive,
              Accounting
      and Financial Officer)


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