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

The following should be read in conjunction with our audited financial statements and related notes included elsewhere in this Form 10-KSB. The following discussion contains forward-looking statements. Please see the Introductory Statement in Part I for further information relating to such forward looking statements. 

Overview

The Company currently operates as a holding company with operations through its subsidiaries. Our operations for 2007 were conducted through our majority and minority-owned subsidiaries, RoboServer Systems Corp., Self-Serve Technologies, Inc., Green Endeavors LTD., formerly Net2Auction, Inc., Net2Auction Corporation, AuctionWagon Inc., trade name of Auction Boulevard, Inc., BizAuctions, Inc., BizAuctions Corp., Business Auctions, Inc., West Texas Real Estate Resources, Inc., and VoIPCOM USA, Inc. 

The Companies business strategy for this calendar year involves the continued expansion of BizAuctions commercial accounts with major retailers for their overstocks, excess inventories, and merchandise that are returned to the retailer by the consumer. BizAuctions purchases the merchandise for significant discounts and/or takes in the merchandise on a consignment bases for the sale of the merchandise on eBay.

RoboServer Systems has developed two new products in 2007, the dual screen counter-top Assisted-Server CT-MY 1 and the Assisted-Server 3-N-1 POS Self-serve model. Both of these models serve as an Assisted-Server stand alone kiosk or a Self-Serve unit where the counter staff can interact or assist the customer or strictly serves as a POS. The units have the ability to take credit/debit cards or the customer can pay with cash. We anticipate the restaurant and fast-food industry will begin migrating to the self-serve technologies this year with more commitment to purchasing a system that will deliver the self-serve technologies. 

Management is encouraged by the prospects of its market expansion opportunities with BizAuctions into the commercial eBay liquidation services for excess inventory, overstock items, and merchandise that have been returned to the retailer by the consumer. BizAuctions has increased its commercial services to out-of-state retailers in Arizona and is in the process of expanding into other states to provide our services with some of the Nation's leading retailer-wholesaler names that are at the forefront of their industries.

Management has observed favorable market trends for both BizAuctions and RoboServer during 2007, and anticipates the year of 2008 will show much improvement in the operations of the Company and its subsidiaries.

Financial Condition Overview

The Company can sustain its cash requirements without raising additional funds for the next three months. While the Company is not currently undertaking fundraising activities, RoboServer and BizAuctions are currently engaged in fundraising activities. Further, the Company continues to settle as much debt from the balance sheet as possible through the issuance of equity.

The Company does expect to add a number of employees and consultants during the calendar year 2008. 

RESULTS OF OPERATIONS

Revenues 

Revenues for the fiscal year-ended December 31, 2007, were $3,082,769 from $892,424 for the same period ended December 31, 2006. This represented an increase of $2,190,345 or 245% from December 31, 2006 to December 31, 2007.

Operating Loss

Operating loss for fiscal year-ended December 31, 2007 was ($3,564,779) as compared to ($3,567,229) for December 31, 2006. The decrease in operating loss of $2,450 was the result of an increase in the operations and expansion of BizAuctions, and RoboServer. The increase in operations resulted in an increase in the General and Administrative expenses from $687,792 for 2006 to $807,132 for 2007, an increase in consulting expense from $2,150,882 in 2006 to $2,362,802 for 2007, and an increase in salaries from $506,584 in 2006, to $ 671,531 for 2007. 

Net Loss

The Company's net loss decreased to ($1,375,928) in 2007 as compared to a net loss of ($2,331,532) in 2006. The decrease in net loss resulted from an increase in revenues, gross profits, and a gain on sale of subsidiary of $1,062,294, offset by a $195,650 increase in interest expense. 

Expenses

Operating expenses for the fiscal year-ended December 31, 2007 and December 31, 2006, were $4,038,953 and $3,755,565, respectively. This is an increase of $283,388 from December 31, 2006 to December 31, 2007. The increase in operating expenses is primarily attributed to an increase in operations. Expenses for consulting fees in 2007 were $2,362,802 as compared to $2,150,882 in 2006, salary expenses in 2007 increased from $506,584 in 2006 to $671,531 for 2007, and General and Administration expenses increased from $687,792 in 2006 to $$807,132 for 2007.

LIQUIDITY AND CAPITAL RESOURCES

The Company's current assets as of December 31, 2007 are $297,813. This amount is in cash, inventory, and a note receivable. Other assets and fixed assets are $1,508,049 and $145,101, net after depreciation, respectively. 

For the year-ended December 31, 2007, the Company's account payables were $387,174. The Company had notes payable in the amount of $858,550, and notes payable to related parties of $550,881, and accrued expenses totaling $464,404.

The Company plans to decrease its liabilities and increase its assets by increasing the revenues thus generating an increase in both gross and net profits for BizAuctions, Inc. and RoboServer Systems Corp. as well as converting debt to equity through the issuance of its securities. The Company intends to continue to improve shareholder equity by acquiring income-producing assets that are generating profits.

Going Concern

The Company's consolidated financial statements are prepared using generally accepted accounting principles that are accepted in the United States of America. The Company has incurred cumulative losses through December 31, 2007 of ($23,035,266) with a working capital deficit of ($1,963,196), all of which raise substantial doubt about the Company's ability to continue as a going concern. The Company has relied upon its chief executive officer, Delmar Janovec, for its capital requirements and liquidity. The Company will continue to seek alternate sources of financing to allow the Company to acquire other operating entities which may improve the Company's weak liquidity and capital resources. Additionally, the Company may continue to use its equity and resources of its chief executive officer to finance operations. However, no assurances can be provided that the Company will be successful in acquiring assets, whether revenue-producing or otherwise, or that Mr. Janovec will continue to assist in financing the Company's operations.