| New                Mexico                      | 85-0280415                         |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (IRS                Employer       |
| incorporation                or organization)  | Identification                No.) |

----

|                                                                               | PAGE   |
|------------------------------------------------------------------------------------|--------|
| PART                I - FINANCIAL INFORMATION                                      |   |
|                                                                               |   |
| Item                1. Financial Statements                                        | 3      |
|                                                                               |   |
| Balance                Sheets September 30, 2007 (unaudited) and                   |   |
| December                31, 2006                                                   | 3      |
|                                                                               |   |
| Statements                of Operations for the Three-Months and Nine-Months       |   |
| ended                September 30, 2007 (unaudited)                                | 4      |
|                                                                               |   |
| Statements                of Cash Flows for the Three-Months and Nine-Months ended |   |
| September                30, 2007 (unaudited)                                      | 5      |
|                                                                               |   |
| Statements                of Stockholders Equity (Deficit) September 30, 2007      |   |
| (unaudited)                                                                        | 6      |
|                                                                               |   |
| Notes                to Consolidated Financial Statements (unaudited)              | 7      |
|                                                                               |   |
| Item                2. Management's Discussion and Analysis on Plan of Operation   | 13     |
|                                                                               |   |
| Item                3. Controls and Procedures                                     | 16     |
|                                                                               |   |
| PART                II - OTHER INFORMATION                                         |   |
|                                                                               |   |
| Item                1. Legal Proceedings                                           | 16     |
|                                                                               |   |
| Item                2. Unregistered Sales of Equity Securities and Use of Proceeds | 16     |
|                                                                               |   |
| Item                3. Defaults Upon Senior Securities                             | 16     |
|                                                                               |   |
| Item                4. Submission of Matters to a Vote of Security Holders         | 16     |
|                                                                               |   |
| Item                5. Other Information                                           | 16     |
|                                                                               |   |
| Item                6. Exhibits                                                    | 16     |
|                                                                               |   |
| Signatures                                                                         | 17     |

----

**MOUNTAINS      WEST EXPLORATION INC.**

**Balance      Sheets**

|                                                                                                                                                                                                               |   | **September                30,****2007** |       | **Dec.                31,****2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|------------|-------------------------------------|--------|
| **ASSETS:**                                                                                                                                                                                                        |   |                                     |       |                                |   |
| Current                assets:                                                                                                                                                                                     |   |                                     |       |                                |   |
| Cash                                                                                                                                                                                                               |   | $                                        | 200,149    |                                | $      | 345 |   |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| Total                current assets                                                                                                                                                                                |   |                                     | 200,149    |                                |   | 345 |   |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| **TOTAL                ASSETS**                                                                                                                                                                                    |   | $                                        | 200,149    |                                | $      | 345 |   |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY (DEFICIT):**                                                                                                                                           |   |                                     |            |                                |   |  |   |
| Current                liabilities:                                                                                                                                                                                |   |                                     |            |                                |   |  |   |
| Accounts                Payable                                                                                                                                                                                    |   | $                                        | 164,124    |                                | $      | 103,381 |   |
| Accrued                expenses                                                                                                                                                                                    |   |                                     | 15,895     |                                |   | 25,133 |   |
| Note                Payable                                                                                                                                                                                        |   |                                     | 202,500    |                                |   | 103,000 |   |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| Total                current liabilities                                                                                                                                                                           |   |                                     | 382,519    |                                |   | 231,514 |   |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| Long-Term                Debt:                                                                                                                                                                                     |   |                                     |            |                                |   |  |   |
| Long-Term                Debt                                                                                                                                                                                      |   |                                     | -          |                                |   | 647,500 |   |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| Total                long-term debt                                                                                                                                                                                |   |                                     | -          |                                |   | 647,500 |   |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| Total                liabilities                                                                                                                                                                                   |   |                                     | 382,519    |                                |   | 879,014 |   |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| Stockholders’                equity:                                                                                                                                                                         |   |                                     |            |                                |   |  |   |
| Common                Stock, no par value; 50,000,000 shares authorized;                                                                                                                                           |   |                                     |            |                                |   |  |   |
| 1,300,018                shares issued and outstanding and 1,953,582 committed for                subscription at September 30, 2007 and 1,300,018 issued and                outstanding at December 31, 2006 |   |                                     | 2,655,256  |                                |   | 1,582,786 |   |
| Retained                Earnings (Deficit)                                                                                                                                                                         |   |                                     | (2,837,626 | )                                   |   | (2,461,455 | ) |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| Total                stockholders’ equity (deficit)                                                                                                                                                          |   |                                     | (182,370   | )                              |   | (878,669 | ) |
|                                                                                                                                                                                                               |   |                                     |            |                                |   |  |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)**                                                                                                                                             |   | $                                        | 200,149    |                                | $      | 345 |   |

----

**MOUNTAINS      WEST EXPLORATION INC.**

**Statements      of Operations**

|                                                                |   | **Three                Months Ended** |      | **Nine                Months Ended** |   |
|---------------------------------------------------------------------|--------|---------------------------------------|-----------|--------------------------------------|--------|
|                                                                |   | **September                30,**      |      | **September                30,**     |   |
|                                                                |   | **2007**                              |      | **2006**                             |   | **2007** |   | **2006** |   |
|                                                                |   |                                  |      |                                 |   |   |   |   |   |
| **Revenue:**                                                        |   | $                                     | -         |                                 | $      | - |   | $ | - |   | $ | - |   |
|                                                                |   |                                  |           |                                 |   |  |   |   |  |   |   |  |   |
| **Operating                Expenses:**                              |   |                                  | 58,544    |                                 |   | 18,148 |   |   | 173,052 |   |   | 92,680 |   |
|                                                                |   |                                  |           |                                 |   |  |   |   |  |   |   |  |   |
| Operating                Profit (Loss)                              |   |                                  | (58,544   | )                                    |   | (18,148 | ) |   | (173,052 | ) |   | (92,680 | ) |
|                                                                |   |                                  |           |                                 |   |  |   |   |  |   |   |  |   |
| **Other                Income and Expense**                         |   |                                  |           |                                 |   |  |   |   |  |   |   |  |   |
| Interest                Expense                                     |   |                                  | 88,319    |                                 |   | 5,175 |   |   | 203,119 |   |   | 15,525 |   |
|                                                                |   |                                  |           |                                 |   |  |   |   |  |   |   |  |   |
| **Net                Income (Loss)**                                |   | $                                     | (146,863  | )                                    | $      | (23,323 | ) |   | (376,171 | ) | $ | (108,205 | ) |
|                                                                |   |                                  |           |                                 |   |  |   |   |  |   |   |  |   |
| **Per                Share Information:**                           |   |                                  |           |                                 |   |  |   |   |  |   |   |  |   |
| Weighted                average number of common shares outstanding |   |                                  | 1,554,833 |                                 |   | 1,300,018 |   |   | 1,385,576 |   |   | 1,300,018 |   |
|                                                                |   |                                  |           |                                 |   |  |   |   |  |   |   |  |   |
| **Net                Loss per Common Share**                        |   | $                                     | (0.09     | )                                    | $      | (0.02 | ) | $ | (0.27 | ) | $ | (0.08 | ) |

----

**MOUNTAINS      WEST EXPLORATION INC.**

**Statements      of Cash Flows**

**(Indirect      Method)**

|                                                                                                          |   | **Nine                  Months Ended** |     |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                                                                          |   | **September                  30,**     |     |
|                                                                                                          |   | **2007**                               |     | **2006** |   |
|                                                                                                          |   |                                   |     |   |   |
| **Cash                  Flows from Operating Activities:**                                                    |   |                              |     |    |   |
|                                                                                                          |   |                              |     |    |   |
| Net                  Profit (Loss)                                                                            |   | $                                      | (376,171 | ) | $ | (108,205 | ) |
|                                                                                                          |   |                                   |     |   |   |   |   |
| Adjustments                  to reconcile net loss to net cash used by operating                  activities: |   |                                   |     |   |   |   |   |
| Depreciation                                                                                                  |   |                                   | -        |   |   | - |   |
| Stock                  warrant expense issued with debt                                                       |   |                                   | 73,426   |   |   | - |   |
| Stock                  option compensation expense                                                            |   |                                   | 2,718    |   |   |   |   |
| Increase                  in accounts payable                                                                 |   |                                   | 60,743   |   |   | 107,005 |   |
| Increase                  in accrued expenses                                                                 |   |                                   | 53,588   |   |   | - |   |
| (Increase)                  in other assets                                                                   |   |                                   | -        |   |   | - |   |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Net                  Cash Flows Used by Operations**                                                        |   |                                   | (185,696 | ) |   | (1,200 | ) |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Cash                  Flows from Investing Activities:**                                                    |   |                                   |     |   |   |   |   |
|                                                                                                          |   |                                   |     |   |   |   |   |
| Payment                  for deposit on acquisition                                                           |   |                                   | -        |   |   | (250,000 | ) |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Net                  Cash Flows Provided by Financing Activities**                                          |   |                                   | -        |   |   | (250,000 | ) |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Cash                  Flows from Financing Activities:**                                                    |   |                                   |     |   |   |   |   |
| Proceeds                  of notes payable - convertible                                                      |   |                                   | 736,000  |   |   | 347,500 |   |
| Payments                  of notes payable - convertible                                                      |   |                                   | (250,000 | ) |   | - |   |
| Proceeds                  of note payable - related party                                                     |   |                                   | 2,500    |   |   | 103,000 |   |
| Repayment                  of notes payable - related party                                                   |   |                                   | (103,000 | ) |   | (197,000 | ) |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Net                  Cash Flows Provided by Financing Activities**                                          |   |                                   | 385,500  |   |   | 253,500 |   |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Net                  Increase (Decrease) in Cash**                                                          |   |                                   | 199,804  |   |   | 2,300 |   |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Cash                  at Beginning of Period**                                                              |   |                                   | 345      |   |   | - |   |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Cash                  at End of Period**                                                                    |   | $                                      | 200,149  |   | $ | 2,300 |   |
|                                                                                                          |   |                                   |     |   |   |   |   |
| **Supplemental                  Disclosure of Cash Flow Information**                                         |   |                                   |     |   |   |   |   |
| Cash                  paid for interest                                                                       |   | $                                      | 92,000   |   | $ | - |   |
| Cash                  paid for income taxes                                                                   |   | $                                      | -        |   | $ | - |   |
| **Non-Cash                  Investing and Financing Activities**                                              |   |                                   |     |   |   |   |   |
| Common                  stock committed for subscription for debt                                   |   | $                                      | 933,500  |   | $ | - |   |

----

**MOUNTAINS      WEST EXPLORATION INC.**

**Stockholders’      Equity (Deficit)**

**September      **
**30,      2007**

|                                                                                                   |   | **#                of Shares** |      | **Amount** |   | **Retained                Earnings (Deficit)** |   | **Totals** |       |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|------------|--------|------------------------------------------------|--------|------------|------------|
|                                                                                                   |   |                           |      |       |   |                                           |   |       |       |
| Balance                - December 31, 2001                                                             |   |                           | 740,409   |       | $      | 1,554,786                                      |   | $          | (1,573,676 | ) | $ | (18,890 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Net                Loss for year                                                                       |   |                           | -         |       |   | -                                              |   |       | (4,094     | ) |   | (4,094 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Balance                - December 31, 2002                                                             |   |                           | 740,409   |       |   | 1,554,786                                      |   |       | (1,577,770 | ) |   | (22,984 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Net                Loss for year                                                                       |   |                           | -         |       |   | -                                              |   |       | (16,483    | ) |   | (16,483 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Balance                - December 31, 2003                                                             |   |                           | 740,409   |       |   | 1,554,786                                      |   |       | (1,594,253 | ) |   | (39,467 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Issuance                of stock for cash                                                              |   |                           | 259,609   |       |   | 25,000                                         |   |       | -          |   |   | 25,000 |   |
| Net                Profit for the Year                                                                 |   |                           | -         |       |   | -                                              |   |       | 1,433      |   |   | 1,433 |   |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Balance                - December 31, 2004                                                             |   |                           | 1,000,018 |       |   | 1,579,786                                      |   |       | (1,592,820 | ) |   | (13,034 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Issuance                of stock for cash                                                              |   |                           | 300,000   |       |   | 3,000                                          |   |       | -          |   |   | 3,000 |   |
| Net                Loss for Year                                                                       |   |                           | -         |       |   | -                                              |   |       | (216,849   | ) |   | (216,849 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Balance                - December 31, 2005                                                             |   |                           | 1,300,018 |       |   | 1,582,786                                      |   |       | (1,809,669 | ) |   | (226,883 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Net                Loss for Year                                                                       |   |                           | -         |       |   | -                                              |   |       | (651,786   | ) |   | (651,786 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Balance                - December 31, 2006                                                             |   |                           | 1,300,018 |       | $      | 1,582,786                                      |   | $          | (2,461,455 | ) | $ | (878,669 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Conversion                of debt and accrued interest committed for stock                subscription |   |                           | 1,953,582 |       |   | 996,326                                        |   |       | -          |   |   | 996,326 |   |
| Stock                warrants issued for debt                                                          |   |                           | -         |       |   | 73,426                                         |   |       |       |   |   | 73,426 |   |
| Stock                based compensation                                                                |   |                           | -         |       |   | 2,718                                          |   |       |       |   |   | 2,718 |   |
| Net                Loss for Period                                                                     |   |                           | -         |       |   | -                                              |   |       | (376,171   | ) |   | (376,171 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| Balance                September 30, 2007                                                              |   |                           | 3,253,600 |       | $      | 2,655,256                                      |   | $          | (2,837,626 | ) | $ | (182,370 | ) |
|                                                                                                   |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |
| All                shares of stock reflect a 1 for 50 reverse                split in April 2005       |   |                           |           |       |   |                                                |   |       |            |   |   |  |   |

----

**MOUNTAINS      WEST EXPLORATION INC.**

**Notes      to Financial Statements**

**September      30, 2007**

**Note      1 - Presentation of Interim Information:**

**Note      2 - Summary of Significant Accounting Policies:**

----

**Note      3 - Going Concern:**

**Note      4 - Stock Based Compensation:**

| Options                  Outstanding:       |   | **Number                  of****Shares** |      | **Exercise****Price                  per****Share** |   | **Weighted                  Average Exercise PricePer Shares** |   |
|---------------------------------------------|--------|------------------------------------------|-----------|-----------------------------------------------------|--------|----------------------------------------------------------------|--------|
| January                  1, 2007            |   |                                     | —   |                                                | $      | —                                                        |   |   | — |   |
| Granted                                     |   |                                     | 4,100,000 |                                                |   | 0.51                                                           |   |   | 0.51 |   |
| Terminated                                  |   |                                     | —   |                                                |   | —                                                        |   |   | — |   |
| September                  30, 2007         |   |                                     | 4,100,000 |                                                |   | 0.51                                                           |   |   | 0.51 |   |
|                                        |   |                                     |           |                                                |   |                                                                |   |   |  |   |
| Vested                  Shares:             |   |                                     |      |                                                |   |                                                           |   |   |   |   |
| Vested,                  September 30, 2007 |   |                                     | 1,640,000 |                                                | $      | 0.51                                                           |   |   | 0.51 |   |

----

|                                      |   |            |       | **Weighted-**                 |   |
|-------------------------------------------|--------|-----------------|------------|-------------------------------|--------|
|                                      |   |            |       | **Average**                   |   |
|                                      |   | **Options**     |       | **grant-date**                |   |
| **Non-Vested                Options**     |   | **Outstanding** |       | **fair                value** |   |
|                                      |   |            |       |                          |   |
| Balance                January 1, 2007    |   |            | —    |                          | $      | — |   |
|                                      |   |            |            |                          |   |  |   |
| Grants                                    |   |            | 4,100,000  |                          |   | 0.51 |   |
|                                      |   |            |            |                          |   |  |   |
| Vested                                    |   |            | (1,640,000 | )                             |   | (0.51 | ) |
|                                      |   |            |            |                          |   |  |   |
| Expirations                               |   |            | —    |                          |   | — |   |
|                                      |   |            |            |                          |   |  |   |
| Balance                September 30, 2007 |   |            | 2,460,000  |                          | $      | 0.51 |   |

|                                                |   | **2007                Grants** |                   |
|-----------------------------------------------------|--------|--------------------------------|------------------------|
| Expected                volatility factors          |   |                           | 10%                    |   |
| Approximate                risk free interest rates |   |                           | 4.50%                  |   |
| Expected                lives                       |   |                           | 5                Years |   |
| Forfeiture                rate                      |   |                           | 0%                     |   |

**NOTE 5      - Stock Warrants**

|                                                                |   | **Issue                Date** |       | **Exp                Date** |   | **#                of Warrants** |   | **Exercise                Price** |       |
|---------------------------------------------------------------------|--------|-------------------------------|------------|-----------------------------|--------|----------------------------------|--------|-----------------------------------|------------|
|                                                                |   |                          |       |                        |   |                             |   |                              |       |
| Issuance                to LD Acquisition,LLC                       |   |                          | 11/15/2005 |                        |   | 11/15/2015                       |   |                              | 10,000,000 |   | $ | 0.01 |   |
| Issuance                to certain convertible debtholders          |   |                          | 4/6/2007   |                        |   | 4/6/2012                         |   |                              | 627,000    |   | $ | 0.51 |   |
| Issuance                to certain convertible debtholders          |   |                          | 9/19/2007  |                        |   | 9/19/2012                        |   |                              | 97,500     |   | $ | 0.51 |   |
|                                                                |   |                          |       |                        |   |                             |   |                              |       |   |   |   |   |
| Total                stock warrants outstanding, September 30, 2007 |   |                          |            |                        |   |                                  |   |                              | 10,724,500 |   | $ | 0.04 |   |

----

**Note      6 - Notes Payable - Convertible Debenture:**

|                                                                                                                             |   | September                30,2007 |    | December                31,2006 |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|---------------------------------|--------|
| Convertible                notes to various individuals, bearing interest at 7% per annum, due                December 31, 2007. |   | $                                | 200,000 |                            | $      | 647,500 |   |
|                                                                                                                             |   | $                                | 200,000 |                            | $      | 647,500 |   |

**Note      7 - Notes Payable - Related Party:**

**Note      8 - Deposit on Business Acquisition:**

----

**Note      9 - Subsequent Event - Acquisition of Secured Digital Storage      LLC:**

| Total                Consideration                      |   |   |      |
|---------------------------------------------------------|--------|--------|-----------|
| MWXI                Stock                               |   | $      | 2,475,000 |   |
| Professional                Fees                        |   |   | 50,000    |   |
| Advances                to SDS                          |   |   | 70,000    |   |
|                                                    |   |   | 2,595,000 |   |
|                                                    |   |   |           |   |
| Assets                acquired and liabilities assumed: |   |   |           |   |
| Current                assets                           |   |   | 28,212    |   |
| Liabilities                assumed                      |   |   | (130,105  | ) |
| Net                liabilities assumed                  |   |   | (101,893  | ) |
|                                                    |   |   |           |   |
| Goodwill                                                |   |   | 2,696,893 |   |
|                                                    |   | $      | 2,595,000 |   |

----

|                                                |   | **Three                Months Ended September 30,** |      | **Nine                Months Ended September 30,** |   |
|-----------------------------------------------------|--------|-----------------------------------------------------|-----------|----------------------------------------------------|--------|
|                                                |   | **2007**                                            |      | **2006**                                           |   | **2007** |   | **2006** |   |
|                                                |   |                                                |      |                                               |   |   |   |   |   |
| Net                revenues                         |   | $                                                   | —   |                                               | $      | — |   | $ | — |   | $ | — |   |
| Net                loss                             |   | $                                                   | (217,638  | )                                                  | $      | (86,229 | ) | $ | (701,112 | ) | $ | (175,111 | ) |
| Net                loss per share:                  |   |                                                |           |                                               |   |  |   |   |  |   |   |  |   |
| Basic                and diluted                    |   | $                                                   | (0.02     | )                                                  | $      | (0.01 | ) | $ | (.08 | ) | $ | (0.02 | ) |
| Weighted                average shares outstanding: |   |                                                |           |                                               |   |  |   |   |  |   |   |  |   |
| Basic                and diluted                    |   |                                                | 9,057,550 |                                               |   | 8,800,018 |   |   | 8,886,489 |   |   | 8,800,018 |   |

----

| **Item                2.** | **MANAGEMENT’S                DISCUSSION AND ANALYSIS ON PLAN OF                OPERATION** |
|----------------------------|---------------------------------------------------------------------------------------------------|

*Cautionary      and Forward Looking Statements*

|   | (a) | volatility                or decline of the Company’s stock                price; |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (b) | potential                fluctuation in quarterly results; |
|--------|-----|------------------------------------------------------------|

|   | (c) | failure                of the Company to earn revenues or                profits; |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (d) | inadequate                capital to continue or expand its                business; |
|--------|-----|--------------------------------------------------------------------------------------|

|   | (e) | inability                to raise additional capital or financing to implement its business                plans; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (f) | failure                to make sales; |
|--------|-----|---------------------------------------|

|   | (g) | rapid                and significant changes in markets; |
|--------|-----|----------------------------------------------------------|

|   | (h) | litigation                with or legal claims and allegations by outside parties;                or |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (i) | insufficient                revenues to cover operating costs. |
|--------|-----|----------------------------------------------------------------|

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*Results      of Operations for the Three-Months Ended September 30, 2007 compared to the      Comparable 2006 Period*

*Results      of Operations for the Nine-Months Ended September 30, 2007 compared to the      Comparable 2006 Period*

*Changes      in Financial Condition*

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*Liquidity      and Capital Resources*

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**ITEM        3. CONTROLS AND PROCEDURES**

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|              |                                                                |                 |
|-------------------|---------------------------------------------------------------------|----------------------|
| November 19, 2007 |                                                                     | /s/ William M. Lynes |
|              | William              M. Lynes, Chief Executive              Officer |

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**Exhibit        Index**

| Exhibit                  Number |   | Exhibit                  Description                                                                                                                                                                  |   |
|---------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                            |   |                                                                                                                                                                                                  |   |
| 10.1                            |   | Employment                  Letter between the Company and Mr. Lawrence Malone, dated September                  19,                  2007                                                            |
|                            |   |                                                                                                                                                                                                  |   |
| 10.2                            |   | Employment                  Letter between the Company and Mr. Donald Hauschild dated September                  19,                  2007                                                            |
|                            |   |                                                                                                                                                                                                  |   |
| 31.1                            |   | Officer’s                  Certificate Pursuant to 15 U.S.C. 7241, as Adopted Pursuant to                  Section 302                  of the Sarbanes-Oxley Act of 2002.                      |   |
|                            |   |                                                                                                                                                                                                  |   |
| 31.2                            |   | Officer’s                  Certificate Pursuant to 15 U.S.C. 7241, as Adopted Pursuant to                  Section 302                  of the Sarbanes-Oxley Act of 2002.                      |   |
|                            |   |                                                                                                                                                                                                  |   |
| 32.1                            |   | Certification                  of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350,                  as Adopted                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |   |
|                            |   |                                                                                                                                                                                                  |   |
| 32.2                            |   | Certification                  of Treasurer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant                  to                  Section 906 of the Sarbanes-Oxley Act of 2002.               |   |

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