**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


WASHINGTON,
      D.C. 20549







**FORM
      10-KSB**







x
      Annual Report Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal
      year ended **August 31, 2007**




o
      Transition Report under
      Section 13 or 15(d) of the Securities Exchange Act of 1934







*Commission
      File
      Number*********0-32923**







**(Formerly
      Giant Jr. Investments Corp.)**


(Name
      of
      Small Business Issuer in its charter)







**Nevada**
            
            **33-0198542**(State
                or other jurisdiction of incorporation or organization)
            
            (I.R.S.
                Employer Identification Number)







**2355
      Main Street, Suite 120, Irvine, California 92614**


(Address
      of principal executive offices, including Zip Code)







**(949)
      486-3990**


(Issuer's
      telephone number)







SECURITIES
      REGISTERED PURSUANT TO SECTION 12 (B) OF THE ACT


**Title
      of each class**




**NONE**


SECURITIES
      REGISTERED PURSUANT TO SECTION 12 (G) OF THE ACT:


**COMMON
      STOCK $0.001 PAR VALUE**







Check
      whether Issuer: (1) has filed all reports required to be filed by section 13
      or
      15 (d) of the Securities and Exchange Act of 1934 during the preceding 12 months
      and (2) has been subject to such filing requirements for the past 90
      days.**Yes****x**
      No
o





Indicate
      by check mark if disclosure of delinquent filers pursuant to Rule 405 of
      Regulation S-K is not contained herein, and will not be contained, to the best
      of issuer's knowledge, in definitive proxy or information statements
      incorporated by reference in Part III of this Form or any amendment to this
      Form
      10-KSB. **x**





Issuer's
      Revenues for its most recent fiscal year:
      $7,090,092**.**





The
      aggregate market value of the voting stock held by non-affiliates of the
      registrant as of November 20, 2007 (based upon the average of the bid and asked
      prices of these shares on the Over-the-Counter: BB) was $7,946,596.





The
      number of shares of the registrant's Common Stock outstanding as of November
      20,
      2007 was 37,398,139.









**FINANCIAL
      MEDIA GROUP, INC.**


(FORMERLY
      GIANT, JR. INVESTMENTS CORP.)





**TABLE
      OF CONTENTS**





**Report
      on Form 10-KSB**





**Page****PART
                I**Item
                1. Description of Business
            3Item
                2. Properties
            8Item
                3. Legal Proceedings
            9Item
                4. Submission of Matters to Vote of Security Holders
            9**PART
                II**Item
                5. Market for Common Equity and Related Stockholder
                Matters
            9Item
                6. Management's Discussion and Analysis of Financial Condition and
                Results
                of Operations
            10Item
                7. Consolidated Financial Statements
            15Item
                8. Changes in and Disagreements with Accountants on Accounting and
                Financial Disclosure
            158A.
                Controls and Procedures
            158B.
                Other Information
            15**PART
                III**Item
                9.  Directors, Executive Officers, Promoters and Control Persons;
                Compliance with Section 16(a) of the Exchange Act
            15Item
                10. Executive Compensation
            17Item
                11. Security Ownership of Certain Beneficial Owners and
                Management
            18Item
                12. Certain Relationships and Related Transactions
            20**PART
                IV**Item
                13. Exhibits
            20Item
                14. Principal Accountant Fees and Services
            20Signatures
            21








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          2
          -




**PART
      I**





Except
      for the historical information contained herein, the matters discussed
      throughout this report, including, but not limited to, those that are stated
      as
      the Company's belief or expectation or preceded by the words ”should"
“believes,” “anticipates,” “expects,” “estimates,” “plan,” “may,” “intends,”
“will,” or similar terms are forward looking statements that involve risks to
      and uncertainties in the Company's business and other risks and uncertainties
      that may be detailed from time to time in the Company's reports filed with
      the
      Securities and Exchange Commission.





**Item
      1. Description of Business**





**OVERVIEW**





Financial
      Media Group, Inc., together with it’s wholly owned subsidiaries, ( collectively
      the “Company,” "We," or "FMG") is a full service financial media company focused
      on applications that enables the retail investment and financial communities
      to
      collaborate directly with publicly traded companies. The Company provides
      Internet based media and advertising services through its financial website
      and
      the Company’s newspaper “WallSt.net Digest.” The Company provides a full array
      of customized investor awareness programs such as audio and video of senior
      management interviews; press releases; newsletter and editorials; small cap
      conferences and seminars; email mailings and forums,and electronic document
      conversion (EDGAR), media and advertising services to public and private
      companies.





Our
      original content is distributed through our Web properties including
http://www.wallst.net (“WallSt”), http://www.mywallst.net
      (“MyWallSt”), and http://www.wallstradio.com (“WallStRadio”). Our
      flagship, advertising-supported Web property, WallSt, was launched in 2003,
      and
      offers free access to breaking news, financial research tools, videos, and
      original editorial content including our library of more than 4,000 audio
      interviews with executives from public and private companies. MyWallSt was
      launched in January 2007. The Web site is a financial social network with
      community stock ratings, personal profile pages, blogs, message boards, and
      a
      proprietary trading simulator that allows members to compete against each other
      for weekly cash and prizes. WallStRadio is a free business and finance podcast
      aggregator that features more than 150 podcasts from well-known media outlets,
      and original podcast content from our staff of editors. The site was launched
      in
      May 2007.





In
      addition to our online brands, the Company owns and operates The Wealth Expo,
      a
      line of investment conferences that we acquired in January
      2007.  Wealth Expo seminars are typically held at large convention
      centers in large cities throughout the United States, and feature high-profile
      keynote speakers, exhibition booths, and educational seminars; The Company
      also
      owns Financial Filings Corp. (“Financial Filings”), a wholly owned subsidiary
      that was launched in March 2006. Financial Filings provides news distribution
      and EDGAR filing services to public companies.





**CORPORATE
      HISTORY**





The
      Company was incorporated in Nevada in 1984 as Southern Development Company,
      Inc.
      ("SDC"). In December 1994, SDC merged with Integrated Communications Access
      Network, Inc. ("ICAN"). In March 1996, the Company was renamed SDC, and in
      September 1998, the Company changed its name to EssxSport Corp. At that time,
      the Company had no assets and no liabilities. From September 1998 until August
      31, 2004, the Company was primarily engaged in the manufacture and distribution
      of athletic equipment, primarily for pole vaulting and other track and field
      activities. Effective August 31, 2004, the Company sold, transferred, and
      delivered all of its assets relating to its pole vault and sports business
      to
      its former President and director, and subsequently changed it’s name to Giant
      Jr. Investments Corp.





On
      June
      30, 2004, the Company filed with the Securities and Exchange Commission ("SEC")
      to become a business development company ("BDC") under the 1940 Act and on
      September 1, 2004 it began its BDC operations. On June 1, 2005, the Company
      terminated its BDC status and on August 1, 2005, the Company’s shareholders
      approved an amendment to the Articles of Incorporation changing the Company’s
      name to “Financial Media Group, Inc.”





After
      the
      termination of such status, the Company has been governed by the rules and
      regulations promulgated under the Securities Act of 1933 and the Securities
      and
      Exchange Act of 1934.





On
      January 6, 2006, Financial Media Group, Inc. acquired 100% of the equity of
      WallStreet Direct, Inc. (WallStreet) pursuant to an Agreement and Plan of
      Reorganization dated September 19, 2005.. Pursuant to the acquisition of
      WallStreet, WallStreet became the wholly owned subsidiary of the Company. The
      former shareholders of WallStreet received 19,998,707 shares or 82% of the
      issued and outstanding shares of the Company’s common stock in exchange for all
      the issued and outstanding shares of WallStreet.  The acquisition of
      WallStreet is accounted for as a reverse acquisition under the purchase method
      of accounting since the shareholders of WallStreet obtained control of the
      consolidated entity. Accordingly, the reorganization of the two companies
      is recorded as a recapitalization of WallStreet, with WallStreet being treated
      as the continuing operating entity. The historical financial statements
      presented herein are those of WallStreet. The continuing entity retained August
      31 as its fiscal year end.





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          3
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WallStreet
      was incorporated in the State of Nevada on January 5, 2005 as a financial
      holding company specializing as a provider of financial news, tools and
      content for the global investment community. On January 15, 2005, WallStreet
      acquired 100% of the assets and outstanding shares of (“Digital WallStreet”),
      which was 100% owned by the majority shareholder of the Company, in exchange
      for
      two promissory notes of $1,500,000 each, carrying interest at 6% per annum,
      due
      and payable on January 31, 2007 and January 31, 2010. As this merger is between
      entities under the common control, the issuance of the promissory notes to
      the
      majority shareholder has been recorded as a distribution to the majority
      shareholder. On December 11, 2006, the majority shareholder and the Company
      agreed to extend the payment due date of the promissory note due January 31,
      2007 to January 31, 2010. The merger has been accounted for on historical cost
      basis. Digital WallStreet, was incorporated in Nevada on June 12, 2002, and
      commenced its operations during the first quarter of 2003. WallStreet is a
      full
      service financial media company focused on applications that enables the retail
      investors and financial communities to collaborate directly with publicly traded
      companies. The company provides internet based media and advertising services
      through its financial website “Wallst.net” and the through its business
      newspaper “WallSt.net Digest.”





On
      February 10, 2006, the Company established Financial Filings Corp,(“Financial
      Filings”) as a wholly owned subsidiary. Financial Filings is a provider of news
      wire and compliance services to small and mid-sized publicly traded companies
      worldwide. Customer acquisitions are initially facilitated by WallStreet Direct,
      Inc. which provides media and advertising services to hundreds of publicly
      traded companies, many of which are seeking the services that Financial Filings
      provides, including the preparation review of registration statements,
      electronic filings for SEC documents (EDGAR), preparation of proxy materials,
      and news distribution in more than 30 languages to media outlets in more than
      135 countries.





On
      June
      13, 2006, Financial Media Group, Inc. established a wholly owned subsidiary
      My
      WallStreet, Inc. Launched in January 2007, www.mywallst.net is an online
      community for investors. The website offers free membership to several social
      networking applications including messaging, blogs, message boards, video and
      audio uploads, and personal profile pages. In addition, members of
      www.mywallst.net can participate in the “Rookie Challenge,” a proprietary
      virtual stock trading simulator that allows members to compete against each
      other for a weekly cash prize of $1,000. Members can also communicate with
      another, rate individual stocks, post comments on individual stocks, and compile
      their own Watchlist of stocks, which can be viewed and commented on, by other
      members of the online community. Unlike other social network services including
      MySpace and FaceBook, mywallst.net members have one interest in common: they
      want to become better investors. Through its user-friendly, content-rich,
      interactive interface, the company plans to target executives, investment
      professionals, students, and retail investors from around the
      world.





In
      January 2007, the Company acquired the trade name “The Wealth Expo” and formed a
      wholly owned subsidiary The Wealth Expo Inc. on June 12, 2007. The Wealth Expo
      is designed to provide a broad range of information on investing techniques,
      and
      tools to investors through workshops and exhibits held throughout the United
      States. Exhibitors at the Wealth Expo include public and private companies,
      franchises, financial newsletter publishers, investor education providers,
      and
      real estate companies. The Wealth Expo provides several new revenue streams
      for
      the Company through exhibition sales, speaking presentation sales, collateral
      material sales, and advertising sales. Since its inception, The Wealth Expo
      has
      attracted hundreds of exhibitors and thousands of attendees from around the
      world.





**Business
      Segment**





Financial
      Media Group, Inc. is a fully integrated financial brand builder focusing on
      developing better tools and education for both the retail investor and small
      to
      medium size public companies. Management analyzes its client's operations by
      reviewing financial information regarding products and services that are
      aggregated into a single operating segment, investor awareness.





**GENERAL**





The
      Company has established itself as specializing in financial news, tools and
      original, compelling content for the global investment community. WallStreet
      Direct’s flagship website, Wallst.net, features information on thousands of
      publicly traded companies through exclusive executive management interviews,
      original articles, financial tools, and community driven
      applications.





The
      Company is an end-destination website for retail investors, investment
      professionals, and executives from around the world. The Company’s Financial
      Filings Corp. subsidiary was initiated to leverage WallStreet Direct, Inc.’s
      existing client base, by offering Edgarization services to small and mid-sized
      public companies. With the establishment of My WallStreet, Inc. an all-new
      social networking website, an eCommerce platform, proprietary branded products,
      and a financial education platform, all of which will be vertically integrated
      with the Company’s existing web properties, and brands.





**Market**





Regulation
      Fair Disclosure and The Sarbanes Oxley Act have changed the landscape of
      investor relations ("IR") dramatically, forcing companies to re-evaluate the
      methods they use to communicate with investors. These regulations have also
      put
      the spotlight on Web-based disclosure and have turned web casting and Web sites
      into mission-critical applications. In the wake of these regulatory changes,
      investors are looking to get more of their information directly from the
      company.





Small
      and
      medium size public companies do not receive the same coverage as large public
      companies. Over the last few years, the Internet has become a cost-effective
      solution to enhance the profile of public companies, but many small and mid
      cap
      companies have lacked the skills and knowledge to take full advantage of this
      opportunity. This had led to the outsourcing of Internet related services.
      Requirements of small and mid cap companies are broad and range from the design,
      development, and maintenance of investor relations oriented websites to the
      creation of effective on-line advertising campaigns.





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          4
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The
      recent wake of corporate scandals has resulted in declining investor confidence
      and heightened demands to make publicly traded companies more transparent.
      Investors today expect more financial and non-financial data than ever before.
      With the widespread use of the web as a timely, low-cost means of disseminating
      information, both regulatory bodies and investors have grown more aggressive
      in
      their demands for fair and timely access to unfiltered company
      information.





Many
      companies have fewer sell-side analysts covering their stock. Since most
      investors use some formal analysis to make investment decisions, sell-side
      coverage is valuable for attracting investors who might not otherwise find
      an
      emerging company on their radar screen. The staff reductions at Wall Street
      securities firms in the last few years have resulted in thinner coverage by
      sell-side analysts and brokers, opening the way for companies to use the
      Internet to communicate directly with investors and the media. Gone are the
      days
      when a company can rely exclusively on their sell-side analysts to deliver
      their
      message to the buy side. In this new environment, companies need to find ways
      to
      communicate directly to investors. Web-based communications can play an
      important role in providing tools for companies to reach buy side investors
      with
      your company’s message.





**Competition**





Generally,
      competitive factors within the investor awareness market include the range
      and
      depth of financial tools and dimensions of email offerings, the quality of
      web
      site content, and the reliability of reference information provided in
      connection with the sundry active campaigns. We are aware of several companies
      which are much larger and have greater name recognition, that provide some
      level
      of investor awareness in similar delivery formats. However, we believe that:
      (i)
      the depth and quality of our information, (ii) the assortment of the Company’s
      financial tools, (iii) and the Company’s Web site, provide us with a competitive
      advantage compared to other investor awareness providers.





**RISK
      FACTORS**





**The
      Diminution or loss, misappropriation or legal claims on the brand name
      "WALLST.NET" would have a material adverse affect on our
      business.**




The
      Company is highly dependent on our brand name "Wallst.net" for the success
      of
      our venture. It believes the diminution or loss, misappropriation of our
      existing proprietary rights or claims of infringement or legal actions related
      to intellectual property of "Wallst.net" brand name, or any other negative
      market or industry perception arising from these, would have a material adverse
      effect on our business.





The
      Company currently relies on contractual rights, copyrights, trademarks, and
      trade secrets to protect our intellectual property rights. The Company does
      not
      hold any patents. There can be no assurance that the Company means of protecting
      its proprietary rights will be adequate or that our competitors will not
      independently develop comparable or superior technologies or obtain unauthorized
      access to its proprietary technologies.





The
      Company holds the Internet domain name www.wallst.net. Under current domain
      name
      registration practices, no one else can obtain an identical domain name, but
      someone might obtain a similar name, or the identical name with a different
      suffix, such as ".org,” or with a country designation. The regulation of domain
      names in the United States and in foreign countries is subject to change, and
      the Company would be unable to prevent third parties from acquiring domain
      names
      that infringe or otherwise decrease the value of our domain names.





**Our
      operating results may fluctuate significantly in the future as a result of
      a
      variety of factors, many of which are outside our control. These factors
      include:**





In
      early
      stage of the Company’s development and traffic levels on the Company’s web site,
      commerce may fluctuate significantly as a result of business and financial
      news
      events; the demand for advertising on its web site as well as on the web in
      general; changes in rates paid for web advertising resulting from competition
      or
      other factors; the Company’s ability to enter into or renew key agreements; the
      amount and timing of our costs related to the Company’s marketing efforts or
      other initiatives; fees paid for distribution or content agreements or other
      costs incurred as the Company expands its operations; new services introduced
      by
      the Company or our competitors; competitive factors; technical difficulties
      or
      system downtime affecting the web generally or the operation of the Company’s
      web site; or economic conditions specific to the web as well as general economic
      conditions.





The
      Company expects that over time its revenues will come from a mix of investor
      awareness work, advertising, content licensing, membership driven e-commerce,
      and newspaper subscription service fees. However, the Company expects to be
      substantially dependent on investor awareness work and advertising revenues
      for
      the foreseeable future. Therefore, the Company’s revenues and operating results
      are likely to be particularly affected by the level of its ability to win
      various investor awareness mandates and advertising proposals going forward.
      The
      Company’s cost structure could also change dramatically as it scales up its
      operations in each business segment. Any shortfall in the Company’s revenues
      would have a direct impact on its operating results going forward and these
      fluctuations could negatively affect the value of common stock in a manner
      unrelated to the Company’s long-term operating performance.





**We
      could experience seasonal and cyclical factors including but not limited to
      economy, stock market conditions, and geo-political risks on our
      business.**





The
      Company believes that investor relations budget and advertising sales generally
      tend to be limited during economic downturn, recession, bear market, decline
      in
      consumer confidence and increase in geo-political risks. Financial media
      industry follows the same seasonal patterns as those in the traditional media;
      the Company may experience lower revenues subject to deteriorating economic
      and
      market conditions. Furthermore, traffic levels on the Company’s web site
      typically fluctuate with the occurrence of significant events in the business
      and financial news, such as fluctuations in the stock markets, changes in
      geo-political situations, major news and events related to business, companies
      that could cause changes in the Company’s audience size.





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          5
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**There
      is intense competition for web-based business and financial content and the
      Company may not be able to compete successfully.**





Many
      web
      sites compete for consumers' and advertisers' attention and spending,
      particularly in the business and financial information and news area. The
      Company expects this competition to continue to increase. The Company competes
      for investor relation campaign, advertisers, users, and content providers with
      many types of companies:





Publishers
      and distributors of traditional media, including television, radio and print,
      such as The WallStreet Journal, CNN and CNBC; general purpose consumer online
      services such as America Online and Microsoft Network; Online services or web
      sites targeted to business, finance and investing needs, such as TheStreet.com
      and Motley Fool; and web retrieval and other web "portal" companies, such as
      Excite, Infoseek, Lycos, Yahoo! and America Online.





Increased
      competition could result in price reductions, reduced margins, or loss of market
      share, any of which would adversely affect the Company’s business.





**We
      will need to establish and maintain strategic relationships with other web
      sites
      to attract users, advertisers, and content.**





The
      Company depends on establishing and maintaining distribution relationships
      with
      high-traffic web sites for a significant portion of our traffic. There is
      intense competition for placements on these sites, and the Company may not
      be
      able to enter into such relationships on commercially reasonable terms or at
      all. Even if the Company enters into distribution relationships with these
      web
      sites, they themselves may not attract significant numbers of users. Therefore,
      the Company’s web site may not receive additional users from these
      relationships. Moreover, the Company may have to pay significant fees to
      establish these relationships.





Occasionally
      the Company enters into agreements with advertisers, content providers or other
      high traffic web sites that require us to exclusively feature these parties
      in
      certain sections of the Company’s web site. Existing and future exclusivity
      arrangements may prevent the Company from entering into other content
      agreements, advertising or sponsorship arrangements, or other strategic
      relationships. Many companies that the Company pursues for a strategic
      relationship also offer competing services. As a result, these competitors
      may
      be reluctant to enter into strategic relationships with the Company. The
      Company’s business could be adversely affected if the Company does not establish
      and maintain additional strategic relationships on commercially reasonable
      terms
      or if any of the Company’s strategic relationships do not result in increased
      use of its web site.





**We
      are significantly influenced by our officers, directors and entities affiliated
      with them.**





In
      the
      aggregate, ownership of Financial Media Group, Inc. shares by management
      represents approximately 67% of issued and outstanding shares of common stock.
      These shareholders, if acting together, will be able to significantly influence
      all matters requiring approval by shareholders, including the election of
      directors and the approval of mergers or other business combinations
      transactions. The Company’s future performance is dependent on the ability to
      retain key personnel. The Company’s performance is substantially dependent on
      the performance of senior management and key technical personnel. In particular,
      the Company's success depends on the continued efforts of its senior management
      team.





**The
      loss of the services of any of its executive officers or other key employees
      could have a material adverse effect on the Company's business, results of
      operations and financial condition.**





Future
      success also depends on the continuing ability to retain and attract highly
      qualified technical, editorial, and managerial personnel. The Company
      anticipates that the number of employees will increase in the next 12 months.
      Wages for managerial and technical employees are increasing and are expected
      to
      continue to increase in the foreseeable future due to the competitive nature
      of
      this job market. The Company has experienced difficulty from time to time in
      attracting the personnel necessary to support the growth of its business, and
      there can be no assurance that it will not experience similar difficulty in
      the
      future. The inability to attract and retain the technical and managerial
      personnel necessary to support the growth of its business could have a material
      adverse effect upon the Company's business, results of operations and financial
      condition.





**The
      Company depends on our direct sales force to sell advertising on our Web
      site.**





The
      Company has created its own internal sales force. Presently the sales group
      has
      thirteen (13) members. The Company depends on its sales force to sell
      advertising on its Web site. This involves a number of risks, such as a)
      these sales personnel have only worked for the Company for a short period of
      time; b) the Company needs to further increase the size of its sales force;
      c) its ability to hire, retain, integrate and motivate additional sales and
      sales support personnel; d) the length of time it takes new sales personnel
      to
      become productive; and, e) the competition the Company faces from other
      companies in hiring and retaining sales personnel.




**The
      Company depends on advertisers from the financial industry and may not succeed
      in attracting advertisers from other industries.**





Publicly
      traded companies have accounted for the substantial majority of the Company’s
      advertising revenues. The Company will need to sell advertising to customers
      outside our client base in order to increase its revenues. To date, relatively
      few advertisers from industries other than publicly traded companies and
      financial industries have devoted a significant portion of their advertising
      budgets to web advertising. If the Company does not attract advertisers from
      other industries, its business could be adversely affected.





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          6
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**The
      Company systems may not be able to accommodate increases in the number of users
      of the Company’s services.**





In
      the
      past, the Company’s Web site has experienced significant increases in traffic
      when there is noteworthy business or financial news stories. In addition, the
      number of the Company’s users has continued to increase over time as the Company
      continues to seek further increases in its user base. Consequently, the
      Company’s Web site must accommodate a high volume of traffic and deliver
      frequently updated information. The Company’s Web site has in the past and may
      in the future experience slower response times or other problems for a variety
      of reasons.





The
      Company’s web site could experience disruptions or interruptions in service due
      to the failure or delay in the transmission or receipt of this information.
      In
      addition, the Company’s users depend on Internet service providers, online
      service providers and other web site operators for access to the Company’s Web
      site. Each of them has experienced significant outages in the past, and could
      experience outages, delays and other difficulties due to system failures
      unrelated to the Company’s systems. These types of occurrences could cause users
      to perceive the Company’s Web site as not functioning properly and therefore
      cause them to use other methods to obtain their business and financial news
      and
      other information.





**If
      the Company does not develop new and enhanced services and features for its
      Web
      site, the Company may not be able to attract and retain a sufficient number
      of
      users.**





The
      Company believes that its Web site will be more attractive to advertisers if
      the
      Company develops a larger audience comprised of demographically favorable users.
      Accordingly, the Company intends to introduce additional or enhanced services
      in
      the future in order to retain its current users and attract new users. If the
      Company introduces a service that is not favorably received, the current users
      may not continue using the Company’s service as frequently. New users could also
      choose a competitive service over the Company’s.





The
      Company may also experience difficulties that could delay or prevent the Company
      from introducing new services. Furthermore, these services may contain errors
      that are discovered after the services are introduced. The Company may need
      to
      significantly modify the design of these services on its Web site to correct
      these errors. The Company’s business could be adversely affected if it
      experiences difficulties in introducing new services or if users do not accept
      these new services.





**The
      Company needs and may be unable to obtain additional funding on satisfactory
      terms, which could dilute its shareholders or impose burdensome financial
      restrictions on its business.**





The
      supplementary development of the Company’s product offerings will require a
      commitment of substantial funds. The Company’s future capital requirements will
      depend on the costs of its research and development programs for the continuance
      of updating the Company’s services.





The
      Company will need to raise substantial additional capital to fund its future
      operations. The Company cannot be certain that additional financing will be
      available on acceptable terms, or at all. In recent years, it has been difficult
      for companies to raise capital due to a variety of factors, which may or may
      not
      continue. To the extent the Company raises additional capital through the sale
      of equity securities; the ownership position of our existing stockholders could
      be substantially diluted. If additional funds are raised through the issuance
      of
      preferred stock or debt securities, these securities are likely to have rights,
      preferences, and privileges senior to the Company’s common stockholders.
      Fluctuating interest rates could also increase the costs of any debt financing
      the Company may obtain.





Failure
      to successfully address ongoing liquidity requirements will have a material
      adverse effect on the Company’s business. If the Company is unable to obtain
      additional capital on acceptable terms when needed, the Company may be required
      to take actions that harm its business and the Company’s ability to achieve
      positive cash flows in the future, including possibly the surrender of its
      rights to some technologies or product opportunities, delaying the Company’s
      development strategies or curtailing or even ceasing operations.





**The
      Company’s failure to manage growth effectively could impair its
      business.**





The
      Company’s business strategy envisions a period of rapid growth that may put a
      strain on its administrative, operational resources and funding requirements.
      The Company’s ability to effectively manage growth will require them to continue
      to expand the capabilities of its operational and management systems and to
      attract, train, manage and retain qualified editors, technicians, salespersons
      and other personnel. There can be no assurance that the Company will be able
      to
      do so, particularly if losses continue and the Company is unable to obtain
      sufficient financing. If the Company is unable to successfully manage growth,
      its business, prospects, financial condition, and results of operations could
      be
      adversely affected.





**The
      Company does not anticipate paying cash dividends on its common
      stock.**





The
      Company does not anticipate paying any cash dividends on the common stock in
      the
      foreseeable future





-
          7
          -






**RISKS
      RELATED TO OUR INDUSTRY**





**The
      Company depends on the continued growth in the use of the web, particularly
      for
      financial news and information.**





The
      Company’s business depends on consumers continuing to increase their use of the
      web for obtaining news and financial information as well as for conducting
      commercial transactions. The rapid growth and use of the Internet is a recent
      phenomenon. As a result this acceptance and use may not continue to develop
      at
      historical rates. Web usage may be inhibited for a number of reasons, such
      as:





**Inadequate
      network infrastructure; security concerns; inconsistent quality of service;
      and
      availability of cost-effective, high-speed service.**





If
      web
      usage grows, the Internet infrastructure may not be able to support the demands
      placed on it by this growth or its performance and reliability may decline.
      In
      addition, web sites have experienced interruptions in their service as a result
      of outages and other delays occurring throughout the Internet network
      infrastructure. If these outages or delays frequently occur in the future,
      web
      usage, as well as usage of our web site, could grow more slowly or
      decline.





**The
      Company depends on the sale of advertisements on its Web site and if web
      advertising does not become accepted, the Company’s business would be
      harmed.**





The
      Company expects to derive a substantial amount of its revenues from advertising
      for the foreseeable future. No standards have been widely accepted to measure
      the effectiveness of web advertising. If such standards do not develop, existing
      advertisers may not continue their current levels of web advertising.
      Furthermore, advertisers that have traditionally relied upon other advertising
      media may be reluctant to advertise on the web. Advertisers that already have
      invested substantial resources in other advertising methods may be reluctant
      to
      adopt a new strategy. The Company’s business would be adversely affected if the
      market for web advertising fails to develop or develops more slowly than
      expected. Different pricing models are used to sell advertising on the web.
      It
      is difficult to predict which, if any, will emerge as the industry standard.
      This makes it difficult to project our future advertising rates and revenues.
      For example, advertising rates based on the number of "click throughs," or
      user
      requests for additional information made by clicking on the advertisement,
      instead of rates based solely on the number of impressions, or times an
      advertisement is displayed, could adversely affect our revenues because
      impression-based advertising comprises a substantial majority of our current
      advertising revenues. The Company’s advertising revenues could be adversely
      affected if it is unable to adapt to new forms of web advertising. Moreover,
      "filter" software programs that limit or prevent advertising from being
      delivered to a web user's computer are available. Widespread adoption of this
      software could adversely affect the commercial viability of web
      advertising.





**Government
      regulation and legal uncertainties relating to the web could hinder the
      popularity of the worldwide web.**





There
      are
      currently few laws or regulations that specifically regulate communications
      or
      commerce on the web. However, laws and regulations may be adopted in the future
      that address issues such as user privacy, pricing, and the characteristics
      and
      quality of products and services. For example, the telecommunications act sought
      to prohibit transmitting certain types of information and content over the
      web.
      Several telecommunications companies have petitioned the federal communications
      commission to regulate Internet service providers and online services providers
      in a manner similar to long distance telephone carriers and to impose access
      fees on these companies. This could increase the cost of transmitting data
      over
      the Internet. Moreover, it may take years to determine the extent to which
      existing laws relating to issues such as property ownership, libel and personal
      privacy are applicable to the web. Any new laws or regulations relating to
      the
      web could adversely affect the Company’s business.





**Web
      security concerns could hinder Internet commerce.**





The
      need
      to securely transmit confidential information over the Internet has been a
      significant barrier to electronic commerce and communications over the web.
      Any
      well-publicized compromise of security could deter more people from using the
      web or from using it to conduct transactions that involve transmitting
      confidential information, such as stock trades or purchases of goods or
      services. Since many of the Company’s advertisers seek to advertise on the
      Company’s Web site to encourage people to use the web to purchase goods or
      services, the Company’s business could be adversely affected. The Company may
      also incur significant costs to protect against the threat of security breaches
      or to alleviate problems caused by such breaches.





**The
      Company could face liability for the information displayed on its Web
      site.**





The
      Company may be subjected to claims for defamation, negligence, and copyright
      or
      trademark infringement or based on other theories relating to the information
      the Company publishes on its web site. These types of claims have been brought,
      sometimes successfully, against online services as well as other print
      publications in the past. The Company could also be subjected to claims based
      upon the content that is accessible from its Web site through links to other
      web
      sites.




**EMPLOYEES**





As
      of
      August 31, 2007, the Company employed 42 full-time employees. Management
      consisted of five (5) employees, sales and client management department
      consisted of twenty two (22) employees, editorial and development staff consists
      of seven (7) employees, technology department consists of five (5) employees,
      and administration staff consisted of three (3) employees.




**Item
      2. Properties**





I**ntellectual
      Property, Proprietary Rights and Domain Names**





The
      Company owns the domain names www.wallst.net, www.18004wallst.com,
      www.financialfilings.com and www.mywallst.net, www.wealthexpo.net as well as
      the
      phone number 1-800-4WALLST. The Company believes its ownership of these domain
      names gives it adequate protection over them and it intends to keep them in
      its
      possession.




-
            8
            -


Other
      intellectual property is protected through a combination of trademark law,
      trade
      secret protection, and confidentiality agreements with our employees, customers,
      independent contractors, agents, and vendors. The Company pursues the
      registration of its domain names, trademarks, and service market in the United
      States. Effective trademark, service mark, copyright, and trade secret
      protection may not be available in every country in which the Company's services
      and products are made available on-line. The Company creates some of its own
      content and obtains the balance of its content from third parties. It is
      possible that it could become subject to infringement actions based upon the
      content obtained by third parties. In addition, others may use this content
      and
      the Company may be subject to claims from its licensors. The Company currently
      has no patents or patents pending and does not anticipate that patents will
      become a significant part of its intellectual property in the future. The
      Company enters into confidentiality agreements with its employees and
      independent consultants and has agreements with its employees and independent
      consultants and has instituted procedures to control access to and distribution
      of its technology, documentation and other proprietary information and the
      proprietary information of others from who it licenses content. The steps it
      takes to protect its proprietary rights may not be adequate and third parties
      may infringe or misappropriate the trademarks, service marks, and similar
      proprietary rights. In addition, other parties may assert claims of infringement
      of intellectual property or alter proprietary rights against the Company. The
      legal status of intellectual property on the Internet is currently subject
      to
      various uncertainties as legal precedents have not been set and are still to
      be
      determined in many areas of Internet law.





**Corporate
      Offices**





The
      Company's corporate offices consist of 11,531 sq. feet of office space in a
      brick and glass modern building in Irvine, California. The Company has a four
      (4) year lease expiring in February 28, 2010 at a monthly rental of $24,791.
      The
      Company subleases an office space in New York City, New York from a third party
      under an agreement to pay a monthly rental of $9,075. The sublease arrangement
      expired on October 9, 2007 and the Company is currently leasing the office
      space
      on a month-to-month lease. The Company's facilities are fully used for current
      operations.





**Item
      3. Legal Proceedings**





There
      are
      no legal proceedings to which the Company is a party or to which any of its
      property is subject, and to the best of its knowledge, no such actions against
      the Company are contemplated or threatened.





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





None.





**PART
      II**





**Item
      5. Market for Common Equity and Related Stockholder
      Matters**





The
      Company's common stock, par value, $0.001 per share ("Common Stock") is traded
      on the Over the Counter NASDAQ Electronic Bulletin Board ("OTC:BB") under the
      symbol "FNGP.” The following table sets forth, for the period indicated, the
      range of high and low closing prices reported by the OTC. Such quotations
      represent prices between dealers and may not include markups, markdowns, or
      commissions and may not necessarily represent actual transactions.





**Fiscal
                Year Ending August 31, 2005**
            
            **High
                Bid**
            
            **Low
                Bid**Quarter
                Ending November 30, 2004
            
            $
            0.78
            
            $
            0.30Quarter
                Ending February 28, 2005
            
            $
            1.20
            
            $
            0.35Quarter
                Ending May 31, 2005
            
            $
            0.74
            
            $
            0.15Quarter
                Ending August 31, 2005
            
            $
            0.25
            
            $
            0.17**Fiscal
                Year Ending August 31, 2006**Quarter
                Ending November 30, 2005
            
            $
            1.60
            
            $
            0.16Quarter
                Ending February 28, 2006
            
            $
            1.69
            
            $
            1.00Quarter
                Ending May 31, 2006
            
            $
            1.95
            
            $
            1.50Quarter
                Ending August 31, 2006
            
            $
            2.80
            
            $
            1.65**Fiscal
                Year Ending August 31, 2007**Quarter
                Ending November 30, 2006
            
            $
            2.80
            
            $
            1.91Quarter
                Ending February 28, 2007
            
            $
            2.54
            
            $
            1.22Quarter
                Ending May 31, 2007
            
            $
            1.70
            
            $
            0.52Quarter
                Ending August 31, 2007
            
            $
            0.50
            
            $
            0.36




-
          9
          -






**Holders**





On
      November 20, 2007 the "bid" price for the Registrant's common stock on the
      OTC
      Bulletin Board was $0.40 per share. On November 20, 2007, there were
      approximately 1,084 shareholders of record of the Registrant's common
      stock.





The
      total
      aggregate number of shares of all classes of capital stock, which the Registrant
      has authority to issue is 305,000,000 of which 300,000,000 are shares of common
      stock, $0.001 par value and 5,000,000 are shares of preferred stock, $0.001
      par
      value. On August 31, 2007 there were 33,082,566 shares of Common Stock issued
      and outstanding and no shares of preferred stock issued and
      outstanding.





**Dividends**





The
      Company has not declared any cash dividends since inception and does not
      anticipate paying any dividends in the foreseeable future. The payment of
      dividends is within the discretion of the Board of Directors and will depend
      on
      the Company’s earnings, capital requirements, financial condition, and other
      relevant factors. There are no restrictions that currently limit the Company’s
      ability to pay dividend on its Common Stock other than those generally imposed
      by applicable state law.





**Recent
      Sales of Unregistered Securities**





On
      July
      3, 2007, the Company issued 63,173 shares of common stock pursuant to the
      exercise of Class B Warrants which were issued in conjunction with a private
      placement in June 2005.  The Company received $63,173 in cash
      consideration.




On June 26, 2007, the Company amended the scope a consulting
      agreement that the Company entered into on February 1, 2007, and granted
      non-qualified stock options to the consultant to purchase 1,450,000 shares
      of
      its common stock at an exercise price of $0.31 per share. At the date of grant,
      the fair market value of the Company’s common stock was $0.70 per share, as
      reflected by the bid price on the Over-the Counter market. In accordance with
      Black-Scholes calculations, the Company recorded $1,108,405 as an expense in
      the
      accompanying financial statements as of August 31, 2007. All of the options
      were
      exercised on July 27, 2007, and the Company received cash consideration of
      $450,000.




Between
      June 1st and
      August 31st,
      2007, the Company sold 1,133,943 shares of common stock pursuant to exemptions
      from registration provided by Regulation S of the Securities Act of 1933, at
      prices between $.24 and $.44 per share after a discount of approximately 65%
      from the bid prices, for a total cash consideration of $289,480.




Regulation
      S provides generally that any offer or sale that occurs outside of the United
      States is exempt from the registration requirements of the Securities Act,
      provided that certain conditions are met. Regulation S has two safe harbors.
      One
      safe harbor applies to offers and sales by issuers, securities professionals
      involved in the distribution process pursuant to contract, their respective
      affiliates, and persons acting on behalf of any of the foregoing (the “issuer
      safe harbor”), and the other applies to resales by persons other than the
      issuer, securities professionals involved in the distribution process pursuant
      to contract, their respective affiliates (except certain officers and
      directors), and persons acting on behalf of any of the forgoing (the “resale
      safe harbor”). An offer, sale or resale of securities that satisfied all
      conditions of the applicable safe harbor is deemed to be outside the United
      States as required by Regulation S. The distribution compliance period for
      shares sold in reliance on Regulation S is one year.




The
      Company complied with the requirements of Regulation S by having no directed
      selling efforts made in the United States, by selling only to an offeree who
      was
      outside the United States at the time of the offering, and ensuring that the
      entity to whom the stock was issued was a non-U.S. person with an address in
      a
      foreign country.





**Item
      6. Management's Discussion and Analysis of Financial Condition and
      Results of Operations**





The
      following information should be read in conjunction with our consolidated
      financial statements and notes thereto appearing elsewhere in this Form
      10-KSB.





-
          10
          -






**Forward
      Looking Statements**





This
      Form
      10-KSB including the Management's Discussion and Analysis or Plan of Operation
      contains forward-looking statements that involve substantial risk and
      uncertainties. These forward-looking statements are not historical facts but
      rather are based on current expectations, estimates, and projections about
      the
      Company's industry, beliefs, and assumptions. Such forward-looking statements
      involve risks and uncertainties that could cause risks or outcomes to differ
      materially from those expressed in the forward-looking statements.




Forward-looking
      statements may include without limitation statements relating to the Company's
      plans, strategies, objectives, expectations, and intentions and are intended
      to
      be made pursuant to the Safe Harbor provisions of the Private Securities
      Litigation Reform Act of 1995. Words such as "anticipates,” "expects,"
      "intends," "plans," "believes," "seeks," and "estimates" and variations of
      these
      words and similar expressions are intended to identify forward-looking
      statements. These statements are not guarantees of future performance and are
      subject to certain risks, uncertainties, and other factors, some of which are
      beyond our control and difficult to predict and could cause actual results
      to
      differ materially from those expressed or forecasted in the forward-looking
      statements including without limitation:





·
            The
                state of securities markets in which the securities of the Company's
                portfolio company trade or could be traded. Liquidity within the
                national
                financial markets.





·
            Economic
                downturns or recessions may impair the Company's customers' ability to
                repay our loans and increase our non-performing
                assets.





·
            A
                contraction of available credit and/or inability to access the equity
                markets could impair our lending and investment
                activities.





·
            The
                risks associated with the possible disruption in the Company's operations
                due to terrorism and,





·
            The
                risks and uncertainties described under the caption "Risk Factors
                and
                Other Considerations" contained in Part I, Item 1, which is incorporated
                herein by reference.





Although
      the assumptions on which these forward looking statements are based are
      reasonable, any of those assumptions also could be incorrect. In light of these
      and other uncertainties, the inclusion of a projection or forward-looking
      statements in this Annual Report should be regarded as a representation of
      the
      Company that its plans and objectives will be achieved. Undue reliance should
      not be placed on these forward-looking statements, which apply only as of the
      date of this Annual Report.





**Plan
      of Operations**





Since
      the
      termination of its BDC status in June 2005, the Company's objective had been
      to
      acquire business entities that have experienced management and opportunities
      for
      growth in exchange for its securities. The Company completed its acquisition
      of
      WallStreet in January 2006 and WallStreet became a wholly-owned subsidiary
      of
      the Company.





The
      Company's current operations consist of the operations of WallStreet, a
      financial media and advertising company that provides various financial Internet
      solutions, tools, content and services to individual investors, media,
      corporate, and financial services companies. WallStreet also provides
      Internet-based media and advertising services through its financial Web site
      www.wallst.net, investor conferences, and print publications that are
      distributed to investment professionals across North America. Advertising on
      WallSt.net consists of continuous or rotating client profiles on various Web
      pages within WallSt.net. Delivery of these profiles is based on a certain number
      of impressions on WallSt.net depending on our client agreements. An impression
      is defined as a single instance of an advertisement being displayed. WallStreet
      also provides E-mail services to its clients, which are mailings sent to a
      targeted list of e-mail addresses, with delivery consisting solely of
      transmitting the mailing to the e-mail targets. E-mail services may be purchased
      on a per-transmittal basis, for which revenue is recorded when the transmittal
      occurs, or on a fixed-fee basis in which the client receives access to a fixed
      number of transmittals per-month. The Company records the revenue on the
      fixed-fee basis pro rated over the term of the client agreement.





The
      Company established its Financial Filings Corp. subsidiary to leverage
      WallStreet Direct, Inc.’s existing client base, by offering Edgarization
      services to small and mid-sized public companies. Compliance requirements for
      public companies are becoming increasingly stringent and costly. Financial
      Filings Corp. offers small and mid-sized public companies a channel to
      accurately format pertinent SEC filings. Financial Filings is a provider of
      news
      wire and compliance services to small and mid-sized publicly traded companies
      worldwide including preparation of registration statements, electronic filings
      for SEC documents (EDGAR), preparation of proxy materials, and news distribution
      in more than 30 languages to media outlets in more than 135
      countries.





In
      January 2007, the Company acquired the trade name “The Wealth Expo” and formed a
      wholly owned subsidiary The Wealth Expo Inc. on June 12, 2007. The Wealth Expo
      is designed to provide a broad range of information on investing techniques,
      and
      tools to investors through workshops and exhibits held throughout the United
      States. Exhibitors at the Wealth Expo include public and private companies,
      franchises, financial newsletter publishers, investor education providers,
      and
      real estate companies. The Wealth Expo provides several new revenue streams
      for
      the Company through exhibition sales, speaking presentation sales, collateral
      material sales, and advertising sales. Since its inception, The Wealth Expo
      has
      attracted hundreds of exhibitors and thousands of attendees from around the
      world.





-
          11
          -






**Results
      of Operations**





The
      consolidated results of operations of the Company for the twelve months ended
      August 31, 2007 consisted of the results of operations of the Company, its
      wholly-owned subsidiary WallStreet, its wholly-owned subsidiary Financial
      Filings, Corp., its wholly-owned subsidiary My WallStreet, Inc., and its
      wholly-owned subsidiary The Wealth Expo Inc. from the date of incorporation
      of
      June 12, 2007 to August 31, 2007.





The
      consolidated results of operations of the Company for the twelve months ended
      August 31, 2006 consisted of the operations of the Company for the period from
      January 6, 2006 (the date of acquisition of WallStreet) to August 31, 2006,
      twelve months operations of its wholly-owned subsidiary WallStreet, results
      of
      operations of its wholly-owned subsidiary Financial Filings, Corp. from the
      date
      of incorporation of February 13, 2006 to August 31, 2006, and results of
      operations of My WallStreet, Inc. from the date of incorporation of June 13,
      2006 to August 31, 2006. The acquisition of WallStreet is accounted for as
      a
      reverse acquisition under the purchase method of accounting since the
      shareholders of WallStreet obtained control of the consolidated entity.
      Accordingly, the merger of the two companies is recorded as a recapitalization
      of WallStreet, with WallStreet being treated as the continuing
      entity.





The
      Company reported a net loss of $5,937,675 for the twelve months ended August
      31,
      2007 compared to net loss of $1,608,268 for the same period ended August 31,
      2006. The loss was principally attributable to the reduced valuation of market
      securities in the Company's portfolio, as more fully explained in "Operating
      Expenses" below.





**Revenues**





Revenues
      for the twelve months period ended August 31, 2007 were $7,090,042 compared
      to
      $6,631,631 for the same period in 2006. Revenues increased by $458,411 (7%)
      during the twelve months period due to the Company's expanded effort in
      marketing its services and gaining new clients.





**Operating
      Expenses**





Selling,
      general, and administrative expenses (S,G&A) for the twelve months period
      ended August 31, 2007 was $6,870,890 compared to $3,850,432 for the same period
      in 2006. S,G&A expenses increased by $3,020,458 (78%) during the twelve
      month period ended August 31, 2007 as compared to the same period in 2006,
      primarily due to increase in payroll costs, costs associated with opening of
      a
      new office in New York City, increase in administrative, sales and marketing
      personnel and increase in legal costs associated with new subsidiaries.
      Impairment of marketable securities for the twelve months period ended August
      31, 2007 was $5,595,929 compared to $2,914,877 for the same period ended in
      2006. Impairment expense was recorded because the market value of the securities
      received by the Company as compensation for services declined more than 50%
      of
      their market value and in the judgment of the Company appeared to be other
      than
      temporary reduction in the fair value of the marketable securities. Therefore,
      the Company took a conservative approach of recording the increased impairment
      expense. Depreciation expense for the twelve month period ended August 31,
      2007
      was $36,963 compared to $20,589 for the same period in 2006.




Interest
      expense for the twelve months period ended August 31, 2007 was $199,844 compared
      to $192,520 for the same period in 2006. Interest expense remained flat and
      increased by $7,324 (3.8%). Interest is charged on the $3,000,000 promissory
      notes executed by the Company in January 2005 due and payable in January 2010.
      Realized loss on sale of marketable securities for the twelve months period
      ended August 31, 2007 was $318,400 compared to $1,257,512 for the same period
      in
      2006. The Company sold non-performing marketable securities held in its
      possession and realized losses on their sale prior to December 31, 2006 to
      take
      advantage of tax loss for benefit in future periods. Unrealized loss for
      the year ended August 31, 2007 was $255,682 compared to an unrealized gain
      of $134,485 for the same period in 2006. Unrealized gain resulted due to the
      increase in market value of the marketable securities held at August 31, 2007
      and 2006, respectively.





**Liquidity
      and Capital Resources**





Cash
      and
      cash equivalents were $172,013 at August 31, 2007. No assurance can be made
      that
      the Company will have access to the capital markets in future, or that financing
      will be available on acceptable terms to satisfy the Company's cash requirements
      needed to implement its business strategies. The Company's inability to access
      the capital markets or obtain acceptable financing could have a material adverse
      affect on its results of operations and financial condition, and could severely
      threaten the Company's ability as a going concern.





As
      shown
      in the accompanying consolidated financial statements, the Company recorded
      a
      loss of $5,937,675 for the twelve months period ended August 31, 2007 compared
      to loss of $1,608,268 for the same period in 2006. The Company's current
      liabilities exceeded its current assays by $616,945 at August 31, 2007 and
      net
      cash used in operating activities for the twelve months ended August 31, 2007
      was $3,729,281. These factors and the Company's ability to meet its debt
      obligations from current operations, and the need to raise additional capital
      to
      accomplish its objectives questions the capacity of the Company's ability to
      continue as a going concern.





The
      Company has been able to meet its obligations through liquidation of its “Market
      Securities” portfolio; however, it has missed opportunities to maximize its
      value, due to the untimely demands for cash not matching with the highest market
      value. The components of the current liabilities specifically the “Deferred
      Revenue” classification, reflects a more informative view. As the Company enters
      into sundry contracts for services with its customers, contractually the revenue
      is earned upon execution of the agreement. The Company is in compliance with
      GAAP and amortizes this revenue stream over the life of the contract, thus
      a
      non-cash reduction of this liability. The adjusted current asset over current
      liabilities excluding deferred revenues is a positive $1,579,161.





-
          12
          -






**Operating
      Activities**





Net
      cash
      used in operating activities for the twelve months period ended August 31,
      2007
      was $3,729,281, resulted due to an increase in receivables of $122,159, increase
      in other current assets and deposits of $62,844, increase in accounts payable
      of
      $59,992, increase in accrued expenses, due to officers and other liabilities
      of
      $583,173, and increase in deferred revenues of $200,585.





**Investing
      Activities**





Net
      cash
      provided by investing activities for the twelve months period ended August
      31,
      2007 was $850,826. The Company received $871,394 in net cash proceeds from
      sale
      and purchase of marketable securities, and expended cash of $20,568 for purchase
      of property and equipment.





**Financing
      Activities**





Net
      cash
      provided by financing activities for the twelve months period ended August
      31,
      2007 was $2,993,638 due to cash received from sale of securities amounting
      to
      $2,445,010, cash received from exercise of options and warrants amounting to
      $775,673, and payment of loans to third parties of $227,045.





As
      a
      result of the above activities, the Company experienced a net increase in cash
      of $115,183 for the twelve months period ended August 31, 2007. The ability
      of
      the Company to continue as a going concern is still dependent on its success
      in
      obtaining additional financing from investors through the sale of its
      securities.





**Application
      of Critical Accounting Policies**





Revenue
      Recognition





The
      Company recognizes its revenue in accordance with the Securities and Exchange
      Commissions (“SEC”) Staff Accounting Bulletin No. 104, “Revenue Recognition in
      Financial Statements” (“SAB 104”). Revenue is recognized when merchandise is
      shipped to a customer.




Stock-Based
      Compensation





The
      Company adopted SFAS No. 123 (Revised 2004), *Share Based Payment*(“SFAS
      No. 123R”), under the modified-prospective transition method on January 1, 2006.
      SFAS No. 123R requires companies to measure and recognize the cost of
      employee services received in exchange for an award of equity instruments based
      on the grant-date fair value. Share-based compensation recognized under the
      modified-prospective transition method of SFAS No. 123R includes share-based
      compensation based on the grant-date fair value determined in accordance with
      the original provisions of SFAS No. 123, *Accounting for Stock-Based
      Compensation,*for all share-based payments granted prior to and not yet
      vested as of January 1, 2006 and share-based compensation based on the
      grant-date fair-value determined in accordance with SFAS No. 123R for all
      share-based payments granted after January 1, 2006. SFAS No. 123R
      eliminates the ability to account for the award of these instruments under
      the
      intrinsic value method prescribed by Accounting Principles Board (“APB”) Opinion
      No. 25, *Accounting for Stock Issued to Employees*, and allowed under the
      original provisions of SFAS No. 123. Prior to the adoption of SFAS No. 123R,
      the
      Company accounted for our stock option plans using the intrinsic value method
      in
      accordance with the provisions of APB Opinion No. 25 and related
      interpretations.





Issuance
      of Shares for Service





The
      Company accounts for the issuance of equity instruments to acquire goods and
      services based on the fair value of the goods and services or the fair value
      of
      the equity instrument at the time of issuance, whichever is more reliably
      measurable.





Impact
      of
      Accounting Pronouncements





In
      February 2006, FASB issued SFAS No. 155, "Accounting for Certain Hybrid
      Financial Instruments." SFAS No. 155 amends SFAS No 133, "Accounting for
      Derivative Instruments and Hedging Activities," and SFAF No. 140, "Accounting
      for Transfers and Servicing of Financial Assets and Extinguishments of
      Liabilities." SFAS No. 155, permits fair value re-measurement for any hybrid
      financial instrument that contains an embedded derivative that otherwise would
      require bifurcation, clarifies which interest-only strips and principal-only
      strips are not subject to the requirements of SFAS No. 133, establishes a
      requirement to evaluate interest in securitized financial assets to identify
      interests that are freestanding derivatives or that are hybrid financial
      instruments that contain an embedded derivative requiring bifurcation, clarifies
      that concentrations of credit risk in the form of subordination are not embedded
      derivatives, and amends SFAS No. 140 to eliminate the prohibition on the
      qualifying special-purpose entity from holding a derivative financial instrument
      that pertains to a beneficial interest other than another derivative financial
      instrument. This statement is effective for all financial instruments acquired
      or issued after the beginning of the Company's first fiscal year that begins
      after September 15, 2006.





-
          13
          -






In
      March
      2006, FASB issued SFAS 156 ‘Accounting for Servicing of Financial Assets’ this
      Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing
      of Financial Assets and Extinguishments of Liabilities, with respect to the
      accounting for separately recognized servicing assets and servicing liabilities.
      This Statement:





1.
            Requires
                an entity to recognize a servicing asset or servicing liability each
                time
                it undertakes an obligation to service a financial asset by entering
                into
                a servicing contract.





2.
            Requires
                all separately recognized servicing assets and servicing liabilities
                to be
                initially measured at fair value, if
                practicable.





3.
            Permits
                an entity to choose ‘Amortization method’ or ‘Fair value measurement
                method’ for each class of separately recognized servicing assets and
                servicing liabilities:





4.
            At
                its initial adoption, permits a one-time reclassification of
                available-for-sale securities to trading securities by entities with
                recognized servicing rights, without calling into question the treatment
                of other available-for-sale securities under Statement 115, provided
                that
                the available-for-sale securities are identified in some manner as
                offsetting the entity’s exposure to changes in fair value of servicing
                assets or servicing liabilities that a servicer elects to subsequently
                measure at fair value.





5.
            Requires
                separate presentation of servicing assets and servicing liabilities
                subsequently measured at fair value in the statement of financial
                position
                and additional disclosures for all separately recognized servicing
                assets
                and servicing liabilities.





This
      Statement is effective as of the beginning of the Company’s first fiscal year
      that begins after September 15, 2006. The management is currently evaluating
      the
      effect of this pronouncement on financial statements.





In
      September 2006, FASB issued SFAS 157 ‘Fair Value Measurements’. This Statement
      defines fair value, establishes a framework for measuring fair value in
      generally accepted accounting principles (GAAP), and expands disclosures about
      fair value measurements. This Statement applies under other accounting
      pronouncements that require or permit fair value measurements, the Board having
      previously concluded in those accounting pronouncements that fair value is
      the
      relevant measurement attribute. Accordingly, this Statement does not require
      any
      new fair value measurements. However, for some entities, the application of
      this
      Statement will change current practice. This Statement is effective for
      financial statements issued for fiscal years beginning after November 15, 2007,
      and interim periods within those fiscal years. The management is currently
      evaluating the effect of this pronouncement on financial
      statements.





In
      September 2006, FASB issued SFAS 158 ‘Employers’ Accounting for Defined Benefit
      Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87,
      88, 106, and 132(R)’ This Statement improves financial reporting by requiring an
      employer to recognize the over funded or under funded status of a defined
      benefit postretirement plan (other than a multiemployer 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 of a business entity or changes in unrestricted net assets of a
      not-for-profit organization. This Statement also improves financial reporting
      by
      requiring an employer to measure the funded status of a plan as of the date
      of
      its year-end statement of financial position, with limited exceptions. An
      employer with publicly traded equity securities is required to initially
      recognize the funded status of a defined benefit postretirement plan and to
      provide the required disclosures as of the end of the fiscal year ending after
      December 15, 2006. An employer without publicly traded equity securities is
      required to recognize the funded status of a defined benefit postretirement
      plan
      and to provide the required disclosures as of the end of the fiscal year ending
      after June 15, 2007. However, an employer without publicly traded equity
      securities is required to disclose the following information in the notes to
      financial statements for a fiscal year ending after December 15, 2006, but
      before June 16, 2007, unless it has applied the recognition provisions of this
      Statement in preparing those financial statements:





a. A
      brief description of the provisions
      of this Statement


b. The
      date that adoption is
      required


c. The
      date the employer plans to adopt
      the recognition provisions of this Statement, if earlier.





The
      requirement to measure plan assets and benefit obligations as of the date of
      the
      employer’s fiscal year-end statement of financial position is effective for
      fiscal years ending after December 15, 2008. The management is currently
      evaluating the effect of this pronouncement on financial
      statements.





In
      February 2007, FASB issued FASB Statement No. 159 “The Fair Value Option for
      Financial Assets and Financial Liabilities”. FASB 159 is effective for fiscal
      years beginning after November 15, 2007. Early adoption is permitted subject
      to
      specific requirements outlined in the new Statement. Therefore, calendar-year
      companies may be able to adopt FASB 159 for their first quarter 2007 financial
      statements.





The
      new
      Statement allows entities to choose, at specified election dates, to measure
      eligible financial assets and liabilities at fair value that are not otherwise
      required to be measured at fair value. If a company elects the fair value option
      for an eligible item, changes in that item's fair value in subsequent reporting
      periods must be recognized in current earnings. FASB 159 also establishes
      presentation and disclosure requirements designed to draw comparison between
      entities that elect different measurement attributes for similar assets and
      liabilities.




Off
      Balance Sheet Arrangements





The
      Company has no Off Balance Sheet arrangements at August 31, 2007.





-
          14
          -






**Item
      7. Consolidated Financial
      Statements**





Financial
      Statements are referred to in Item 13(a), listed in the Index to Financial
      Statements and filed and included elsewhere herein as a part of this Annual
      Report on Form 10-KSB.





**Item
      8. Changes in and Disagreements with Accountants on Accounting
      and Financial Disclosure**





None





**Item
      8A. Controls and Procedures**





(A)
      EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES





The
      Company’s Chief Executive Officer, Chief Operating Officer and Principal
      Financial and Accounting Officer, after evaluating the effectiveness of our
      disclosure controls and procedures (as defined in the Securities Act of 1934
      Rules 13a-14(c) and 15d-14(c) as of a date within 90 days of the filing date
      of
      this annual report on From 10-KSB (the "Evaluation Date"), has concluded that
      as
      of the Evaluation Date, our disclosure controls and procedures were adequate
      and
      effective to ensure that material information relating to us would be made
      known
      to him by others within the Company, particularly during the period in which
      this annual report on Form 10-KSB was being prepared.





(B)
      CHANGES IN INTERNAL CONTROLS





There
      were no significant changes in our internal controls or other factors that
      could
      significantly affect our disclosure controls and procedures subsequent to the
      Evaluation Date, nor any significant deficiencies or material weaknesses in
      such
      disclosure controls and procedures requiring corrective actions. As a result,
      no
      corrective actions were taken.





**Item
      8B. Other Information**





None.





**PART
      III**





**Item
      9. Directors, Executive Officers, Promoters and Control
      Persons; Compliance with Section 16(a) of the Exchange
      Act**





Set
      forth
      below is information with respect to our directors and executive officers as
      of
      August 31, 2007.





**Management**





**NAME**
            
            **AGE**
            
            **POSITION**Albert
                Aimers
            
            44
            
            Chairman
                of the Board and Chief Executive OfficerJavan
                Khazali
            
            43
            
            Chief
                Operating Officer and DirectorManu
                Ohri
            
            52
            
            Chief
                Financial OfficerTyson
                Le
            
            26
            
            SecretaryNick
                Iyer
            
            27
            
            DirectorWendy
                Borow-Johnson
            
            54
            
            DirectorTom
                Hemingway
            
            50
            
            Director





Albert
      Aimers was elected Chairman of the Board and Chief Executive Officer subsequent
      to the close of the Acquisition in January 2006. Mr. Aimers brings to "WSD"
      his
      business leadership, product development and creative talents. Mr. Aimers has
      been in the financial industry for 15 years specializing in such areas as
      Merchant and Investment Banking, Mergers and Acquisitions, Investor Awareness
      and Investor Relations and Financial and Media Relations and Strategic Investor.
      Mr. Aimers was an early primary Merchant Banker Investor in Sonus Healthcare
      (AMEX), and a strategic investor for National Challenge Systems ($80 Million
      market cap). Mr. Aimers was a former board member of Envoy Communications
      (ECGI-NASDAQ)-Advertising. Mr. Aimers was a founder of now defunct streaming
      media company iLive Inc. (former trading symbol LIVE). Mr. Aimers is the founder
      of Wallst.net and Wallstreet Direct Inc.





Javan
      Khazali became the Chief Operating Officer in January 2006 and had been the
      Chief Executive Officer and a director of the Company since November 2004.
      Mr.
      Khazali has over eighteen years of experience at senior executive level in
      both
      private and public sectors with main focus on services, telecommunications,
      and
      financial media industry segments. He has broad based experience in the areas
      of
      corporate restructuring & reorganization, business development, operations,
      and management consulting. Mr. Khazali joined Cypost Corporation ("Cypost")
      as
      Vice President (Administration) in 2001 and was promoted to become CEO of the
      Company from 2002 to 2003. In 2003, the directors of Cypost filed a Chapter
      7
      Bankruptcy. During the bankruptcy proceedings Mr. Khazali assisted the Company
      in financial distress negotiations, bankruptcy litigations and helped resolve
      disputes between Cypost and debt holders, lenders, bank groups, and equity
      holders. From 1985 to 2000, Mr. Khazali held numerous senior level positions
      in
      the food service sector including as a managing partner of two successful
      restaurants located in Western Canada. He also served as the director of
      operations of privately held restaurant chain located in various cities of
      United States and Western Canada having over 300 employees.





-
          15
          -






Manu
      Ohri
      was appointed as Executive Vice President, Finance & Chief Financial Officer
      of the Company in January 2007. From August 2001 to December 2006, Mr. Ohri
      served as Director and Executive Vice President of Finance & Chief Financial
      Officer of Elephant Talk Communications, Inc., a leading public company of
      telecommunications services provider to telecom carriers offering VOIP services,
      CRM, mobile value added and other telecom services in Europe, Asia and Middle
      East. From December 1999 to September 2002, Mr. Ohri served as Director and
      Executive Vice President & Chief Financial Officer for The Hartcourt
      Companies, Inc., an investment holding company listed on OTCBB
      exchange.  From June 1999 to November 1999, Mr. Ohri served as the
      President and Chief Executive Officer of Pego Systems, Inc., an industrial
      air
      and gas equipment manufacturer’s representative organization, an affiliate of
      The Hartcourt Companies, Inc.  From January 1997 to March 1999, Mr.
      Ohri served as Chief Operating Officer and Chief Financial Officer of Dynamic
      Cooking Systems, Inc., a privately held manufacturing company of upscale
      commercial and kitchen appliances.  From September 1989 to December
      1996, Mr. Ohri served as Chief Financial Officer of Startel Corporation, a
      public company in the software development business.  Mr. Ohri’s
      multi-faceted experience includes operations, finance as well as administrative
      functions in the telecommunications, manufacturing, distribution and software
      development industries. Mr. Ohri is a Certified Public Accountant with over
      six
      years experience with Deloitte & Touche, LLP and PriceWaterhouseCoopers,
      LLP. Mr. Ohri earned his Masters Degree in Business Administration from
      University of Detroit in 1979 and Bachelors degree in Accounting from University
      of Delhi in India in 1975.





Tyson
      Le
      became Secretary of FMG, subsequent to the Acquisition, in January 2006. He
      has
      a background in tax accounting, statistical reporting, and financial management.
      In 2004, Mr. Le worked for United Parcel Service and designed back end
      documentation to aid in supply chain management for the company. Mr. Le has
      experience in inventory control, bank and statement reconciliation, pay roll
      and
      federal income taxes. Mr. Le received his education at Orange Coast
      College.





Nick
      Iyer
      became a director of WSD in January 2005 and a director of FMG subsequent to
      the
      Acquisition in January 2006. Mr. Iyer has extensive experience as an editor
      and
      newspaper reporter. Prior to joining WSD in 2003, Mr. Iyer worked first as
      an
      editorial assistant, and later as a reporter at Newsday in Long Island, New
      York. He has published more than 150 articles and was selected by Newsday's
      senior editors to work on a combined Tribune Co. effort, titled "The Lost,”
which profiled the victims of the September 11, 2001 terrorist attacks. At
      the
      time, Iyer was 23, and the youngest reporter assigned to the project. Mr. Iyer's
      work has been published in well-recognized and established print media such
      as
      Newsday, The Los Angeles Times, The Chicago Tribune, Encyclopedia.com, and
      by
      the National Institute of Literacy. Mr. Iyer has been instrumental in writing
      many editorials and profiles on numerous publicly traded and privately held
      companies. He holds a Bachelor's Degree in English Literature from the State
      University of New York at Stony Brook.





Wendy
      Borow-Johnson became a director of FMG in August 2006. She is currently the
      President of Healthy Living Channel and the Senior Vice President of The
      Networks Group of Turner Media Group, Inc. The Networks Group includes Healthy
      Living Channel, iShop, Beauty and Fashion, Men's Channel, Mall TV, Resorts
      and
      Residence TV, iDrive and America's Preview Network. She is responsible for
      overseeing programming, network development, and distribution and cross media
      marketing of these lifestyle transactional networks. Prior to joining Turner
      Media Group, Inc., Ms. Borow-Johnson served on the Board of Directors of Brands
      Shopping Network, Inc. and was President of Television, securing 30 million
      cable and satellite homes and 25 name brand retailers for Brands Shopping
      Network. She was the President and CEO of RnetHealth Inc., a publicly traded
      company and was the President and CEO of Recovery Television Network. In one
      year she took Recovery Network from 2 million to 16 million cable households
      and
      according to Broadcasting and Cable made it the fastest growing cable network
      and the only media outlet dedicated to Recovery reaching over 16 million cable
      households.





Tom
      Hemingway became a director of FMG in November 2004 and brings nearly two
      decades of management experience in the areas of artificial intelligence, home
      automation, and network systems. Mr. Hemingway is currently Chairman and CEO
      of
      Redwood Investment Group since it’s inception, he became the Chief Executive
      Officer and Chairman of Oxford Media (NASDAQ: OXMI) August 2004 to May 2006,
      On
      August 5, 1998, Mr. Hemingway became the Chief Executive Officer and Chairman
      of
      the Esynch Corporation (NASDAQ: ESYN), a publicly traded company, 2002 name
      changed to Mergence Corporation (NASDAQ: MRGN). From 1995 to 1998, Mr. Hemingway
      served as Chairman and CEO of Intermark Corporation, a software developer and
      publisher in the entertainment markets. Prior Mr. Hemingway was President and
      CEO of Omni Advanced Technologies (OMNI) and Intellinet Information Systems
      (INTS). In addition Mr. Hemingway has been a consultant and board member to
      several public and private companies, including Smart House/LV, It’s a Grind
      Coffee, Great American Coffee Company (GACC), Redwood Investment Group, CBC,
      Pure Water and Bioscience (PURE), and Smart OnLine (SOLN). Mr. Hemingway
      received his BA from State University of New York.





**BOARD
      MEETINGS AND COMMITTEES**





During
      the year ended August 31, 2007, the Board of Directors held seven (7) board
      meetings to conduct Company’s business. The Board also approved certain actions
      by unanimous written consent.





**Audit
      Committee**





In
      January 2006, the Board of Directors formed an Audit Committee. Currently the
      following directors serve as members of the audit committee: Tom Hemingway
      as
      Chairman and Wendy Borow-Johnson. The Audit Committee's responsibilities
      include: (i) reviewing the independence, qualifications, services, fees, and
      performance of the independent auditors, (ii) appointing, replacing and
      discharging the independent auditors, (iii) pre-approving the professional
      services provided by the independent auditors, (iv) reviewing the scope of
      the
      annual audit and reports and recommendations submitted by the independent
      auditors, and (v) reviewing our financial reporting and accounting policies,
      including any significant changes, with management and the independent auditors.
      The Board has determined that each of the Members is "independent" as that
      term
      is defined under applicable SEC rules. Mr. Hemingway has been identified by
      the Board as the Audit Committee financial expert. During the year ended August
      31, 2007, the Audit Committee met on February 7, 2007 to review the financial
      and operating results of the Company for the year ended August 31, 2006 and
      quarter ended November 30, 2006.





-
          16
          -






**Compensation
      and Stock Option Committee**





In
      January 2006, the Board of Directors formed a Compensation and Stock Option
      Committee and appointed Tom Hemingway and Wendy Borow-Johnson as its Members.
      This committee recommends to the Board of Directors policies under which
      compensation will be paid or awarded to the Company’s directors, officers and
      certain other personnel. Among other things, the committee recommends to the
      Board of Directors the amount of compensation to be paid or awarded to
      directors, officers and other personnel of the Company, including salary,
      bonuses, stock option grants, other cash or stock awards under the Company’s
      incentive compensation and stock option plans as in effect from time to
      time.





**Directors
      Compensation**





The
      directors of the Company do not receive any compensation.  However,
      the Company reimburses the Board of Directors for their actual expenses incurred
      in attending Board meetings.





No
      family
      relationships exist between any of the executive officers or directors of the
      Company.





**COMPLIANCE
      WITH SECTION 16(a) OF THE EXCHANGE ACT**





Section
      16(a) of the Securities Exchange Act of 1934 requires the Company's officers
      and
      directors, and persons who own more than ten percent of its Common Stock, to
      file reports of ownership and changes of ownership with the Securities and
      Exchange Commission ("SEC") and each exchange on which the Company's securities
      are registered. Officers, directors and greater than ten percent stockholders
      are required by SEC regulation to furnish the Company with copies of all
      ownership forms they file.





Based
      solely on its review of the copies of such forms received by it, or written
      representations from the officers, directors, or persons holding greater than
      10% of Company stock, no ownership disclosure form (SEC Form 5) was required
      for
      those persons. All of the required Form 3's and up to date Form 4's for the
      directors have been filed with the SEC. There are no transfers of the Company's
      common stock by any persons subject to Section 16(a) requirements.





**Item
      10. Executive Compensation**





The
      following table sets forth the compensation of the Company's Chief Executive
      Officer during the last two complete fiscal years. No other officers received
      annual compensation in excess of $100,000 during the last two completed fiscal
      years.





**SUMMARY
      COMPENSATION TABLE**





**Name
                and Principal Position**
            
            **Year
                Ended August 31,**
            
            **Salary**
              **($)**
            
            **Bonus**
              **($)**
            
            **Stock**
              **Awards**
              **($)**
            
            **Option
                Awards**
              **($)**
            
            **Non-Equity**
              **Incentive
                Plan Compensation**
            
            **Nonqualified
                Deferred Compensation Earnings**
              **($)**
            
            **All
                Other Compen****sation**
              **($)**
            
            **Total**
              **($)**Albert
                Aimers
            
            2007
            
            $295,000
            
            $        
                -
            
            $    
                    -
            
            $          -
            
            $       -
            
            $          -
            
            $73,750
            
            $368,750President
                and CEO
            
            2006
            
            $276,667
            
            $        
                -
            
            $     
                   -
            
            $          -
            
            $      -
            
            $          -
            
            $74,167
            
            $350,834Javan
                Khazali
            
            2007
            
            $175,000
            
            $        
                -
            
            $    
                    -
            
            $          -
            
            $      -
            
            $          -
            
            $
                       -
            
            $175,000Chief
                Operating Officer
            
            2006
            
            $166,667
            
            $        
                -
            
            $     
                   -
            
            $          -
            
            $      -
            
            $          -
            
            $       
                -
            
            $166,667Manu
                Ohri
            
            2007
            
            $100,000
            
            $         -
            
            $    
                    -
            
            $          -
            
            $      -
            
            $          -
            
            $    
                   -
            
            $100,000Chief
                Financial Officer
            
            2006
            
            $  
                         -
            
            $        
                -
            
            $   
                     -
            
            $          -
            
            $      -
            
            $          -
            
            $    
                   -
            
            $        
                   -





**Employment
      and Related Agreements**





On
      July
      19, 2003, WallStreet’s subsidiary Digital WallStreet entered into an employment
      agreement with its Chief Executive Officer (“Executive”) to provide salary,
      bonuses, and other fringe benefits through December 31, 2006. Such expenses
      are
      included in general and administrative expenses in the accompanying statement
      of
      operations. Pursuant to the terms of the employment agreement of the Executive,
      annual base salary and benefits payable under the employment agreement for
      the
      twelve months period ended December 31, 2006 amounted to $368,750. The
      employment agreement of the Executive has not been renewed subsequent to
      December 31, 2006. The Company continued to provide the Executive the same
      salary and fringe benefits pursuant to the terms of the expired employment
      agreement.





-
          17
          -






On
      January 26, 2007, the Company entered into an employment agreement with its
      Chief Financial Officer (“Executive”) for a three year period, to provide
      salary, bonuses, and other fringe benefits. Annual base salary payable to the
      Executive under the agreement is $150,000 for the twelve months period ended
      December 31, 2007, $172,500 for the year ended December 31, 2008 and $198,375
      for the year ended December 31, 2009. Payments are to be made in equal monthly
      installments. In addition to the base salary, the Executive shall receive
      bonuses from the Company as determined by the Board of Directors based upon
      the
      performance of the Company. In the event the Company is unable to pay to
      Executive the base compensation in cash, the Executive at his discretion and
      upon the consent and acceptance thereto by the President and Chief Executive
      Officer, may agree to receive restricted common shares for compensation earned,
      calculated at the closing price on the first trading day of the month of
      compensation earned, discounted by 50%. In addition, the Company shall issue
      to
      the Executive an option to purchase 500,000 shares of the Company’s common stock
      at an exercise price of $1.25 per share (herein referred to as “Option”) under
      the 2007 Non-Employee Stock Option Plan. Such Options shall vest and become
      exercisable in two equal installments of 250,000 shares on each of February
      1,
      2008 and February 1, 2009.  The Options shall immediately vest and
      become exercisable as to an aggregate number of shares if there is a change
      in
      control of the Company. The Options shall be exercisable to the extent vested
      at
      any time until February 1, 2014. The Options shall otherwise be subject to
      all
      terms of the Option Agreement, is any, between the Executive and the Company
      evidencing the Option.





**Compensation
      of Directors**





The
      directors of the Company did not receive any compensation for serving on the
      Board during the fiscal years ended August 31, 2007 and 2006,
      respectively.





**Item
      11. Security Ownership of Certain Beneficial Owners and
      Management**





The
      following table sets forth, as of August 31, 2007, the number of shares of
      the
      Company's Common Stock and percentage of the outstanding shares of the Company's
      Common Stock owned beneficially (a) by each officer and director who owns any
      such shares of the Company; (b) by all officers and directors of the Company
      as
      a group; and (c) by all persons who are known to the Company to own more than
      five percent of the Company's Common Stock.





**Name**
            
            **Number
                of Shares Beneficially Owned**
            
            **Percentage
                of**
              **Outstanding
                Shares**Albert
                Aimers, Chairman, CEO
            
            14,789,750
                (1)
            
            44.7%Javan
                Khazali, COO and Director
            
            1,345,000
            
            4.1%Manu
                Ohri, CFO
            
            --
                (2)
            
            --Tyson
                Le, Secretary
            
            --
            
            --Tom
                Hemingway, Director
            
            100,000
            
            *Nick
                Iyer, Director
            
            863,400
            
            2.6%Wendy
                Borow-Johnson, Director
            
            --
            
            --Officers
                and Directors as a Group (7 individuals)
            
            17,531,650
            
            53.0%





(1)
            Shares
                are owned by AMC Capital Group, Inc., a corporation of which Mr.
                Aimers is
                an officer, director and shareholder.(2)
            Mr.
                Ohri was granted 500,000 options to purchase the Company’s common stock at
                the exercise price of $1.25 per share under the 2007 Non-Qualified
                Stock
                Option Plan.





*
      Less
      than 1%





**Stock
      Option Plan**





**2007
      Non-Qualified Stock Option Plan**





On
      January 5, 2007, the Company adopted a 2007 Non-Qualified Stock Option Plan
      (“2007 Option Plan”) and filed a Registration Statement on Form S-8 with the
      Commission to register shares awarded under the Option Plan on the same date.
      The 2007 Option Plan shall be administered by the Board of Directors or by
      a
      committee chosen by the Board of Directors.  The 2007 Option Plan is
      intended to advance the interests of the Company by inducing individuals and
      eligible entities, non-employee Directors, consultants and advisors to acquire
      proprietary interests in the Company as an incentive to promote the success
      of
      the Company. The 2007 Option Plan is intended to provide a method whereby the
      Company would be stimulated by the personal involvement of our employees,
      directors, officers, consultants, advisors and other persons in our business
      and
      reward such involvement, thereby advancing the interests of the Company and
      all
      of its shareholders. A total of 3,000,000 shares of common stock for stock
      awards were authorized under the 2007 Option Plan. The Company issued 2,550,000
      options to certain employees and consultants under the 2007 Option Plan at
      the
      exercise price ranging from 31 cents to $1.25 per share.  As of August
      31, 2007, the Company received a cash consideration of $712,000 from the
      exercise of 1,800,000 options under the 2007 Option Plan.




**2007
      Equity Incentive
      Plan**


On
      February 6, 2007, the Board of Directors adopted the 2007 Equity Incentive
      Plan
      (“Plan”) which was approved by the shareholders on April 11, 2007. The Plan
      reserves 3,000,000 shares of the Company’s authorized but unissued common stock
      for issuance under the Plan. The Company has not granted any options under
      the
      Plan as of August 31, 2007.





-
          18
          -






**Employee
      Benefit Plan**





The
      Company offers a health insurance plan that covers medical and dental for all
      it
      full time employees. The Company contributes $150 per employee monthly; the
      balance of the costs is borne by the employee. The Company does not have a
      pension plan nor does it offer any type of 401k plan.





**Warrants**





*Class
      A and Class B Warrants - 2,730,502 each*




Prior
      to
      the Company’s merger of WallStreet, WallStreet had agreed to sell 10,000,000
      units at a unit price of $0.25 per unit through a private placement on June
      1,
      2005. Each unit consisted of one share of common stock, par value of $0.001
      per
      share, one redeemable Class A Warrant and one redeemable Class B Warrant. Each
      Class A and Class B Warrant entitled the registered holder to purchase, at
      any
      time until the first anniversary date of the private placement memorandum,
      one
      share of common stock at an exercise price of $0.50 and $0.75, respectively.
      In
      accordance with terms and conditions of the acquisition of WallStreet, the
      exercise price of redeemable Class A and Class B Warrant of WallStreet to
      purchase Common Shares of the Company were revised to $0.75 for Class A Warrant
      and $1.74 for Class B Warrant, respectively. Prior to the merger WallStreet
      sold
      6,325,000 units. The Class A Warrants expired on June 1, 2006. The
      WallStreet Class B Warrants were converted into 2, 730,502 Warrants of Financial
      Media Group, Inc. common stock. During the year ended August 31, 2007, the
      Company received $63,173 in cash consideration for exercise of 63,173 Class
      B
      Warrants. The remaining unexercised 2,667,519 Class B Warrants expired on May
      31, 2007.





*Class
      A1 and Class A2 Warrants - 193,000 each*





Through
      a
      private placement memorandum on September 1, 2006, the Company agreed to sell
      335 units at $15,000 per unit, each unit consisting of 10,000 shares of common
      stock, one Class A1 Warrant and one Class A2 Warrant, respectively. Each Class
      A1 Warrant entitles the holder to purchase 5,000 shares of Common Stock for
      $2.50 per share. The Class A1 Warrants expired on August 31, 2007. These
      warrants may be redeemable by the Company at any time commencing August 31,
      2007
      or upon an effective Registration Statement, whichever is earlier, at a price
      of
      $.05 per Warrant, upon not less than 30 days' notice to the holders of the
      Warrants called for redemption, provided that the average closing bid price
      of
      the Common Stock exceeds $3.50 for 20 trading days. The exercise prices and
      the
      number of shares issuable upon the exercise of the Warrants are subject to
      adjustment in certain circumstances.





Each
      Class A2 Warrant entitles the holder to purchase 5,000 shares of Common Stock
      for $3.50 per share. The Class A2 Warrants expire on August 31, 2008. These
      warrants may be redeemable by the Company at any time commencing August 31,
      2007
      or upon an effective Registration Statement, whichever is earlier, at a price
      of
      $0.05 per Warrant, upon not less than 30 days' notice to the holders of the
      Warrants called for redemption, provided that the average closing bid price
      of
      the Common Stock exceeds $4.50 for 20 trading days. The exercise prices and
      the
      number of shares issuable upon the exercise of the Warrants are subject to
      adjustment in certain circumstances





*Warrants
      Class C, Class D and Class E - 120,000 each*





Through
      a
      private placement on January 25, 2006 and after the acquisition of WallStreet,
      the Company sold 120,000 units to eight accredited investors for cash
      consideration of $120,000. Each unit sold consisted of one common share, a
      redeemable Class C Warrant (the “Class C Warrant”), a redeemable Class D Warrant
      (the “Class D Warrant”), and a redeemable Class E Warrant (the “Class E
      Warrant”) of Financial Media Group, Inc.





Each
      Class C Warrant entitles the holder to purchase, at any time until the first
      anniversary of the date of purchase 15,000 shares of Common Stock for $1.50
      per
      share, subject to adjustments. The warrants expired on January 25, 2007. These
      warrants may be redeemable by the Company at any time commencing January 25,
      2007 or upon an effective Registration Statement, whichever is earlier, at
      a
      price of $0.05 per Warrant, upon not less than 30 days' notice to the holders
      of
      the Warrants called for redemption, provided that the average closing bid price
      of the Common Stock exceeds $4.50 for 20 trading days. The holders of the
      Warrants called for redemption shall have exercise rights until the close of
      business on the date fixed for redemption. The exercise prices and the number
      of
      shares issuable upon the exercise of the Warrants are subject to adjustment
      in
      certain circumstances.





Each
      Class D Warrant entitles the holder to purchase at any time until the second
      anniversary of the date of purchase 15,000 shares of Common Stock for $2.25
      per
      share, subject to adjustment. The warrants expire on January 25, 2008. These
      warrants may be redeemable by the Company at any time commencing January 25,
      2007 or upon an effective Registration Statement, whichever is earlier, at
      a
      price of $0.05 per Warrant, upon not less than 30 days' notice to the holders
      of
      the Warrants called for redemption, provided that the average closing bid price
      of the Common Stock exceeds $7.50 for 20 trading days. The holders of the
      Warrants called for redemption shall have exercise rights until the close of
      business on the date fixed for redemption. The exercise prices and the number
      of
      shares issuable upon the exercise of the Warrants are subject to adjustment
      in
      certain circumstances.





-
          19
          -






Each
      Class E Warrant entitles the holder to purchase at any time until the third
      anniversary of the date of purchase 15,000 shares of Common Stock for $3.75
      per
      share, subject to adjustment. The warrants expire on January 25, 2009. These
      warrants may be redeemable by the Company at any time commencing January 25,
      2007 or upon an effective Registration Statement, whichever is earlier, at
      a
      price of $0.05 per Warrant, upon not less than 30 days' notice to the holders
      of
      the Warrants called for redemption, provided that the average closing bid price
      of the Common Stock exceeds $7.50 for 20 trading days. The holders of the
      Warrants called for redemption shall have exercise rights until the close of
      business on the date fixed for redemption. The exercise prices and the number
      of
      shares issuable upon the exercise of the Warrants are subject to adjustment
      in
      certain circumstances.





**Item
      12: Certain Relationships and Related
      Transactions**





None.





**PART
      IV**





**Item
      13. Exhibits**





The
      following list describes the exhibits filed as part of this Annual Report Form
      10-KSB.





**Exhibit
                No.**
            
            **Description
                of Document**4.2
            
            2007 Equity
              Incentive Plan31.1
            
            Certification
                of Chief Executive Officer31.2
            
            Certification
                of Chief Financial Officer (Principal Accounting
                Officer)32.1
            
            Certification
                of Chief Executive Officer and Chief Financial Officer (Principal
                Accounting Officer) pursuant to Section 906 of the Sarbanes-Oxley
                Act of
                2002, 18 U.S.C. Section 1350





**Item
      14. Principal Accountant Fees and
      Services**





During
      the past two fiscal years, our principal accountant have billed for their
      services as follows. In addition, fees and services related to the audit of
      the
      financial statements of the Company for the period ended August 31, 2006, as
      contained in the Annual Report, are estimated and included for the fiscal year
      ended August 31, 2005.





Year
                ended August 31,2007
            
            
            2006Audit
                Fees
            
            $
            35,500
            
            
            $
            71,000Audit-Related
                Fees
            
            $
            --
            
            
            $
            --Tax
                Fees
            
            $
            --
            
            
            $
            7,000All
                Other Fees
            
            $
            --
            
            
            $
            --





(i)
      The
      Audit Committee requires that prior to the engagement of the Company’s principal
      accountant to audit the financial statements of the Company or to perform other
      Audit Related or Non-Audit Related services, the engagement be reviewed to
      consider the scope of services to be rendered and the expected fees to be
      charged by the principal accountant in connection with rendering such
      services.





-
          20
          -





**SIGNATURES**






Pursuant
      to the requirements of Section 13 or 15 (d) of the Securities Exchange Act
      of
      1934, Registrant has duly caused this report to be signed on its behalf by
      the
      undersigned, thereunto duly authorized on the 8th day of December,
      2007.








By:
            /s/
                Albert AimersAlbert
                Aimers, CEOBy:
            /s/
                Manu OhriManu
                Ohri, CFO




Pursuant
      to the requirements of the Securities and Exchange Act of 1934, this report
      has
      been signed below by the following persons on behalf of registrant and in the
      capacities indicated on the 8th day of
      December
      2007.






**SIGNATURES**
            
            **TITLE**/s/
                Albert Aimers
            
            Chairman
                of the Board and Chief Executive OfficerAlbert
                Aimers/s/
                Javan Khazali
            
            Chief
                Operating Officer and DirectorJavan
                Khazali/s/
                Nick Iyer
            
            DirectorNick
                Iyer/s/
                Wendy Borow-Johnson
            
            DirectorWendy
                Borow-Johnson/s/
                Tom Hemingway
            
            DirectorTom
                Hemingway


-
          21
          -




**FINANCIAL
      MEDIA GROUP, INC.**


**AND
      SUBSIDIARIES**






**TABLE
      OF CONTENTS**






PageREPORT
                OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
            23CONSOLIDATED
                BALANCE SHEET AS OF AUGUST 31, 2007
            24CONSOLIDATED
                STATEMENTS OF OPERATIONS FOR THE YEARS ENDED
              AUGUST
                31, 2007 AND 2006
            25CONSOLIDATED
                STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE YEARS ENDED AUGUST
                31, 2007 AND 2006
            26CONSOLIDATED
                STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED
              AUGUST
                31, 2007 and 2006
            27NOTES
                TO CONSOLIDATED FINANCIAL STATEMENTS
            28
                -
                38





-
          22
          -




**REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
      FIRM**






To
      the
      Board of Directors of


Financial
      Media Group, Inc. and Subsidiaries








We
      have
      audited the accompanying consolidated balance sheet of Financial Media Group,
      Inc. and Subsidiaries as of August 31, 2007, and the related consolidated
      statements of operations, changes in stockholders’ deficit and cash flows for
      the years ended August 31, 2007 and 2006. These financial statements are the
      responsibility of the Company’s management. Our responsibility is to express an
      opinion on these consolidated 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 audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. An audit includes examining,
      on a
      test basis, evidence supporting the amounts and disclosures in the consolidated
      financial statements. An audit also includes 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 consolidated financial statements referred to above present fairly,
      in all material respects, the financial position of Financial Media Group,
      Inc.
      and Subsidiaries as of August 31, 2007 and the results of its operations,
      changes in stockholders’ deficit and cash flows for the years ended August 31,
      2007 and 2006 in conformity with accounting principles generally accepted in
      the
      United States of America.





The
      Company's financial statements are prepared using the generally accepted
      accounting principles applicable to a going concern, which contemplates the
      realization of assets and liquidation of liabilities in the normal course of
      business. The Company has accumulated deficit of $9,672,076 as of August 31,
      2007 and has incurred net loss of $5,937,675 for the year ended August 31,
      2007.
      These factors as discussed in notes to the financial statements raise
      substantial doubt about the Company's ability to continue as a going concern.
      Management's plans in regard to these matters are also described in the Note
      14
      to the consolidated financial statements. The financial statements do not
      include any adjustments that might result from the outcome of this
      uncertainty.








/s/
                KABANI & COMPANY, INC.CERTIFIED
                PUBLIC ACCOUNTANTSLos
                Angeles, CaliforniaNovember
                21, 2007








-
          23
          -




**FINANCIAL
      MEDIA GROUP, INC. AND SUBSIDIARIES**


CONSOLIDATED
      BALANCE SHEET


AUGUST
      31, 2007





**ASSETS****CURRENT
                ASSETS:**Cash
                & cash equivalents
            
            $
            172,013Accounts
                receivable, net
            
            
            70,184Marketable
                securities
            
            
            3,634,505Other
                current assets
            
            
            67,411Total
                current assets
            
            
            3,944,113PROPERTY
                & EQUIPMENT, Net
            
            
            78,737DEPOSIT
            
            
            26,521Total
                assets
            
            $
            4,049,371**LIABILITIES
                AND STOCKHOLDERS' DEFICIT****CURRENT
                LIABILITIES:**Accounts
                payable
            
            $
            326,542Accrued
                expenses
            
            
            1,185,288Deferred
                revenue
            
            
            2,196,106Due
                to officers
            
            
            633,169Notes
                payable
            
            
            100,000Shares
                to be issued
            
            
            112,453Current
                portion of note payable - officers
            
            
            7,500Total current liabilities
            
            
            4,561,058Long
                term debt - officer
            
            
            3,000,000Commitment
                & contingencies**STOCKHOLDERS'
                DEFICIT:**Common
                stock, $0.001 par value, 300,000,000 shares authorized,
              33,082,566
                shares issued and outstanding
            
            
            33,083Paid
                in capital
            
            
            5,872,385Unrealized
                gain on marketable securities
            
            
            254,921Accumulated
                deficit
            
            
            (9,672,076
            )Total stockholders' deficit
            
            
            (3,511,687
            )Total liabilities and stockholders' deficit
            
            $
            4,049,371




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


-
          24
          -




**FINANCIAL
      MEDIA GROUP, INC. AND
      SUBSIDIARIES**


CONSOLIDATED
      STATEMENT OF OPERATIONS






**For
                the years ended****August
                31,****2007**
            
            
            **2006****Net
                revenues**
            
            $
            7,090,042
            
            
            $
            6,631,631**Operating
                expenses**Selling,
                general & administrative
            
            
            6,870,890
            
            
            
            3,850,432Depreciation
            
            
            36,963
            
            
            
            20,589Impairments
            
            
            5,595,929
            
            
            
            2,914,877Total
                operating expenses
            
            
            12,503,781
            
            
            
            6,785,898Loss
                from operations
            
            
            (5,413,740
            )
            
            
            (154,267
            )**Non-Operating
                Income (Expense):**Interest
                expense
            
            
            (199,844
            )
            
            
            (192,520
            )Interest
                income
            
            
            520
            
            
            
            844Loss
                on settlement of debt
            
            
            (1,413
            )
            
            
            -Loss
                on sale of marketable securities
            
            
            (318,400
            )
            
            
            (1,257,512
            )Total
                non-operating expense
            
            
            (519,136
            )
            
            
            (1,449,188
            )**Loss
                from operations before income taxes**
            
            
            (5,932,876
            )
            
            
            (1,603,455
            )Provision
                for income tax
            
            
            4,800
            
            
            
            4,813**Net
                Loss**
            
            
            (5,937,675
            )
            
            
            (1,608,268
            )**Other
                comprehensive gain (loss):**Unrealized
                gain (loss) on marketable securities
            
            
            (255,682
            )
            
            
            134,486Reclassification
                Adjustment
            
            
            161,817
            
            
            
            (139,992
            )**Net
                Comprehensive loss**
            
            $
            (6,031,540
            )
            
            $
            (1,613,774
            )**Basic
                & diluted net loss per share**
            
            $
            (0.21
            )
            
            $
            (0.07
            )**Weighted
                average shares outstanding**
              **-
                basic & diluted**
            
            
            28,161,001
            
            
            
            23,236,470







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





-
          25
          -




**FINANCIAL
      MEDIA GROUP, INC. AND
      SUBSIDIARIES**


CONSOLIDATED
      STATEMENT OF STOCKHOLDERS’ DEFICIT







**Common
                Stock**
            
            
            **Additional**
            
            
            **Common
                Stock**
            
            
            **Unrealized**
            
            
            **Accumulated**
            
            
            **Stockholders'****Shares**
            
            
            **Par
                Value**
            
            
            **Paid
                in Capital**
            
            
            **To
                be Issued**
            
            
            **Gain
                (Loss)**
            
            
            **Deficit**
            
            
            **Deficit****Balance,
                August 31, 2005**
            
            ****
            **4,394,500**
            
            
            **$**
            **4,395**
            
            
            **$**
            **5,633,626**
            
            
            **$**
            **-**
            
            
            **$**
            **-**
            
            
            **$**
            **(5,917,151**
            **)**
            
            **$**
            **(279,130**
            **)**Recapitalization
            
            
            19,998,707
            
            
            
            19,999
            
            
            
            (5,633,626
            )
            
            
            -
            
            
            
            354,292
            
            
            
            3,791,018
            
            
            
            (1,468,317
            )Common
                stock issued for cash
            
            
            1,367,300
            
            
            
            1,367
            
            
            
            1,054,087
            
            
            
            130,500
            
            
            
            -
            
            
            
            -
            
            
            
            1,185,954Reclassification
                Adjustment
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (139,992
            )
            
            
            -
            
            
            
            (139,992
            )Unrealized
                gain on marketable securities
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            134,485
            
            
            
            -
            
            
            
            134,485Net
                loss for the year ended
              August
                31, 2006
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (1,608,268
            )
            
            
            (1,608,268
            )**Balance,
                August 31, 2006**
            
            ****
            **25,760,507**
            
            
            ****
            **25,761**
            
            
            ****
            **1,054,087**
            
            
            ****
            **130,500**
            
            
            ****
            **348,786**
            
            
            ****
            **(3,734,401**
            **)**
            
            ****
            **(2,175,267**
            **)**Common
                stock issued for cash
            
            
            5,076,982
            
            
            
            5,077
            
            
            
            2,457,980
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            2,332,557Common
                stock issued for Wealth Expo brand
            
            
            100,000
            
            
            
            100
            
            
            
            138,900
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            139,000Common
                stock issued for exercise of options
            
            
            1,800,000
            
            
            
            1,800
            
            
            
            710,700
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            712,500Common
                stock issued for exercise of warrants
            
            
            63,173
            
            
            
            63
            
            
            
            63,110
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            63,173Common
                stock issued for services
            
            
            281,904
            
            
            
            282
            
            
            
            405,812
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            406,094Options
                issued for services
            
            
            -
            
            
            
            -
            
            
            
            1,041,796
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            1,041,796Reclassification
                adjustment
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            161,817
            
            
            
            -
            
            
            
            161,817Unrealized
                loss on marketable securities
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (255,682
            )
            
            
            -
            
            
            
            (255,682
            )Net
                loss for the year ended
              August
                31, 2007
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            
            
            
            
            (5,937,675
            )
            
            
            (5,937,675
            )**Balance,
                August 31, 2007**
            
            ****
            **33,082,566**
            
            
            **$**
            **33,083**
            
            
            **$**
            **5,872,385**
            
            
            **$**
            **-**
            
            
            **$**
            **254,921**
            
            
            **$**
            **(9,672,076**
            **)**
            
            **$**
            **(3,511,687**
            **)**







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





-
          26
          -




**FINANCIAL
      MEDIA GROUP, INC. AND
      SUBSIDIARIES**


CONSOLIDATED
      STATEMENTS OF CASH FLOWS


**For
                  the years ended****August
                  31,****2007**
              
              
              **2006****CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Net loss
              
              $
              (5,937,675
              )
              
              $
              (1,608,268
              )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Bad debts
              
              
              107,133
              
              
              
              75,930Depreciation and amortization
              
              
              36,963
              
              
              
              20,589Revenues in form of marketable securities
              
              
              (5,958,082
              )
              
              
              (6,129,172
              )Impairment of marketable securities
              
              
              5,456,929
              
              
              
              2,914,877Impairment of investment in Wealth Expo
              
              
              139,000
              
              
              
              -Loss on sale of marketable securities
              
              
              318,400
              
              
              
              1,257,512Loss on settlement of debt
              
              
              1,413
              
              
              
              -Issuance of common stock for services
              
              
              406,094
              
              
              
              -Issuance of options for services
              
              
              1,041,796
              
              
              
              -Decrease
                  in current assets:Receivables
              
              
              (122,159
              )
              
              
              (131,088
              )Other
                  current assets
              
              
              (62,844
              )
              
              
              (12,173
              )Increase
                  in current liabilities:Accounts
                  payable
              
              
              59,992
              
              
              
              201,997Accrued
                  expenses, due to officers and other liabilities
              
              
              583,173
              
              
              
              103,578Deferred
                  revenues
              
              
              200,585
              
              
              
              -Net
                  cash used in operating activities
              
              
              (3,729,281
              )
              
              
              (3,306,218
              )**CASH
                  FLOWS FROM INVESTING ACTIVITIES:**Cash received as part of acquisition
              
              
              -
              
              
              
              945Acquisition of property & equipment
              
              
              (20,568
              )
              
              
              (77,819
              )Cash received from sale of marketable securities-
              
              
              871,394
              
              
              
              743,992Net
                  cash provided by investing activities
              
              
              850,826
              
              
              
              667,118**CASH
                  FLOWS FROM FINANCING ACTIVITIES:**Payment of loans from third parties
              
              
              (227,045
              )
              
              
              -Proceeds from loan from related parties
              
              
              -
              
              
              
              225,632Cash received from exercise of options & warrants
              
              
              775,673
              
              
              
              -Proceeds from sale of common stock
              
              
              2,445,010
              
              
              
              2,279,704Net
                  cash provided by financing activities
              
              
              2,993,638
              
              
              
              2,505,336**NET
                  INCREASE (DECREASE) IN CASH & CASH
                  EQUIVALENTS**
              
              
              115,183
              
              
              
              (133,764
              )**CASH
                  & CASH EQUIVALENTS, BEGINNING BALANCE**
              
              
              56,830
              
              
              
              190,594**CASH
                  & CASH EQUIVALENTS, ENDING BALANCE**
              
              $
              172,013
              
              
              $
              56,830


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





-
          27
          -


**FINANCIAL
      MEDIA GROUP, INC. AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**








**NOTE
      1                      .NATURE
      OF BUSINESS AND BASIS OF PRESENTATION**





Financial
      Media Group, Inc. (the “Company,” "We," or "FMG") is a full service financial
      media company focused on applications that enables the retail investment and
      financial communities to collaborate directly with publicly traded companies.
      The Company provides Internet based media and advertising services through
      its
      financial website and the Company’s newspaper “WallSt.net Digest.” The Company
      provides full array of customized investor awareness programs such as audio
      and
      video of senior management interviews, press releases, newsletter and
      editorials, small cap conferences and seminars, email mailings and
      forums.





WallStreet
      Direct, Inc. (“WallStreet”), a wholly-owned subsidiary of Financial Media Group,
      Inc. was incorporated in the State of Nevada on January 5, 2005 as a financial
      holding company specializing as a provider of financial news, tools and content
      for the global investment community. On January 15, 2005, WallStreet acquired
      100% of the assets and outstanding shares of Digital WallStreet, Inc. which
      was
      100% owned by the majority shareholder (86%) of the Company, in exchange for
      two
      promissory notes of $1,500,000 each, carrying interest at 6% per annum, due
      and
      payable on January 31, 2007 and January 31, 2010. As this merger is between
      entities under the common control, the issuance of the promissory notes to
      the
      majority shareholder has been recorded as a distribution to the majority
      shareholder. The merger has been accounted for on historical cost
      basis.





Digital
      WallStreet, Inc. was incorporated in Nevada on June 12, 2002, and commenced
      its
      operations during the first quarter of 2003. WallStreet is a full service
      financial media company focused on applications that enables the retail
      investors and financial communities to collaborate directly with publicly traded
      companies. The company provides internet based media and advertising services
      through its financial website “Wallst.net” and the through its business
      newspaper “WallSt.net Digest.”





On
      January 6, 2006, Financial Media Group, Inc. acquired 100% of the equity in
      WallStreet pursuant to an Agreement and Plan of Reorganization dated September
      19, 2005 by and between WallStreet and the Company. Financial Media Group,
      Inc.,
      formerly known as Giant Jr. Investments Corp., was incorporated in Nevada in
      1984 as Business Development Company, Inc. Pursuant to the acquisition of
      WallStreet, it became the wholly owned subsidiary of Financial Media Group,
      Inc.
      The former shareholders of WallStreet received 19,998,707 shares or 82% of
      the
      issued and outstanding shares of the Company’s common stock in exchange for all
      the issued and outstanding shares of WallStreet.





The
      acquisition of WallStreet is accounted for as a reverse acquisition under the
      purchase method of accounting since the shareholders of WallStreet obtained
      control of the consolidated entity. Accordingly, the reorganization of the
      two companies is recorded as a recapitalization of WallStreet, with WallStreet
      being treated as the continuing operating entity. The historical financial
      statements presented herein will be those of WallStreet. The continuing entity
      retained August 31 as its fiscal year end.





On
      February 10, 2006, Financial Media Group, Inc. established a 100% wholly owned
      subsidiary Financial Filings Corp. This business unit focuses on providing
      edgarization and newswire services to small and mid-sized public companies.
      These compliance services provide formatting of pertinent SEC filings and
      distribution of news in more than 30 languages to media outlets in more than
      135
      countries.





On
      June
      13, 2006, Financial Media Group, Inc. established another wholly owned
      subsidiary MyWallStreet, Inc. MyWallStreet, Inc. is presently in the development
      stage and will offer a social networking platform that allows members to
      collaborate with one another, build personalized web-pages, exchange ideas,
      access financial content, and build social networks comprised of other
      members, targeted to the financial community.





In
      January 2007, the Company acquired the trade name “The Wealth Expo” and formed a
      wholly owned subsidiary The Wealth Expo Inc. on June 12, 2007. The Wealth Expo
      provides a broad range of information on investing techniques, and tools to
      investors through workshops and exhibits held throughout the United
      States.




**NOTE
      2.     SUMMARY OF SIGNIFICANT ACCOUNTING
      POLICIES**





**Principles
      of Consolidation**





The
      consolidated financial statements include the accounts of the Company, its
      wholly-owned subsidiaries WallStreet Direct, Inc., Digital Wall Street, Inc.,
      Financial Filings, Corp., My WallStreet, Inc. and Wealth Expo Inc. All
      significant inter-company accounts and transactions have been
      eliminated.





**Use
      of Estimates**





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





-
          28
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






**Cash
      and Cash Equivalents**





The
      Company considers all liquid investments with a maturity of three months or
      less
      from the date of purchase that are readily convertible into cash to be cash
      equivalents.




**Accounts
      Receivable**





The
      Company maintains reserves for potential credit losses on accounts receivable.
      Management reviews the composition of accounts receivable and analyzes
      historical bad debts, customer concentrations, customer credit worthiness,
      current economic trends and changes in customer payment patterns to evaluate
      the
      adequacy of these reserves. Reserves are recorded primarily on a specific
      identification basis. Allowance for doubtful debts amounted to $140,158 as
      at
      August 31, 2007.





**Marketable
      Securities**





The
      Company’s investments in securities are classified as available-for-sale and, as
      such, are carried at fair value based on quoted market prices. Securities
      classified as available-for-sale may be sold in response to changes in interest
      rates, liquidity needs, and for other purposes.





Unrealized
      holding gains and losses for available-for-sale securities are excluded from
      earnings and reported as a separate component of stockholder’s equity. Realized
      and unrealized gains and losses for securities classified as available-for-sale
      are included in the statement of operations and comprehensive gain,
      respectively. On August 31, 2007, marketable securities have been recorded
      at
      $3,634,505 based upon the fair value of the marketable securities.





**Property
      and Equipment**





Property
      and equipment are carried at cost less accumulated depreciation. Depreciation
      is
      provided using the straight-line method over the estimated useful life of the
      assets from three to five years. Expenditures for maintenance and repairs are
      charged to expense as incurred.





**Revenue
      Recognition**





The
      Company generates its revenues from awareness products and advertising
      promotions related to marketing public companies and professional investment
      concerns. This is facilitated through the Company’s financial website,
      investment conferences and printing of publications and newspaper.





All
      sources of revenue are recorded pursuant to Staff Accounting Bulletin (SAB)
      104
      Revenue Recognition, when persuasive evidence of arrangement exists, delivery
      of
      services has occurred, the fee is fixed or determinable and collectibility
      is
      reasonable assured.





The
      Company recognizes revenue on marketable securities and cash received for
      services which is to be provided in future periods, on a pro-rata basis over
      the
      term of the agreement. Payments received in advance of services provided are
      recorded as deferred revenue.





**Fair
      Value of Financial Instruments**





Statement
      of financial accounting standard No. 107, Disclosures about fair value of
      financial instruments, requires that the Company disclose estimated fair values
      of financial instruments. The carrying amounts reported in the statements of
      financial position for assets and liabilities qualifying, as financial
      instruments are a reasonable estimate of fair value.





**Advertising
      and Marketing Costs**





The
      Company expenses costs of advertising and marketing as incurred. Advertising
      and
      marketing expense for the years ended August 31, 2007 and 2006 amounted to
      $687,945 and $210,072, respectively.





**Income
      Taxes**





The
      Company accounts for income taxes under the Financial Accounting Standards
      Board
      Statement of Financial Accounting Standards No. 109 "Accounting for Income
      Taxes" ('Statement 109"). Under Statement 109, deferred tax assets and
      liabilities are recognized for the future tax consequences attributable to
      differences between the financial statement carrying amounts of existing assets
      and liabilities and their respective tax bases. Deferred tax assets and
      liabilities are measured using enacted tax rates expected to apply to taxable
      income in the years in which those temporary differences are expected to be
      recovered or settled. Under Statement 109, the effect on deferred tax assets
      and
      liabilities of a change in tax rates is recognized in income in the period
      that
      includes the enactment date.




-
          29
          -




**FINANCIAL
      MEDIA GROUP, INC. AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**






**Basic
      and Diluted Net Loss Per Share**





Net
      loss
      per share is calculated in accordance with the Statement of financial accounting
      standards No. 128 (SFAS No. 128), “Earnings per share.” Basic net loss per share
      is based upon the weighted average number of common shares outstanding. Dilution
      is computed by applying the treasury stock method. Under this method, options
      and warrants are assumed to be exercised at the beginning of the period (or
      at
      the time of issuance, if later), and as if funds obtained thereby were used
      to
      purchase common stock at the average market price during the period. Weighted
      average number of shares used to compute basic and diluted loss per share is
      the
      same since the effect of dilutive securities is anti-dilutive.





**Concentration
      of Credit Risk**





Financial
      instruments which potentially subject the Company to concentrations of credit
      risk are cash, accounts receivable and marketable securities. The Company places
      its cash with financial institutions deemed by management to be of high credit
      quality. The amount on deposit in any one institution that exceeds federally
      insured limits is subject to credit risk. All of the Company’s investment in
      marketable securities are considered “available-for-sale” and are carried at
      their fair value, with unrealized gains and losses (net of income taxes) that
      are temporary in nature recorded in accumulated other comprehensive income
      (loss) in the accompanying balance sheets. The fair values of the Company’s
      investments in marketable sureties are determined based on market quotations.
      Exposure to losses on receivables is principally dependent on each customer's
      financial condition. The Company monitors its exposure for credit losses and
      maintains allowances for anticipated losses, as required.





**Reporting
      Segments**





Statement
      of financial accounting standards No. 131, Disclosures about segments of an
      enterprise and related information (SFAS No. 131), which superseded statement
      of
      financial accounting standards No. 14, Financial reporting for segments of
      a
      business enterprise, establishes standards for the way that public enterprises
      report information about operating segments in annual financial statements.
      The
      Company has determined it has only one segment.





**Stock-Based
      Compensation**





The
      Company adopted SFAS No. 123 (Revised 2004), *Share Based Payment*(“SFAS
      No. 123R”), under the modified-prospective transition method on January 1, 2006.
      SFAS No. 123R requires companies to measure and recognize the cost of
      employee services received in exchange for an award of equity instruments based
      on the grant-date fair value. Share-based compensation recognized under the
      modified-prospective transition method of SFAS No. 123R includes share-based
      compensation based on the grant-date fair value determined in accordance with
      the original provisions of SFAS No. 123, *Accounting for Stock-Based
      Compensation,*for all share-based payments granted prior to and not yet
      vested as of January 1, 2006 and share-based compensation based on the
      grant-date fair-value determined in accordance with SFAS No. 123R for all
      share-based payments granted after January 1, 2006. SFAS No. 123R
      eliminates the ability to account for the award of these instruments under
      the
      intrinsic value method prescribed by Accounting Principles Board (“APB”) Opinion
      No. 25, *Accounting for Stock Issued to Employees*, and allowed under the
      original provisions of SFAS No. 123. Prior to the adoption of SFAS No. 123R,
      the
      Company accounted for our stock option plans using the intrinsic value method
      in
      accordance with the provisions of APB Opinion No. 25 and related
      interpretations.





**Issuance
      of Shares for Services**





The
      Company accounts for the issuance of equity instruments to acquire goods and
      services based on the fair value of the goods and services or the fair value
      of
      the equity instrument at the time of issuance, whichever is more reliably
      measurable.





**Comprehensive
      Income**





Statement
      of financial accounting standards No. 130, Reporting comprehensive income (SFAS
      No. 130), establishes standards for reporting and display of comprehensive
      income, its components and accumulated balances. Comprehensive income is defined
      to include all changes in equity, except those resulting from investments by
      owners and distributions to owners. Among other disclosures, SFAS No. 130
      requires that all items that are required to be recognized under current
      accounting standards as components of comprehensive income be reported in
      financial statements that are displayed with the same prominence as other
      financial statements. The unrealized gain as of August 31, 2007 is $254,921
      and
      the net comprehensive loss for the years ended August 31, 2007 and 2006 was
      $93,865 and $5,506, respectively.





-
          30
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






**Recent
      Accounting Pronouncements**





In
      March
      2006, FASB issued SFAS 156 ‘Accounting for Servicing of Financial Assets’ this
      Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing
      of Financial Assets and Extinguishments of Liabilities, with respect to the
      accounting for separately recognized servicing assets and servicing liabilities.
      This Statement:





1.
            Requires
                an entity to recognize a servicing asset or servicing liability each
                time
                it undertakes an obligation to service a financial asset by entering
                into
                a servicing contract.





2.
            Requires
                all separately recognized servicing assets and servicing liabilities
                to be
                initially measured at fair value, if
                practicable.





3.
            Permits
                an entity to choose ‘Amortization method’ or ‘Fair value measurement
                method’ for each class of separately recognized servicing assets and
                servicing liabilities:





4.
            At
                its initial adoption, permits a one-time reclassification of
                available-for-sale securities to trading securities by entities with
                recognized servicing rights, without calling into question the treatment
                of other available-for-sale securities under Statement 115, provided
                that
                the available-for-sale securities are identified in some manner as
                offsetting the entity’s exposure to changes in fair value of servicing
                assets or servicing liabilities that a servicer elects to subsequently
                measure at fair value.





5.
            Requires
                separate presentation of servicing assets and servicing liabilities
                subsequently measured at fair value in the statement of financial
                position
                and additional disclosures for all separately recognized servicing
                assets
                and servicing liabilities.





This
      Statement is effective as of the beginning of the Company’s first fiscal year
      that begins after September 15, 2006.  Management is currently
      evaluating the effect of this pronouncement on financial
      statements.





In
      September 2006, FASB issued SFAS 157 ‘Fair Value Measurements.’ This Statement
      defines fair value, establishes a framework for measuring fair value in
      generally accepted accounting principles (GAAP), and expands disclosures about
      fair value measurements. This Statement applies under other accounting
      pronouncements that require or permit fair value measurements, the Board having
      previously concluded in those accounting pronouncements that fair value is
      the
      relevant measurement attribute. Accordingly, this Statement does not require
      any
      new fair value measurements. However, for some entities, the application of
      this
      Statement will change current practice. This Statement is effective for
      financial statements issued for fiscal years beginning after November 15, 2007,
      and interim periods within those fiscal years. Management is currently
      evaluating the effect of this pronouncement on financial
      statements.





In
      September 2006, FASB issued SFAS 158 ‘Employers’ Accounting for Defined Benefit
      Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87,
      88, 106, and 132(R)’ This Statement improves financial reporting by requiring an
      employer to recognize the over funded or under funded status of a defined
      benefit postretirement plan (other than a multiemployer 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 of a business entity or changes in unrestricted net assets of a
      not-for-profit organization. This Statement also improves financial reporting
      by
      requiring an employer to measure the funded status of a plan as of the date
      of
      its year-end statement of financial position, with limited exceptions. An
      employer with publicly traded equity securities is required to initially
      recognize the funded status of a defined benefit postretirement plan and to
      provide the required disclosures as of the end of the fiscal year ending after
      December 15, 2006. An employer without publicly traded equity securities is
      required to recognize the funded status of a defined benefit postretirement
      plan
      and to provide the required disclosures as of the end of the fiscal year ending
      after June 15, 2007. However, an employer without publicly traded equity
      securities is required to disclose the following information in the notes to
      financial statements for a fiscal year ending after December 15, 2006, but
      before June 16, 2007, unless it has applied the recognition provisions of this
      Statement in preparing those financial statements:





a)
            A
                brief description of the provisions of this
                Statement





b)
            The
                date that adoption is required





c)
            The
                date the employer plans to adopt the recognition provisions of this
                Statement, if earlier.





The
      requirement to measure plan assets and benefit obligations as of the date of
      the
      employer’s fiscal year-end statement of financial position is effective for
      fiscal years ending after December 15, 2008. Management is currently evaluating
      the effect of this pronouncement on financial statements.





In
      February 2007, FASB issued FASB Statement No. 159, The Fair Value Option for
      Financial Assets and Financial Liabilities. FASB 159 is effective for fiscal
      years beginning after November 15, 2007. Early adoption is permitted subject
      to
      specific requirements outlined in the new Statement. Therefore, calendar-year
      companies may be able to adopt FASB 159 for their first quarter 2007 financial
      statements.





-
          31
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






The
      new
      Statement allows entities to choose, at specified election dates, to measure
      eligible financial assets and liabilities at fair value that are not otherwise
      required to be measured at fair value. If a company elects the fair value option
      for an eligible item, changes in that item's fair value in subsequent reporting
      periods must be recognized in current earnings. FASB 159 also establishes
      presentation and disclosure requirements designed to draw comparison between
      entities that elect different measurement attributes for similar assets and
      liabilities. The management is currently evaluating the effect of this
      pronouncement on financial statements.




**Supplemental
      Disclosure of Cash Flows**





The
      Company prepares its statements of cash flows using the indirect method as
      defined under the Financial Accounting Standard No. 95. The Company paid
      $305,305 for interest and $0 for income taxes during the year ended August
      31,
      2007. The Company paid $0 for interest and $4,812 for income taxes during the
      year ended August 31, 2006. The Company purchased wealth expo brand worth
      $139,000 through issuance of common stock. This wealth expo brand was
      subsequently impaired as of August 31, 2007.





On
      January 6, 2006, the Company acquired 100% of the equity in WallStreet pursuant
      to an Agreement and Plan of Reorganization dated September 19, 2005 by and
      between WallStreet and the Company. The former shareholders of WallStreet
      received 19,998,707 shares or 82% of the issued and outstanding shares of the
      Company's commons stock in exchange for all the issued and outstanding shares
      of
      WallStreet. In conjunction with the acquisition, with the following liabilities
      of the company were assumed by WallStreet:




Accounts
                payable
            
            $
            121,286Accrued
                expenses
            
            
            140,511Note
                payable
            
            
            107,500$
            369,297





These
      liabilities have been excluded from the statement of cash flows for the year
      ended August 31, 2006.





**NOTE
      3     MARKETABLE SECURITIES**





The
      Company receives securities of client companies as payment in full for services
      rendered. The numbers of shares the Company receives is based on contracts
      and
      the value is determined based on the bid price at the time of signing the
      agreement. The Company’s securities are classified as available-for-sale and, as
      such, are carried at fair value. The securities comprised of shares of common
      stock of third party customers and securities purchased. Securities classified
      as available-for-sale may be sold in response to changes in interest rates,
      liquidity needs, and for other purposes. The Company does not currently have
      any
      held-to-maturity or trading securities.





Unrealized
      holding gains and losses for available-for-sale securities are excluded from
      earnings and reported as a separate component of stockholder’s equity. Realized
      gains and losses for securities classified as available-for-sale are reported
      in
      earnings based upon the adjusted cost of the specific security
      sold.





The
      Company sold marketable securities during the years ended August 31, 2007 and
      2006 and recorded a realized loss of $318,400 and $1,257,512,
      respectively.





It
      is the Company’s policy to assess its marketable securities for
      impairment on a quarterly basis, or more frequently if warranted by
      circumstances. The Company recognized an impairment loss on the marketable
      securities of $5,456,929 during the year ended August 31, 2007 compared to
      $2,914,877 during the year ended August 31, 2006.





Marketable
      securities classified as available for sale consisted of the following as of
      August 31, 2007:





Marketable
                Securities
            
            Cost
            
            Market
                Value at August 31, 2007
            
            Accumulated
                Unrealized GainVarious
            
            $3,379,584
            
            $3,634,505
            
            $254,921





As
      of
      August 31, 2007, the Company evaluated its marketable securities holdings by
      valuing the securities according to the quoted price of the securities on the
      stock exchange.





-
          32
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






**NOTE
      4     PROPERTY AND
      EQUIPMENT**





Property
      and equipment at August 31, 2007 consisted of the following:





Office
                and computer equipment
            
            $
            138,070Less
                accumulated depreciation:
            
            
            (59,333
            )$
            78,737





Depreciation
      expense for the years ended August 31, 2007 and 2006 was $36,963 and $20,589,
      respectively.





**NOTE
      5     OTHER ASSETS**





The
      Other
      Assets as of August 31, 2007 comprise of the following :-





Prepaid
                Expenses
            
            $
            33,411Rent
                Deposits
            
            
            35,521Advances
                to Third Parties (interest free, unsecured and due on
                demand)
            
            
            25,000Total
            
            
            93,932Less
                : current portion
            
            
            (67,411
            )Long
                term other assets (Deposits)
            
            $
            26,521





**NOTE
      6     DEFERRED REVENUES**





The
      Company receives marketable securities and cash for services to be provided
      in
      future periods. The Company recognizes revenue on a pro-rata basis over the
      term
      of the agreement. The Company recorded $2,196,106 in deferred revenues at August
      31, 2007 which will be recognized over the next 12 months.





**NOTE
      7     ACCRUED EXPENSES**





Accrued
      expenses consist of the following at August 31, 2007:





Accrued
                consulting fees
            
            $
            659,802Accrued
                interest
            
            
            27,457Accrued
                salaries and payroll taxes
            
            
            493,469Other
            
            
            4,560$
            1,185,288





**NOTE
      8     DUE TO OFFICERS**





Due
      to
      officers consist of the following at August 31, 2007:





Accrued
                officer’s compensation
            
            $
            412,414Accrued
                consulting fees
            
            
            32,382Accrued
                interest
            
            
            188,373$
            633,169





The
      Company recorded an expense of $401,600 and $350,833 for the years ended August
      31, 2007 and 2006 for compensation to the Chief Executive Officer of the
      Company.





-
          33
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






**NOTE
      9    NOTE PAYABLE**





In
      August
      2004, the Company executed a promissory note of $100,000 from a third party,
      unsecured, interest at 9% per annum and due on demand. The Company recorded
      an
      interest expense of $9,000 and $9,000 in the accompanying financial statements
      for the years ended August 31, 2007 and 2006, respectively.





**NOTE
      10    NOTES PAYABLE OFFICERS**





Notes
                payable to an officer, due January 31, 2010, interest rate 6%, secured
                by
                the shares
            
            $
            3,000,000Note
                payable to an officer, due on demand, interest rate 8%,
                unsecured
            
            
            7,5003,007,500Less
                current portion
            
            
            (7,500
            )Long
                term debt – Officer
            
            $
            3,000,000





On
      January 15, 2005, the Company acquired 100% of the assets and outstanding shares
      of Digital WallStreet, Inc. which is 100% owned by the majority shareholder
      (86%) of the Company in exchange for two $1,500,000 promissory notes, carrying
      interest at 6% per annum, notes are due and payable on January 31, 2007 and
      January 31, 2010. As this merger is between entities under the common control,
      the issuance of the two $1,500,000 promissory notes to the majority shareholder
      has been recorded as a distribution to the majority shareholder. On December
      11,
      2006, the Company and the officer agreed to extend the payment due date of
      the
      promissory note due January 31, 2007 to January 31, 2010.





Should
      the total annual billings made by Digital WallStreet, Inc., for the calendar
      years ending December 31, 2005 or December 31, 2006 equals or exceeds
      $2,000,000, the full principal balance of the second $1,500,000 note will be
      due
      on or before January 31, 2010. If the annual billing is less than the sum of
      $2,000,000, the principal balance of the second note shall be reduced by the
      difference between $2,000,000 and the actual annual billings achieved. Digital
      Wallstreet, Inc. achieved total annual billings of $2,905,897 for the calendar
      year ended December 31, 2005 and $4,250,750 for the calendar year ended December
      31, 2006. The total billings for both these years exceeded $2,000,000 and hence,
      the principal of the Note was not reduced as of August 31, 2007.





The
      Company recorded interest expense of $180,000 and $179,854 on the above notes
      to
      the officer for the years ended August 31, 2007 and 2006,
      respectively.





**NOTE
      11     COMMITMENTS**





**Operating
      Lease**





The
      Company leases its corporate office facilities in California from a third party
      under an operating lease that terminates on February 28, 2010. The office
      facility in New York is leased on a month-to-month basis starting June 1, 2007.
      Rent expense under the operating lease for the years ended August 31, 2007
      and
      2006 was $377,464 and $216,344. The Company has future minimum lease obligations
      as follows:





Year
                ending August 31,
            
            Amount2008
            
            $
            307,8782009
            
            
            314,7962010
            
            
            185,649$
            808,323





**Employment
      Agreement**





On
      January 26, 2007, the Company entered into an employment agreement with its
      Chief Financial Officer for a three year period, to provide salary, bonuses,
      and
      other fringe benefits. The Company recorded an expense of $100,000 in general
      and administrative expenses for the year ended August 31, 2007. The Company
      has
      future minimum salary commitments as follows:





Year
                ending August 31,
            
            Amount2008
            
            $
            165,0002009
            
            
            189,7502010
            
            
            66,125$
            420,875





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          34
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






**Contingencies**





From
      time
      to time, the Company may be involved in various claims, lawsuits, and disputes
      with third parties, actions involving allegations of discrimination or breach
      of
      contract actions incidental to the normal operations of the business. Other
      than
      as disclosed herein, the Company is not currently involved in any litigation
      which it believes could have a material adverse effect on its financial position
      or results of operations.





**NOTE
      12** **INCOME
      TAXES**





Income
      tax for the years ended August 31, 2007 and 2006 is summarized as
      follows:





2007
            
            
            2006Current:Federal
            
            $
            --
            
            
            $
            1,742State
            
            
            4,800
            
            
            
            3,071Deferred taxes
            
            
            --
            
            
            
            --Income
                tax expense (benefit)
            
            $
            4,800
            
            
            $
            4,813




The
      following is a reconciliation of the provision for income taxes at the U.S.
      federal income tax rate to the income taxes reflected in the Consolidated
      Statements of Operations:




August
                31, 2007
            
            
            August
                31, 2006Tax
                expense (credit) at statutory rate-federal
            
            
            (34
            %)
            
            
            (34
            %)State
                tax expense net of federal tax
            
            
            (6
            %)
            
            
            (6
            %)Valuation
                allowance
            
            
            40
            %
            
            
            40
            %Tax
                expense at actual rate
            
            
            --
            
            
            
            --




The
      tax
      effects of temporary differences that gave rise to significant portions of
      deferred tax assets and liabilities at August 31, 2007 and 2006 are as
      follows:





August
                31, 2007
            
            
            August
                31, 2006Deferred
                tax assets:Net
                operating loss carry forward
            
            $
            1,907,569
            
            
            $
            1,995,917Total
                gross deferred tax assets
            
            
            1,907,569
            
            
            
            1,995,917Less
                valuation allowance
            
            
            (1,907,569
            )
            
            
            (1,995,917
            )Net
                deferred tax assets
            
            $
            --
            
            
            $
            --





At
      August
      31, 2007, the Company had net operating loss carry forwards of $4,788,748 for
      U.S. federal income tax purposes available to offset future taxable income
      expiring on various dates through 2027. The Company has recorded a 100%
      valuation allowance on the deferred tax assets due to the uncertainty of its
      realization.





**NOTE
      13**     **EQUITY
      TRANSACTIONS**





**Common
      Stock**





On
      June
      1, 2005, the WallStreet commenced a private equity offering to accredited
      investors which closed on December 22, 2005. WallStreet sold 6,325,000 units
      at
      $0.25 per unit, for an aggregate of $1,581,250 in net proceeds. Each unit is
      priced at $0.25 and consists of one (1) share of restricted common stock and
      one
      redeemable Class A Warrant and one redeemable Class B Warrant of WallStreet.
      Each Class A Warrant entitled the registered holder to purchase, at any time
      until the first anniversary of the date of the offering memorandum, one share
      of
      Common Stock at an exercise price of $0.50, subject to adjustment. Each Class
      B
      Warrant entitled the registered holder to purchase, at any time until the second
      anniversary of the date of the offering memorandum, one share of Common Stock
      at
      an exercise price of $0.75, subject to adjustment. The Class A Warrants and
      the
      Class B Warrants are redeemable by WallStreet, at a redemption price of $0.05
      per Warrant, upon at least 30 days’ prior written notice, commencing six months
      after the date of the offering memorandum. If the average of the closing bid
      price of the Common Stock, shall exceed $1.00 per share for the Class A Warrants
      and $2.68 per share for the Class B Warrants (subject to adjustment) for 20
      consecutive business days ending within 3 days of the date on which notice
      of
      redemption is given. WallStreet issued 6,325,000 Class A and Class B warrants
      to
      investors at the exercise prices of $0.50 and $0.75 respectively, with the
      fair
      value of the warrants of $0 calculated using the Black Scholes option pricing
      model using the assumptions of risk free interest rate of 3.4%, volatility
      of
      0%, and dividend yield of 0%. These securities were issued pursuant to Rule
      506
      of Regulation D. Cash consideration received for exercise of Class B Warrants
      amounted to $63,173 during the fiscal year ended August 31, 2007. All
      unexercised Class A Warrants expired on May 31, 2006. The remaining unexercised
      Class B Warrants expired on May 31, 2007.





-
          35
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






Through
      a
      private placement on January 25, 2006 and after the acquisition of WallStreet,
      the Company sold 120,000 units to eight accredited investors for cash
      consideration of $120,000. Each unit sold consists of one common share, a
      redeemable Class C Warrant (the “Class C Warrant”), a redeemable Class D Warrant
      (the “Class D Warrant”), and a redeemable Class E Warrant (the “Class E
      Warrant”) of Financial Media Group, Inc. Each Class C Warrant entitles the
      registered holder thereof to purchase, at any time until the first anniversary
      of the date of the purchase, 15,000 shares of Common Stock at an exercise price
      of $1.50 per share, subject to adjustment. Each Class D Warrant entitles the
      registered holder thereof to purchase, at any time until the second anniversary
      of the date of the purchase, 15,000 shares of Common Stock at an exercise price
      of $2.25 per share, subject to adjustment. Each Class E Warrant entitles the
      registered holder thereof to purchase, at any time until the third anniversary
      of the date of the purchase, 15,000 shares of Common Stock at an exercise price
      of $3.75 per share, subject to adjustment. The Class C Warrants, the Class
      D
      Warrants and the Class E Warrants (collectively, the “Warrants”) are redeemable
      by the Company, at a redemption price of $0.05 per share, upon at least 30
      days
      prior written notice. Commencing 12 months from the date of the private
      placement or upon an effective Registration Statement, whichever is earlier,
      at
      the price of $0.05 per Warrant, upon not less than 30 days notice to the holders
      of the Warrants called for redemption, provided that the average closing bid
      price of the Common Stock exceeds $2.50 for Class C Warrants, $4.50 for the
      Class D Warrants and $7.50 for the Class E Warrants for 20 trading days. The
      holders of the Warrants called for redemption shall have exercise rights until
      the close of business on the date fixed for redemption. Class C Warrants expired
      on January 25, 2007, Class D Warrants expire on January 25, 2008, and Class
      E
      Warrants expire on January 25, 2009, respectively.





The
      Company initiated a private placement on September 1, 2006, offering 335 units
      to accredited investors through its placement agent, Westcap Securities, Inc.,
      a
      NASD member. The minimum subscription was $15,000 for each unit. Each unit
      consisted of 10,000 shares of Common Stock, par value $0.001 per share, a
      redeemable Class A1 Warrant and a redeemable Class A2 Warrant of the
      Company's common stock. Each Class A1 and A2 Warrant entitles the
      registered holder thereof to purchase, at any time until the September 1, 2007
      and September 1, 2008 respectively, 5,000 shares of Common Stock at an exercise
      price of $2.50 and $3.50, respectively, subject to adjustment. The Class A1
      and
      A2 Warrants are redeemable by the Company, at a redemption price of $0.05 per
      share, upon at least 30 days’ prior written notice, commencing on the completion
      of an effective Registration Statement of the said securities or after September
      1, 2007, whichever is earlier, if the average of the closing bid price of the
      common stock, for 20 consecutive business days exceeds $3.50 per share for
      the
      Class A1Warrants, and $4.50 per share for the Class A2 Warrants. The exercise
      prices and the number of shares issuable upon the exercise of Warrants are
      subject to adjustment in certain circumstances.  The Company closed
      the private placement on February 23, 2007. During the year ended August 31,
      2007, the Company received a cash consideration of $648,500 from the sale of
      432,333 shares of Common Stock under this private placement. No other classes
      of
      warrant holders exercised their warrants. Class A1 Warrants expired
      on August 31, 2007 and Class A2 Warrants expire on August 31, 2008,
      respectively.





On
      February 22, 2007, the Company issued 100,000 shares valued at $139,000 for
      an
      investment in ‘Wealth Expo’ brand. This investment was fully impaired as of
      August 31, 2007 as the Company determined that there was no market for the
      brand.





Through
      a
      private placement memorandum of My WallStreet dated March 20, 2007, MyWallStreet
      offered to sell to accredited investors 6,400,000 units at $0.25 per unit,
      with
      each unit consisting of one share of Common Stock, par value $0.001 per share
      and a redeemable Class A Warrant of My WallStreet, Inc. Each Class A Warrant
      entitles the registered holder to purchase, at any time until the second
      anniversary of the date of this memorandum, one share of Common Stock at an
      exercise price of $0.25. As of August 31, 2007, the Company received $50,000
      under this private placement and has not issued the 200,000 shares of Common
      Stock of My WallStreet, Inc. Class A warrant holders did not exercise their
      warrants as of August 31, 2007.





On
      December 6, 2006, the Company entered into a Stock Purchase Agreement to sell
      up
      to $2,000,000 worth of common shares through private placement of shares under
      Regulation S as promulgated by the Securities and Exchange Commission under
      the
      Securities Act of 1933, as amended. The Stock Purchase Agreement was terminated
      on March 31, 2007. In accordance with the agreement, the Company had issued
      4,453,190 shares of its common stock under Regulation S to the investor and
      received cash proceeds of $1,665,836 which amounted to approximately 36% of
      the
      total proceeds from sale of its shares as of August 31, 2007. These shares
      were
      sold at a price equal to the previous day's last bid price as traded on the
      Over
      the Counter Bulletin Board Exchange.





On
      June
      28, 2007, the Company entered into a Stock Purchase Agreement with an investor
      for private placement of shares under Regulation S as promulgated by the
      Securities and Exchange Commission under the Securities Act of 1933, as amended.
      As of August 31, 2007, the Company did not sell any common shares to the
      investor pursuant to the Stock Purchase Agreement.





On
      June
      29, 2007, the Company entered into a Regulation S Distribution Agreement to
      sell
      upto $3,000,000pwoth of common shares through private placement of shares under
      Regulation S as promulgated by the Securities and Exchange Commission under
      the
      Securities Act of 1933, as amended. The term of the Distribution Agreement
      expired on November 29, 2007.  As of August 31, 2007, the Company
      issued 89,421 shares of its common stock under Regulation S to the investors
      and
      received cash proceeds of $18,234 which amounted to approximately 33.5% of
      the
      total proceeds from the sale of its shares.  The Company also received
      cash consideration of $62,453 for which the Company has not issued 290,218
      shares of common stock as of August 31, 2007. These shares were sold at a price
      equal to the previous day's last bid price as traded on the Over the Counter
      Bulletin Board Exchange.





On
      February 1, 2007, the Company granted options to purchase 350,000 shares of
      its
      common stock to a consultant in connection with the marketing and distribution
      strategies pursuant to the terms under the Company’s 2007 Non-Employee Stock
      Option Plan (“Option Plan”). The exercise price of the options on the date of
      grant was $0.75 per share and the term was 45 days. On February 22, 2007, the
      Company received a cash consideration of $262,500 upon the consultant’s exercise
      of 350,000 options. On June 26, 2007, the Company amended the scope of the
      consulting agreement of February 1, 2007 and granted options to purchase
      1,450,000 shares of its common stock pursuant to the terms under the Company’s
      Option Plan at the exercise price of $0.31 per share. The Company received
      in
      cash consideration $450,000 from the consultant upon exercise of its options
      on
      July 27, 2007.  During the year ended August 31, 2007, 281,904 shares
      were issued for consulting services and the fair value of $406,094 was recorded
      as an expense in the accompanying financials.





-
          36
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






On
      February 6, 2007, the Board of Directors adopted the 2007 Equity Incentive
      Plan
      (“Plan”) which was approved by the shareholders on April 11, 2007. The Plan
      reserves 3,000,000 shares of the Company’s authorized but unissued common stock
      for issuance under the Plan. The Company has not granted any options under
      the
      Plan as of August 31, 2007.





**Outstanding
      Warrants:**





Number
                  ofWarrants
            
            
            WeightedAverageExercise
                Price
            
            
            AggregateIntrinsicValueOutstanding
                August 31, 2006
            
            
            3,225,502
            
            
            $
            1.23
            
            
            $
            3,842,928Issued
                during the period
            
            
            689,334
            
            
            
            —Expired
            
            
            (3,076,996
            )
            
            $
            ---Exercised
            
            
            (63,173
            )
            
            
            —Outstanding
                August 31, 2007
            
            
            774,667
            
            
            $
            3.21
            
            
            $
            —





Following
      is a summary of the status of warrants outstanding at August 31,
      2007:





Range
                of Exercise Prices
            
            
            Total
                Warrants Outstanding
            
            
            Weighted
                Average Remaining Life (Years)
            
            
            Total
                Weighted Average Exercise Price
            
            
            Warrants
              Exercisable
            
            
            Weighted
                Average Exercise Price of Exercisable Warrants$2.25
                - $3.75
            
            
            
            774,667
            
            
            
            1.10
            
            
            
            3.21
            
            
            
            774,667
            
            
            
            2.64774,667
            
            
            
            1.10
            
            
            
            3.21
            
            
            
            774,667
            
            
            
            2.64





The
      Company issued 244,667 each of Class A1 and Class A2 warrants to investors
      at
      the exercise prices of $2.50 and $3.50 respectively, with the fair value of
      the
      warrants of $147,899 and $157,188 calculated using the Black Scholes option
      pricing model using the assumptions of risk free interest rate of 4.75%,
      volatility of 68%, and dividend yield of 0%. These securities were issued
      pursuant to Rule 506 of Regulation D.





The
      Company issued 200,000 My WallStreet warrants to investors at the exercise
      prices of $1.00 with the fair value of the warrants of $180,454 calculated
      using
      the Black-Scholes option pricing model using the assumptions of risk free
      interest rate of 4.75%, volatility of 79%, and dividend yield of
      0%.





**Outstanding
      Stock Options:**





The
      number and weighted average exercise prices of options granted by the Company
      are as follows:





Options
              Outstanding
            
            
            Weighted
                Average Exercise Price
            
            
            Aggregate
                Intrinsic ValueOutstanding
                August 31, 2006
            
            
            --
            
            
            $
            --
            
            
            $
            —Granted
            
            
            2,550,000
            
            
            
            -
            
            
            
            -Exercised
            
            
            (1,800,000
            )
            
            
            --
            
            
            
            --Expired/forfeited
            
            
            -
            
            
            
            -Outstanding
                August 31, 2007
            
            
            750,000
            
            
            $
            1.05
            
            
            $
            —






Following
      is a summary of the status of stock options outstanding at August 31,
      2007:





Range
                of
              Exercise
                Prices
            
            
            Total
                Options Outstanding
            
            
            Weighted
                Average Remaining Life (Years)
            
            
            Total
                Weighted Average Exercise Price
            
            
            Options
              Exercisable
            
            
            Weighted
                Average Exercise Price$0.01
                - $1.25
            
            
            
            750,000
            
            
            
            7.38
            
            
            
            1.05
            
            
            
            50,000
            
            
            
            0.42750,000
            
            
            
            7.38
            
            
            
            1.05
            
            
            
            50,000
            
            
            
            0.42





The
      Black-Scholes fair value of the above options based on the assumptions stated
      below was $1,258,401.The total expense for the options vested during the year
      ended August 31, 2007 was $1,041,796.  The value of the unvested
      options was $216,605 as of August 31, 2007.





-
          37
          -




**FINANCIAL
        MEDIA GROUP, INC. AND
        SUBSIDIARIES**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**






1,450,000
      45 days options calculated using the Black Scholes option pricing model using
      the following assumptions





Risk-free
                interest rate
            
            
            4.75
            %Dividend
                yield
            
            
            0
            %Volatility
            
            
            90
            %





350,000
      45 days options calculated using the Black Scholes option pricing model using
      the following assumptions





Risk-free
                interest rate
            
            
            4.91
            %Dividend
                yield
            
            
            0
            %Volatility
            
            
            40
            %





50,000
      two year options calculated using the Black Scholes option pricing model using
      the following assumptions





Risk-free
                interest rate
            
            
            4.75
            %Dividend
                yield
            
            
            0
            %Volatility
            
            
            90
            %





500,000
      two year options calculated using the Black Scholes option pricing model using
      the following assumptions





Risk-free
                interest rate
            
            
            4.75
            %Dividend
                yield
            
            
            0
            %Volatility
            
            
            103
            %





200,000
      two year options calculated using the Black Scholes option pricing model using
      the following assumptions





Risk-free
                interest rate
            
            
            4.75
            %Dividend
                yield
            
            
            0
            %Volatility
            
            
            76
            %





**NOTE
      14**** **GOING
      CONCERN**





The
      accompanying financial statements have been prepared in conformity with
      generally accepted accounting principles, which contemplate continuation of
      the
      Company as a going concern. This basis of accounting contemplates the recovery
      of the Company's assets and the satisfaction of its liabilities in the normal
      course of business. The Company had accumulated deficit of $9,672,076 as of
      August 31, 2007 and has incurred net loss of $5,937,675 for the year ended
      August 31, 2007. In view of the matters described in the preceding
      paragraph, recoverability of a major portion of the recorded asset amounts
      shown
      in the accompanying balance sheet is dependent upon continued operations of
      the
      Company, which in turn is dependent upon the Company's ability to raise
      additional capital, obtain financing and to succeed in its future operations.
      The financial statements do not include any adjustments relating to the
      recoverability and classification of recorded asset amounts or amounts and
      classification of liabilities that might be necessary should the Company be
      unable to continue as a going concern.





Management
      has taken the following steps to revise its operating and financial
      requirements, which it believes are sufficient to provide the Company with
      the
      ability to continue as a going concern. Management devoted considerable effort
      during the period ended August 31, 2007 towards (i) obtaining additional equity
      financing, (ii) evaluation of its distribution and marketing methods, and (iii)
      further streamlining and reducing costs.





**NOTE
      15**     **SUBSEQUENT
      EVENTS**





As
      of
      November 23, 2007, the Company received a cash consideration of $504,021 for
      sale of 4,024,917 shares of common stock under the June 28, 2007 private
      placement of shares under Regulation S as promulgated by the Securities and
      Exchange Commission under the Securities Act of 1933, as amended. The Company
      has issued 3,440,200 shares of common stock to the investors and 584,717 shares
      remained to be issued as of date.





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          38
          -