**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**


_____________________




**FORM
      10-QSB**


**(Mark
      One)**





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





**For
      the quarterly period ended:  September 30, 2007**





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





**For
      the transition period from _________________ to
      ________________**





**Commission
      file number:  000-30430**


________________




**INTERMOST
      CORPORATION**


**(Exact
      name of registrant as specified in its charter)**





**Wyoming**
            **87-0418721****(State
                or other jurisdiction of**
            **(IRS
                Employer Identification Number)****Incorporation
                or Organization)****31st
                Floor,
                3B31-23 Guomao Building, 005 Renmin Rd.
                (South),**
              **Shenzhen,
                People’s Republic of China**
            **518014****(Address
                of principal executive offices)**
            **(Zip
                Code)**





**011-86-755-8221-0238**


**(Registrant’s
      Telephone Number, including area code)**





Check
      whether the issuer (1) filed all reports required to be filed by section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days.  Yes ý No o





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act.):  Yes o  No ý





State
      the
      number of shares outstanding of each of the issuer’s classes of common equity,
      as of the latest practicable date: ++215,370,278 shares of common stock as
      of November 4, 2007.





Transitional
      Small Business Disclosure Format (check one).  Yes o  No ý




















**TABLE
        OF CONTENTS**











PART
      I.  Financial Information




Item
                  1.
              Financial
                  Statements




Condensed
                  Consolidated Balance sheets (Unaudited) as of June 30, 2007 and
                  September
                  30, 2007
              2Condensed
                  Consolidated Statements of Operations (Unaudited) for the three
                  months
                  ended September 30, 2006 and September 30, 2007
              3Condensed
                  Consolidated Statements of Cash Flows (Unaudited) for the three
                  months
                  ended September 30, 2006 and September 30, 2007
              4Notes
                  to Condensed Consolidated Financial Statements for the three months
                  ended
                  September 30, 2006 and September 30, 2007
              5






Item
                  2.
              Management’sDiscussion
                  and Analysis or Plan of Operation
              10Risk
                  Factors
              17Item
                  3A(T).
              Controls
                  and Procedures
              20




PART
      II.  Other Information




Item
                  1.
              Legal
                  Proceedings
              21Item
                  2.
              Unregistered
                  Sales of Equity Securities and Use of Proceeds
              22Item
                  3.
              Defaults
                  Upon Senior Securities
              22Item
                  4.
              Submission
                  of Matters to a Vote of Security Holders
              22Item
                  5.
              Other
                  Information
              22Item
                  6.
              Exhibits
              23Signatures
              24







-1-




INTERMOST
      CORPORATION AND SUBSIDIARIES


CONDENSED
      CONSOLIDATED BALANCE SHEETS








Sept
                30, 2007
              (unaudited)
            
            
            June
                30, 2006USD
            
            
            USD**ASSETS**Current
                AssetsCash
                and cash equivalents
            
            
            741,824
            
            
            
            833,993Accounts
                receivable, net
            
            
            4,066,438
            
            
            
            3,385,123Inventories
            
            
            199,047
            
            
            
            195,946Security
                bond deposit
            
            
            -
            
            
            
            -Stock
                in custodian
            
            
            -
            
            
            
            -Short-term
                Loan
            
            
            673,659
            
            
            
            670,763Deposits,
                prepayments and other receivables
            
            
            2,196,117
            
            
            
            2,269,083Short-term
                investment
            
            
            373,909
            
            
            
            368,083Total
                current assets
            
            
            8,250,994
            
            
            
            7,722,991Other
                AssetsUnlisted
                investment
            
            
            907,669
            
            
            
            893,526Property
                and equipment, net
            
            
            46,098
            
            
            
            51,414Investment
                in an associated company
            
            
            6,605,320
            
            
            
            7,197,267Intangible
                assets, net
            
            
            19,253
            
            
            
            20,354**TOTAL
                ASSETS**
            
            
            15,829,334
            
            
            
            15,885,552


**LIABILITIES
                AND SHAREHOLDERS' EQUITY**Current
                LiabilitiesAccounts
                payable
            
            
            3,903,138
            
            
            
            3,927,964Accrued
                liabilities and other payable
            
            
            967,294
            
            
            
            792,560Customer
                deposits
            
            
            96,545
            
            
            
            105,708Deferred
                revenue
            
            
            9,244
            
            
            
            -Business
                taxes and government surcharges payable
            
            
            -
            
            
            
            -Total
                Current Liabilities
            
            
            4,976,221
            
            
            
            4,986,232Minority
                Interests
            
            
            744,355
            
            
            
            732,762**STOCKHOLDERS’
                EQUITY**Preferred
                stock, par value US$0.001 per shareAuthorized
                - 5,000,000 sharesIssued
                and outstanding - None
            
            
            -
            
            
            
            -Common
                stock, par value US$0.001 per shareAuthorized
                - 500,000,000 sharesIssued
                and outstanding --- 215,370,278 shares at June 30, 2007 and at Sept
                30,
                2007
            
            
            215,371
            
            
            
            215,371Additional
                paid-in capital
            
            
            23,235,236
            
            
            
            23,235,236Treasury
                stock
            
            
            (8,970
            )
            
            
            (8,970
            )Accumulated
                deficit
            
            
            (14,710,902
            )
            
            
            (13,391,999
            )Accumulated
                other comprehensive loss
            
            
            1,378,023
            
            
            
            116,92010,108,758
            
            
            
            10,166,558**TOTAL
                LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS’
                EQUITY**
            
            
            15,829,334
            
            
            
            15,885,552





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






-2-





INTERMOST
      CORPORATION AND SUBSIDIARIES


CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)








Three
                months ended Sept 30,2007
            
            
            2006USD
            
            
            USDNet
                revenue
            
            
            7,598
            
            
            
            280,399Cost
                of revenues
            
            
            (36,965
            )
            
            
            (260,768
            )Gross
                profit
            
            
            (29,367
            )
            
            
            19,632Costs
                and expenses:Selling,
                general and administrative expenses
            
            
            (173,122
            )
            
            
            (347,001
            )Impairment
                of goodwill
            
            
            -
            
            
            
            (896,725
            )Exchange
                differences
            
            
            -
            
            
            
            -Amortization
                of intangible assets
            
            
            (832
            )
            
            
            (8,034
            )Total
                costs and expenses
            
            
            (173,954
            )
            
            
            (1,251,760
            )Income
                (loss) from operations
            
            
            (203,321
            )
            
            
            (1,232,128
            )Interest
                income
            
            
            8,025
            
            
            
            1,823Loan
                interest income
            
            
            16,244
            
            
            
            11,837Investment
                income / (loss)
            
            
            -
            
            
            
            (3,509
            )Other
                income, net
            
            
            -
            
            
            
            (62
            )Income
                before income taxes,minority
                interests and equity inearnings
                of associated companies
            
            
            (179,052
            )
            
            
            (1,222,039
            )Income
                taxes
            
            
            -
            
            
            
            (5,264
            )Income
                before minority interests and equity inearnings
                of an associated companies
            
            
            (179,052
            )
            
            
            (1,227,303
            )Minority
                interests
            
            
            4
            
            
            
            1,277Income
                (loss) before equity in earnings ofassociated
                companies
            
            
            (179,048
            )
            
            
            (1,226,027
            )Equity
                in earnings of associated companies
            
            
            5,182
            
            
            
            (3,280
            )Profit
                / (Loss) before extra-ordinary items
            
            
            (173,866
            )
            
            
            (1,229,306
            )Loss
                on closing a subsidiary company
            
            
            (1,145,037
            )
            
            
            -Net
                income (loss)
            
            
            (1,318,903
            )
            
            
            (1,229,306
            )Net
                income (loss) per common share-basic and diluted
            
            
            (0.006
            )
            
            
            (0.008
            )Weighted
                average number of common shares
              outstanding-basic
                and diluted
            
            
            215,370,278
            
            
            
            153,290,278






-3-




INTERMOST
      CORPORATION AND SUBSIDIARIES


CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)








Three
                months ended Sept 30,2007
            
            
            2006USD
            
            
            USDCash
                flows from operating activities:Net
                income (loss)
            
            
            (173,866
            )
            
            
            (1,229,306
            )Impairment
                of goodwill
            
            
            -
            
            
            
            896,725Amortization
                of intangible assets
            
            
            832
            
            
            
            8,034Equity
                in earnings of associated companies
            
            
            (5,182
            )
            
            
            3,280Loss
                on disposal of a subsidiary
            
            
            (1,145,037
            )Depreciation
            
            
            6,125
            
            
            
            7,354Minority
                interests
            
            
            11,593
            
            
            
            (1,277
            )(Increase)
                decrease in operating assets -Accounts
                receivable
            
            
            18,685
            
            
            
            2,288,680Inventories
            
            
            (3,101
            )
            
            
            (159,730
            )Deposits,
                prepayments and other receivables
            
            
            98,610
            
            
            
            (2,282,739
            )Increase
                (decrease) in operating liabilities -Accounts
                payable
            
            
            (24,826
            )
            
            
            4,936Accrued
                Liabilities
            
            
            (11,121
            )
            
            
            484,341Customer
                deposits
            
            
            1,505
            
            
            
            8,508Deferred
                revenue
            
            
            (1,424
            )
            
            
            (8,919
            )Business
                taxes and government surcharges payable
            
            
            211
            
            
            
            (14,301
            )Net
                cash used in operating activities
            
            
            (1,226,996
            )
            
            
            5,586Cash
                flows from investing activities:Acquisition
                of plant and equipment
            
            
            -
            
            
            
            (14,895
            )Increase
                (decrease) in short-term loan
            
            
            (2,896
            )
            
            
            600,148Net
                cash provided by investing activities
            
            
            (2,896
            )
            
            
            585,253Cash
                flows from financing activities:Increase
                in security bond
            
            
            -
            
            
            
            (1,000,000
            )Net
                proceeds from issuance of common stock
            
            
            -
            
            
            
            1,000,000Net
                cash provided by financing activities
            
            
            -
            
            
            
            -Cash
                and cash equivalents:Net
                increase (decrease)
            
            
            (1,229,892
            )
            
            
            590,839Accumulated
                other comprehensive loss
            
            
            1,137,723
            
            
            
            -Balance
                at beginning of period
            
            
            833,993
            
            
            
            692,624Balance
                at end of period
            
            
            741,824
            
            
            
            1,283,463Supplemental
                cash flow information:Cash
                paid for interest
            
            
            -
            
            
            
            -Cash
                paid for income taxes
            
            
            -
            
            
            
            -Non-cash
                investing and financing activities:Receivable
                from issuance of common stock
            
            
            -
            
            
            
            -Issuance
                of reserved common stock
            
            
            -
            
            
            
            -Issuance
                of common stock for service
            
            
            -
            
            
            
            -Acquisition
                of associated companiesAcquisition
                of subsidiaries:Non-cash
                assets acquired
            
            
            -
            
            
            
            -Liabilities
                assumed in acquisition
            
            
            -
            
            
            
            -Issuance
                of common stock
            
            
            -
            
            
            
            -








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







-4-








NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


THREE
      MONTHS ENDED SEPT 30, 2006 AND 2007





1.  ORGANIZATION
      AND BASIS OF PRESENTATION





The
      condensed consolidated financial statements include the accounts of the
      Intermost Corporation (the "Company") and its majority-owned subsidiaries,
      of
      which the Company has the ability to exercise control and direct operations
      and
      the minority interests do not possess participatory rights. All material
      intercompany balances and transactions have been eliminated on
      consolidation.





The
      condensed consolidated financial statements have been prepared in accordance
      with generally accepted accounting principles in the United States of
      America.





The
      condensed consolidated financial statements are unaudited, but in the opinion
      of
      management of the Company, contain all adjustments, which include normal
      recurring adjustments, necessary to present fairly the financial position at
      September 31, 2007, the results of operations for the three months ended
      September 30, 2007 and 2006, and the cash flows for the three months ended
      September 30, 2007 and 2006. The balance sheet as of June 30, 2007 is derived
      from the Company’s audited financial statements included in the Company’s Annual
      Report on Form 10-KSB for the fiscal year ended June 30, 2007.





Certain
      information and footnote disclosures normally included in financial statements
      that have been prepared in accordance with generally accepted accounting
      principles have been condensed or omitted pursuant to the rules and regulations
      of the Securities and Exchange Commission, although management of the Company
      believes that the disclosures contained in these financial statements are
      adequate to make the information presented therein not misleading. For further
      information, refer to the financial statements and the notes thereto included
      in
      the Company’s Annual Report on Form 10-KSB for the fiscal year ended June 30,
      2007, as filed with the Securities and Exchange Commission.





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





The
      results of operations for the three months ended September 30, 2007 are not
      necessarily indicative of the results of operations to be expected for the
      full
      fiscal year ending June 30, 2008.





2.  NET
      INCOME (LOSS) PER COMMON SHARE





Statement
      of Financial Accounting Standards No. 128, “Earnings Per Share,” requires
      presentation of basic earnings per share (“Basic EPS”) and diluted earnings per
      share (“Diluted EPS”). Basic earnings (loss) per share is computed by dividing
      earnings (loss) available to common stockholders by the weighted average number
      of common shares outstanding (including shares reserved for issuance) during
      the
      period. Diluted earnings per share gives effect to all dilutive potential common
      shares outstanding during the period. The Company did not have any potentially
      dilutive securities outstanding during the three months ended September 30,
      2006
      and 2007. Accordingly, basic and diluted earnings per share are the same for
      all
      periods presented.





3.  FOREIGN
      CURRENCY TRANSLATION





The
      Company maintains its books and records in Renminbi (“Rmb”), the currency of the
      People’s Republic of China (the “PRC”). The Rmb is the Company's functional
      currency, as the Company's business activities are located in the PRC and
      denominated in Rmb. Translation of amounts into United States dollars ("US$")
      has been made at the rate of Rmb7.506 to US$1.00. The translation of the
      financial statements of subsidiaries whose functional currencies are other
      than
      Rmb into Rmb is performed for balance sheet accounts using closing exchange
      rates in effect at the balance sheet date and for revenue and expense accounts
      using an average exchange rate during each reporting period. The gains or losses
      resulting from translation are included in stockholders' equity separately
      as
      accumulated other comprehensive loss.





Transactions
      in currencies other than functional currencies during the period are translated
      into the respective functional currencies at the applicable rates of exchange
      prevailing at the time of the transactions. Monetary assets and liabilities
      denominated in currencies other than functional currencies are translated into
      the respective functional currencies at the applicable rates of exchange in
      effect at the balance sheet date. Exchange gains and losses are included in
      the
      statement of operations. On July 21, 2005, Rmb was revalued from Rmb 8.28 to
      Rmb8.11 for US$1 following the removal of the peg to the US dollar and pressure
      for the United States. With the strong Rmb continuously appreciated to Rmb
      7.6248 for US$1 at June 30, 2007. And the Rmb was further appreciated to Rmb
      7.506 for US$ 1 at this quarter ended September 30, 2007.





-5-




The
      Rmb is
      not readily convertible into US$ or other foreign currencies. Translation of
      amounts from Rmb into US$ is for the convenience of readers. No representation
      is made that the Rmb amounts could have been, or could be, converted into US$
      at
      that rate or at any other rate.





For
      the
      purposes of financial statements presentation, the United States dollars
      equivalents of the all numbers are translated at the rate of USD 1 to Rmb
      7.506.





4.  STOCK-BASED
      COMPENSATION





The
      Company may periodically issue shares of common stock for services rendered
      or
      for financing costs. The Company may also periodically issue shares of common
      stock in conjunction with the acquisition of an, all or a portion of the equity
      interest in a business. The shares of common stock vest immediately on issuance
      and are not subject to any redemption rights.





The
      value
      of the shares of common stock issued for accounting purposes is based on the
      market price of the shares at the date of the transaction or on the fair value
      of the services rendered or net assets acquired, whichever is more determinable,
      based on the specific facts and circumstances of each transaction. The Company
      did not issue any stock during the three-month period ended September 30, 2007
      for any services rendered or assets acquired.





The
      Company may periodically issue stock options to employees and stock options
      or
      warrants to non-employees in non-capital raising transactions for services
      and
      for financing costs.





The
      Company has adopted Statement of Financial Accounting Standards No. 123,
      "Accounting for Stock-Based Compensation" (“SFAS No. 123”), which establishes a
      fair value method of accounting for stock-based compensation plans.





The
      provisions of SFAS No. 123 allow companies to either record an expense in the
      financial statements to reflect the estimated fair value of stock options to
      employees, or to continue to follow the intrinsic value method set forth in
      Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
      Employees", but to disclose on an annual basis the pro forma effect on net
      income (loss) and net income (loss) per share had the fair value of the stock
      options been recorded in the financial statements. SFAS No. 123 was amended
      by
      SFAS No. 148, which now requires companies to disclose in interim financial
      statements the pro forma effect on net income (loss) and net income (loss)
      per
      common share of the estimated fair market value of stock options issued to
      employees. The Company has elected to continue to account for stock-based
      compensation plans utilizing the intrinsic value method. Accordingly,
      compensation cost for stock options will be measured as the excess, if any,
      of
      the fair market price of the Company's common stock at the date of grant above
      the amount an employee must pay to acquire the common stock.





In
      accordance with SFAS No. 123, the cost of stock options and warrants issued
      to
      non-employees is measured at the grant date based on the fair value of the
      award. The fair value of the stock-based award is determined using the
      Black-Scholes option-pricing model. The resulting amount is charged to expense
      on the straight-line basis over the period in which the Company expects to
      receive benefit, which is generally the vesting period.





In
      accordance with SFAS No. 123, the Company will provide footnote disclosure
      with
      respect to stock-based employee compensation. The value of a stock-based award
      will be determined using the Black-Scholes option-pricing model, whereby
      compensation cost is the fair value of the award as determined by the pricing
      model at the grant date or other measurement date. The resulting amount will
      be
      charged to expense on the straight-line basis over the period in which the
      Company expects to receive benefit, which is generally the vesting period.
      Stock
      options issued to non-employee directors at fair market value will be accounted
      for under the intrinsic value method.





The
      Company did not have any stock options outstanding during the period ended
      September 30, 2007. Accordingly, no pro forma financial disclosure is provided
      herein.






-6-




5.  RECENT
      ACCOUNTING PRONOUNCEMENTS





In
      June
      2006, the Financial Accounting Standards Board (“FASB”) issued FASB
      Interpretation No. 48, “Accounting for Uncertainty in Income Taxes an
      interpretation of FASB Statement No. 109 - Accounting for Income Taxes” (“FIN
      48”), to create a single model to address accounting for tax positions.
      Interpretation No. 48 requires the use of 1 two-step approach for recognizing
      and measuring tax benefits taken or expected to be taken in a tax return and
      disclosures regarding uncertainties in income tax positions including a
      roll-forward of tax benefits taken that do not qualify for financial statement
      recognition. The provisions of FIN 48 becomes effective for the Company on
      July
      1, 2007, with the cumulative effect of the change in accounting principle,
      if
      any, recorded as an adjustment to opening retained earnings. The Company is
      currently evaluating the impact of adopting FIN 48 and its impact on its
      financial position, cash flows, and results of operations.





In
      September 2006, the Securities and Exchange Commission (“SEC”) released Staff
      Accounting Bulletin No. 108, “Considering the Effects of Prior Year
      Misstatements when Qualifying Misstatements in Current Year Financial
      Statements”. Bulletin No. 108 expresses the SEC staff’s views regarding the
      process of quantifying financial statement misstatements. Bulletin No. 108
      requires that, in addition, to considering the amount of the error originating
      in the current year statement of operations, the misstatements existing at
      each
      balance sheet date should be considered, irrespective of the period of origin
      of
      the error (rollover approach versus iron curtain approach). The Company adopted
      Bulletin No. 108 during the quarter ended September 30, 2007. The adoption
      did
      not have a material impact on its financial position, cash flows, and results
      of
      operations.





In
      September 2006, the FASB issued Statement No. 157, “Fair Value Measurements”.
      Statement No. 157 defines fair value, establishes a framework for measuring
      fair
      value in accordance with U.S. GAAP, and expands disclosures about fair value
      measurements. Statement No. 157 does not require any new fair value
      measurements; rather, it applies to other accounting pronouncements that require
      or permit fair value measurements. We are required to apply the provision of
      Statement No. 157 prospectively as of July 1, 2008, and recognize any transition
      adjustment as a cumulative-effect adjustment to the opening balance of retained
      earnings. The Company is currently evaluating the impact of adopting FIN 48
      and
      its impact on its financial position, cash flows, and results of
      operations.





In
      February 2007, the FASB issued Statement No. 159, “The Fair Value Option for
      Financial Assets and Financial Liabilities” which permits entities to choose to
      measure any financial instruments and certain other items at fair value that
      are
      not currently required to be measured at fair value. Statement No. 159 will
      be
      effective for the Company on July 1, 2008. The Company is currently evaluating
      the impact of adopting FIN 48 and its impact on its financial position, cash
      flows, and results of operations.





6.  CERTAIN
      SIGNIFICANT RISKS AND UNCERTAINTIES





Country
      Risk - The Company is subject to the consideration and risks of operating in
      the
      People's Republic of China (the "PRC"). These include risks associated with
      the
      political and economic environment, foreign currency exchange and the legal
      system in the PRC. The economy of PRC differs significantly from the economies
      of the "western" industrialized nations in such respects as structure, level
      of
      development, gross national product, growth rate, capital reinvestment, resource
      allocation, self-sufficiency, rate of inflation and balance of payments
      position, among others. Only recently has the PRC government encouraged
      substantial private economic activities. The Chinese economy has experienced
      significant growth in the past several years, but such growth has been uneven
      among various sectors of the economy and geographic regions. Actions by the
      PRC
      government to control inflation have significantly restrained economic expansion
      in the recent past. Similar actions by the PRC government in the future could
      have a significant adverse effect on economic conditions in PRC.





Many
      laws
      and regulations dealing with economic matters in general and foreign investment
      in particular have been enacted in the PRC. However, the PRC still does not
      have
      a comprehensive system of laws, and enforcement of existing laws may be
      uncertain and sporadic.





The
      Company’s primary sources of revenues and cash flows are derived from its
      business operations in the PRC. The Company’s business activity is with
      customers in the PRC. The PRC economy has, for many years, been a
      centrally-planned economy, operating on the basis of annual, five-year and
      ten-year state plans adopted by central PRC governmental authorities, which
      set
      out national production and development targets. The PRC government has been
      pursuing economic reforms since it first adopted its "open-door" policy in
      1978.
      There is no assurance that the PRC government will continue to pursue economic
      reforms or that there will not be any significant change in its economic or
      other policies, particularly in the event of any change in the political
      leadership of, or the political, economic or social conditions in, the PRC.
      There is also no assurance that the Company will not be adversely affected
      by
      any such change in governmental policies or any unfavorable change in the
      political, economic or social conditions, the laws or regulations, or the rate
      or method of taxation in the PRC.





-7-




As
      many of
      the economic reforms that have been or are being implemented by the PRC
      government are unprecedented or experimental, they may be subject to adjustment
      or refinement, which may have adverse effects on the Company. Further, through
      state plans and other economic and fiscal measures such as the leverage of
      exchange rate, it remains possible for the PRC government to exert significant
      influence on the PRC economy.





The
      Company's financial instruments that are exposed to concentration of credit
      risk
      consist primarily of cash and cash equivalents. Cash and cash equivalents are
      maintained with government-owned banks in the PRC with high credit
      ratings.  Accordingly, the Company believes that no significant credit
      risk exists.





On
      January
      1, 1994, the PRC government introduced a single rate of exchange of Renminbi
      ("Rmb") against United States Dollar (“US$”) as quoted daily by the People’s
      Bank of China (the "Unified Exchange Rate"). On July 21, 2006, Rmb was revalued
      from Rmb 8.28 to Rmb8.11 for US$1 following the removal of the peg to the US
      dollar and pressure for the United States. The Peoples Bank of China also
      announced that the Renminbi would be pegged to a basket of foreign currencies,
      rather then being strictly tied to the US dollar and would trade within a narrow
      0.3% band against this basket of currencies, which is dominated by the US
      dollar, Euro, Japanese Yen and South Korean Won, with a smaller proportion
      made
      up of the British pound, Thai Baht and Russian Ruble. No representation is
      made
      that the Rmb amounts have been, or could be, converted into US$ at that rate.
      This quotation of exchange rates does not imply free convertibility of Rmb
      to
      other foreign currencies. All foreign exchange transactions continue to take
      place either through the Bank of China or other banks authorized to buy and
      sell
      foreign currencies at the exchange rate quoted by the People's Bank of China.
      Approval of foreign currency payments by the People's Bank of China or other
      institutions requires submitting a payment application form together with
      suppliers' invoices, shipping documents and signed contracts.





Restrictions
      on the Payment of Dividends - PRC law requires net profits after taxes to be
      used to set-off any losses carried forward before any distribution of profits
      may be made. Furthermore, PRC law imposes a Mandatory Provident Reserve on
      all
      businesses. Under this law, a business must set aside 10% of its distributable
      profits as a mandatory reserve before a distribution of profits may occur.
      Once
      the business accumulates a mandatory reserve equal to 50% of its capitalization,
      no further accumulation of the reserve is required.





Industry
      Risk - The Company operates in business segments which are characterized by
      rapid technological advances, changes in customer requirements, and evolving
      regulatory requirements and industry standards. Any failure by the Company
      to
      anticipate or to respond adequately to technological changes in its industry
      segments, changes in customer requirements or changes in regulatory requirements
      or industry standards, could have a material adverse effect on the Company's
      business and operating results.





7.  INCOME
      TAXES





The
      Company and its subsidiaries are subject to income taxes on an entity basis
      on
      income arising in, or derived from, the tax jurisdiction in which they
      operate.





The
      Company is subject to the United States federal tax at a rate of
      35%.





Intermost
      Limited, and Leader Palace International limited, the Company's subsidiaries
      incorporated under the International Business Companies Act of the British
      Virgin Islands, is exempted from payment of the British Virgin Islands income
      taxes.





Intermost
      (H.K.) Limited, the Company's subsidiary incorporated in Hong Kong, is subject
      to Hong Kong profits tax at a rate of 17.5%.





The  Company’s
      key consolidated subsidiaries organized in the PRC  (ChinaE.com
      Information Technology  Ltd.,
      IMOT  Information  Technology  (Shenzhen) Ltd.,
      ChinaE.com  Technology (Shenzhen) Ltd.,   Intermost
      Focus Advertising Company Ltd., Shenzhen Golden Anke Technology Ltd., and
      ChinaE.com Investment Consultant (Shenzhen) Limited) are subject to PRC
      enterprise income taxes at a rate of 15%.





For
      the
      three months ended September 30, 2007 and 2006, Shenzhen Golden Anke Technology
      Ltd. generated approximately the majority of the Company's consolidated taxable
      income. Since the losses from one subsidiary cannot be offset against the income
      from another subsidiary in determining the provision for income taxes, the
      Company's provision for income taxes for the three months ended September 30,
      2007 and 2006 are mainly for the taxable income generated by Shenzhen Golden
      Anke Technology Ltd.







-8-




8.  CONCENTRATION





On
      August
      10, 2004, all necessary government approvals were obtained to complete the
      transfer of 51% of the issued and outstanding shares of Golden Anke Technology
      Ltd. (“Golden Anke”) from two of its shareholders, Tu Guoshen and Li Zhiquan, to
      IMOT Technology.  Pursuant to the Share Transfer Agreement signed on
      March 31, 2004 among IMOT Technology, Intermost, Golden Anke, Tu Guoshen and
      Li
      Zhiquan, the purchase price paid for the stock was $3.24 million.  On
      August 10, 2004 we issued to the selling shareholders 12 million shares of
      our
      common stock, in full payment of the purchase price.  The value of our
      common stock was determined by applying a 20% discount to the average closing
      price during the period from January 20 to March 19, 2004.  Golden
      Anke is a leading digital security imaging system provider operating in
      China.  Golden Anke offers a variety of solutions in video
      surveillance, digital image processing and compression, Internet image transfer
      and imaging security systems.  We recently sold approximately two
      percent (2%) of the outstanding shares in Golden Anke to an unaffiliated
      minority stockholder so that this minority stockholder could seek an independent
      listing of Golden Anke on a UK exchange thus reducing our ownership from
      approximately 51% to approximately 49%.





9.  SEGMENT
      INFORMATION





The
      Company adopted SFAS No. 131, “Disclosures About Segments of an Enterprise and
      Related Information,” in respect of its operating segments.  The
      Company currently operates in four principle business segments which are:
      E-Commerce solutions, Digital security imaging system, Consulting, and
      Photographic business. E-Commerce Solutions comprises revenue from web-site
      development contracts and maintenance contracts. The Digital security imaging
      system segment consists of sales of surveillance system and maintenance
      services.  The Consulting segment comprises services rendered for
      provision of information on property exchange matters, and the Photographic
      Business consists of sales of photographic equipment.





Each
      segment is managed separately because each business requires different
      technology and marketing strategies. The Company evaluates performance based
      on
      operating earnings of the respective business units. The accounting policies
      of
      the segments are the same as those described in the summary of significant
      accounting policies. The corporate assets include primarily cash and cash
      equivalents and deposits and other receivables. There were no significant
      intercompany transactions during any of the reported periods. In determining
      operating income (loss) by reportable segment, general corporate expenses and
      other income and expense items of a non-operating nature are not considered;
      as
      such items are not allocated to the Company's segments. Management believes
      that
      the following table presents the useful information to the chief operation
      decision makers for measuring business performance and financing needs etc.
      Except for the customers of VOIP call minutes, all of the other customers are
      located in the PRC. As such, no geographical Segment information is presented.
      Segment information for the three months period ended September 30, 2007 is
      as
      follows:





(a)  Net
      revenues:





Three
                Months Ended September 30, 2007Rmb’000
            
            
            US$’000E-commerce
                solutions
            
            
            54
            
            
            
            7VOIP
                call minutes
            
            
            3
            
            
            
            -Photographic
                business
            
            
            -
            
            
            
            -Digital
                security imaging system
            
            
            -
            
            
            
            -57
            
            
            
            7





(b)  Net
      income (loss):





Three
                Months Ended September 30, 2007Rmb’000
            
            
            US$’000E-commerce
                solutions
            
            
            (596
            )
            
            
            (79
            )Consulting
            
            
            -
            
            
            
            -Photographic
                business
            
            
            -
            
            
            
            -VOIP
                call minutes
            
            
            11
            
            
            
            2Digital
                security imaging system
            
            
            -
            
            
            
            -Corporate
            
            
            (9,386
            )
            
            
            (1,242
            )(9,971
            )
            
            
            (1,319
            )






-9-





(c) Assets:





As
                at September 30, 2007Rmb’000
            
            
            US$’000E-commerce
                solutions
            
            
            544
            
            
            
            71Consulting
            
            
            3,375
            
            
            
            443Digital
                security imaging system
            
            
            -
            
            
            
            -Photographic
                business
            
            
            1,984
            
            
            
            260VOIP
                call minutes
            
            
            36,937
            
            
            
            4,844Corporate
            
            
            75,743
            
            
            
            9,934118,583
            
            
            
            15,552





Substantially
      all of the Company's identifiable assets are located in the PRC.





(d)  Other
      items:








Three
                Months Ended September 30, 2007Rmb’000
            
            
            US$’000Depreciation:E-commerce
                solutions
            
            
            44
            
            
            
            6Consulting
            
            
            0
            
            
            
            0Corporate
                expenses
            
            
            2
            
            
            
            046
            
            
            
            6





There
      was no fixed expenditure for fixed assets during the three months ended
      September 30, 2007.





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





*Certain
      statements contained in this Form 10-QSB constitute forward-looking statements
      within the meaning of Section 27A of the Securities Act of 1933, as amended
      and
      Section 21E of the Securities Exchange Act of 1934, as amended.  Such
      forward-looking statements herein are based on current expectations that involve
      a number of risks and uncertainties. Such forward-looking statements are based
      on assumptions that there will be no material adverse change in our operations
      or business, that we will meet success in marketing and selling our products,
      and that we will be able to continue to attract and retain skilled employees
      necessary for our business, among other things.  The foregoing
      assumptions are based on judgments with respect to, among other things,
      information available to our, future economic, competitive and market conditions
      and future business decisions.  All of these assumptions are difficult
      or impossible to predict accurately and many are beyond our control.
      Accordingly, although we believe that the assumptions underlying the
      forward-looking statements are reasonable, any such assumption could prove
      to be
      inaccurate and therefore there can be no assurance that the results contemplated
      in the forward-looking statements will be realized. There are a number of risks
      presented by our business and operations, which could cause our financial
      performance to vary markedly from prior results, or results contemplated by
      the
      forward-looking statements. Such risks include failure of the our technology
      or
      products to work as anticipated, failure to develop commercially viable products
      or services from our technology, delays or failure in financing efforts, delays
      in or lack of market acceptance, failure to recruit adequate personnel, and
      problems with protection of intellectual property, among others. The words
      “believe,” “estimate,” “expect,” “intend,” “anticipate” “should”, “could”,
“may”, “plan” and similar expressions and variations thereof identify some of
      these forward-looking statements. Management decisions, including budgeting,
      are
      subjective in many respects and periodic revisions must be made to reflect
      actual conditions and business developments, the impact of which may cause
      us to
      alter our capital investment and other expenditures, which may also adversely
      affect our results of operations. In light of significant uncertainties inherent
      in forward-looking information included in this Quarterly Report on Form 10-QSB,
      the inclusion of such information should not be regarded as a representation
      by
      us that our objectives or plans will be achieved. We undertake no obligation
      to
      revise or publicly release the results of any revision to these forward-looking
      statements.*






-10-




Overview





We
      believe
      that the People’s Republic of China represents an exciting emerging world market
      whose role in the global economy is increasing steadily.  China’s
      economic growth rate, measured by its gross domestic product, has consistently
      been higher than 7% over the past 10 years.  This economic growth is
      attributable to many factors, including investment in the country’s
      infrastructure, increased privatization of businesses and an abundant source
      of
      labor.  Currently, we offer products and services to businesses and
      consumers located primarily in China.  Our plan is to take advantage
      of China’s economic growth to expand our existing businesses and, possibly, in
      the future, to sell our products and services outside of China.  We
      also have begun to acquire diverse businesses that are not dependent on, or
      directly related to, each other.  We believe that diversification is a
      good hedge against the collapse of a single industry, such as the global
      collapse of the technology industry that occurred in 2000.  We expect
      that any acquisitions we make will improve our financial condition, although
      we
      cannot guarantee any such result.





In
      response to the economic recovery, we began to diversify our business, so that
      we will no longer be dependent on one market for
      revenue.   Generally, the issuance of our common stock represents
      some or all of the purchase price we pay for an acquired business.  We
      believe that the continued active trading of our common stock will be important
      to the principals of target companies and future acquisitions may be dependent
      on the active trading of our common stock.  However, our common stock
      has not been actively traded and, if our common stock continues to trade with
      limited volume and at current levels we may not be able to make acquisitions
      as
      planned.





We
      intend
      to finalize an acquisition of a Taiwan touch panel manufacturing company which
      we believe will be a good addition to our business.





Risks
      Associated with Doing Business in China





There
      are
      significant risks in operating in the Peoples’ Republic of China (the “PRC”).
      These include risks associated with the political and economic environment,
      foreign currency exchange and the legal system in the PRC.  The
      economy of PRC differs significantly from the economies of the industrialized
      nations of the west in such respects as structure, level of development, gross
      national product, growth rate, capital reinvestment, resource allocation,
      self-sufficiency, rate of inflation and balance of payments position, among
      others. Only recently has the PRC government encouraged substantial private
      economic activities. The Chinese economy has experienced significant growth
      in
      the past several years, but such growth has been uneven among various sectors
      of
      the economy and geographic regions. Actions by the PRC government to control
      inflation have significantly restrained economic expansion in the recent past.
      Similar actions by the PRC government in the future could have a significant
      adverse effect on economic conditions there.





Many
      laws
      and regulations dealing with economic matters in general and foreign investment
      in particular have been enacted in the PRC.  However, the PRC still
      does not have a comprehensive system of laws, and enforcement of existing laws
      may be uncertain and sporadic.  Our primary sources of revenues and
      cash flows are derived from our business operations in the PRC.  The
      PRC economy has, for many years, been a centrally-planned economy, operating
      on
      the basis of annual, five-year and ten-year state plans adopted by central
      PRC
      governmental authorities, which set out national production and development
      targets. The PRC government has been pursuing economic reforms since it first
      adopted its "open-door" policy in 1978. There is no assurance that the PRC
      government will continue to pursue economic reforms or that there will not
      be
      any significant change in its economic or other policies, particularly in the
      event of any change in the political leadership of, or the political, economic
      or social conditions in, the PRC. There is also no assurance that the Company
      will not be adversely affected by any such change in governmental policies
      or
      any unfavorable change in the political, economic or social conditions, the
      laws
      or regulations, or the rate or method of taxation in the PRC.






-11-




As
      many of
      the economic reforms that have been or are being implemented by the PRC
      government are unprecedented or experimental, they may be subject to adjustment
      or refinement, which may have adverse effects on the Company. Further, through
      state plans and other economic and fiscal measures such as the leverage of
      exchange rate, it remains possible for the PRC government to exert significant
      influence on the PRC economy. The Company's financial instruments that are
      exposed to concentration of credit risk consist primarily of cash and cash
      equivalents. Cash and cash equivalents are maintained with government-owned
      banks in the PRC with high credit ratings.





On
      January
      1, 1994, the PRC government introduced a single rate of exchange of Renminbi
      (“Rmb”) against United States Dollar ("US$") as quoted daily by the People's
      Bank of China (the “Unified Exchange Rate”). On July 21, 2006, Rmb was revalued
      from Rmb 8.28 to Rmb8.11 for US$1 following the removal of the peg to the US
      dollar and pressure for the United States. The Peoples Bank of China also
      announced that the Renminbi would be pegged to a basket of foreign currencies,
      rather then being strictly tied to the US dollar and would trade within a narrow
      0.3% band against this basket of currencies, which is dominated by the US
      dollar, Euro, Japanese Yen and South Korean Won, with a smaller proportion
      made
      up of the British pound, Thai Baht and Russian Ruble. No representation is
      made
      that the Rmb amounts have been, or could be, converted into US$ at that rate.
      This quotation of exchange rates does not imply free convertibility of Rmb
      to
      other foreign currencies. All foreign exchange transactions continue to take
      place either through the Bank of China or other banks authorized to buy and
      sell
      foreign currencies at the exchange rate quoted by the People's Bank of China.
      Approval of foreign currency payments by the People's Bank of China or other
      institutions requires submitting a payment application form together with
      suppliers’ invoices, shipping documents and signed contracts.





Restriction
      on the Payment of Dividends - PRC law requires net profits after taxes to be
      used to set-off any losses carried forward before any distribution of profits
      may be made. Furthermore, PRC law imposes a Mandatory Provident Reserve on
      all
      businesses. Under this law, a business must set aside 10% of its distributable
      profits as a mandatory reserve before a distribution of profits may occur.
      Once
      the business accumulates a mandatory reserve equal to 50% of its capitalization,
      no further accumulation of the reserve is required.





Certain
      Factors Affecting Future Operating Results





The
      Company’s operating results have been, and will continue to be, affected by a
      wide variety of factors that could have a material adverse effect on revenues
      and profitability during any particular period. Some of these factors
      include:





·
            the
                Company's ability to successfully implement its current business
                plans;





·
            whether
                the Company will be able to obtain additional capital, if necessary,
                to
                support its operations;





·
            whether
                the Company will be able to find joint venture prospects or acquisition
                prospects with which to enhance its
                business;




·
            whether
                the Company can successfully integrate acquisitions that it makes
                into its
                business;





·
            the
                level and rate of acceptance of the Company's products and services
                by
                consumers in China;





·
            continued
                economic growth in China;





·
            entry
                of new competition (including established companies from outside
                China and
                companies with substantially greater resources)
                into the Company's market;






-12-




·
            fluctuations
                in the level of demand for services or
                products;





·
            rescheduling
                or cancellation of orders by
                customers;





·
            competitive
                pressures on selling prices;





·
            rapid
                changes in technology, which could result in the Company's technology
                becoming obsolete;





·
            dependence
                upon key employees;





·
            availability
                and cost of computer technicians;





·
            loss
                of any of the Company's major
                customers;





·
            the
                Company's ability to introduce new products and services on a timely
                basis;





·
            new
                product and service introductions by the Company's
                competitors;





·
            fluctuations
                in exchange rates; and





·
            adverse
                changes in the general economic, social or political conditions in
                the
                PRC.





Critical
      Accounting Policies





The
      Company prepares its consolidated financial statements in accordance with
      accounting principles generally accepted in the United States of America. The
      preparation of these financial statements requires the use of 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 the reported amount of revenues and expenses during the reporting
      period. Management periodically evaluates the estimates and judgments made.
      Management bases its estimates and judgments on historical experience and on
      various factors that are believed to be reasonable under the circumstances.
      Actual results may differ from these estimates as a result of different
      assumptions or conditions.





The
      following critical accounting policies affect the more significant judgments
      and
      estimates used in the preparation of the Company's consolidated financial
      statements.





Revenue
      Recognition





The
      Company recognizes revenue in accordance with SEC Staff Accounting Bulletin
      No.
      101, "Revenue Recognition in Financial Statements". The Company recognizes
      revenue when the significant risks and rewards of ownership have been
      transferred to the customer pursuant to PRC law, including factors such as
      when
      persuasive evidence of an arrangement exists, delivery has occurred, the sales
      price is fixed or determinable, sales and value-added tax laws have been
      complied with, and collectibility is probable.





Accounts
      Receivable





The
      Company typically extends credit to its customers. In order to determine the
      value of the Company's accounts receivable, the Company records a provision
      for
      doubtful accounts to cover estimated credit losses. Management reviews and
      adjusts this allowance periodically based on historical experience and its
      evaluation of the collectibility of outstanding accounts receivable. The Company
      evaluates the credit risk of its customers by analyzing its aged accounts
      receivable, utilizing historical data, the customer's financial condition,
      general economic conditions and estimates of future performance.





Long-Lived
      Assets and Goodwill





The
      Company periodically evaluates the carrying value of long-lived assets held
      or
      used whenever events and circumstances indicate that the carrying value of
      the
      asset may no longer be recoverable. An impairment loss, measured on the fair
      value of the asset, is recognized if expected future undiscounted cash flows
      are
      less than the carrying value of the assets.






-13-




The
      Company evaluates the carrying value of investments in associated companies,
      at
      a minimum, on an annual basis and whenever events and circumstances indicate
      that the carrying value of the asset may no longer be recoverable. Impairment loss,
      measured on the fair value of the asset, is recognized if expected future
      undiscounted cash flows are less than the carrying value of the
      assets.





The
      Company evaluates goodwill, at a minimum, on an annual basis and whenever events
      and changes in circumstances suggest that the carrying amount may not be
      recoverable in accordance with SFAS No. 142 “Goodwill and Other Intangible
      Assets.”  Impairment of goodwill is tested at the reporting unit level
      by comparing the reporting unit's carrying amount, including goodwill, to the
      fair value of the reporting unit. The fair values of the reporting units are
      estimated using discounted cash flows approach. If the carrying amount of the
      reporting unit exceeds its fair value, goodwill is considered impaired and
      a
      second step is performed to measure the amount of impairment loss, if
      any.





Income
      Taxes





The
      Company records a valuation allowance to reduce its deferred tax assets derived
      from operating loss of certain subsidiaries in the PRC to the amount that is
      more likely than not to be realized. In the event the Company was to determine
      that it would be able to realize its deferred tax assets in the future in excess
      of its recorded amount, an adjustment to the deferred tax assets would be
      credited to operations in the period such determination was made. Likewise,
      should the Company determine that it would not be able to realize all or part
      of
      its deferred tax assets in the future, an adjustment to the deferred tax assets
      would be charged to operations in the period such determination was made.
      Currently, the Company is evaluating the impact of implementation of FIN 48
      “Accounting for Uncertainty in Income Taxes – an Interpretation of FASB
      Statement No. 109.”





**Results
      of Operations - Three Months Ended September 30, 2007 and
      2006**





All
      amounts shown below are presented in US$. As used below, the letter “K”
appearing immediately after a dollar amount denotes that it has been rounded
      to
      the nearest $1,000.





Net
      Revenues





Net
      revenues for the three months ended September 30, 2007 consisted primarily
      from
      ChinaE.com Tech, which provide e-commerce solutions. The term "e-commerce
      solutions" includes web-site design and development and
      web-hosting.





The
      following table reflects the total net revenues and percentage of net revenues
      by major category for the periods indicated:





Net
                Revenue
            
            
            Net
                Revenue2006
            
            
            2006
            
            
            2007
            
            
            20073
                months ended September 30
            
            USD'000
            
            
            %
            
            
            USD'000
            
            
            %E-commerce
                solutions
            
            
            22
            
            
            
            8
            %
            
            
            7
            
            
            
            100
            %Sale
                of digital security imaging equipments
            
            
            257
            
            
            
            92
            %
            
            
            -
            
            
            
            0
            %VOIP
            
            
            0
            
            
            
            0
            %
            
            
            -
            
            
            
            0
            %Sale
                of photographic equipments
            
            
            1
            
            
            
            0
            %
            
            
            -
            
            
            
            0
            %Consulting
            
            
            0
            
            
            
            0
            %
            
            
            -
            
            
            
            0
            %280
            
            
            
            100
            %
            
            
            7
            
            
            
            100
            %






-14-





Total
      net
      revenues decreased by 98% to $7K during the three months ended September 30,
      2007, as compared to $280K during the three months ended September 30, 2006.
      The
      decrease in total net revenues was primarily due to the decrease in sales of
      digital security imaging systems made through the Company's previous subsidiary,
      Shenzhen Golden Anke.  The main reason for the decrease in sales
      during the period is due to the change of shareholdings in Golden Anke, changed
      from a subsidiary to an associated company as at year ended June 30,
      2007.  As a result of this, there were no more sales of digital
      security imaging systems taken into the Company, but the performance of Golden
      Anke was included in the share of profits of associated companies.





Cost
      of
      Revenues





The
      following table reflects the principal components of cost of revenues and the
      percentage of net revenues represented by each component for the periods
      indicated:








Cost
                of Revenue
            
            
            Cost
                of Revenue2006
            
            
            2006
            
            
            2007
            
            
            20073
                months ended September 30
            
            USD'000
            
            
            %
            
            
            USD'000
            
            
            %Salaries
                of technicians / engineers
            
            
            32
            
            
            
            12
            %
            
            
            24
            
            
            
            67
            %Sale
                of photographic equipments
            
            
            2
            
            
            
            1
            %
            
            
            0
            
            
            
            0
            %Sale
                of digital security imaging equipments
            
            
            213
            
            
            
            81
            %
            
            
            0
            
            
            
            0
            %Depreciation
            
            
            4
            
            
            
            2
            %
            
            
            5
            
            
            
            14
            %VOIP
            
            
            0
            
            
            
            0
            %
            
            
            0
            
            
            
            0
            %Others
            
            
            10
            
            
            
            4
            %
            
            
            7
            
            
            
            19
            %261
            
            
            
            100
            %
            
            
            36
            
            
            
            100
            %








Cost
      of
      revenues decreased by 99% to $36K or 96% of net revenues for the three months
      ended September 30, 2007, as compared to $261K during the three months ended
      September 30, 2006.





The
      principal components of cost of revenues during the three months ended September
      30, 2007 were engineer and technician salaries, other costs associated with
      engineering and technical staff support and depreciation of equipment utilized
      in connection with the Company's operations.





The
      decrease in costs of revenues in 2007 as compared to 2006 was principally
      attributable to the decrease in sales volume of the Company's e-commerce
      solutions.





Selling,
      General and Administrative Expense





Selling,
      general and administrative (“SG&A”) expense consists principally of sales
      commissions, advertising, other marketing expenses, rental expenses, salaries
      for administrative and sales staff, and corporate overhead.





The
      following table reflects the principal components of SG&A expense and the
      percentage of net sales represented by each component for the periods
      indicated:





SG&A
                Expenses
            
            
            SG&A
                Expenses2006
            
            
            2006
            
            
            2007
            
            
            20073
                months ended September 30
            
            USD'000
            
            
            %
            
            
            USD'000
            
            
            %Sales
                & Marketing salaries & commissions
            
            
            18
            
            
            
            12
            %
            
            
            34
            
            
            
            20
            %Advertising
                & other sales & marketing expenses
            
            
            7
            
            
            
            9
            %
            
            
            4
            
            
            
            2
            %Rentals
            
            
            23
            
            
            
            10
            %
            
            
            15
            
            
            
            8
            %Administrative
                salaries
            
            
            53
            
            
            
            23
            %
            
            
            67
            
            
            
            39
            %Corporate
                overhead
            
            
            246
            
            
            
            46
            %
            
            
            53
            
            
            
            31
            %347
            
            
            
            100
            %
            
            
            173
            
            
            
            100
            %






-15-




For
      the
      three months ended September 30, 2007, SG&A expense decreased by 50% to
      $173K, as compared to $347K for the three months ended September 30,
      2006.





The
      increase in SG&A expense in 2007 as compared to 2006 was principally
      attributable to cost cutting measures implemented in the quarter ended September
      30, 2007.  During the three months ended September 30, 2007, the
      Company reduced its sales team as a result of management's reassessment of
      the
      manpower required to generate sales and service to the Company's customers
      and
      the Company also implemented a firm-wide cost-cutting exercise.





Income
      Taxes





Income
      taxes for the three months ended September 30, 2007 were $0K and $5K for the
      three months ended September 30, 2006.





Other
      Items





Minority
      interests reflect the minority shareholders' proportionate interests in the
      net
      income of the Company’s non-wholly-owned subsidiaries. The balance is mainly
      derived from Shenzhen Golden Anke.





Equity
      in
      losses of an associated company represents the Company's proportionate share
      of
      the loss of Hainan Property Right Exchange Centre.





Net
      Income
      (Loss)





The
      Company had net loss of $1,319K during the three months ended September 30,
      2007, as compared to a net income of $1,229K during the three months ended
      September 30, 2006.





**Liquidity
      and Capital Resources – September 30, 2007**





At
      September 30, 2007, the Company had cash and cash equivalents of $ 742K and
      working capital of $10,167K, as compared to $1,283K of cash and cash equivalents
      and $11,302K of working capital at September 30, 2006.





Net
      cash
      used in operating activities was $1,227K for the three months ended September
      30, 2007, as compared to net cash used in operating activities of $6K for the
      three months ended September 30, 2006. The decrease in net cash provided by
      operating activities in 2007 as compared to 2006 is reflected in the disposal
      of
      a subsidiary.





Net
      cash
      used in investing activities was $3K for the three months ended September 30,
      2007, consisting of increase in short term loan. Net cash generated from
      investing activities were $585K for the three months ended September 30,
      2006.





Net
      cash
      provided by financing activities were $0K for both three months ended September
      30, 2007 and 2006.






-16-




The
      Company continues to evaluate various opportunities to improve the operating
      performance of the Company’s businesses and to invest in or acquire other types
      of businesses.





**Principal
      Commitments**





At
      September 30, 2007, the Company does not have any material commitments for
      operating leases or capital expenditures, or have any transactions, obligations
      or relationships that could be considered off-balance sheet
      arrangements.





The
      Company has no long-term debt at September 30, 2007.





**Off-Balance
      Sheet Arrangements**





The
      Company does not have any transactions, obligations or relationships that could
      be considered off-balance sheet arrangements at September 30, 2007.





**RISK
      FACTORS**





In
      addition to other information in this Form 10-QSB, including many risks
      presented in our Management’s Discussion and Analysis, the following risk
      factors should be carefully considered in evaluating our business since it
      operates in a highly changing and complex business environment that involves
      numerous risks, some of which are beyond our control.  The following
      discussion highlights a few of these risk factors, any one of which may have
      a
      significant adverse impact on our business, operating results and financial
      condition.  As a result of the risk factors set forth below and
      elsewhere in this 10-QSB, the risks identified in our Annual Report on Form
      10-KSB for the fiscal year ended June 30, 2007, and the risks discussed in
      our
      other Securities and Exchange Commission filings, actual results could differ
      materially from those projected in any forward-looking statements.





We
      face
      significant risks, and the risks described below may not be the only risks
      we
      face.  Additional risks that we do not know of or that we currently
      consider immaterial may also impair our business operations.  If any
      of the events or circumstances described in the following risks actually occurs,
      our business, financial condition or results of operations could be harmed
      and
      the trading price of our common stock could decline.





***Our
      success depends on identifying and closing acquisitions of emerging and growing
      businesses in China.***





Our
      success is largely dependent on our identifying good acquisition targets,
      negotiating and structuring transactions that are beneficial to us, closing
      those transactions, finding suitable management to operate those businesses
      and
      successfully operate and grow the businesses we acquire.





***We
      must work cooperatively with governmental
      authorities***.





We
      are
      engaged in business in a country with a planned economy heavily influenced
      by
      government activities and we must work cooperatively with a variety of national,
      federal, regional, state, provincial, and local government authorities and
      entities.  The economy of China differs significantly from the
      economies of the “western” industrialized nations in such respects as structure,
      level of development, gross national product, growth rate, capital reinvestment,
      resource allocation, self-sufficiency, rate of inflation and balance of payments
      position, among others.  Only recently has the Chinese government
      encouraged substantial private economic activities.  The Chinese
      economy has experienced significant growth in the past several years, but such
      growth has been uneven among various sectors of the economy and geographic
      regions.  Actions by the Chinese government to control inflation have
      significantly restrained economic expansion in the recent
      past.  Similar actions by the Chinese government in the future could
      have a significant adverse effect on economic conditions in China and the
      results of operations of the Company.





***If
      we deliver products with defects, our credibility will be harmed and the sales
      and market acceptance of our products will decrease***.





Our
      products and services are complex and may at times contained errors, defects
      and
      bugs.  If we deliver products with errors, defects or bugs, our
      credibility and the market acceptance and sales of our products would be
      harmed.  Further, if our products contain errors, defects or bugs, we
      may be required to expend significant capital and resources to alleviate such
      problems.  We may agree to indemnify our customers in some
      circumstances against liability arising from defects in our products. Defects
      could also lead to product liability as a result of product liability lawsuits
      against us or against our customers. We carry product and information liability
      and errors and omissions insurance, but in the event that we are required to
      defend more than a few such actions, or in the event that we are found liable
      in
      connection with such an action, our business and operations may be severely
      and
      materially adversely affected.





-17-




***We
      compete with large companies***.





We
      operate
      in a highly competitive industry.  Although we believe that some of
      our technology is unique, can be protected, and, if adopted, will confer
      benefits that will be otherwise unavailable for some time, we face very large
      competitors with greater resources who may adopt various strategies to block
      or
      slow our market penetration, thereby straining our more limited
      resources.  We are aware of efforts by competitors to introduce doubt
      about our financial stability as we compete to make sales and win customers
      and
      business.  Large competitors may also seek to hinder our operations
      through attempts to recruit key staff with exceptionally attractive terms of
      employment, including signing bonuses, or by offer of highly competitive terms
      to potential or newly acquired customers.





***We
      will need to continue our product development
      efforts***.





We
      believe
      that our market will be characterized by increasing technical
      sophistication.  We also believe that our eventual success will depend
      on our ability to continue to provide increased and specialized technical
      expertise.  There is no assurance that we will not fall
      technologically behind competitors with greater resources.  Although
      we believe that we enjoy a lead in our product development, and are hopeful
      that
      our patents provide some protection, we will likely need significant additional
      capital in order to continue to enjoy such a technological lead over competitors
      with more resources.





***If
      we are unable to protect our intellectual property, our competitive position
      would be adversely affected***.





We
      may
      rely on patent protection, as well as trademark and copyright law, trade secret
      protection and confidentiality agreements with our employees and others to
      protect our intellectual property.  Despite our precaution,
      unauthorized third parties may copy our products and services or reverse
      engineer or obtain and use information that we regard as
      proprietary.  We have filed eleven patent applications with the United
      States Patent and Trademark Office and intend to file more.  Six
      patents have been granted; however, we do not know if the remaining applications
      will be granted or whether we will be successful in prosecuting any future
      patents.  In addition, the laws of some foreign countries do not
      protect proprietary rights to the same extent, as do the laws of the United
      States.  Our means of protecting our proprietary rights may not be
      adequate and third parties may infringe or misappropriate our patents,
      copyrights, trademarks and similar proprietary rights.  If we fail to
      protect our intellectual property and proprietary rights, our business,
      financial condition and results of operations would suffer.  We
      believe that we do not infringe upon the proprietary rights of any third party,
      and no third party has asserted an infringement claim against us.  It
      is possible, however, that such a claim might be asserted successfully against
      us in the future.  We may be forced to suspend our operations to pay
      significant amounts to defend our rights, and a substantial amount of the
      attention of our management may be diverted from our ongoing business, all
      of
      which would materially adversely affect our business.





***We
      focus on the research and development of our proprietary technologies and the
      marketing of our first product***.





We
      believe
      that these technologies are the basis for marketable commercial
      products.  However, there can be no assurance of this, and it is
      possible that our proprietary technologies and products will have no commercial
      benefit or potential.  In addition, from our inception to the present,
      we have not recognized any substantial operating revenues.





***We
      depend on our key personnel and may have difficulty attracting and retaining
      the
      skilled staff we need to execute our growth plans***.





Our
      success will be dependent largely upon the efforts of our management
      team.  The loss of key staff could have a material adverse effect on
      our business and prospects.  To execute our plans, we will have to
      retain current employees. Competition for highly skilled employees with
      technical, management, marketing, sales, product development and other
      specialized training is intense.  We may not be successful in
      retaining such qualified personnel. Specifically, we may experience increased
      costs in order to retain skilled employees. If we are unable to retain
      experienced employees as needed, we would be unable to execute our business
      plan.






-18-




***We
      may face rapid technological change***.





The
      market
      for our products and services may be characterized by rapidly changing
      technologies, extensive research and the introduction of new products and
      services. We believe that our future success will depend in part upon our
      ability to continue to enhance our existing products and to develop, manufacture
      and market new products and services. As a result, we expect to continue to
      make
      a significant investment in engineering, research and
      development.  There can be no assurance that we will be able to
      develop and introduce new products and services or enhance our initial products
      in a timely manner to satisfy customer needs, achieve market acceptance or
      address technological changes in our target markets. Failure to develop products
      and services and introduce them successfully and in a timely manner could
      adversely affect our competitive position, financial condition and results
      of
      operations.





***If
      we experience rapid growth, we will need to manage such growth
      well***.





We
      may
      experience substantial growth in the size of our staff and the scope of our
      operations, resulting in increased responsibilities for
      management.  To manage this possible growth effectively, we will need
      to continue to improve our operational, financial and management information
      systems, will possibly need to create entire departments that do not now exist,
      and hire, train, motivate and manage a growing number of staff.  Due
      to a competitive employment environment for qualified technical, marketing
      and
      sales personnel, we expect to experience difficulty in filling our needs for
      qualified personnel.  There can be no assurance that we will be able
      to effectively achieve or manage any future growth, and our failure to do so
      could delay product development cycles and market penetration or otherwise
      have
      a material adverse effect on our financial condition and results of
      operations.





***We
      could face information and product liability risks and may not have adequate
      insurance***.





Our
      products may be used in connection with critical business applications. We
      may
      become the subject of litigation alleging that one or more of our products
      are
      ineffective or disruptive in our treatment of data, or with regard to critical
      business information.  Thus, we may become the target of lawsuits from
      injured or disgruntled businesses or other users.  In the event that
      we are required to defend more than a few such actions, or in the event that
      it
      is found liable in connection with such an action, our business and operations
      may be severely and materially adversely affected.





***Future
      profitability is not guaranteed***.





We
      have
      not recognized any substantial operating revenues to date.  Assuming
      we can attract sufficient financing, and revenues increase, there is no
      assurance that our plans will be realized or that we will achieve break-even
      status or profitability in the future.





***Changes
      to financial accounting standards may affect our results of operations and
      cause
      us to change business practices***.





We
      prepare
      financial statements in conformity with U.S. generally accepted accounting
      principles.  These accounting principles are subject to interpretation
      by the American Institute of Certified Public Accountants, the Public Company
      Accounting Oversight Board, the SEC and various other bodies formed to interpret
      and create appropriate accounting principles.  A change in those
      principles can have a significant effect on our reported results and may affect
      our reporting of transactions completed before a change is
      announced.  Changes to those rules or the questioning of current
      practices may adversely affect our reported financial results or the way we
      conducts business.  For example, accounting principles affecting many
      aspects of our business, including rules relating to equity-related
      compensation, have recently been revised.  The Financial Accounting
      Standards Board and other agencies finalized changes to U.S. generally accepted
      accounting principles that required us, starting January 1, 2006, to record
      a
      charge to earnings for employee stock option grants and other equity incentives.
      We will have significant ongoing accounting charges resulting from option grant
      and other equity incentive expensing that could reduce net income or increase
      losses.  In addition, since we historically used equity-related
      compensation as a component of our total employee compensation program, the
      accounting change could make the use of equity-related compensation less
      attractive and therefore make it more difficult to attract and retain
      employees.






-19-




***There
      is a limited market for our common stock***.





Our
      common
      stock is not listed on any exchange and trades in the over-the-counter (the
      “OTC”) market.  Additionally, one stockholder holds a majority of our
      stock.  As such, the market for our common stock is limited and is not
      regulated by the rules and regulations of any exchange. Further, the price
      of
      our common stock and its volume in the OTC market may be subject to wide
      fluctuations. Our stock price could decline regardless of our actual operating
      performance, and stockholders could lose a substantial part of their investment
      as a result of industry or market-based fluctuations. Our stock trades
      relatively thinly.  If a more active public market for our stock is
      not sustained, it may be difficult for stockholders to sell shares of our common
      stock.  Because we do not anticipate paying cash dividends on our
      common stock for the foreseeable future, stockholders will not be able to
      receive a return on their shares unless they are able to sell
      them.  The market price of our common stock will likely fluctuate in
      response to a number of factors, including but not limited to, the
      following:





·
            sales,
                sales cycle and market acceptance or rejection of our
                product;


·
            economic
                conditions within our industry;


·
            our
                failure to meet performance estimates or the performance estimates
                of
                securities analysts;


·
            the
                timing of announcements by us or our competitors of significant products,
                contracts or acquisitions or publicity regarding actual or potential
                results or performance thereof; and


·
            domestic
                and international economic, business and political
                conditions.





***Failure
      to maintain effective internal controls in accordance with Section 404 of
      the Sarbanes-Oxley Act of 2002 could have a material adverse effect on our
      stock
      price***.





Section 404
      of the Sarbanes-Oxley Act of 2002 and the related rules and regulations of
      the
      SEC require annual management assessments of the effectiveness of our internal
      control over financial reporting and a report by our independent registered
      public accounting firm attesting to and reporting on these
      assessments.  If we fail to adequately maintain compliance with, or
      maintain the adequacy of, our internal control over financial reporting, as
      such
      standards are modified, supplemented or amended from time to time, we may not
      be
      able to ensure that we can conclude on an ongoing basis that we have effective
      internal control over financial reporting in accordance with Section 404 of
      the Sarbanes-Oxley Act of 2002 and the related rules and regulations of the
      SEC.  If we cannot favorably assess, or our independent registered
      public accounting firm is unable to provide an unqualified attestation report
      on
      our assessment of the effectiveness of our internal control over financial
      reporting, investor confidence in the reliability of our financial reports
      may
      be adversely affected, which could have a material adverse effect on our stock
      price.





**ITEM
      3A(T).  CONTROLS AND PROCEDURES**





**Evaluation
      of Disclosure Controls and Procedures**





The
      Company maintains disclosure controls and procedures designed to ensure that
      information required to be disclosed in the reports filed or submitted under
      the
      Exchange Act of 1934 is recorded, processed, summarized and reported, within
      the
      time periods specified in the rules and forms of the Securities and Exchange
      Commission. Disclosure controls and procedures include, without limitation,
      controls and procedures designed to ensure that information required to be
      disclosed in the reports filed under the Exchange Act of 1934 is accumulated
      and
      communicated to management, including its principal executive and financial
      officers, as appropriate, to allow timely decisions regarding required
      disclosure.





The
      Company carried out an evaluation, under the supervision and with the
      participation of the Company’s management, including its principal executive and
      financial officer, of the effectiveness of the design and operation of the
      Company’s disclosure controls and procedures as of the end of the period covered
      by this report.  Based upon and as of the date of that evaluation, the
      Company's principal executive and financial officer concluded that the Company’s
      disclosure controls and procedures are effective to ensure that information
      required to be disclosed in the reports the Company files and submits under
      the
      Exchange Act of 1934 is recorded, processed, summarized and reported within
      the
      time periods specified in the Securities and Exchange Commission's rules and
      forms.






-20-




Notwithstanding
      the foregoing, there are inherent limitations to the effectiveness of any system
      of disclosure controls and procedures, including the possibility of human error
      and the circumvention or overriding of the controls and
      procedures.  Accordingly, even effective disclosure controls and
      procedure can only provide reasonable assurance of achieving their control
      objectives.





This
      quarterly report does not include an attestation report of the company’s
      registered public accounting firm regarding internal control over financial
      reporting.  Management’s report was not subject to attestation by the
      company’s public accounting firm pursuant to temporary rules of the Securities
      and Exchange Commission that permit the company to provide only management’s
      report in this quarterly report.





**Changes
      in Internal Controls**





There
      were
      no changes in the Company’s internal controls or in other factors that could
      have significantly affected those controls subsequent to the date of the
      Company’s most recent evaluation.





**PART
      II - OTHER INFORMATION**





**Item
      1.  Legal Proceedings.**





We
      are a
      party to the following legal proceedings:


(1)
      Hainan
      Concord Financial Products Co., Ltd.





On
      December 11, 2004, the Company’s wholly subsidiary, IMOT Information Technology
      (Shenzhen) Ltd. (“IMOT Technology”) entered into a stock exchange agreement and
      a profit guarantee agreement (respectively, the “Stock Swap Agreement” &
“Profit Guarantee Agreement”) with Guangzhou Di Tai Communication Co. Ltd &
Mr. Zai (collectively “Sellers”).  The Stock Swap Agreement called for
      the Company to ultimately issue 5,000,000 shares of common stock in January
      2005
      in exchange for 80% of the issued and outstanding capital of Hainan Financial
      Products Development Co., Ltd (“Hainan Financial Products”).  Under
      the Profit Guarantee Agreement, the Sellers guaranteed that the net profit
      after
      taxation of Hainan Financial Products for the year ended December 31, 2005
      would
      not be less than Rmb 5,000,000.  On February 7, 2005, the Sellers
      received the share certificates of the 3,000,000 common stocks of the Company
      from IMOT Technology.  In late 2006, IMOT Technology discovered that
      the profit requirement of Rmb 5,000,000 of Hainan Financial Products had not
      met
      and Hainan Financial Products was a shelf company without any registered
      capital.





In
      accordance with the terms of Stock Swap Agreement, any dispute in a deadlock
      situation should be referred to an Arbitration tribunal in Shenzhen to be
      resolved.  As such, IMOT Technology and the Company decided to refer
      the dispute (“the Dispute”) and apply to China International Economic and Trade
      Arbitration Commission, South China Sub-Commission in Shenzhen (“Arbitration
      Commission”).  On December 20, 2006, Arbitration Commission approved
      the application.  Under the application, IMOT Technology and the
      Company were named as joint applicants (“the Applicants”); and the Sellers
      together with Hainan Special Economic Zone Property Rights Exchange Centre
      and a
      securities-broker in Hainan province as respondents (“the
      Respondents”).  The three orders sought under this arbitration include
      rescission of Share Swap Agreement and Profit Guarantee Agreement; return of
      3,000,000 shares of common stock of the Company by the Sellers to the
      Applicants; and to have all the legal costs and other costs incurred in this
      arbitration to be reimbursed or born by the Sellers.  The share
      certificate of the remaining 2,000,000 shares common stock is currently under
      the custody of IMOT Technology.





The
      Respondents at the same time also applied to a court in Haikou of the Hainan
      province to request that the Dispute be handled by the court.  On
      April 29, 2007, this court ruled that the Dispute could be subject to its
      jurisdiction.  IMOT Technology appealed to the Haikou Intermediate
      Court arguing that the dispute should be under the jurisdiction of the
      Arbitration Commission.  On August 16, the Haikou Intermediate Court
      made a final decision that the Dispute should be under the jurisdiction of
      the
      Arbitration Commission,  The Arbitration Commission is arranging for a
      trial date for the Dispute






-21-




(2)
      Hainan
      Special Economic Zone Property Rights Exchange Centre





Pursuant
      to an agreement (“ the Agreement”) signed with a third party on December 16,
      2003, IMOT Information Technology (Shenzhen) Ltd. (“IMOT Technology”) acquired
      21% of the issued and outstanding capital of Hainan Special Economic Zone
      Property Rights Exchange Centre (“Hainan Exchange”).





In
      2006,
      Hainan Exchange rejected the request of IMOT Technology to hold a general
      meeting for its shareholders, and Hainan Exchange also declined to provide
      any
      current financial information or reports.  In addition, Hainan refused
      to fulfill certain obligations under the Co-operative Agreement.  The
      Company is currently seeking legal advice as to those matters.  The
      Company believes that Hainan Exchange has contravened its Articles of
      Association, and IMOT Technology has the right to sue under the current
      legislation.





(3)
      Shanghai Newray Photographic Equipment Co. Ltd





In
      prior
      years, IMOT Information Technology (Shenzhen) Ltd. (“IMOT Technology”) acquired
      51% of the issued and outstanding capital of Shanghai Newray Photographic
      Equipment Co. Ltd (“Shanghai Newray”) from Mr. Tang who in turn acts as the
      trustee of IMOT Technology, holding shares in Shanghai Newray on behalf of
      IMOT
      Technology.  On September 30, 2006, the shareholders in a special
      meeting passed a resolution (“the Resolution”) to take action to terminate the
      operation of Shanghai Newray.  On November 2, 2006, Shanghai Newray
      set up a liquidation working team to take over the operations with one of its
      duties being to commence all the necessary procedures for the members’ voluntary
      liquidation.





Mr.
      Zhu,
      as the legal representative, manager and the executive director of Shanghai
      Newray, refused to comply with all the requests of the liquidation working
      team,
      resulting in delay of the liquidation procedures.  On January 18,
      2007, Mr. Tang took civil action under the Companies Law against Mr.
      Zhu.  Under this action, Mr. Zhu Wei was requested to comply with the
      Resolution passed on September 30, 2006 to reimburse legal and other related
      costs of Rmb 30,000 incurred by Mr. Tang for this case, and also to bear all
      the
      court costs to be incurred.





On
      January
      24, 2007, Shanghai Hongkou District Court accepted the case.  Recently
      discovery was completed.





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





Not
      applicable.





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





Not
      applicable.





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





Not
      applicable.





**Item
      5.  Other Information.**





Not
      applicable.






-22-




**Item
        6.  Exhibits**




Exhibit
                  Number
              Description
                  of Exhibit2.1
              Articles
                  of Merger (1)3.1
              Articles
                  of Incorporation (1)3.2
              Bylaws
                  (1)10.1
              Employment
                  Agreement, dated March 12, 2004, between Intermost Corporation
                  and Andy
                  Lin (2)10.3
              Cooperative
                  Agreement re: formation of Jiayin E-Commerce joint venture
                  (1)10.4
              Agreement
                  Regarding Transfer of Properties on 38th Floor, Guomao Building
                  (3)10.5
              Shareholding
                  Transfer Agreement dated May 23, 2003 between IMOT Information
                  Technology
                  (Shenzhen) Ltd. and Shanghai Newray Business Development Co., Ltd.
                  (4)10.6
              Share
                  Transfer Agreement among IMOT Information Technology
                  (Shenzhen)  Ltd., Shenzhen Golden Anke Technology Co. Ltd.,
                  Intermost Corporation, Tu Guoshen and Li Zhiquan (5)10.7
              Sale
                  and Purchase Agreement among IMOT Information Technology
                  (Shenzhen)  Ltd., Shanghai Fortune Venture Limited, North
                  Shanghai Branch of Shanghai Technology Property Right Exchange
                  Center and
                  Intermost Corporation (6)10.8
              Distributorship
                  Agreement dated November 28, 2002 between KanHan Technologies Limited
                  and
                  ChinaE.com Information Technology Ltd. (7)10.9
              Intermost
                  Corporation 2003 Equity Incentive Plan (8)10.10
              Share
                  Transfer Agreement dated March 31, 2004 between IMOT Information
                  Technology (Shenzhen) Ltd. and Tu Guoshen and Li Zhiquan for the
                  acquisition of 51% of the Golden Anke Technology, Ltd.
                  (9)10.11
              Share
                  Transfer Agreement dated December 8, 2004 between IMOT Information
                  Technology (Shenzhen) Ltd. and Shenzhen Merchant Technology Investment
                  Co., Ltd. for the acquisition of 15% of Shenzhen International
                  Hi-Tech
                  Exchange (9)10.12
              Share
                  Exchange Agreement dated December 11, 2004 between IMOT Information
                  Technology (Shenzhen) Ltd. and Guangzhou Digital Communication
                  Co., Ltd.
                  and Zhai Xiya for the acquisition of 80% of Hainan Concord Financial
                  Products Development Co. Ltd. (9)31.1
              Certification
                  of the Chief Executive Officer required by Rule 13a-14(a) of the
                  Securities Exchange Act of 1934, as amended, as adopted pursuant
                  to
                  Section 302 of the Sarbanes-Oxley Act of 2002. *31.1
              Certification
                  of the Chief Financial Officer required by Rule 13a-14(a) of the
                  Securities Exchange Act of 1934, as amended, as adopted pursuant
                  to
                  Section 302 of the Sarbanes-Oxley Act of 2002.*32.2
              Certification
                  of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350
                  as
                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
                  *32.232.2
              Certification
                  of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350
                  as
                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
                  *




*Filed
      herewith.





(1)
            Incorporated
                by reference to the respective exhibits filed with Registrant's
                Registration Statement on Form 10-SB (Commission File No.
                0-30430).


(2)
            Incorporated
                by reference to the exhibit filed with the Registrant's Current Report
                on
                Form 8-K filed with the SEC on March 25,
                2004.


(3)
            Incorporated
                by reference to the respective exhibits filed with the Registrant's
                Quarterly Report on Form 10-QSB for the quarter ended March 31,
                2000.


(4)
            Incorporated
                by reference to the exhibit filed with the Registrant's Current Report
                on
                Form 8-K filed with the SEC on June 9,
                2003.


(5)
            Incorporated
                by reference to the exhibit filed with the Registrant's Current Report
                on
                Form 8-K filed with the SEC on August 17,
                2004.


(6)
            Incorporated
                by reference to the exhibit filed with the Registrant's Current Report
                on
                Form 8-K filed with the SEC on April 26,
                2004.


(7)
            Incorporated
                by reference to the exhibit filed with the Registrant's Quarterly
                Report
                on Form 10-QSB for the quarter ended December 31, 2002 filed with
                the SEC
                on February 14, 2003.


(8)
            Incorporated
                by reference to the Registrant's Proxy Statement filed with the SEC
                on
                January 6, 2004.


(9)
            Incorporated
                by reference to the Exhibit filed with Form 10-KSB, amendment No.
                1 for
                the year ended June 30, 2005.





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**SIGNATURES**





In
      accordance with Section 13 or 15(d) the Securities Exchange Act of 1934, the
      registrant caused this report to be signed on its behalf by the undersigned,
      thereunto duly authorized.





Date:  November
      14,
      2007                                                                                                           INTERMOST
      CORPORATION











By:             /s/
      Rocky
      Wulianghai


Rocky
      Wulianghai


President
      and Chief Executive Officer











By:              /s/
      Thomas
      Lee


Thomas
      Lee


Chief
      Financial Officer










-24-