**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON      D.C. 20549**

**FORM      10-QSB**

**For      the Quarterly Period Ended September 30, 2007**

**_________________________________**

**Commission      File No. 33-49797**

**_________________________________**

**ETOTALSOURCE,      INC.**

| **Colorado**                                                                                 | **84-1066959**                                      |
|----------------------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or                Organization) | (I.R.S.                Employer Identification No.) |
|                                                                                         |                                                |
| **1818                North Farwell Avenue, Milwaukee, WI**                                  | **53202**                                           |
| (Address                of Principal Executive Offices)                                      | (Zip                Code)                           |
|                                                                                         |                                                |
| **(** **414)                727-2695**                                                  |
| (Issuer’s                Telephone Number, Including Area                Code)         |

----

**ETOTALSOURCE,      INC.**

**FORM      10-QSB**

**TABLE      OF CONTENTS**

| PART                I. - FINANCIAL INFORMATION                                                                                         |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|
| ITEM                1. CONDENSED FINANCIAL STATEMENTS                                                                                  | 3      |
| Balance                Sheets - September 30, 2007 and December 31, 2006                                                               | 3      |
| Statements                of Operations - Three Months and Nine Months Ended September 30,                2007 and                2006 | 4      |
| Statements                of Cash Flows - Nine Months Ended September 30, 2007 and                2006                                 | 5      |
| Notes                to Financial Statements                                                                                           | 6      |
| ITEM                2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF                OPERATION                                        | 9      |
| ITEM                3. CONTROLS AND PROCEDURES                                                                                         | 13     |
|                                                                                                                                   |   |
| PART                II. - OTHER INFORMATION                                                                                            |   |
| ITEM                1. LEGAL PROCEEDINGS                                                                                               | 14     |
| ITEM                2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS                                      | 14     |
| ITEM                3. DEFAULTS UPON SENIOR SECURITIES                                                                                 | 14     |
| ITEM                4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                             | 14     |
| ITEM                5. OTHER INFORMATION                                                                                               | 14     |
| ITEM                6. EXHIBITS AND REPORTS ON FORM 8-K                                                                                | 15     |

----

**PART      I**

**FINANCIAL      INFORMATION**

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

| **eTotalSource,                Inc.** |
|---------------------------------------|
| **Balance                Sheets**     |

|                                                                                                                                                                                                                   |   | UnauditedSeptember                30,2007 |        |  December                31, 2006 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------|----------------------------------------|--------|
| ***Current                Assets***                                                                                                                                                                                    |   |                                      |        |                                   |   |
| Cash                                                                                                                                                                                                                   |   | $                                         | 5,439       |                                   | $      | 563 |   |
| Prepaid                Expense                                                                                                                                                                                         |   |                                      | 2,950       |                                   |   | - |   |
| *Total                Current Assets*                                                                                                                                                                                  |   |                                      | 8,389       |                                   |   | 563 |   |
|                                                                                                                                                                                                                   |   |                                      |        |                                   |   |   |   |
| ***Other                Assets***                                                                                                                                                                                      |   |                                      |        |                                   |   |   |   |
| Deposits                                                                                                                                                                                                               |   |                                      | -           |                                   |   | 801 |   |
| -                                                                                                                                                                                                                      |   |                                      |        |                                   |   | 801 |   |
|                                                                                                                                                                                                                   |   |                                      |        |                                   |   |   |   |
| ***Total                Assets***                                                                                                                                                                                      |   | $                                         | 8,389       |                                   | $      | 1,364 |   |
|                                                                                                                                                                                                                   |   |                                      |        |                                   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY (DEFICIT)**                                                                                                                                                      |   |                                      |        |                                   |   |   |   |
|                                                                                                                                                                                                                   |   |                                      |        |                                   |   |   |   |
| ***Current                Liabilities***                                                                                                                                                                               |   |                                      |        |                                   |   |   |   |
| Other                convertible notes payable                                                                                                                                                                         |   | $                                         | 50,000      |                                   | $      | 50,000 |   |
| Convertible                notes payable - related parties                                                                                                                                                             |   |                                      | 175,000     |                                   |   | 175,000 |   |
| Other                notes payable                                                                                                                                                                                     |   |                                      | 50,000      |                                   |   | 50,000 |   |
| Notes                payable - related parties                                                                                                                                                                         |   |                                      | 789,754     |                                   |   | 782,114 |   |
| Judgments                payable                                                                                                                                                                                       |   |                                      | 204,788     |                                   |   | 204,788 |   |
| Accounts                payable and other accrued liabilities (including $74,158 owed to                related                parties)                                                                                |   |                                      | 319,986     |                                   |   | 340,359 |   |
| Accrued                compensation payable                                                                                                                                                                            |   |                                      | 1,092,204   |                                   |   | 1,249,203 |   |
| Accrued                interest payable                                                                                                                                                                                |   |                                      | 38,609      |                                   |   | 24,500 |   |
| Accrued                interest payable - related parties                                                                                                                                                              |   |                                      | 462,961     |                                   |   | 302,314 |   |
| Accrued                interest payable - judgments                                                                                                                                                                    |   |                                      | 201,237     |                                   |   | 174,975 |   |
| *Total                Current Liabilities*                                                                                                                                                                             |   |                                      | 3,384,539   |                                   |   | 3,344,253 |   |
| **Convertible                Debentures, to a Related Party, less current                maturities**** ****and                net of unamortized discount of $113,732 and 173,946,                respectively** |   |                                      | 835,410     |                                   |   | 761,666 |   |
| **Total                Liabilities**                                                                                                                                                                                   |   |                                      | 4,219,949   |                                   |   | 4,105,919 |   |
|                                                                                                                                                                                                                   |   |                                      |        |                                   |   |   |   |
| **Commitments                and Contingencies**                                                                                                                                                                       |   |                                      |        |                                   |   |   |   |
| ***Stockholders'                Equity (Deficit)***                                                                                                                                                                    |   |                                      |        |                                   |   |   |   |
| Common                stock; no par value; 300 million shares authorized,                                                                                                                                              |   |                                      |        |                                   |   |   |   |
| 195,265,639                and 80,168,019 shares issued and outstanding, respectively                                                                                                                                  |   |                                      | 6,595,717   |                                   |   | 6,467,521 |   |
| Accumulated                (deficit)                                                                                                                                                                                   |   |                                      | (10,807,277 | )                                      |   | (10,572,076 | ) |
| *Total                Stockholders' Equity (Deficit)*                                                                                                                                                                  |   |                                      | (4,211,560  | )                                      |   | (4,104,555 | ) |
|                                                                                                                                                                                                                   |   |                                      |        |                                   |   |   |   |
| ***Total                Liabilities and Stockholders' Equity                (Deficit)***                                                                                                                               |   | $                                         | 8,389       |                                   | $      | 1,364 |   |

----

| **eTotalSource,                Inc.**                              |
|--------------------------------------------------------------------|
| **Condensed                Statements of Operations****Unaudited** |

|                                                          |   | **Three                Months Ended****September                30**  | **Nine                Months Ended****September                30** |
|---------------------------------------------------------------|--------|----------------------------------------------------------------------------|---------------------------------------------------------------------|
|                                                          |   |                                                                       | **2007**                                                            |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                          |   |                                                                       |                                                                |   |   |   |   |   |   |   |   |   |   |
| **Revenues**                                                  |   | $                                                                          | -                                                                   |   | $ | 333 |   | $ | - |   | $ | 25,980 |   |
|                                                          |   |                                                                       |                                                                |   |   |   |   |   |   |   |   |   |   |
| **General                and Administrative Expenses**        |   |                                                                       | 9,940                                                               |   |   | 108,386 |   |   | 131,288 |   |   | 438,782 |   |
|                                                          |   |                                                                       |                                                                |   |   |   |   |   |   |   |   |   |   |
| **Operating                Income (Loss)**                    |   |                                                                       | (9,940                                                              | ) |   | (108,053 | ) |   | (131,288 | ) |   | (412,802 | ) |
|                                                          |   |                                                                       |                                                                |   |   |   |   |   |   |   |   |   |   |
| **Other                Income (Expense)**                     |   |                                                                       |                                                                |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                               |   |                                                                       | (94,284                                                             | ) |   | (89,340 | ) |   | (274,162 | ) |   | (311,140 | ) |
| Gain                (loss) on sale or retirement of assets    |   |                                                                       | -                                                                   |   |   | - |   |   | - |   |   | 594 |   |
| Bad                debt write-off                             |   |                                                                       | -                                                                   |   |   | - |   |   | - |   |   | 85,121 |   |
| Other                income (expense), net                    |   |                                                                       | 170,250                                                             |   |   | 1,099 |   |   | 170,250 |   |   | 1,099 |   |
| **Total                Other Income (Expense)**               |   |                                                                       | 75,966                                                              |   |   | (88,241 | ) |   | (103,912 | ) |   | (224,326 | ) |
|                                                          |   |                                                                       |                                                                |   |   |   |   |   |   |   |   |   |   |
| **Net                (Loss)**                                 |   | $                                                                          | 66,026                                                              |   | $ | (196,294 | ) | $ | (235,200 | ) | $ | (637,128 | ) |
|                                                          |   |                                                                       |                                                                |   |   |   |   |   |   |   |   |   |   |
| **Basic                and Diluted (Loss) per Share**         |   | $                                                                          | 0.001                                                               |   | $ | (0.01 | ) | $ | (0.002 | ) | $ | (0.01 | ) |
|                                                          |   |                                                                       |                                                                |   |   |   |   |   |   |   |   |   |   |
| **Weighted                Average Common Shares Outstanding** |   |                                                                       | 126,622,940                                                         |   |   | 54,303,104 |   |   | 98,665,714 |   |   | 57,440,090 |   |

----

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

|                                                                           |   | **Nine                Months Ended****September                30,**  |
|--------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|
|                                                                           |   |                                                                       | **2007** |   |   | **2006** |   |
| **Cash                Flows From (Used in) Operating Activities:**             |   |                                                                       |   |   |   |   |   |
| Net                (loss)                                                      |   | $                                                                          | (235,200 | ) | $ | (637,128 | ) |
| Depreciation                and amortization                                   |   |                                                                       | - |   |   | 115,934 |   |
| Amortization                of discounted convertible debentures               |   |                                                                       | 74,146 |   |   | - |   |
| Gain                (loss) on sale or retirement of assets                     |   |                                                                       | - |   |   | 43 |   |
| Stock                options and warrant expense                               |   |                                                                       | 55,796 |   |   | 76,015 |   |
| Changes                in assets and liabilities:                              |   |                                                                       |   |   |   |   |   |
| Decrease                (increase) in other current assets                     |   |                                                                       | 801 |   |   | (4,252 | ) |
| Decrease                (increase) in deposits                                 |   |                                                                       | - |   |   | (80 | ) |
| Decrease                (increase) in prepaid expense                          |   |                                                                       | (2,950 | ) |   | - |   |
| Increase                (decrease) in payables (related party)                 |   |                                                                       | - |   |   | - |   |
| Increase                (decrease) in payables, and accrued liabilities        |   |                                                                       | (167,373 | ) |   | 326,947 |   |
| Increase                (decrease) in accrued interest payable                 |   |                                                                       | 14,108 |   |   | - |   |
| Increase                (decrease) in accrued interest payable (related party) |   |                                                                       | 159,646 |   |   | - |   |
| Increase                (decrease in accrued interest payable (judgments)      |   |                                                                       | 26,262 |   |   | - |   |
| Increase                (decrease) in deferred revenue                         |   |                                                                       | - |   |   | (22,500 | ) |
| Net                Cash (Used in) Operating Activities                         |   |                                                                       | (74,764 | ) |   | (145,021 | ) |
|                                                                           |   |                                                                       |   |   |   |   |   |
| **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 exercise of warrants                              |   |                                                                       | - |   |   | 2,000 |   |
| Proceeds                from issuance of convertible debt                      |   |                                                                       | 72,000 |   |   | - |   |
| Proceeds                from notes payable related party                       |   |                                                                       | 7,640 |   |   | 25,000 |   |
| Net                Cash From Financing Activities                              |   |                                                                       | 79,640 |   |   | 27,000 |   |
|                                                                           |   |                                                                       |   |   |   |   |   |
| Increase                (Decrease) in Cash                                     |   |                                                                       | 4,876 |   |   | (118,021 | ) |
|                                                                           |   |                                                                       |   |   |   |   |   |
| Cash                - Beginning of Period                                      |   |                                                                       | 563 |   |   | 118,958 |   |
|                                                                           |   |                                                                       |   |   |   |   |   |
| Cash                - End of Period                                            |   | $                                                                          | 5,439 |   | $ | 937 |   |
|                                                                           |   |                                                                       |   |   |   |   |   |
| **Supplemental                Disclosures of Cash flow Information:**          |   |                                                                       |   |   |   |   |   |
| Interest                paid                                                   |   | $                                                                          | - |   | $ | 24,377 |   |
| Income                taxes paid                                               |   |                                                                       | - |   |   | 800 |   |
| Non-cash                investing and financing transactions:                  |   |                                                                       |   |   |   |   |   |
| Conversion                of debt to equity                                    |   |                                                                       | - |   |   | 65,000 |   |
| Conversion                of convertible debenture                             |   |                                                                       | 58,000 |   |   | - |   |
| Discount                on convertible debentures                              |   |                                                                       | 14,400 |   |   | - |   |
|                                                                           |   |                                                                       |   |   |   |   |   |

----

**eTotalSource,      Inc.**

**Notes      to Condensed Financial Statements as of September 30,      2007**

**NOTE      1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Reclassification*

*Going      Concern Uncertainty*

*Recent      Accounting Pronouncements *

*The      Fair Value Option for Financial Assets and Financial Liabilities - Including      an      Amendment of FASB Statement No. 115. *
**.**

**NOTE      2. OTHER CONVERTIBLE NOTES PAYABLE AT SEPTEMBER 30, 2007**

| Convertible                notes payable; interest at 6% payable monthly, due in 2001, unsecured.                Principal and accrued interest ($17,744 at September 30, 2007) are                convertible to common stock at $.50 per share. The notes are in                default. | 50,000 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**NOTE      3. CONVERTIBLE NOTES PAYABLE (RELATED PARTIES) AT SEPTEMBER 30,      2007**

| Convertible                notes payable to a shareholder; interest at 6% payable monthly, due                in                2001, unsecured. Principal and accrued interest ($25,816 at September                30,                2007) are convertible to common stock at $.50 per share. Warrants                also                issued to note holders to purchase 18,500 shares of common stock                for five                years at $.50 per share. The notes are in default.                                        | 75,000        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |          |
| Convertible                note payable to a shareholder; principal and accrued interest at                8%                payable in 2002, extended to May 15, 2003, unsecured. Principal and                accrued interest ($28,766 at September 30, 2007) convertible to Company                common stock at $.50 per share. Warrants also issued to the note                holder to                purchase 55,248 shares of common stock for five years at $.50 per                share.                The note is in default. |  100,000 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |          |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 175,000       |

----

**NOTE      4. OTHER NOTES PAYABLE AT SEPTEMBER 30, 2007**

| Note                payable; interest at 6% payable monthly, due in 2001, unsecured.                Principal                and accrued interest ($8,8,72 at September 30, 2007) . Warrants also                issued to note holder to purchase 18,750 shares of common stock for                five                years at $.50 per share. The notes are in default. | 25,000       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
|                                                                                                                                                                                                                                                                                                                                                                       |         |
| Note                payable to an unrelated individual; principal and interest at 12%,                due                October 15, 2006, when principal and unpaid interest ($3,494 at September                30, 2007) are due. The note is in default.                                                                                                               |  25,000 |
|                                                                                                                                                                                                                                                                                                                                                                       |         |
| Total                                                                                                                                                                                                                                                                                                                                                                      | 50,000       |

**NOTE      5. NOTES PAYABLE (RELATED PARTIES) AT SEPTEMBER 30, 2007**

| Note                payable to a shareholder; interest at 15% payable monthly through                December                18, 2003 when principal and unpaid interest ($48,322 at September                30,                2007) are due. The note is in default.                                                                                                                                                                                                                                                                                                                                                                     | $                172,000 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Note                payable to a shareholder; interest at 10% and principal due January                17,                2003, extended to December 17, 2003 when principal and unpaid interest                ($35,614 at June 30 ,2007) (with interest increased to 18% and due                monthly                beginning February 17, 2003) are due. The note is in default.                                                                                                                                                                                                                                                      |  110,000            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Note                payable to a shareholder; interest at 15% payable monthly through                December                18, 2003 when principal and unpaid interest ($11,238 at September                30,                2007) are due. The note is in default.                                                                                                                                                                                                                                                                                                                                                                     | 40,000                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Note                payable to a shareholder; stated interest rate of 10% due June 2003,                extended to June 2004. As consideration for forbearance, the note                holder                received 50,000 shares of common stock in 2004, valued at $.525 per                share                ($26,250). In October 2004, the note was extended to April 2005.                In                December 2005, the note was extended to June 2006, when principal                and                unpaid interest ($7,880 at September 30, 2007) are due. This note                is in                default. |  52,483             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Note                payable to a shareholder; principal and interest at 10% due monthly.                This                note is a revolving credit obligation and the Company can repay and                borrow                up to the amount of the note. In October 2004, the note was extended                to                April 2005. In December 2005, the note was extended to June 2006,                when                principal and unpaid interest ($39,431 at September 30, 2007) are                due.                This note is in default.                                                               |  262,631            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Note                payable to a shareholder; principal and interest at 9.2%, due December                4,                2002, extended to May 1, 2003 when principal and unpaid interest                ($10,754                at September 30, 2007) are due, unsecured. The note is in                default.                                                                                                                                                                                                                                                                                                                       | 20,000                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Note                payable to Cornell, a shareholder; principal and interest at 10%,                due                August 1, 2005, when principal and unpaid interest ($5,651 at September                30, 2007) are due. The note is in default.                                                                                                                                                                                                                                                                                                                                                                                   | 25,000                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Note                payable to YA Global Investors, a shareholder; principal and interest                at                14%, due October 1, 2007, when principal and unpaid interest ($141                at                September 30, 2007) are due.                                                                                                                                                                                                                                                                                                                                                                                 | 7,640                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Note                payable to Cornell, a shareholder; principal and interest at 12%,                due                August 1, 2005 when principal and unpaid interest ($29,359 at September                30, 2007) are due. The note is in default.                                                                                                                                                                                                                                                                                                                                                                                   | 100,000                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 789,754                  |

----

**NOTE      6. CONVERTIBLE DEBENTURES (RELATED PARTIES) AT SEPTEMBER 30,      2007**

| Convertible                debentures payable to a Cornell, a shareholder, principal and interest                at                12%, payable November 1, 2008, secured by 225,000,000 shares of common                stock and 7 million warrants. Principal and accrued interest convertible                to common stock at a                conversion price equal to the lower of (i) $.024 price per share                of common                stock or (ii) 80% of the lowest closing bid price of our common stock,                as                quoted by Bloomberg, L.P., for the five trading days immediately                preceding                the conversion date. At the due date the Company has the option to                repay                the debt or issue common stock. In connection with this transaction,                the                Company recorded a discount of $320,734, for the fair value of the                warrants; as of September 30, 2007, the debt is stated net of the                unamortized discount of $101,737. During the period ending September                30,                2007, the holder converted $82,000 to 115,097,620 shares of common                stock. |    767,763 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                      |
| Convertible                debentures payable to a Cornell, a shareholder, principal and interest                at                12%, payable December 21, 2008. Principal and accrued interest ($25                at                December 31, 2006) convertible to common stock at a conversion price                equal                to the lower of (i) $.0018 price per share of common stock or (ii)                80% of                the lowest closing bid price of our common stock, as quoted by Bloomberg,                L.P., for the five trading days immediately preceding the conversion                date.                At the due date the Company has the option to repay the debt or issue                common stock. In connection with this transaction, the Company recorded                a                discount of $1,528, for the relative value of the warrants; as of                September 30, 2007, the debt is stated net of the unamortized discount                of                $934.                                                                                                                                                                                                          | 6,708                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                      |
| On                April 13, 2007, the Company issued a convertible debenture to Cornell,                a                shareholder, in the principal amount of $72,000(principal and interest                at                12% payable April 13, 2009). Principal and accrued interest convertible                to                common stock at a conversion price equal to the lower of (i) $.0018                price                per share of common stock or (ii) 80% of the lowest closing bid price                of                our common stock, as quoted by Bloomberg, L.P., for the five trading                days                immediately preceding the conversion date. In connection with this                transaction the Company recorded a discount of $14,400, for the fair                valued of the warrant; as of September 30, 2007, the debt is stated                net of                the unamortized discount of $11,061.                                                                                                                                                                                                                                                                            |   60,939        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                      |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 835,410                   |

**NOTE      7. STOCK OPTIONS AND WARRANTS ISSUED FOR SERVICES AND IN LIEU OF      INTEREST**

**NOTE      8. RELATED PARTY TRANSACTONS**

**NOTE      9. STOCKHOLDER EQUITY AND RELATED PARTY TRANSACTONS**

----

**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.**

**Recent      Developments **

**Management      Transition **

The      new      management team will be undertaking an analysis and evaluation of the Company’s      current business model and industry, our assets and liabilities, our financial      condition, and overall prospects in order to determine whether to continue      the      Company’s current operations or to develop and implement a new business strategy      that could result in a substantial change in the Company’s business model, a      liquidation of the Company’s existing assets, and other changes. During this      evaluation phase, we have substantially reduced our production and sales      programs and certain other operations and reduced our personnel to no full-time      employees and no part-time employees in order to minimize operating costs      pending the outcome of the analysis noted above. In addition, during this      evaluation phase, we anticipate that our operating revenues will be negligible,      that the Company will generate a significant loss from operations, and that      the      Company will need to obtain debt and/or equity financing for working capital      purposes. No assurance can be given that such financing will be available      purposes. No assurance can be given that such financing will be available on      terms acceptable to the Company. 

----

**Debenture      Financing.**

**Recent      Historical Operations.**

| · | Multi-panel                time synchronized presentation;   |
|--------|--------------------------------------------------------------|
| · | Quick                content and program development;        |
| · | Rich                video and content experience;            |
| · | Still                images;                                 |
| · | Graphics;                                                    |
| · | Flash;                                                       |
| · | Links                to Website;                             |
| · | Live                Cams;                                    |
| · | Test                and quizzes to tract performance;        |
| · | Users                progress can be tracked;                |
| · | Diagrams;                                                    |
| · | Simple                server requirements;                   |
| · | Reduces                training and learning curve time; and |
| · | Easy                to implement and use.                    |

**Business      Model.**

**STRATEGY:**

**SOFTWARE      LICENSING:**

**PUBLISHING:**

| · | Anger                Management Facilitator Training and Certification;       |
|--------|-------------------------------------------------------------------------------|
| · | Domestic                Violence Facilitator Training and Certification;      |
| · | School                Maintenance, Cleaning Training and Certification;       |
| · | Emergency                Disaster Preparedness - Terrorist Awareness; and     |
| · | Mandated                School Internet Acceptable Use                Policy. |

----

**Intellectual      Property Differentiation.**

|   | · | Multiple                screen operating environment, framework and tools for transacting                e-commerce; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | System                and method for pre-loading still imagery data in an interactive multimedia                presentation, which provides an image pre-loading system that maximizes                available network bandwidth; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | System                and method for dynamically managing web content using a browser                independent framework, which provides an interactive system for enabling                dynamic updating of web content to “live”                websites; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | System                and method for providing an interactive multimedia presentation                environment with low bandwidth capable sessions, which provides an                integrated presentation environment consisting of multi-screen clinic                logically defined within a browser application;                and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Presenta                ProTM production and delivery system, which provides a multi-screen                environment for presenting multimedia presentations with video, images,                flash images and text all integrating with the                video. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Technology.**

Set      forth      below is a discussion of the financial condition and results of operations      of      etotalSource, Inc. (the "Company," "we," "us," or "our") for the nine months      ended September 30, 2007 and 2006. The following discussion should be read      in      conjunction with the information set forth in the consolidated financial      statements and the related notes thereto appearing elsewhere in this quarterly      report. 

**Results      of Operations - Three months ended September 30, 2007 compared to the three      months ended September 30, 2006. **

***Revenues.***

***Expenses.***

----

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

***Interest      Expense***

***Other      Income/(Expense)***

***Net      Income/(Loss)***

**Results      of Operations - Nine months ended September 30, 2007 compared to the nine months      ended September 30, 2006. **

***Revenues.***

***Expenses.***

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

***Interest      Expense***

***Other      Income/(Expense)***

***Net      Income/(Loss)***

----

**Liquidity      and Capital Resources**

** **

**The      April 2007 Debenture.**

**August      2007 Promissory Note**

**Contractual      Obligations and Commercial Commitments**

| **Contractual                Obligations**                             |   | **Less                than 1 year** |      | **1-3                years** |   | **4-5                years** |   | **After                5 years** |   | **Total** |    |
|------------------------------------------------------------------------|--------|-------------------------------------|-----------|------------------------------|--------|------------------------------|--------|----------------------------------|--------|-----------|---------|
| Judgments                payable                                       |   | $                                   | 204,788   |                         | $      | .00                          |   | $                                | .00    |      | $       | .00 |   | $ | 204,788 |   |
| Short                Term note payables                                |   |                                | 1,064,754 |                         |   | .00                          |   |                             | .00    |      |    | .00 |   |   | 1,064,754 |   |
| Convertible                debentures (unamortized discount- $113,732) |   |                                | .00       |                         |   | 835,410                      |   |                             | .00    |      |    | .00 |   |   | 835,410 |   |
| Other                current liabilities                               |   |                                | 2,114,997 |                         |   | .00                          |   |                             | .00    |      |    | .00 |   |   | 2,114,997 |   |
| Total                contractual cash obligations                      |   | $                                   | 3,384,539 |                         | $      | 835,410                      |   | $                                | .00    |      |  $ |  .00 |   | $ | 4,219,949 |   |

**Dividends**

**Item      3. Controls and Procedures.**

----

**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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**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)                |
|                                                                                                |   |                                                                                                                                                               |   |                                                                                                                                                                    |
| 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) |

----

| **DESIGNATION                OF EXHIBIT AS SET FORTH IN ITEM 601 OF REGULATION                S-B** |   | **DESCRIPTION**                                                                                                                                                                                                                                               |   | **LOCATION**                                                                                                                                             |
|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                |   |                                                                                                                                                                                                                                                          |   |                                                                                                                                                     |
| 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.                                                                                                                          |   | Incorporated                by reference to the Company’s on Form 10-QSB dated December 21,                2006.                                   |
|                                                                                                |   |                                                                                                                                                                                                                                                          |   |                                                                                                                                                     |
| 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.                                            |   | Incorporated                by reference to the Company’s on Form 10-QSB dated December 21,                2006.                                   |
|                                                                                                |   |                                                                                                                                                                                                                                                          |   |                                                                                                                                                     |
| 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) |
|                                                                                                |   |                                                                                                                                                                                                                                                          |   |                                                                                                                                                     |
| 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                                                               |   | Filed                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 |   | Filed                herewith                                                                                                                            |

----

**SIGNATURES**

|                             |                                                                                                       |                 |
|----------------------------------|------------------------------------------------------------------------------------------------------------|----------------------|
|                             | **eTotalSource,                Inc.**                                                                      |
|                        |                                                                                                  |            |
| November                19, 2007 | By:                                                                                              | /s/ Frank J. Orlando |
|                             | Frank              J. Orlando                                                                              |
|                             | Chief                Restructuring Officer, Chief Financial Officer, Secretary and                Director |

----