UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-KSB

(Mark One)

[X]  ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                  For the fiscal year ended September 30, 2006


[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

               For the transition period from _______ to ________

                       Commission File Number 33-131110 NY

                               4net Software, Inc.
                 ----------------------------------------------
                 (Name of small business issuer in its charter)

          Delaware                                     11-2831380
------------------------------                      ----------------
State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                      Identification No.)

100 Mill Plain Road, Danbury, Connecticut                          06811
---------------------------------------------------             ----------
     (Address of principal executive offices)                   (Zip code)

                                 (203) 791-3872
                      -------------------------------------
                           (Issuer's telephone number)

Securities registered under Section 12(b) of the
Exchange Act:       None

Securities registered under Section 12(g) of the
Exchange Act:       None



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2)has been
subject to such filing requirements for the past 90 days.

             Yes [X]                            No [ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

             Yes [X]                            No [ ]

The issuer's revenues for fiscal year ended September 30, 2006 were: $0.


<PAGE>

As of December 12, 2006, the aggregate market value of the voting stock held by
non-affiliates of the registrant, based upon the average bid and ask prices of
such stock on that date was $544,129. Shares of common stock held by each
officer and director and by each person who owns 10% or more of the outstanding
common stock have been excluded in that such persons may be deemed to be
affiliates. This determination of affiliate status is not necessarily conclusive
and does not constitute an admission of affiliate status.


As of December 12, 2006, there were issued and outstanding 8,961,017 shares of
the registrant's common stock, par value $.00001 per share.


Transitional Small Business Disclosure Format (check one) Yes [ ]    No [X]
























                                       2

<PAGE>

                                     PART I

        This report on Form 10-KSB contains, in addition to historical
information, forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 ("Securities Act") and Section 21E of the Securities
Exchange Act of 1934 ("Exchange Act"). You can identify these forward-looking
statements when you see words such as "expect," "anticipate," "estimate," "may,"
"believe," and other similar expressions. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Actual results could differ
materially from those projected in the forward-looking statements. Factors that
could cause such a difference include, but are not limited to, those discussed
in the section entitled "Factors Affecting Operating Results and Market Price of
Stock," below. Readers are cautioned not to place undo reliance on these
forward-looking statements, which speak only as of the date hereof. We undertake
no obligation to publicly update any forward-looking statements for any reason
even if new information becomes available or other events occur in the future.

ITEM 1.    DESCRIPTION OF BUSINESS.

Background

        4net Software, Inc. (the "Company" or "4net Software") is a Delaware
corporation that as incorporated in 1986 under the name Medtech Diagnostics,
Inc. The Company ceased all operations in 1991. Currently, the Company is
seeking to acquire or merge with an undervalued businesses with a history of
operating revenues in markets that provide room for growth ("Acquisition
Strategy"). 4net Software is engaged in identifying, investigating and, if
investigation warrants, acquiring companies that will enhance 4net Software's
revenues and increase shareholder value.

        4net Software's Acquisition Strategy seeks to generate revenue by
acquiring undervalued businesses with a history of operating revenues. The
Company utilizes several criteria to evaluate prospective acquisitions including
whether the business to be acquired (1) is an established business with viable
services or products, (2) has an experienced and qualified management team, (3)
has room for growth and/or expansion into other markets, (4) is accretive to
earnings, (5) offers the opportunity to achieve and/or enhance profitability,
and (6) increases shareholder value.

       In some cases, management of the Company will have the authority to
effect acquisitions without submitting the proposal to the stockholders for
their consideration. In some instances, however, the proposed participation in a
business opportunity may be submitted to the stockholders for their
consideration, either voluntarily by the Board of Directors to seek the
stockholders' advice and consent, or because of a requirement of applicable law
to do so.


Competition of 4net Software's Acquisition Strategy

        In connection with its Acquisition Strategy, the Company expects to
encounter intense competition from other entities having business objectives
similar to those of the Company. Many of these entities, including venture
capital firms, blind pool companies, large industrial and financial
institutions, small business investment companies and wealthy individuals, are
well-established and have extensive experience in connection with identifying
and effecting acquisitions directly or through affiliates. Many of these
competitors possess greater financial, technical, human and other resources than
the Company and there can be no assurance that the Company will have the ability
to compete successfully with such entities. The Company's financial resources
will be limited in comparison to those of many of its competitors. The Company's
limited financial resources may compel the Company to select certain less
attractive acquisition prospects.

                                        3
<PAGE>

        Management believes that the future of the Company is dependent upon its
ability to consummate a merger, acquisition or other business combination with a
viable operating entity. There can be no assurance that the Company will be able
to do so. Additionally, management believes that the Company may need to raise
additional funds through equity or debt financing to complete a merger,
acquisition or other business combination and there can be no assurance that the
Company will be able to do so.


Employees

         As of December 12, 2006, the Company had 1 employee, Steven N. Bronson,
who serves as the Company's President. Effective October 1, 2002, Mr. Bronson
agreed to waive payment of his salary. The Company does not have any employees
that are represented by a union or other collective bargaining group.


Factors Affecting Operating Results and Market Price of Stock

        You should carefully consider the risks described below before making an
investment decision concerning the common stock of the Company. The risks and
uncertainties described below are not the only ones we face. If any of the
following risks actually occur, our business, financial condition or results of
operations could be materially and adversely affected. In that case, the trading
price of our common stock could decline, and you may lose all or part of your
investment.


The Company Has Limited Resources

        The Company has limited resources. For the fiscal years ended September
30, 2006 and 2005 the Company has had no revenues from operations. For the
fiscal years ended September 30, 2006 and 2005, the Company has had net losses
of $27,100 and $29,981, respectively. Other than nominal interest income the
Company will only derive revenues through the acquisition of a target company.
There can be no assurance that any target company, at the time of the Company's
consummation of an acquisition of the target, or at any time thereafter, will
derive any material revenues from its operations or operate on a profitable
basis. The current revenues of the Company will not be sufficient to fund
further acquisitions. Based on the Company's limited resources, the Company may
not be able to effectuate its business plan and consummate any future
acquisitions. There can be no assurance that the Company will have sufficient
financial resources to permit the Company to achieve its business objectives.


The Company May Not be Able to Continue as Going Concern

        Based on the Company's limited operations, revenues and assets there can
be no assurance that the Company will be able to continue as a going concern or
complete a merger, acquisition or other business combination.


The Company Will Need Additional Financing in Order to Execute Its Business Plan

        The Company has had no earnings to date and will be entirely dependent
upon its limited available financial resources to implement its Acquisition
Strategy. The Company cannot ascertain with any degree of certainty the capital
requirements for the successful execution of its Acquisition Strategy. In the
event that the Company's limited financial resources prove to be insufficient to
implement its Acquisition Strategy, the Company will be required to seek
additional financing. In addition, in the event of the consummation of an
acquisition, the Company may require additional financing to fund the operations
or growth of the target.

                                        4
<PAGE>

Additional Financing May Not Be Available to the Company

        There can be no assurance that additional financing will be available on
acceptable terms, or at all. To the extent that additional financing proves to
be unavailable when needed, the Company would, in all likelihood, be compelled
to abandon plans of further acquisitions, and would have minimal capital
remaining to pursue other targets. The inability of the Company to secure
additional financing, if needed, could also have a material adverse effect on
the continued development or growth of 4net Software. The Company has no
arrangements with any bank or financial institution to secure additional
financing and there can be no assurance that any such arrangement, if required
or otherwise sought, would be available on terms deemed to be commercially
acceptable and in the best interests of the Company.


The Company May Not Be Able to Borrow Funds

        While there currently are no limitations on the Company's ability to
borrow funds, the limited resources of the Company and limited operating history
will make it difficult to borrow funds. The amount and nature of any borrowings
by the Company will depend on numerous considerations, including the Company's
capital requirements, the Company's perceived ability to meet debt service on
any such borrowings and the then prevailing conditions in the financial markets,
as well as general economic conditions. There can be no assurance that debt
financing, if required or sought, would be available on terms deemed to be
commercially acceptable by and in the best interests of the Company. The
inability of the Company to borrow funds required to effect or facilitate an
Acquisition, or to provide funds for 4net Software, may have a material adverse
effect on the Company's financial condition and future prospects. Additionally,
to the extent that debt financing ultimately proves to be available, any
borrowings may subject the Company to various risks traditionally associated
with indebtedness, including the risks of interest rate fluctuations and
insufficiency of cash flow to pay principal and interest. Furthermore, a target
may have already incurred borrowings and, therefore, the Company will be
subjected to all the risks inherent thereto.


Competition for Acquisitions

        The Company expects to encounter intense competition from other entities
having business objectives similar to those of the Company. Many of these
entities, including venture capital firms, partnerships and corporations, blind
pool companies, large industrial and financial institutions, small business
investment companies and wealthy individuals, are well-established and have
extensive experience in connection with identifying and effecting acquisitions
directly or through affiliates. Many of these competitors possess greater
financial, technical, human and other resources than the Company and there can
be no assurance that the Company will have the ability to compete successfully.
The Company's financial resources will be limited in comparison to those of many
of its competitors. This inherent competitive limitation may compel the Company
to select certain less attractive acquisition prospects. There can be no
assurance that such prospects will permit the Company to achieve its stated
business objectives.


The Company May Be Subject to Uncertainty
in the Competitive Environment of a Target

        In the event that the Company succeeds in completing an Acquisition, the
Company will, in all likelihood, become subject to intense competition from
competitors of the target. In particular, certain industries which experience
rapid growth frequently attract an increasingly large number of competitors,
including competitors with greater financial, marketing, technical, human and
other resources than the initial competitors in the industry. The degree of
competition characterizing the industry of any prospective target cannot
presently be ascertained. There can be no assurance that, subsequent to a
consummation of an acquisition, the Company will have the resources to compete
effectively in the industry of the target, especially to the extent that the
target is in a high growth industry.

                                        5
<PAGE>

The Company May Pursue an Acquisition With a Target Operating Outside the United
States: Special Additional Risks Relating to Doing Business in a Foreign Country

        The Company may effectuate an acquisition with a target whose business
operations or even headquarters, place of formation or primary place of business
are located outside the United States. In such event, the Company may face the
significant additional risks associated with doing business in that country. In
addition to the language barriers, different presentations of financial
information, different business practices, and other cultural differences and
barriers that may make it difficult to evaluate such a target, ongoing business
risks may result from the internal political situation, uncertain legal systems
and applications of law, prejudice against foreigners, corrupt practices,
uncertain economic policies and potential political and economic instability
that may be exacerbated in various foreign countries.


Steven N. Bronson is Critical to the Future Success of the Company

        Steven N. Bronson is the Chairman, C.E.O. and President of the Company.
The ability of the Company to successfully carry out its business plan and to
consummate additional acquisitions will be dependent upon the efforts of Mr.
Bronson and the Company's directors. Notwithstanding the significance of Mr.
Bronson, the Company has not obtained any "key man" life insurance on his life.
The loss of the services of Mr. Bronson would have a material adverse effect on
the Company's ability to successfully achieve its business objectives. If
additional personnel are required, there can be no assurance that the Company
will be able to retain such necessary additional personnel.


Mr. Bronson Has Effective Control of the Company's Affairs

        As of December 12, 2006, Mr. Bronson beneficially owned 5,560,210 shares
of the Company's common stock. Mr. Bronson's beneficial ownership represents
approximately 62% of the issued and outstanding shares of common stock of the
Company. Accordingly, Mr. Bronson has effective control of the Company. In the
election of directors, stockholders are not entitled to cumulate their votes for
nominees. Accordingly, as a practical matter, Mr. Bronson may be able to elect
all of the Company's directors and otherwise direct the affairs of the Company.


There Exist Conflicts of Interest Relating to
Mr. Bronson's Time Commitment to the Company

        Mr. Bronson is not required to commit his full time to the affairs of
the Company. Mr. Bronson will have conflicts of interest in allocating
management time among various business activities. As a result, the consummation
of an acquisition may require a greater period of time than if Mr. Bronson
devoted his full time to the Company's affairs. However, Mr. Bronson will devote
such time as he deems reasonably necessary to carry out the business and affairs
of the Company, including the evaluation of potential targets and the
negotiation and consummation of acquisitions and, as a result, the amount of
time devoted to the business and affairs of the Company may vary significantly
depending upon, among other things, whether the Company has identified a target
or is engaged in active negotiation and consummation of an acquisition.


                                        6
<PAGE>

There Exist Risks to Stockholders Relating to Dilution:
Authorization of Additional Securities and Reduction of
Percentage Share Ownership Following Merger

        The Company's Certificate of Incorporation authorizes the issuance of
100,000,000 shares of common stock. As of December 12, 2006 the Company had
8,961,017 shares of common stock issued and outstanding and 91,038,983
authorized but unissued shares of common stock available for issuance.
Additionally, The Company has authorized for issuance 5,000,000 shares of
preferred stock, none of which are issued and outstanding. Although the Company
has no commitments as of this date to issue its securities, the Company will, in
all likelihood, issue a substantial number of additional shares in connection
with or following an Acquisition. To the extent that additional shares of common
stock are issued, the Company's stockholders would experience dilution of their
ownership interests in the Company. Additionally, if the Company issues a
substantial number of shares of common stock in connection with or following an
Acquisition, a change in control of the Company may occur which may affect,
among other things, the Company's ability to utilize net operating loss carry
forwards, if any. Furthermore, the issuance of a substantial number of shares of
common stock may adversely affect prevailing market prices, if any, for the
common stock and could impair the Company's ability to raise additional capital
through the sale of its equity securities. The Company may use consultants and
other third parties providing goods and services. These consultants or third
parties may be paid in cash, stock, options or other securities of the Company.
The Company may in the future need to raise additional funds by selling
securities of the Company which may involve substantial additional dilution to
the investors.


The Uncertain Structure of an Acquisition May Result
in Risks Relating to the Market for the Company's Common Stock

        The Company may form one or more subsidiary entities to effect an
acquisition and may, under certain circumstances, distribute the securities of
subsidiaries to the stockholders of the Company. There cannot be any assurance
that a market would develop for the securities of any subsidiary distributed to
stockholders or, if it did, any assurance as to the prices at which such
securities might trade.


The Company Expects to Pay No Cash Dividends

        The Company does not expect to pay dividends to the holders of common
stock. The payment of dividends, if any, will be contingent upon the Company's
revenues and earnings, if any, capital requirements, and general financial
condition. The payment of any dividends will be within the discretion of the
Company's then Board of Directors. The Company presently intends to retain all
earnings, if any, to implement its business plan, accordingly, the Board of
Directors does not anticipate declaring any dividends to the holders of common
stock in the foreseeable future.


Indemnification of Officers and Directors

        The Company's Certificate of Incorporation provides for the
indemnification of its officers and directors to the fullest extent permitted by
the laws of the State of Delaware. It is possible that the indemnification
obligations imposed under these provisions could result in a charge against the
Company's earnings and thereby affect the availability of funds for other uses
by the Company.


                                        7
<PAGE>

Taxation Considerations May Impact the Structure
of an Acquisition and Post-merger Liabilities

        Federal and state tax consequences will, in all likelihood, be major
considerations for the Company in consummating an acquisition. The structure of
an acquisition or the distribution of securities to stockholders may result in
taxation of the Company, the target or stockholders. Typically, these
transactions may be structured to result in tax-free treatment to both
companies, pursuant to various federal and state tax provisions. The Company
intends to structure any acquisition so as to minimize the federal and state tax
consequences to both the Company and the target. Management cannot assure that
an acquisition will meet the statutory requirements for a tax-free
reorganization, or that the parties will obtain the intended tax-free treatment
upon a transfer of stock or assets. A non-qualifying reorganization could result
in the imposition of both federal and state taxes, which may have an adverse
effect on both parties to the transaction.


The Company May Be Deemed an Investment Company
and Subjected to Related Restrictions

        The regulatory scope of the Investment Company Act of 1940, as amended
(the "Investment Company Act"), which was enacted principally for the purpose of
regulating vehicles for pooled investments in securities, extends generally to
companies engaged primarily in the business of investing, reinvesting, owning,
holding or trading in securities. The Investment Company Act may, however, also
be deemed to be applicable to a company which does not intend to be
characterized as an investment company but which, nevertheless, engages in
activities which may be deemed to be within the definitional scope of certain
provisions of the Investment Company Act. The Company believes that its
anticipated principal activities, which will involve acquiring control of an
operating company, will not subject the Company to regulation under the
Investment Company Act. Nevertheless, there can be no assurance that the Company
will not be deemed to be an investment company. If the Company is deemed to be
an investment company, the Company may become subject to certain restrictions
relating to the Company's activities, including restrictions on the nature of
its investments and the issuance of securities. In addition, the Investment
Company Act imposes certain requirements on companies deemed to be within its
regulatory scope, including registration as an investment company, adoption of a
specific form of corporate structure and compliance with certain burdensome
reporting, record keeping, voting, proxy, disclosure and other rules and
regulations. In the event of the characterization of the Company as an
investment company, the inability of the Company to satisfy such regulatory
requirements, whether on a timely basis or at all, would, under certain
circumstances, have a material adverse effect on the Company.


You Should Not Rely on Forward-Looking Statements
Because They Are Inherently Uncertain

        This document contains certain forward looking statements that involve
risks and uncertainties. We use words such as "anticipate," "believe," "expect,"
"future," "intend," "plan," and similar expressions to identify forward-looking
statements. These statements are only predictions. Although we believe that the
expectations reflected in these forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements. You should not place undue reliance on these forward-looking
statements, which apply only as of the date of this document. Our actual results
could differ materially from those anticipated in these forward-looking
statements for many reasons, including the risks faced by us as described on the
preceding pages and elsewhere in this document.

        We believe it is important to communicate our expectations to our
investors. However, there may be events in the future that we are not able to
predict accurately or over which we have no control. The risk factors listed
above, as well as any cautionary language in this document, provide examples of
risks, uncertainties and events that may cause our actual results to differ
materially from the expectations we describe in our forward-looking statements.
Before you invest in our common stock, you should be aware that the occurrence
of the events described in these risk factors and elsewhere in this document
could have a material adverse effect on our business, operating results,
financial condition and stock price.


                                        8
<PAGE>

ITEM 2.    DESCRIPTION OF PROPERTY.


        Since January 5, 2004, 4net Software has maintained its offices at 100
Mill Plain Road, Danbury, Connecticut 06811. The Company is using a portion Of
the premises occupied by Catalyst Financial LLC, a full service brokerage,
investment banking and consulting firm, located at 100 Mill Plain Road, Danbury,
Connecticut 06811. Steven N. Bronson, the President of the Company, is the
principal and owner of Catalyst Financial LLC. Catalyst Financial LLC has agreed
to waive the payment of any rent by the Company for use of the offices.

        Prior to January 5, 2004, the Company subleased a portion of the
premises located at 10 South Street, Suite 202, Ridgefield, Connecticut 06877.
The Company's monthly rent obligation for its prior office was $1,000 per month
plus a flat fee of $50 per month for utilities.


ITEM 3.    LEGAL PROCEEDINGS.

        The Company is not currently a party to any legal proceedings.


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

        During the fiscal year ended September 30, 2005, no matters were
submitted to a vote of security holders.


                                     PART II

ITEM 5.    MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

        The Company's common stock, par value $.00001 per share, is traded in
the NASDAQ's Over-the-Counter Bulletin Board under the symbol "FNSI."

        The following table sets forth the range of high and low prices for the
Company's common stock as quoted by YahooFinance.com for the periods indicated.
These prices represent reported transactions that do not include retail markups,
markdowns or commissions, and may not necessarily represent actual transactions.

                                                              Bid Price
                                                        ----------------------
Fiscal Years                                              Low           High
                                                        --------      --------

      2006:   1st Quarter, through December 31, 2005      $.21           $.30
              2nd Quarter, through March 31, 2006         $.21           $.35
              3rd Quarter, through June 30, 2006          $.25           $.30
              4th Quarter, through September 30, 2006     $.20           $.25


      2005:   1st Quarter, through December 31, 2004      $.25           $.30
              2nd Quarter, through March 31, 2005         $.20           $.30
              3rd Quarter, through June 30, 2005          $.15           $.20
              4th Quarter, through September 30, 2005     $.15           $.22



        As of December 12, 2006, the reported closing bid and ask prices on the
Company's common stock were $.15 and $.17, respectively.


Holders

        As of December 12, 2006, the Company's common stock was held by
approximately 120 record holders, who the Company believes hold common stock for
approximately 2,200 beneficial holders.


                                        9
<PAGE>

Dividends

        The Company has never paid any cash dividends on its common stock and
does not anticipate paying any cash dividends in the foreseeable future.


Recent Sales of Unregistered Securities

        The following information relates to sales of unregistered securities by
the Company during the fiscal year ended September 30, 2006. All of these sales
of securities were made in reliance upon an exemption from the registration
provisions of the Securities Act of 1933 set forth in Sections 4(2), 4(6) and/or
3(b) thereof and the rules and regulations under the Securities Act of 1933,
including Regulation D, as transactions by an issuer not involving any public
offering and/or sales to a limited number of purchasers who were acquiring such
securities for their own account for investment purposes and not with a view to
the resale or distribution thereof.

        On September 13, 2005, 4net Software, Inc. (the "Company") entered into
a Stock Purchase Agreement (the "Agreement") with RAM Capital Management Trust I
("RAM Capital"). Pursuant to the Agreement, the Company agreed to sell RAM
Capital 200,000 restricted shares of the Company's common stock, $.00001 par
value (the "Shares"), at a purchase price of $.15 per share. On October 12,
2005, the Company received RAM Capital's check in the amount of $30,000 as
payment of the purchase price for the Shares pursuant to the Agreement.

        The Shares are restricted securities and were issued by the Company in a
private transaction pursuant to Section 4(2) of the Securities Act of 1933.

        This transaction was previously disclosed by the Company in a current
report on Form 8-K, filed on October 12, 2005, and such report is incorporated
herein by reference.


Section 15(g) of the Exchange Act

        The Company's shares are covered by Section 15(g) of the Securities
Exchange Act of 1934, as amended, and Rules 15g-1 through 15g-6 promulgated
thereunder, which impose additional sales practice requirements on
broker-dealers who sell our securities to persons other than established
customers and accredited investors.

        Rule 15g-2 declares unlawful any broker-dealer transactions in
pennystocks unless the broker-dealer has first provided to the customer a
standardized disclosure document.

        Rule 15g-3 provides that it is unlawful for a broker-dealer to engage in
a penny stock transaction unless the broker-dealer first discloses and
subsequently confirms to the customer the current quotation prices or similar
market information concerning the penny stock in question.

        Rule 15g-4 prohibits broker-dealers from completing penny stock
transactions for a customer unless the broker-dealer first discloses to the
customer the amount of compensation or other remuneration received as a result
of the penny stock transaction.

        Rule 15g-5 requires that a broker-dealer executing a penny stock
transaction, other than one exempt under Rule 15g-1, disclose to its customer,
at the time of or prior to the transaction, information about the sales person's
compensation.

        The Company's common stock may be subject to the foregoing rules. The
application of the penny stock rules may affect our stockholder's ability to
sell their shares because some broker-dealers may not be willing to make a
market in our common stock because of the burdens imposed upon them by the penny
stock rules.

                                       10
<PAGE>

ITEM 6.    MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

        The following discussion and analysis provides information which the
Company's management believes to be relevant to an assessment and understanding
of the Company's results of operations and financial condition. This discussion
should be read together with the Company's financial statements and the notes to
financial statements, which are included in this report.


4net Software's Acquisition Strategy

       The Company is pursuing an Acquisition Strategy, whereby 4net Software
will seek to acquire undervalued businesses with a history of operating revenues
in markets that provide room for growth. 4net Software is currently primarily
engaged in identifying, investigating and, if investigation warrants, acquiring
companies that will enhance 4net Software's revenues and increase shareholder
value. 4net Software's Acquisition Strategy is focused on pursuing a strategy of
growth by acquiring undervalued businesses with a history of operating revenues.
The Company utilizes several criteria to evaluate prospective acquisitions
including whether the business to be acquired (1) is an established business
with viable services or products, (2) has an experienced and qualified
management team, (3) has room for growth and/or expansion into other markets,
(4) is accretive to earnings, (5) offers the opportunity to achieve and/or
enhance profitability, and (6) increases shareholder value.


       In some cases, management of the Company will have the authority to
effect acquisitions without submitting the proposal to the stockholders for
their consideration. In some instances, however, the proposed participation in a
business opportunity may be submitted to the stockholders for their
consideration, either voluntarily by the Board of Directors to seek the
stockholders' advice and consent, or because of a requirement of applicable law
to do so.


Competition of 4net Software's Acquisition Strategy

        In connection with its Acquisition Strategy, the Company expects to
encounter intense competition from other entities having business objectives
similar to those of the Company. Many of these entities, including venture
capital firms, blind pool companies, large industrial and financial
institutions, small business investment companies and wealthy individuals, are
well-established and have extensive experience in connection with identifying
and effecting acquisitions directly or through affiliates. Many of these
competitors possess greater financial, technical, human and other resources than
the Company and there can be no assurance that the Company will have the ability
to compete successfully with such entities. The Company's financial resources
will be limited in comparison to those of many of its competitors. The Company's
limited financial resources may compel the Company to select certain less
attractive acquisition prospects.

                                       11
<PAGE>

Results of Operations

        During the years ended September 30, 2006 and 2005, the Company did not
generate any revenues from operations. During the years ended September 30, 2006
and 2005 the Company did earn interest income of $651 and $512, respectively.

        During Fiscal 2006, the Company incurred operating expenses of $27,751
compared to operating expenses of $30,493 for Fiscal Year 2005, a decrease of
$2,742.

        For Fiscal 2006, the Company incurred a net loss of $27,100 compared to
a loss from operations of $29,981 for Fiscal 2005, a decrease of $2,881.


Liquidity and Capital Resources

        During Fiscal 2006, the Company satisfied its working capital needs from
cash on hand at the beginning of the year. As of September 30, 2006, the Company
had working capital of $19,007. While this working capital will satisfy the
Company's immediate financial needs, it may not be sufficient to provide the
Company with sufficient capital to maintain the business of 4net Software and to
finance additional acquisitions for the Company. The Company will need
additional funds in order to finance additional acquisitions for the Company.
There can be no assurances that the Company will be able to obtain additional
funds if and when needed.


Current Operations of 4net Software

       4net Software is primarily engaged in identifying, investigating and, if
investigation warrants, acquiring companies that will enhance 4net Software's
revenues and increase shareholder value. 4net Software's Acquisition Strategy is
focused on pursuing a strategy of growth by acquiring undervalued businesses
with a history of operating revenues and net earnings. The Company utilizes
several criteria to evaluate prospective acquisitions including whether the
business to be acquired (1) is an established business with viable services or
products, (2) has an experienced and qualified management team, (3) has room for
growth and/or expansion into other markets, (4) is accretive to earnings, (5)
offers the opportunity to achieve and/or enhance profitability, and (6)
increases shareholder value.

        Management believes that the successful implementation of the Company's
Acquisition Strategy will allow 4net Software to increase revenues and earnings
and achieve profitability. However, there can be no assurances that 4net
Software will successfully complete any additional acquisitions or that 4net
Software will achieve profitability.


ITEM 7.    FINANCIAL STATEMENTS.

        The financial statements and related notes are included as part of this
report as indexed in the appendix on page F-1 through F-12.


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

        Not applicable.

                                       12
<PAGE>

Item 8A. CONTROLS AND PROCEDURES

          Disclosure controls and procedures are controls and other procedures
that are designed to ensure that information required to be disclosed by us in
the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
Securities and Exchange Commission's rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed by us in the reports that we
file under the Exchange Act is accumulated and communicated to our management,
including our principal executive and financial officer, as appropriate to allow
timely decisions regarding required disclosure.

           Evaluation of disclosure and controls and procedures.
           -----------------------------------------------------

           Based on their evaluation of the Company's disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934) as of the end of the period covered by this annual report
on Form 10-KSB the Company's chief executive officer has concluded that the
Company's disclosure controls and procedures are designed to ensure that
information required to be disclosed by the Company in the reports that it files
or submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the SEC's rules and forms and are
operating in an effective manner.

           Changes in internal controls over financial reporting.
           ------------------------------------------------------

           There were no changes in the Company's internal controls over
financial reporting or in other factors that have materially affected, or are
reasonably likely to materially affect, the Company's internal control over
financial reporting.


Item 8B. OTHER INFORMATION


         Effective September 25, 2006, the appointed Atlas Stock Transfer
Corporation as the transfer agent for the Company. The address for Atlas Stock
Transfer Corportion is 5899 S State Street, Salt Lake City, Utah 84107
[Telephone number (801)266-7151].

         On October 12, 2005, the Company filed a current report on Form 8-K,
disclosing the sale of 200,000 restricted shares of the Company's common stock,
$.00001 par value at a purchase price of $.15 per share, and such report is
incorporated herein by reference.


                                    PART III

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

        The following table sets forth the name, age and position of each of our
directors, executive officers and significant employees for the fiscal year
ended September 30, 2006. Except as noted below each director will hold office
until the next annual meeting of our stockholders or until his or her successor
has been elected and qualified. Our executive officers are appointed by, and
serve at the discretion of, the Board of Directors.

Name                         Age           Position
------------------           ---           --------------------
Steven N. Bronson            41            Chairman, Chief Executive Officer
                                           and President
Leonard Hagan                54            Director
Alan Rosenberg               37            Director

----------


                                       13
<PAGE>

        Steven N. Bronson has served as a director of the Company since June
1996. From September 1998 to August 11, 2000, Mr. Bronson was the sole officer
of the Company. From September 1998 to March 17, 2000, Mr. Bronson was also the
sole director of the Company. In September 1996, Mr. Bronson became the Chief
Executive Officer and President of the Company. Mr. Bronson is also the
President of Catalyst Financial LLC, a privately held full service securities
brokerage and investment banking firm. Mr. Bronson has held that position since
September 24, 1998. During the period of 1991 through September 23, 1998, Mr.
Bronson was President of Barber & Bronson Incorporated, a full service
securities brokerage and investment banking firm. Mr. Bronson acts as the
manager of the Catalyst Fund, L.P., a Delaware limited partnership, that is
a privately held hedge fund. In addition, Mr. Bronson is an officer and
director of Ridgefield Acquisition Corp., a publicly traded corporation.

       Leonard Hagan has served as a director of the Company since March 17,
2000. Mr. Hagan is a certified public accountant and for the past fifteen years
has been a partner at Hagan & Burns CPA's, PC in New York. Mr. Hagan received a
Bachelors of Arts degree in Economics from Ithaca College in 1974, and earned
his Masters of Business Administration degree from Cornell University in 1976.
Mr. Hagan is registered as the Financial and Operations Principal for the
following broker-dealers registered with the Securities and Exchange Commission:
Mallory Capital Group, LLC, Avalon Partners, Inc., K & Z Partners LLC, Blaylock
& Company, Inc. Fieldstone Services Corp. and Danske Securities (US), Inc.
Mr. Hagan is also a director of Ridgefield Acquisition Corp., a publicly
traded corporation.

       Alan Rosenberg has served as a director of the Company since March 17,
2000. Mr. Rosenberg served as the Chief Information Officer for the City of New
York's Department of Small Business Services. Prior to that, he was a Director
in the Office of the CIO for the Department of Information Technology and
Telecommunications for the City of New York. He also served as the Deputy
Director of Management Information Systems (MIS) for the City of New York,
Office of the Mayor. Mr. Rosenberg is a graduate from Polytechnic University
with a MS in the Management of Technology and holds a BA from The Ohio State
University .

       No director, executive officer, promoter or control person of the Company
has, within the last five years: (i) had a bankruptcy petition filed by or
against any business of which such person was a general partner or executive
officer either at the time of the bankruptcy or within two years prior to that
time; (ii) been convicted in a criminal proceeding or is currently subject to a
pending criminal proceeding (excluding traffic violations or similar
misdemeanors); (iii) been subject to any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining, barring, suspending or
otherwise limiting his involvement in any type of business, securities or
banking activities; (iv) been found by a court of competent jurisdiction (in a
civil action), the Securities and Exchange Commission (the "Commission") or the
Commodity Futures Trading Commission to have violated a federal or state
securities or commodities law, and the judgment has not been reversed, suspended
or vacated. There are no family relationships among any directors and executive
officers of the Company.


Committees of the Board of Directors

        During Fiscal 2006, the Board of Directors took action once and held one
(1) meeting. The Board of Directors has a standing Audit Committee. During
Fiscal 2006, all of the directors then in office attended 100% of the total
number of meetings of the Board of Directors and the Committees of the Board of
Directors on which they served.


                                       14
<PAGE>

Audit Committee

        The functions of the Audit Committee are to recommend to the Board of
Directors the appointment of independent auditors for the Company and to analyze
the reports and recommendations of such auditors. The committee also monitors
the adequacy and effectiveness of the Company's financial controls and reporting
procedures. During Fiscal 2006, the Audit Committee consisted of Messrs. Bronson
and Hagan. The Audit Committee does not meet on a regular basis, but only as
circumstances require. The Company has not designated any member of its Audit
Committee as a Financial Expert.


Advisory Board

        The Company's Board of Directors has approved the formation of an
Advisory Board to assist the Company in developing and marketing its products
and services as well as to assist the Company in identifying and qualifying
potential acquisition targets. Management of the Company has been authorized and
has attempted to recruit qualified individuals to provide guidance and vision to
the Company as part of its Advisory Board.


Code of Ethics

         The Board of Directors of the Company adopted a Code of Ethics for the
Company. A copy of the Code of Ethics was attached as Exhibit 14 to the Form
10-KSB for Year ended September 30, 2004 and is incorporated herein by
reference.


Section 16(a) Beneficial Ownership Compliance

        Section 16(a) of the Exchange Act requires the Company's directors and
executive officers, and persons who own more than 10% of a registered class of
the Company's equity securities, to file with the SEC initial reports of
ownership and reports of changes in ownership of common stock and other equity
securities of the Company. Officers, directors and greater than 10% stockholders
are required by SEC regulations to furnish the Company with copies of all
Section 16(a) forms they file.

        To the Company's knowledge, based solely upon a review of the copies of
such reports furnished to the Company and written representations that no other
reports were required, during the fiscal year ended September 30, 2006, all
Section 16(a) filing requirements applicable to its officers, directors and
greater than 10% beneficial owners were complied with.


ITEM 10.    EXECUTIVE COMPENSATION.

Summary Compensation Table

        The following summary compensation table sets forth information
concerning the annual and long-term compensation earned by our chief executive
officer and each of the other most highly compensated executive officers
(collectively, the "Named Executive Officers").

<TABLE>
<CAPTION>
                                                          Securities
                                       Fiscal                                Underlying      All Other
Name and Principal Position             Year         Salary(1)    Bonus      Options (2)     Comp.
---------------------------------      ------        ---------    -------    -----------     ----------
<S>                                     <C>           <C>            <C>           <C>           <C>
Steven N. Bronson                       2006          $0             0             0             0
           CEO and President(3)         2005          $0             0             0             0
                                        2004          $0             0             0             0
</TABLE>

-------------------

(1) This table contains the actual salary that was paid to the executive for the
relevant fiscal year.


                                       15
<PAGE>

(2) We have no long-term incentive compensation plan for our executive officers
and employees other than the 2000 Stock Incentive Plan. We did not award stock
appreciation rights or long term incentive plan pay-outs.

(3) On July 1, 2001, the Company entered into a new employment agreement with
Steven N. Bronson, replacing Mr. Bronson's Employment Agreement, dated as of
August 1, 2000. Pursuant to the July 1, 2001 Employment Agreement, Mr. Bronson
was entitled to receive a salary of $60,000 per annum, payable in equal monthly
installments of $5,000. Additionally, the July 1, 2001 Employment Agreement
provided that Mr. Bronson is eligible to receive bonus compensation and stock
option grants under the Company's 2000 Stock Incentive Plan, at the discretion
of the Board of Directors. In July 2002, Mr. Bronson's July 1, 2001 Employment
Agreement was renewed and extended for a period of one (1) year. During the
fiscal year ended September 30, 2002, Mr. Bronson was not paid any bonus
compensation or granted any stock options by the Company. A copy of the
Employment Agreement, dated as of July 1, 2001 by and between the Company and
Steven N. Bronson is attached as an exhibit to the Company's Form 10- QSB for
the quarter ended June 30, 2001 and is incorporated herein by reference. In
September 2002, the Company entered into an agreement with Steven N. Bronson,
the president of the Company, that effective October 1, 2002, Mr. Bronson will
waive and no longer receive a salary from the Company.


Options Granted to Employees in Fiscal 2006

        No stock options were granted to employees during fiscal year ended
September 30, 2006.


Aggregate Option Exercises in Fiscal 2006 and Fiscal Year End Option Values

        The following table contains certain information regarding stock options
exercised during and options to purchase common stock held as of September 30,
2006, by each of the Named Executive Officers. The stock options listed below
were granted without tandem stock appreciation rights. We have no freestanding
stock appreciation rights outstanding.

<TABLE>
<CAPTION>
                       Number                       Number of Securities           Value of Unexercised
                       Of Shares                    Underlying Unexercised         In-the-Money Options
Name/                  Acquired        Value        Options at Fiscal Year End     at Fiscal Year End
Position               On Exercise     Realized     Exercised/Unexercised          Exercised/Unexercised
------------------     -----------     --------     --------------------------     -------------------------
<S>                         <C>           <C>                     <C>                       <C>
Steven N. Bronson
    Chairman, CEO
     and President          0             0                       0                         $0
Alan Rosenberg
    Director                0             0                       0                         $0
Leonard Hagan
    Director                0             0                       0                         $0
</TABLE>

-------------------


Compensation of Directors

     In the fiscal year ended September 30, 2006, the Company paid no
compensation to the directors of the Company for their services as directors of
4net Software.


Employment Contracts

     At present, the Company has no employment agreement with its President
Steven N. Bronson.

                                       16
<PAGE>

ITEM 11.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
           AND RELATED STOCKHOLDER MATTERS

        The following table sets forth as of November 17, 2006, certain
information regarding the beneficial ownership of the common stock outstanding
by (i) each person who is known to the Company to own 5% or more of the common
stock, (ii) each director of the Company, (iii) certain executive officers of
the Company and (iv) all executive officers and directors of the Company as a
group. Unless otherwise indicated, each of the stockholders shown in the table
below has sole voting and investment power with respect to the shares
beneficially owned. Unless otherwise indicated, the address of each person named
in the table below is c/o 4net Software, Inc., 100 Mill Plain Road, Danbury,
Connecticut 06811.

                                                 Number of          Percent
Name and Address        Company Position        Shares owned       of class
----------------        ----------------        ------------       --------

Steven N. Bronson       Chairman, CEO           5,560,210              62%
                        and President
Alan Rosenberg          Director                   10,000(2)            *
Leonard Hagan           Director                   10,000(3)            *

All directors and executive officers            5,580,210              62%
as a group (3 persons)

-----------------------------
* Owns less than 1%

(1) As used in this table, a beneficial owner of a security includes any person
who, directly or indirectly, through contract, arrangement, understanding,
relationship or otherwise has or shares (a) the power to vote, or direct the
voting of, such security or (b) investment power which includes the power to
dispose, or to direct the disposition of, such security. In addition, a person
is deemed to be the beneficial owner of a security if that person has the right
to acquire beneficial ownership of such security within 60 days.

(2) Includes options to purchase 10,000 shares of the Company's common stock
exercisable at $2.26 per share held by Mr. Rosenberg. These options are set to
expire on May 10, 2010.

(3) Includes options to purchase 10,000 shares of the Company's common stock
exercisable at $2.26 per share held by Mr. Hagan. These options are set to
expire on May 10, 2010.


ITEM 12.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

        Since January 5, 2004, 4net Software has maintained its offices at 100
Mill Plain Road, Danbury, Connecticut 06811. The Company is using a portion Of
the premises occupied by Catalyst Financial LLC, a full service brokerage,
investment banking and consulting firm, located at 100 Mill Plain Road, Danbury,
Connecticut 06811. Steven N. Bronson, the President of the Company, is the
principal and owner of Catalyst Financial LLC. Catalyst Financial LLC has agreed
to waive the payment of any rent by the Company for use of the offices.

        Prior to January 5, 2004, the Company subleased a portion of the
premises located at 10 South Street, Suite 202, Ridgefield, Connecticut 06877.
The Company's monthly rent obligation for its prior office was $1,000 per month
plus a flat fee of $50 per month for utilities.


                                       17
<PAGE>

        Steven N. Bronson is the owner and principal of Catalyst Financial LLC
("Catalyst Financial"), a full service securities brokerage, investment banking
and consulting firm. Prior to February 1, 2001, the Company utilized a portion
of the premises occupied by Catalyst Financial at 900 Third Avenue, Suite 201,
New York, New York 10022, as its main corporate and administrative offices. The
Company did not pay any rent on these offices during the period October 1, 2000
through January 31, 2001.


ITEM 13.   EXHIBITS

        The following exhibits are hereby filed as part of this Annual Report on
Form 10-KSB or incorporated by reference.

Exhibit
Number     Description of Document
--------   -------------------------------------------
2.1#       Stock Purchase Agreement by and between Michael Park, Andrew
           Patros and Robert Park and MedTech Diagnostics, Inc. dated April
           24, 2000. (Incorporated by reference to Exhibit 2.1 to the
           Current Report on Form 8-K filed by the Company on May 3, 2000.)

3.1#       Certificate of Incorporation of the Company. (Incorporated by
           reference to Exhibit 3.1 to the Company's Annual Report on Form
           10-KSB for the fiscal year ended September 30, 1999)

3.2#       By-Laws of the Company. (Incorporated by reference to Exhibit
           3.2 to the Company's Annual Report on Form 10-KSB
           for the fiscal year ended September 30, 1999)

3.3#       Certificate of Amendment to the Certificate of Incorporation of
           the Company. (Incorporated by reference to Exhibit 3.3 to the
           Company's Quarterly Report on Form 10-QSB for the quarter ended June
           30, 2000)

3.4#       Amended and Restated By-Laws of the Company. (Incorporated by
           reference to Exhibit 3.4 to the Company's Quarterly Report on Form
           10-QSB for the quarter ended June 30, 2000)

3.5#       Certificate of Merger between the Company and its wholly owned
           subsidiary 4net Software, Inc. (Incorporated by reference to Exhibit
           3.5 to the Company's Quarterly Report on Form 10-QSB for the quarter
           ended March 31, 2001.)

3.6#       Amended Certificate of Designation of the Series A Convertible
           Preferred Stock of 4net Software, Inc. (Incorporated by reference to
           Exhibit 3.6 to the Company's Quarterly Report on Form 10-QSB for the
           quarter ended March 31, 2001.)

10.3#@     Employment Agreement dated as of August 1, 2000 by and between
           the Company and Steven N. Bronson. (Incorporated by reference to
           Exhibit 10.3 to the Company's Quarterly Report on Form 10-QSB
           for the quarter ended June 30, 2000.)

10.4#@     Employment Agreement dated as of August 1, 2000 by and between the
           Company and Robert Park. (Incorporated by reference to Exhibit 10.4
           to the Company's Quarterly Report on Form 10-QSB for the quarter
           ended June 30, 2000.)

10.5#      Sublease dated as of February 1, 2001 by and between the Company and
           Catalyst Operations, Inc. (Incorporated by reference to Exhibit 10.5
           to the Company's Quarterly Report on Form 10-QSB for the quarter
           ended March 31, 2001)


                                       18
<PAGE>

10.6#      Management Consulting Agreement, dated as of February 1, 2001 by and
           between the Company and Catalyst Financial LLC. (Incorporated by
           reference to Exhibit 10.6 to the Company's Quarterly Report on Form
           10-QSB for the quarter ended March 31, 2001)

10.7#      Mergers and Acquisitions Advisory Agreement, dated as of March 27,
           2001 by and between the Company and Catalyst Financial LLC.
           (Incorporated by reference to Exhibit 10.7 to the Company's Quarterly
           Report on Form 10-QSB for the quarter ended March 31, 2001)

10.8#      Placement Agent Agreement, dated as of April 30, 2001, by and between
           the Company and Catalyst Financial LLC. (Incorporated by reference to
           Exhibit 10.8 to the Company's Quarterly Report on Form 10-QSB for the
           quarter ended March 31, 2001)

10.9#      Placement Agent Agreement, dated as of July 2, 2001, by and between
           the Company and Catalyst Financial LLC. (Incorporated by reference to
           Exhibit 10.8 to the Company's Quarterly Report on Form 10-QSB for the
           quarter ended June 30, 2001)

10.10#@    Employment Agreement, dated as of July 1, 2001 by and between
           the Company and Steven N. Bronson.  (Incorporated by reference
           to Exhibit 10.8  to the Company's Quarterly Report on Form 10-QSB
           for the quarter ended June 30, 2001)

10.11#     Separation Agreement, dated as of September 21, 2001 by and between
           the Company and Michael Park. (Incorporated by reference to Exhibit
           10.11 to the Company's Annual Report on Form 10-KSB for the fiscal
           year ended September 30, 2001)

10.12#     Letter of Intent, dated December 19, 2002 by and between the Company
           and NWT, Inc. (Incorporated by reference to Exhibit 10.12 to the
           Company's Annual Report on Form 10-KSB for the fiscal year ended
           September 30, 2002).

10.13#     First Amendment to Sublease between Catalyst Operation, Inc. and
           4networld.com, Inc. n/k/a 4net Software, Inc. made as of
           August 30, 2002. (Incorporated by reference to Exhibit 10.13 to the
             Company's Current Report on Form 8-K, dated September 27, 2002)

10.14#     Assignment Agreement, dated as of September 18, 2002, between
           4net Software, Inc. and New England Computer Group, Inc.
           (Incorporated by reference to Exhibit 10.14 to the Company's Current
           Report on Form 8-K, dated September 27, 2002)

10.15#     Consulting Agreement, dated December 17, 2003 between the Company and
           ETN Financial Services, Inc.

10.16#     Stock Purchase Agreement, dated September 13, 2005, between
           4net Software, Inc. and RAM Capital Management Trust I.

14#        Code of Ethics

31*        President's Written Certification Of Financial Statements
           Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32*        President's Written Certification Of Financial Statements
           Pursuant to 18 U.S.C. Statute 1350

--------------------------------
*    Filed herewith
#    Incorporated herein by reference
@    Represents a management contract

                                       19
<PAGE>

Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees.
----------

            The aggregate fees billed to the Company for professional services
rendered by principal accountants for the audit of our annual financial
statements and review of our quarterly financial statements was $9,100 for each
of the fiscal years 2006 and 2005, respectively.


Audit-Related Fees.
------------------

            None.


Tax Fees.
--------

            The aggregate fees billed to the Company for professional services
rendered by accountants for tax related services is $900 for each of the fiscal
years 2006 and 2005.


All Other Fees.
--------------

None.

            The audit committee approved the engagement of Carlin, Charron &
Rosen, LLP in the preparation of the Company's tax returns for fiscal year 2006.


                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated:



/s/Steven N. Bronson                       /s/ Alan Rosenberg
-------------------------------            -------------------------------
Steven N. Bronson                          Alan Rosenberg
President, Chief Executive                 Director
Officer and Chairman                       December 21, 2006
of the Board of Directors
December 21, 2006



/s/ Leonard Hagan
-------------------------------
Leonard Hagan
Director
December 21, 2006

                                       20
<PAGE>

                                  EXHIBIT INDEX

The following Exhibits are filed herewith:

Exhibit
Number      Description of Document
------      -----------------------
31         President's Written Certification Of Financial Statements
           Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32         President's Written Certification Of Financial Statements
           Pursuant to 18 U.S.C. Statute 1350




























                                       21

<PAGE>







                               4NET SOFTWARE, INC.
                              FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2006 and 2005



















<PAGE>




                               4NET SOFTWARE, INC.
                          Index to Financial Statements




Report of Independent Registered Public
    Accounting Firm                                              F-2

 Balance Sheet
     September 30, 2006                                          F-3

Statements of Operations
     Years Ended September 30, 2006 and 2005                     F-4

Statements of Stockholders' Equity
     Years Ended September 30, 2006 and 2005                     F-5

Statements of Cash Flows
     Years Ended September 30, 2006 and 2005                     F-6

Notes to Financial Statements                                    F-7 - F-12














                                       F-1
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Shareholders and Board of Directors of
  4Net Software, Inc.

We have audited the accompanying balance sheet of 4Net Software, Inc. (the
"Company") as of September 30, 2006, and the related statements of operations,
stockholders' equity, and cash flows for each of the years in the two-year
period ended September 30, 2006. The financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the
financial statements based on our audits.

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

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of 4Net Software, Inc. as of
September 30, 2006, and the results of its operations and its cash flows for
each of the years in the two-year period ended September 30, 2006 in conformity
with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 2 to the
financial statements, the Company has no principal operations or significant
revenue producing activities which raises substantial doubt about its ability to
continue as a going concern. Management's plans in regard to these matters are
described in Note 2. The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.


/s/ Carlin, Charron & Rosen, LLP

Glastonbury, Connecticut
December 21, 2006



                                       F-2
<PAGE>

                               4NET SOFTWARE, INC.
                                  BALANCE SHEET
                               SEPTEMBER 30, 2006


                                        ASSETS

CURRENT ASSETS
     Cash                                                           $    26,557
                                                                    -----------

TOTAL ASSETS                                                        $    26,557
                                                                    ===========


                           LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable and accrued expenses                            $     7,550
                                                                    -----------

TOTAL CURRENT LIABILITIES                                                 7,550
                                                                    -----------



COMMITMENTS AND CONTINGENCIES                                                --

STOCKHOLDERS' EQUITY

     Preferred stock, $.01 par value; authorized-5,000,000 shares
          Issued and outstanding - none                                      --
     Common stock, $.00001 par value; authorized-100,000,000 shares
          Issued and outstanding - 8,961,017 shares                          90
     Capital in excess of par value                                   3,168,258
     Accumulated deficit                                             (3,149,341)
                                                                     -----------
TOTAL STOCKHOLDERS' EQUITY                                               19,007
                                                                     -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $   26,557
                                                                     ===========

   The accompanying notes are an integral part of these financial statements.

                                       F-3
<PAGE>

                               4NET SOFTWARE, INC.
                            STATEMENTS OF OPERATIONS
                     YEARS ENDED SEPTEMBER 30, 2006 AND 2005


                                                       2006            2005
                                                   -----------     -----------

REVENUES                                           $        --     $        --
                                                   -----------     -----------

OPERATING EXPENSES
     General and administrative                         27,751          30,493
                                                    -----------     -----------

 TOTAL OPERATING EXPENSES                               27,751          30,493
                                                   -----------     -----------

LOSS FROM OPERATIONS                                   (27,751)        (30,493)
                                                   -----------     -----------

OTHER INCOME
     Other income                                          651             512
                                                   -----------     -----------

TOTAL OTHER INCOME                                         651             512
                                                   -----------     -----------

NET LOSS                                           $   (27,100)    $   (29,981)
                                                   ===========     ===========


WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING-Basic and Diluted                        8,961,017       8,761,017
                                                   ===========     ===========

NET LOSS PER COMMON SHARE - Basic and Diluted      $     (.003)    $     (.003)
                                                   ===========     ===========



   The accompanying notes are an integral part of these financial statements.

                                       F-4
<PAGE>

                               4NET SOFTWARE, INC.
                       STATEMENTS OF STOCKHOLDERS' EQUITY
                     YEARS ENDED SEPTEMBER 30, 2006 AND 2005

<TABLE>
<CAPTION>
                                                Common                                Capital in                Stock
                                Common Stock    Stock   Subscribed  Preferred Stock   Excess of  Accumulated Subscription
                             Shares    Amount   Shares    Amount    Shares    Amount  Par Value    Deficit    Receivable   Total
                             ------    ------  -------   -------    ------    ------  ---------- -----------  -----------  ------
<S>                         <C>        <C>                <C>                 <C>     <C>        <C>           <C>        <C>
Balance, October 1, 2004    8,761,017  $   88       --    $  --         --    $   --  $3,138,260 $(3,092,260)  $      --  $46,088
                            ---------  ------  -------   ------       -----   ------  ---------- -----------   ---------  -------

Common stock subscribed            --      --  200,000        2         --        --      29,998          --     (30,000)      --

Net loss                           --      --       --       --         --        --          --     (29,981)         --  (29,981)
                            ---------  ------  -------   ------      ------   ------  ---------- -----------   ---------  -------
Balance, September 30, 2005 8,761,017  $   88  200,000    $   2         --    $   --  $3,168,258 $(3,122,241)  $ (30,000) $16,107
                            =========  ====== ========   ======      ======   ======  ========== ===========   =========  =======

Issuance of common stock      200,000       2 (200,000)      (2)        --        --          --          --      30,000   30,000

Net loss                           --      --       --       --         --        --          --     (27,100)         --  (27,100)

                            ---------  ------  -------   ------      ------   ------  ---------- -----------   ---------  -------
Balance, September 30, 2006 8,961,017  $   90       --    $  --         --    $   --  $3,168,258 $(3,149,341)  $      --  $19,007
                            =========  ====== ========   ======      ======   ======  ========== ===========   =========  =======

</TABLE>





   The accompanying notes are an integral part of these financial statements.

                                       F-5
<PAGE>

                               4NET SOFTWARE, INC.
                            STATEMENTS OF CASH FLOWS
                     YEARS ENDED SEPTEMBER 30, 2006 AND 2005




<TABLE>
<CAPTION>
                                                                          2006         2005
                                                                       ----------   ----------

<S>                                                                    <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES

    Net loss                                                           $ (27,100)    $ (29,981)
    Adjustments to reconcile net loss to net cash used in operating
       activities:
    Changes in assets and liabilities:
       Decrease in accounts receivable - other                                --           552
       Decrease in accounts payable and accrued expenses                  (1,030)         (195)
                                                                       ---------     ---------

Net cash used in operating activities                                    (28,130)      (29,624)
                                                                       ---------     ---------

CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from issuance of common stock                               30,000            --
                                                                       ---------     ---------

Net cash provided by financing activities                                 30,000            --
                                                                       ---------     ---------



NET INCREASE (DECREASE) IN CASH                                            1,870       (29,624)

CASH - BEGINNING OF YEAR                                                  24,687        54,311
                                                                       ---------     ---------

CASH - END OF YEAR                                                     $  26,557     $  24,687
                                                                       =========     =========

</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       F-6
<PAGE>

                               4NET SOFTWARE, INC.
                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         ORGANIZATION AND BUSINESS ACTIVITY

         4net Software, Inc., was incorporated under the laws of the State of
         Delaware in 1986. During the year ended September 30, 2006, the Company
         focused its efforts on pursuing a strategy of growth by acquiring
         businesses with established revenues and earnings, which the Company
         believes are undervalued. The Company utilized several criteria to
         evaluate prospective acquisitions including whether the business to be
         acquired (1) is an established business with viable services and/or
         products, (2) has an experienced management team, (3) has room for
         growth and/or expansion into other markets, (4) is accretive to
         earnings, (5) offers the opportunity to achieve and/or enhance
         profitability and (6) increases stockholder value.


         USE OF ESTIMATES

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


         EARNINGS (LOSS) PER COMMON SHARE

         Basic (loss) earnings per share ("EPS") is computed as net income
         (loss) divided by the weighted-average number of common shares
         outstanding for the period. Diluted EPS reflects the potential dilution
         that could occur from common shares issuable through stock-based
         compensation plans including stock options, restricted stock awards,
         stock purchase agreements, stock subscriptions not fully paid, warrants
         and other convertible securities which are anti-dilutive for 2006 and
         2005. Therefore diluted EPS is the same as basic EPS.


         CASH EQUIVALENTS

         For purposes of reporting cash flows, the Company considers as cash
         equivalents all highly liquid investments with a maturity of three
         months or less at the time of purchase. On occasion, the Company has
         cash balances in excess of federally insured amounts. The Company has
         no cash equivalents at September 30, 2006 and 2005.


         FAIR VALUE

         The carrying amount reported in the balance sheet for cash and accounts
         payable and accrued expenses approximates fair value because of the
         immediate or short-term maturity of these financial instruments.


                                       F-7
<PAGE>

                               4NET SOFTWARE, INC.
                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


         CONCENTRATION OF CREDIT RISK

         Financial instruments which potentially subject the Company to
         concentrations of credit risk consist of cash. The Company maintains
         cash accounts at one financial institution. The Company periodically
         evaluates the credit worthiness of financial institutions, and
         maintains cash accounts only in large high quality financial
         institutions, thereby minimizing exposure for deposits in excess of
         federally insured amounts. The Company believes that credit risk
         associated with cash is remote.


         RECENT ACCOUNTING PRONOUNCEMENTS

             In December 2004, the FASB issued SFAS No. 123 (revised)
             "Share-Based Payment" ("SFAS No. 123(R)"). SFAS No. 123(R) revised
             SFAS No. 123 "Accounting for Stock-Based Compensation," and
             supersedes APB Opinion No. 25, and its related implementation
             guidance. This statement eliminates the ability to account for
             share-based compensation using the intrinsic value method under APB
             Opinion No. 25. SFAS No. 123(R) focuses primarily on accounting for
             transactions in which an entity obtains employee services in
             share-based payment transactions. SFAS No. 123(R) requires a public
             entity to measure the cost of employee services received in
             exchange for an award of equity instruments based on the grant-date
             fair value of the award (with limited exceptions). That cost will
             be recognized over the period during which an employee is required
             to provide service in exchange for the award, known as the
             requisite service period, which is usually the vesting period. SFAS
             No. 123(R) will be effective for the Company on October 1, 2006.
             Accordingly, the provisions of SFAS No. 123(R) will apply to new
             awards and to awards modified, repurchased, or cancelled after the
             required effective date. Additionally, compensation cost for the
             portion of awards for which the requisite service has not been
             rendered that are outstanding as of the required effective date
             must be recognized as the requisite service is rendered on or after
             the effective date. These new accounting rules will lead to a
             decrease in reported earnings. Although our adoption of SFAS No.
             123(R) is not expected to have a material impact on our financial
             position and results of operations because all of the Company's
             outstanding stock options are fully vested, we are still evaluating
             the potential impact from adopting this statement.

             In February 2006, the FASB issued SFAS No. 155, "Accounting for
             Certain Hybrid Financial Instruments - an amendment of FASB
             Statements No. 133 and 140" ("SFAS No. 155"), to simplify and make
             more consistent the accounting for certain financial instruments.
             SFAS No. 155 amends SFAS No. 133, "Accounting for Derivative
             Instruments and Hedging Activities," to permit fair value
             re-measurement for any hybrid financial instrument with an embedded
             derivative that otherwise would require bifurcation, provided that
             the whole instrument is accounted for on a fair value basis. SFAS
             No. 155 amends SFAS No. 140, "Accounting for the Impairment or
             Disposal of Long-Lived Assets," to allow a qualifying
             special-purpose entity to hold a derivative financial instrument
             that pertains to a beneficial interest other than another
             derivative financial instrument. SFAS No. 155 applies to all
             financial instruments acquired or issued after the beginning of an
             entity's first fiscal year that begins after September 15, 2006
             with earlier application allowed. This standard is not expected to
             have a significant effect on the Company's future reported
             financial position or results of operations.

                                       F-8
<PAGE>

                               4NET SOFTWARE, INC.
                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


         RECENT ACCOUNTING PRONOUNCEMENTS (Continued)

             In March 2006, the FASB issued SFAS No. 156, "Accounting for
             Servicing of Financial Assets, an amendment of FASB Statement No.
             140, Accounting for Transfers and Servicing of Financial Assets and
             Extinguishments of Liabilities" ("SFAS No. 156"). This Statement
             requires all separately recognized servicing assets and servicing
             liabilities be initially measured at fair value, if practicable,
             and permits for subsequent measurement using either fair value
             measurement which changes in fair value reflected in earnings or
             the amortization and impairment requirements of Statement No. 140.
             The subsequent measurement of separately recognized serving assets
             and serving liabilities at fair value eliminates the necessity for
             entities that manage the risks inherent in servicing assets and
             servicing liabilities with derivatives to qualify for hedge
             accounting treatment and eliminates the characterization of
             declines in fair value as impairments or direct write-downs. SFAS
             No. 156 is effective for an entity's first fiscal year beginning
             after September 15, 2006. The adoption of this statement is not
             expected to have a significant effect on the Company's future
             reported financial position or results of operations.

             In September 2006, the FASB issued SFAS No. 157, "Fair Value
             Measures" ("SFAS No. 157"). This Statement defines fair value,
             establishes a framework for measuring fair value in generally
             accepted accounting principals ("GAAP"), expands disclosures about
             fair value measurements, and applies under other accounting
             pronouncements that require or permit fair value measurements. SFAS
             No. 157 does not require any new fair value measurements. However,
             the FASB anticipates that for some entities, the application of
             SFAS No. 157 will change current practice. SFAS No. 157 is
             effective for financial statements issued for fiscal years
             beginning after November 15, 2007. The Company is currently
             evaluating the impact of SFAS No. 157 but does not expect that it
             will have a material impact on its financial statements.

             In September 2006, the FASB issued SFAS No. 158, "Employers'
             Accounting for Defined Benefit Pension and Other Postretirement
             Plans" ("SFAS No. 158"). This Statement requires an employer to
             recognize the over funded or under funded status of a defined
             benefit post retirement plan (other than a multi-employer plan) as
             an asset or liability in its statement of financial position, and
             to recognize changes in that funded status in the year in which the
             changes occur through comprehensive income. SFAS No. 158 is
             effective for fiscal years ending after December 15, 2006. The
             Company does not expect that the implementation of SFAS No. 158
             will have any material impact on its financial position and results
             of operations.

             In September 2006, the SEC issued Staff Accounting Bulletin No.
             108, "Considering the Effects of Prior Year Misstatements when
             Quantifying Misstatements in Current Year Financial Statements"
             ("SAB No. 108"). SAB No. 108 addresses how the effects of prior
             year uncorrected misstatements should be considered when
             quantifying misstatements in current year financial statements. SAB
             No. 108 requires companies to quantify misstatements using a
             balance sheet and income statement approach and to evaluate whether
             either approach results in quantifying an error that is material in
             light of relevant quantitative and qualitative factors. SAB No. 108
             is effective for periods ending after November 15, 2006. The
             Company is currently evaluating the impact of adopting SAB No. 108
             but does not expect that it will have a material effect on its
             financial statements.

                                       F-9
<PAGE>

                               4NET SOFTWARE, INC.
                          NOTES TO FINANCIAL STATEMENTS


NOTE 2 - BASIS OF PRESENTATION

         The accompanying financial statements have been prepared on the basis
         of accounting principles applicable to a going concern which
         contemplates the realization of assets and extinguishment of
         liabilities in the normal course of business. As shown in the
         accompanying financial statements, the Company has accumulated a
         deficit of $3,149,341 through September 30, 2006. As of September 30,
         2006 the Company has no principal operations or significant revenue
         producing activities, which raises substantial doubt about its ability
         to continue as a going concern. The Company's financial statements do
         not include any adjustments related to the carrying value of assets or
         the amount and classification of liabilities that might be necessary
         should the Company be unable to continue as a going concern. The
         Company's ability to establish itself as a going concern is dependent
         on its ability to merge with another entity. The outcome of this matter
         cannot be determined at this time.


NOTE 3 - STOCKHOLDERS' EQUITY

         On December 17, 2003, the Company entered into a consulting
         agreement(the "ETN Agreement") with ETN Financial Services, Inc. (the
         "ETN Financial") to provide consulting services to the Company
         specifically related to seeking, identifying, and investigating
         prospective target companies for mergers, acquisitions, business
         combinations, and/or similar transactions (a "Transaction"). Pursuant
         to the ETN Agreement, the Company sold ETN Financial 100,000 shares
         (the "ETN Shares") of the Company's common stock, $.00001 par value, at
         a purchase price of $.25 per share. Additionally, the Company issued to
         ETN Financial warrants to purchase 400,000 shares of the Company's
         common stock at a purchase price of $.25 per share (the "ETN
         Warrants"). In the event that the Company did not consummate a
         transaction as a result or consequence of an introduction made directly
         or indirectly by ETN Financial subsequent to the date hereof and within
         one year from the execution of the ETN Agreement, then ETN Financial
         forfeits and returns to the Company fifty percent (50%) of the ETN
         Warrants or warrants to purchase 200,000 shares of the Company's common
         stock at a purchase price of $.25 per share.

         The warrants are exercisable for a period of five years from the date
         of issuance and contain a cashless exercise provision. The Company did
         not recognize an expense in conjunction with the issuance of the
         200,000 warrants because the exercise price of the warrants exceeded
         the fair market value per share of common stock on the issuance date.

         On December 17, 2004, in accordance with the ETN Agreement, ETN
         Financial returned warrants to purchase 200,000 shares of the Company's
         common stock at a purchase price of $.25 per share to the Company.

         On September 13, 2005, the Company entered into a stock purchase
         agreement with RAM Capital Management Trust I whereby the Company
         agreed to sell 200,000 restricted shares of its $0.00001 par value
         common stock at a purchase price of $0.15 per share. Accordingly, this
         transaction was recorded as common stock subscribed and capital in
         excess of par value with a corresponding stock subscriptions receivable
         at September 30, 2005. The Company received payment in the amount of
         $30,000 on October 12, 2005.

             As of October 1, 2004 and September 30, 2005, Catalyst Financial
             LLC (Note 5) held fully-vested warrants to purchase 82,000 shares
             of common stock of the Company at an exercise price of $.50 per
             share. These warrants expired on September 29, 2006.


                                      F-10
<PAGE>

                               4NET SOFTWARE, INC.
                          NOTES TO FINANCIAL STATEMENTS


NOTE 4 - STOCK OPTION PLAN

         The Company has a Stock Incentive Plan under which employees, officers,
         directors, consultants, independent contractors and advisors of the
         Company may be granted options to purchase shares of the Company's
         common stock at a price to be determined by the Board of Directors, or
         a committee to be formed by the Board of Directors, which can not be
         less than sixty-five percent of the common stock fair value at the date
         of grant. In addition, the Stock Incentive Plan also authorizes the
         Company to issue restrictive stock awards and stock bonuses. The Stock
         Incentive Plan authorizes the issuance of up to 1,100,000 shares of the
         Company's common stock.

         The status of outstanding options granted pursuant to the plan is as
         follows:

                                                       Number of   Weighted Avg.
                                                        Shares    Exercise Price
                                                       ---------  --------------

         Options Outstanding- October 1, 2004           370,000       $ .66
         (370,000 exercisable)
         Granted                                             --          --
         Exercised                                           --          --
         Expired                                        350,000         .57
                                                       --------

         Options Outstanding- September 30, 2005         20,000       $2.26
         (20,000 exercisable)
         Granted                                             --          --
         Exercised                                           --          --
         Expired                                             --          --
                                                       --------

         Options Outstanding - September 30, 2006        20,000       $2.26
         (20,000 exercisable at $2.26, expiring 2010)  ========

           All outstanding stock options are fully vested.


NOTE 5 - RELATED PARTY TRANSACTIONS

         The Company maintains its offices at 100 Mill Plain Road, Danbury,
         Connecticut 06811. The Company is using a portion of the premises
         occupied by Catalyst Financial LLC, a full service brokerage,
         investment banking and consulting firm, located at 100 Mill Plain Road,
         Danbury, Connecticut 06811. Steven N. Bronson, the President of the
         Company, is the principal and owner of Catalyst Financial LLC. Catalyst
         Financial LLC has agreed to waive the payment of any rent by the
         Company for use of the offices.

         During the years ended September 30, 2006 and 2005, the Company did not
         pay any salary to its President, because in September 2002, the Company
         entered into an agreement with the President, whereby the President
         agreed to waive his salary effective October 1, 2002.


                                      F-11
<PAGE>

                                4NET SOFTWARE, INC.
                          NOTES TO FINANCIAL STATEMENTS



NOTE 5 - RELATED PARTY TRANSACTIONS (Continued)

         Control

         As of December 12, 2006, Mr. Bronson beneficially owned 5,560,210
         shares of the Company's common stock. Mr. Bronson's beneficial
         ownership represents approximately 62% of the issued and outstanding
         shares of common stock of the Company. Accordingly, Mr. Bronson has
         effective control of the Company. In the election of directors,
         stockholders are not entitled to cumulate their votes for nominees.
         Accordingly, as a practical matter, Mr. Bronson may be able to elect
         all of the Company's directors and otherwise direct the affairs of the
         Company.


NOTE 6 - INCOME TAXES

         At September 30, 2006, the Company had net operating loss carryforwards
         of approximately $1,940,000 that may be offset against future taxable
         income, if any, ratably through 2026. These carry-forwards are subject
         to review by the Internal Revenue Service.

         The Company has fully reserved the approximate $776,000 tax benefit of
         the operating loss carryforwards, by a valuation allowance of the same
         amount, because the likelihood of realization of the tax benefit cannot
         be determined.

         There is no current or deferred tax expense for the years ended
         September 30, 2006 and 2005.


NOTE 7 - SEGMENT REPORTING

         In June 1997, SFAS 131, "Disclosure about Segments of an Enterprise and
         Related Information" was issued, which amends the requirements for a
         public enterprise to report financial and descriptive information about
         its reportable operating segments. Operating segments, as defined in
         the pronouncement, are components of an enterprise about which separate
         financial information is available that is evaluated regularly by the
         Company in deciding how to allocate resources and in assessing
         performance. The financial information is required to be reported on
         the basis that is used internally for evaluating segment performance
         and deciding how to allocate resources to segments. The Company has no
         reportable segments at September 30, 2006 and 2005.


                                      F-12