M-wise, Inc - Consolidated Statements of Operations for the Three...

M-wise, Inc - Recent Material Event

Item 1.		Financial Statements (Unaudited)
		Consolidated Balance Sheet as of September 30, 2007
		Consolidated Statements of Operations for the Three Months and Nine Months Ended September 30, 2007 and 2006
		Consolidated Statements of Stockholders' Deficit for the Periods Ended September 30, 2007 and 2006
		Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2007 and 2006
		Notes to Unaudited Financial Statements
Item 2.		Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.		Controls and Procedures

PART II		OTHER INFORMATION

Item 1		Legal Proceedings
Item 2		Changes in Securities and Small Business Issuer Purchases of Equity Securities
Item 3		Defaults upon Senior Securities
Item 4		Submission of Matters to a Vote of Security Holders
Item 5		Other Information
Item 6		Exhibits and Reports on Form 8-K

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

M-WISE, INC. AND SUBSIDIARY

CONSOLIDATED FINANCIAL STATEMENTS

PERIODS ENDED SEPTEMBER 30, 2007, AND 2006

(UNAUDITED)

CONTENTS

Consolidated Balance Sheet
Consolidated Statements of Operations
Consolidated Statements of Stockholders' (Deficit)
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements			6 - 20

M-WISE, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET (NOTE 2)
AS OF SEPTEMBER 30, 2007
(Unaudited)

	2007
ASSETS

Current Assets:
Cash and cash equivalents	$	251,678
Accounts receivable - Trade (net of allowance
for doubtful accounts of $ 224,215)		449,482
Prepaid and other assets		23,969

Total current assets		725,129

Long-term Assets:
Long-term prepaid expenses		21,706
Equipment, net (note 3)		91,099
Debt issuance costs, net		3,167

Total long-term assets		115,972

Total Assets	$	841,101

LIABILITIES AND STOCKHOLDERS' (DEFICIT)

Current Liabilities:
Accounts payable - Trade	$	67,643
Other payables and accrued expenses		788,668
Advances from stockholder (note 4)		307,229

Total current liabilities		1,163,540

Long-term Liabilities:
Accrued severance pay (note 5)		49,999
Total long-term liabilities		49,999
Total liabilities		1,213,539

Commitments and Contingencies (note 10)

Stockholders' (Deficit):
Preferred stock (note 6)		-
Common stock (note 6)		233,842
Additional paid-in capital		10,766,673
Accumulated (deficit)		(11,372,953	)

Total stockholders' (deficit)		(372,438	)

Total Liabilities and Stockholders' (Deficit)	$	841,101

(The accompanying notes of the consolidated financial statements is an integral part of this statement).

M-WISE, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS (NOTE 2)
FOR THE THREE-MONTHS AND NINE-MONTHS
ENDED SEPTEMBER 30, 2007, AND 2006
(Unaudited)