**Table            of Contents**

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON      D.C. 20549**

**FORM      10-QSB**

**For      the Quarterly Period Ended September 30, 2006**

**_________________________________**

**Commission      File No. 33-49797**

**_________________________________**

**ETOTALSOURCE,      INC.**

| **Colorado**                                                                                | **84-1066959**                                      |
|---------------------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or Other Jurisdiction of Incorporationor                Organization) | (I.R.S.                Employer Identification No.) |
|                                                                                        |                                                |
| **1510                Poole Boulevard, Yuba City, CA**                                      | **95993**                                           |
| (Address                of Principal Executive Offices)                                     | (Zip                Code)                           |
|                                                                                        |                                                |
| **(****530)                751-9615**                                                       |
| (Issuer’s                Telephone Number, Including Area                Code)        |

**73,918,019**

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**Table        of Contents**

**ETOTALSOURCE,      INC.**

**FORM      10-QSB**

**TABLE      OF CONTENTS**

| PART                I. - FINANCIAL INFORMATION                                                                   |   |
|------------------------------------------------------------------------------------------------------------------|--------|
| ITEM                1. CONSOLIDATED CONDENSED FINANCIAL                STATEMENTS                                | 3      |
| Balance                Sheets - September 30, 2006 and December 31,                2005                          | 4      |
| Statements                of Operations - Three and Nine Months Ended                September 30, 2006 and 2005 | 5      |
| Statements                of Cash Flows - Nine Months ended September 30, 2006                and 2005           | 6      |
| Notes                to Financial Statements                                                                     | 7      |
| ITEM                2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF                OPERATION                  | 9      |
| ITEM                3. CONTROLS AND PROCEDURES                                                                   | 18     |
|                                                                                                                  |   |
| PART                II. - OTHER INFORMATION                                                                      |   |
| ITEM                1. LEGAL PROCEEDINGS                                                                         | 19     |
| ITEM                2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS                | 19     |
| ITEM                3. DEFAULTS UPON SENIOR SECURITIES                                                           | 19     |
| ITEM                4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY                HOLDERS                        | 19     |
| ITEM                5. OTHER INFORMATION                                                                         | 19     |
| ITEM                6. EXHIBITS AND REPORTS ON FORM 8-K                                                          | 20     |

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**Table          of Contents**

**PART      I**

**FINANCIAL      INFORMATION**

**Item      1.****Financial      Statements****.**

**ETOTALSOURCE,      INC.**

**CONSOLIDATED      FINANCIAL STATEMENTS**

**As      of September 30, 2006**

**INDEX      TO FINANCIAL STATEMENTS**

|                                                                                                                                | PAGE   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                BALANCE SHEETS AS OF SEPTEMBER 30, 2006 AND                DECEMBER 31, 2005                            | 4      |
|                                                                                                                                |   |
| CONSOLIDATED                STATEMENTS OF OPERATIONS FOR THE THREE AND NINE                MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 | 5      |
|                                                                                                                                |   |
| CONSOLIDATED                STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED                SEPTEMBER 30, 2006 AND 2005           | 6      |
|                                                                                                                                |   |
| NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER                30, 2006                                   | 7      |

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**Table            of Contents**

| **eTotalSource,                Inc.**                        |
|--------------------------------------------------------------|
| **Consolidated                Balance                Sheet** |

| **ASSETS**                                                                                                                                           |   | **(Unaudited)****September                30, 2006** |        | **December                31, 2005** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|--------------------------------------|--------|
| ***Current                Assets***                                                                                                                  |   |                                                 |        |                                 |   |
| Cash                                                                                                                                                 |   | $                                                    | 937         |                                 | $      | 118,958 |   |
| Other                                                                                                                                                |   |                                                 | 5,475       |                                 |   | 1,223 |   |
| *Total                Current Assets*                                                                                                                |   |                                                 | 6,412       |                                 |   | 120,181 |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| ***Property                and Equipment***                                                                                                          |   |                                                 |        |                                 |   |   |   |
| Furniture                and equipment                                                                                                               |   |                                                 | 83,922      |                                 |   | 86,451 |   |
| Less                accumulated depreciation                                                                                                         |   |                                                 | (74,197     | )                                    |   | (67,641 | ) |
|                                                                                                                                                 |   |                                                 | 9,724       |                                 |   | 18,810 |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| ***Other                Assets***                                                                                                                    |   |                                                 |        |                                 |   |   |   |
| Deposits                                                                                                                                             |   |                                                 | 801         |                                 |   | 721 |   |
|                                                                                                                                                 |   |                                                 | 801         |                                 |   | 721 |   |
| ***Total                Assets***                                                                                                                    |   | $                                                    | 16,937      |                                 | $      | 139,712 |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY (DEFICIT)**                                                                                    |   |                                                 |        |                                 |   |   |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| ***Current                Liabilities***                                                                                                             |   |                                                 |        |                                 |   |   |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| Convertible                notes payable                                                                                                             |   | $                                                    | 250,000     |                                 | $      | 250,000 |   |
| Other                notes payable                                                                                                                   |   |                                                 | 797,114     |                                 |   | 772,114 |   |
| Judgments                payable                                                                                                                     |   |                                                 | 204,788     |                                 |   | 204,788 |   |
| Accounts                payable and other accrued liabilities                                                                                        |   |                                                 | 348,263     |                                 |   | 291,785 |   |
| Accrued                compensation payable                                                                                                          |   |                                                 | 1,137,091   |                                 |   | 1,036,104 |   |
| Accrued                interest payable                                                                                                              |   |                                                 | 434,581     |                                 |   | 265,952 |   |
| Deferred                revenue                                                                                                                      |   |                                                 | -           |                                 |   | 22,500 |   |
| *Total                Current Liabilities*                                                                                                           |   |                                                 | 3,171,837   |                                 |   | 2,843,242 |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| **Convertible                Notes Payable, less current maturities and $195,709 and $303,452                discount,                respectively** |   |                                                 | 739,291     |                                 |   | 696,548 |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| **Total                Liabilities**                                                                                                                 |   |                                                 | 3,911,128   |                                 |   | 3,539,790 |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| **Commitments                and Contingencies**                                                                                                     |   |                                                 |        |                                 |   |   |   |
|                                                                                                                                                 |   |                                                 |        |                                 |   |   |   |
| ***Stockholders'                Equity (Deficit)***                                                                                                  |   |                                                 |        |                                 |   |   |   |
| Common                stock; no par value; 300 million shares authorized,                                                                            |   |                                                 |        |                                 |   |   |   |
| 73,918,019                shares issued and outstanding                                                                                              |   |                                                 | 6,369,922   |                                 |   | 6,226,906 |   |
| Accumulated                (deficit)                                                                                                                 |   |                                                 | (10,264,112 | )                                    |   | (9,626,984 | ) |
| *Total                Stockholders' Equity*                                                                                                          |   |                                                 | (3,894,190  | )                                    |   | (3,400,078 | ) |
| ***Total                Liabilities and Stockholders' Equity                (Deficit)***                                                             |   | $                                                    | 16,937      |                                 | $      | 139,712 |   |
|                                                                                                                                                      |   |                                                 |        |                                 |   |   |   |
|                                                                                                                                                      |   |                                                 |        |                                 |   |   |   |

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**Table            of Contents**

**eTotalSource,        Inc.**

****Consolidated        Statements of        Operations****

|                                                          |   | **(Unaudited)****Three                months Ended September 30,** |       | **(Unaudited)****Nine                months Ended September 30,** |   |
|---------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|-------------------------------------------------------------------|--------|
|                                                          |   | **2006**                                                           |       | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                                          |   |                                                               |       |                                                              |   |   |   |   |   |
| **Revenues**                                                  |   | $                                                                  | 333        |                                                              | $      | 12,852 |   | $ | 25,980 |   | $ | 41,836 |   |
|                                                          |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |
| **General                and Administrative Expenses**        |   |                                                               | 108,386    |                                                              |   | 207,584 |   |   | 438,782 |   |   | 727,254 |   |
|                                                          |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |
| **Operating                Income (Loss)**                    |   |                                                               | (108,053   | )                                                                 |   | (194,732 | ) |   | (412,802 | ) |   | (685,418 | ) |
|                                                          |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |
| **Other                Income (Expense)**                     |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |
| Gain                (loss) on sale or retirement of assets    |   |                                                               | -          |                                                              |   | (178 | ) |   | 594 |   |   | (245 | ) |
| Interest                expense                               |   |                                                               | (89,340    | )                                                                 |   | (75,585 | ) |   | (311,140 | ) |   | (188,125 | ) |
| Bad                debt write-off                             |   |                                                               | -          |                                                              |   | - |   |   | 85,121 |   |   | - |   |
| Other                income (expense), net                    |   |                                                               | 1,099      |                                                              |   | - |   |   | 1,099 |   |   | 1,342 |   |
| **Total                Other Income (Expense)**               |   |                                                               | (88,240    | )                                                                 |   | (75,763 | ) |   | (224,326 | ) |   | (187,028 | ) |
|                                                               |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |
| **Net                (Loss)**                                 |   | $                                                                  | (196,293   | )                                                                 | $      | (270,495 | ) | $ | (637,128 | ) | $ | (872,446 | ) |
|                                                          |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |
| **Basic                and Diluted (Loss) per Share**         |   | $                                                                  | (0.003     | )                                                                 | $      | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) |
|                                                          |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |
| **Weighted                Average Common Shares Outstanding** |   |                                                               | 54,303,104 |                                                              |   | 46,710,821 |   |   | 57,440,090 |   |   | 46,710,821 |   |
|                                                          |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                                               |       |                                                              |   |   |   |   |   |   |   |   |   |

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**Table          of Contents**

| **eTotalSource,                Inc.**                                   |
|-------------------------------------------------------------------------|
| **Consolidated                Statements of Cash                Flows** |
|                                                                    |

|                                                                                                |   | **(Unaudited)****Nine                Months Ended September 30,** |     |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|----------|
|                                                                                                |   | **2006**                                                          |     | **2005** |   |
| **Cash                Flows From (Used in) Operating Activities:**                                  |   |                                                              |     |   |   |
| Net                (loss)                                                                           |   | $                                                                 | (637,128 | ) | $ | (872,446 | ) |
|                                                                                                |   |                                                              |     |   |   |   |   |
| Depreciation                and amortization                                                        |   |                                                              | 115,934  |   |   | 82,071 |   |
| Gain                (loss) on sale or retirement of assets                                          |   |                                                              | 43       |   |   | 245 |   |
| Stock                options and warrant expense                                                    |   |                                                              | 76,015   |   |   | 72,068 |   |
| Changes                in assets and liabilities:                                                   |   |                                                              |     |   |   |   |   |
| Decrease                (increase) in other current assets                                          |   |                                                              | (4,252   | ) |   | 54 |   |
| Decrease                (increase) in deposits                                                      |   |                                                              | (80      | ) |   | 441 |   |
| Increase                (decrease) in payables, credit cards and accrued                liabilities |   |                                                              | 328,946  |   |   | 501,129 |   |
| Increase                (decrease) in deferred revenue                                              |   |                                                              | -        |   |   | (22,500 | ) |
|                                                                                                |   |                                                              |     |   |   |   |   |
| Net                Cash (Used in) Operating Activities                                              |   |                                                              | (145,021 | ) |   | (250,188 | ) |
|                                                                                                |   |                                                              |     |   |   |   |   |
| **Cash                Flows From (Used in) Investing Activities:**                                  |   |                                                              |     |   |   |   |   |
| Purchase                of equipment                                                                |   |                                                              | -        |   |   | - |   |
|                                                                                                |   |                                                              |     |   |   |   |   |
| Net                Cash (Used in) Investing Activities                                              |   |                                                              | -        |   |   | - |   |
|                                                                                                |   |                                                              |     |   |   |   |   |
| **Cash                Flows From (Used in) Financing Activities:**                                  |   |                                                              |     |   |   |   |   |
| Proceeds                from the conversion of warrants                                             |   |                                                              | 2,000    |   |   | - |   |
| Proceeds                from the issuance of convertible debenture                                  |   |                                                              | -        |   |   | 100,000 |   |
| Proceeds                from the issuance of note payables                                          |   |                                                              | 25,000   |   |   | 125,000 |   |
|                                                                                                |   |                                                              |     |   |   |   |   |
| Net                Cash From Financing Activities                                                   |   |                                                              | 27,000   |   |   | 225,000 |   |
|                                                                                                |   |                                                              |     |   |   |   |   |
| Increase                (decrease) in Cash and Cash Equivalents                                     |   |                                                              | (118,021 | ) |   | (25,188 | ) |
|                                                                                                |   |                                                              |     |   |   |   |   |
| Cash                and Cash Equivalents - Beginning of Period                                      |   |                                                              | 118,958  |   |   | 37,849 |   |
|                                                                                                |   |                                                              |     |   |   |   |   |
| Cash                and Cash Equivalents - End of Period                                            |   | $                                                                 | 937      |   | $ | 2,661 |   |
|                                                                                                |   |                                                              |     |   |   |   |   |
| **Supplemental                Disclosures:**                                                        |   |                                                              |     |   |   |   |   |
| Interest                paid                                                                        |   | $                                                                 | 23,417   |   | $ | 68,229 |   |
| Income                taxes paid                                                                    |   |                                                              | 800      |   |   | 1,600 |   |
| Non-cash                investing and financing transactions:                                       |   |                                                              |     |   |   |   |   |
| Conversion                of debt to equity                                                         |   |                                                              | 65,000   |   |   | - |   |
|                                                                                                |   |                                                              |     |   |   |   |   |
|                                                                                                |   |                                                              |     |   |   |   |   |

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**Table          of Contents**

**ETOTALSOURCE,      INC.**

**NOTES      TO CONSOLIDATED CONDENSED FINANCIAL      STATEMENTS**

**AS      OF SEPTEMBER 30, 2006**

**Note      A - Basis of Presentation**

**Note      B - Going Concern**

**Note      C - Management Changes**

**Note      D - Note Payables**

**This      note is in default.**

**Note      E - Stock Conversions**

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**Table            of Contents**

**Note      F - Events Subsequent to September 30, 2006**

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**Table            of Contents**

**Item      2. Management's Discussion And Analysis Or Plan Of      Operations.**

***Forward-Looking      Statements and Associated Risks.***
*This      Report contains forward-looking statements. Such forward-looking statements      include statements regarding, among other things, (a) our projected sales and      profitability, (b) our growth strategies, (c) anticipated trends in our      industry, (d) our future financing plans, (e) our anticipated needs for working      capital, (f) our lack of operational experience, and (g) the benefits related      to      ownership of our common stock. Forward-looking statements, which involve      assumptions and describe our future plans, strategies, and expectations, are      generally identifiable by use of the words “may,” “will,” “should,” “expect,”“anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of      these words or other variations on these words or comparable terminology. This      information may involve known and unknown risks, uncertainties, and other      factors that may cause our actual results, performance, or achievements to      be      materially different from the future results, performance, or achievements      expressed or implied by any forward-looking statements. These statements may      be      found under “Management’s Discussion and Analysis of Financial Condition and      Results of Operations” and “Business,” as well as in this Report generally.      Actual events or results may differ materially from those discussed in      forward-looking statements as a result of various factors, including, without      limitation, the risks outlined under “Risk Factors” and matters described in      this Report generally. In light of these risks and uncertainties, there can      be      no assurance that the forward-looking statements contained in this report will      in fact occur as projected.*

**Description      of Our Business**

**History.**

**Business.**

**General.**

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**Table            of Contents**

**Business      Model.**

**STRATEGY:**

**SOFTWARE      LICENSING:**

**PUBLISHING:      **

**Intellectual      Property Differentiation.**

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**Table            of Contents**

**Technology.**

**Employees.**

**Going      Concern**

**Risk      Factors**

***eTotalSource***
***Lost Money For The Years Ended December 31, 2005 and 2004, And The Nine Months      Ended September 30, 2006, And Losses May Continue In The      Future***

**$**

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**Table            of Contents**

***We      May Not Be Able To Access Sufficient Funds When Needed***

***We      Have Negative Working Capital Which May Affect our Ability to Continue As A      Going Concern***

***We      Need Additional Capital To Be Successful, Which Will Potentially Dilute The      Value Of Our Shareholders’ Shares***

***All      Of Our Assets Are Securing Our Obligations To Cornell***

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**Table            of Contents**

***Our      Success Is Based On Increasing Demand For Our      Products***

***We      Rely On Our Senior Management And Will Be Harmed If Any Or All Of Them      Leave***

***Fluctuations      In Our Operating Results May Adversely Affect Our Stock Price And Purchasers      Of      Our Shares Of Common Stock May Lose All Or A Portion Of Their      Investment***

***Our      Common Stock May Be Affected By Limited Trading Volume And May Fluctuate      Significantly***

***Our      Common Stock Is Deemed To Be “Penny Stock,” Which May Make It More Difficult For      Investors To Sell Their Shares Due To Suitability      Requirements***

|   | · | with                a price of less than $5.00 per                share; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | that                are not traded on a “recognized” national                exchange; |
|--------|--------|----------------------------------------------------------------------------------------------------|

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**Table            of Contents**

|   | · | whose                prices are not quoted on the NASDAQ automated quotation system                (NASDAQ-listed stock must still have a price of not less than $5.00                per                share); or |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | stock                in issuers with net tangible assets less than $2,000,000 (if the                issuer                has been in continuous operation for at least three years) or $5,000,000                (if in continuous operation for less than three years), or with average                revenues of less than $6,000,000 for the last three                years. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Sale      Of Shares Eligible For Future Sale Could Adversely Affect The Market      Price***

***eTotalSource'      Competition is Better Capitalized and Has Greater Marketing Capabilities Which      Could Adversely Affect eTotalSource' Ability to Compete in the Marketplace***

**Critical      Accounting Policies**

***Revenue      Recognition***

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**Table            of Contents**

**Results      of Operations**

*Results      of Operations For The Three Month Period Ended September 30, 2006 Compared      To      The Same Period Ended September 30, 2005*

***Revenues.***

***Expenses.***

***Gain      (Loss) From Operations.***

*Results      of Operations For The Nine Month Period Ended September 30, 2006 Compared To      The      Same Period Ended September 30, 2005*

***Revenues.***

***Expenses.***

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**Table            of Contents**

***Gain      (Loss) From Operations.***

**Contractual      Obligations and Commercial Commitments**

| **Contractual                Obligations**                       |   | **Less                than 1 year** |      | **2-3                years** |   | **4-5                years** |   | **After                5 years** |   | **Total** |   |
|------------------------------------------------------------------|--------|-------------------------------------|-----------|------------------------------|--------|------------------------------|--------|----------------------------------|--------|-----------|--------|
| Judgments                payable                                 |   | $                                   | 204,788   |                         | $      | .00                          |   | $                                | .00    |      | $      | .00 |   | $ | 204,788 |   |
| Short                Term note payables                          |   |                                | 1,047,114 |                         |   | .00                          |   |                             | .00    |      |   | .00 |   |   | 1,047,114 |   |
| Convertible                debentures (net discounts - $195,709) |   |                                | .00       |                         |   | 739,291                      |   |                             | .00    |      |   | .00 |   |   | 739,291 |   |
| Other                current liabilities                         |   |                                | 1,919,935 |                         |   | .00                          |   |                             | .00    |      |   | .00 |   |   | 1,919,935 |   |
| Total                contractual cash obligations                |   | $                                   | 3,171,837 |                         | $      | 739,291                      |   | $                                | .00    |      | $      | .00 |   | $ | 3,171,837 |   |

**Facilities      and Leases**

**Dividends**

**Liquidity      and Capital Resources**

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**Table            of Contents**

**The      November 2005 Debentures.**

** **

**The      2005 SEDA.**

**2006      SB-2 - Registration Statement**

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**Table            of Contents**

**The      December 2005 Debenture.**

**Item      3. Controls and Procedures. **

***a.***
***Evaluation      Of Disclosure Controls And Procedures***

***b.***
***Changes      In Internal Controls Over Financial Reporting***

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**Table            of Contents**

**PART      II**

**OTHER      INFORMATION**

**Item      1. Legal Proceedings.**

**Item      2. Unregistered Sales of Equity Securities and use of      Proceeds.**

**Item      3. Defaults Upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security      Holders.**

**Item      5. Other Information**

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**Table          of Contents**

**Item      6. Exhibits and Reports on Form 8-K**

|   | ***a.*** | ***Exhibits                pursuant to Regulation S-K:*** |
|--------|----------|-----------------------------------------------------------|

| **DESIGNATION                  OF EXHIBIT AS SET FORTH IN ITEM 601 OF REGULATION                  S-B** |   | **DESCRIPTION**                                                                                                                                                 |   | **LOCATION**                                                                                                                                                                  |
|---------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                         |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 3.1                                                                                                     |   | Articles                of Incorporation                                                                                                                        |   | Incorporated                by Reference to the Registration Statement of Form SB-2 filed on                April 21,                2005.                                    |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 3.2                                                                                                     |   | Bylaws                                                                                                                                                          |   | Incorporated                by Reference to the Registration Statement of Form SB-2 filed on                April 21,                2005.                                    |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 3.3                                                                                                     |   | Certificate                  of Amendment of the Articles of Incorporation                                                                                      |   | Incorporated                  by reference to the current report on Form 8-K dated July 14, 2003.                  (File                  no. 000-49797)                      |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 3.4                                                                                                     |   | Articles                  of Amendment to the Articles of Incorporation                                                                                         |   | Incorporated                  by reference to the current report on Form 8-K dated December 1,                  2003                  (File no. 000-49797)                    |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 4.1                                                                                                     |   | 2003                  Stock Plan                                                                                                                                |   | Incorporated                  by reference to the current report on Form S-8 dated May 23, 2003.                  (File                  no. 333-105518)                      |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 4.11                                                                                                    |   | 2004                  Stock Plan                                                                                                                                |   | Incorporated                  by reference to the current report on Form S-8 dated July 15, 2004.                  (File                  no. 333-111732)                     |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 10.1                                                                                                    |   | Plan                  & Agreement of Reorganization dated December 18, 2002 by and between                  Premium Enterprises, Inc and eTotalSource, Inc. |   | Incorporated                  by reference to the Annual Report on Form 8-K dated December 30,                  2002.                  (File no. 000-49797)                   |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 10.2                                                                                                    |   | Employment                  Agreement of Terry Eilers dated February 7, 2000                                                                                    |   | Incorporated                  by reference to the pending Registration Statement on Form SB-2                  dated                  November 24, 2004 (File no. 333-120786) |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |
| 10.3                                                                                                    |   | Employment                  Agreement of Virgil Baker dated February 7, 2000                                                                                    |   | Incorporated                  by reference to the pending Registration Statement on Form SB-2                  dated                  November 24, 2004 (File no. 333-120786) |
|                                                                                                    |   |                                                                                                                                                            |   |                                                                                                                                                                          |

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**Table            of Contents**

| **DESIGNATION                      OF EXHIBIT AS SET FORTH IN ITEM 601 OF REGULATION                      S-B** |   | **DESCRIPTION**                                                                                                                                                                                                                                                   |   | **LOCATION**                                                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.4                                                                                                            |   | Employment                      Agreement of Michael Sullinger dated August 1, 2002                                                                                                                                                                               |   | Incorporated                      by reference to the pending Registration Statement on Form                      SB-2 dated                      November 24, 2004 (File no. 333-120786)                      |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.5                                                                                                            |   | Securities                      Purchase Agreement, dated October 6, 2004 by and between eTotalSource,                      Inc. and Cornell Capital Partners, L.P.                                                                                               |   | Incorporated                      by reference to the pending Registration Statement on Form                      SB-2 dated                      November 24, 2004 (File no. 333-120786)                      |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.6                                                                                                            |   | Investor                      Registration Rights Agreement, dated October 6, 2004, by and                      between                      eTotalSource, Inc. and Cornell Capital Partners, L.P.                                                                |   | Incorporated                      by reference to the pending Registration Statement on Form                      SB-2 dated                      November 24, 2004 (File no. 333-120786)                      |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.7                                                                                                            |   | Security                      Agreement, dated October 6, 2004, by and between eTotalSource,                      Inc. and                      Cornell Capital Partners, L.P.                                                                               |   | Incorporated                      by reference to the pending Registration Statement on Form                      SB-2 dated                      November 24, 2004 (File no. 333-120786)                      |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.8                                                                                                            |   | Irrevocable                      Transfer Agent Instructions, dated October 6, 2004, by and                      among                      eTotalSource, Inc., Cornell Capital Partners, L.P., and Executive                      Registrar & Transfer, Inc. |   | Incorporated                      by reference to the pending Registration Statement on Form                      SB-2 dated                      November 24, 2004 (File no. 333-120786)                      |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.9                                                                                                            |   | Escrow                      Agreement (SEDA), dated October 6, 2004, by and among eTotalSource,                      Inc.,                      Cornell Capital Partners, L.P., and David Gonzalez, Esq.                                                          |   | Incorporated                      by reference to the pending Registration Statement on Form                      SB-2 dated                      November 24, 2004 (File no. 333-120786)                      |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.10                                                                                                           |   | Termination                      Agreement, dated November 2, 2005, by and among eTotalSource,                      Inc. and                      Cornell Capital Partners, L.P.                                                                                  |   | Incorporated                      by reference to the Current Report on Form 8-K dated November                      8,                      2005.                                                             |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.11                                                                                                           |   | Agreement                      dated December 21, 2006 by and between eTotalSource, Inc. and                      Cornell                      Capital Partners, L.P.                                                                                             |   | Provided                      Herewith                                                                                                                                                                         |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 10.12                                                                                                           |   | Secured                      Convertible Debenture dated December 21, 2006 in the Principal                      Amount of                      $7,642 issued by eTotalSource, Inc. to Cornell Capital Partners,                      L.P.                        |   | Provided                      Herewith                                                                                                                                                                         |
|                                                                                                            |   |                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                           |
| 14.1                                                                                                            |   | Code                      of Ethics                                                                                                                                                                                                                               |   | Incorporated                      by reference to the pending Registration Statement on Form                      SB-2 dated                      November 24, 2004 (File no.                      333-120786) |

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**Table                of Contents**

| **DESIGNATION                          OF EXHIBIT AS SET FORTH IN ITEM 601 OF REGULATION                          S-B** |   | **DESCRIPTION**                                                                                                                                                                                                                                                                                                                |   | **LOCATION**                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                   |
| 15.1                                                                                                                    |   | Letter                          on Change in Certifying Accountants                                                                                                                                                                                                                                                            |   | Incorporated                          by reference to the Company’s Current Report on Form 8-K filed on August                          30, 2006 |
|                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                   |
| 16.1                                                                                                                    |   | Letter                          on Departure of Director -Virgil Baker                                                                                                                                                                                                                                                         |   | Incorporated                          by reference to the Company’s Current Report on Form 8-K filed on August                          30, 2006 |
|                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                   |
| 16.2                                                                                                                    |   | Letter                          on Departure of Director - John (Cody) Morrow                                                                                                                                                                                                                                                  |   | Incorporated                          by reference to the Company’s Current Report on Form 8-K filed on August                          30, 2006 |
|                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                   |
| 31.1                                                                                                                    |   | Certification                          of Chief Executive Officer and Interim Chief Financial                          Officer (one                          person) pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange                          Act                                                                         |   | Provided                          Herewith                                                                                                             |
|                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                   |
| 32.1                                                                                                                    |   | Certification                          of Chief Executive Officer and Interim Chief Financial                          Officer (one                          person) pursuant to 18 U.S.C. Section 1350 as adopted pursuant                          to Section                          906 of the Sarbanes-Oxley Act of 2002 |   | Provided                          Herewith                                                                                                             |

***b.***
***Reports      on Form 8-K:***

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**Table            of Contents**

**SIGNATURES**

|                             | **eTotalSource,                INC.**                                                                                                          |
|----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |                                                                                                                                           |
|                             |                                                                                                                                           |
|                             |                                                                                                                                           |
| December                21, 2006 | By: */s/                Terry L. Eilers*                                                                                   |
|                             | Terry                L. Eilers, President, Chief                Executive Officer, Interim Chief Financial Officer and                Director |
|                             |                                                                                                                                           |

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