10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2007

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________.

Commission file number 0-32345

MORRIS BUSINESS DEVELOPMENT COMPANY

(Exact name of registrant as specified in its charter)

California (State or other jurisdiction of incorporation or organization)	33-0795854 (I.R.S. Employer Identification No.)
413 Avenue G, #1 Redondo Beach, CA (Address of principal executive offices)	90277 (Zip Code)

Registrant’s telephone number, including area code (310) 493-2244

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o Accelerated filer o Non-accelerated filer x

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

Applicable only to issuers involved in bankruptcy proceedings during the preceding five years:

Indicate by check mark whether the registrant filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes oNo o

Applicable only to corporate issuers:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 7, 2007, there were 1,300,000 shares of common stock, par value $0.02, issued and outstanding.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION		3
ITEM 1	Financial Statements	3
ITEM 2.	Management's Discussion and Analysis of Financial Condition and
	Results of Operations	12
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	18
ITEM 4.	Controls and Procedures	18
PART II - OTHER INFORMATION		19
ITEM 1.	Legal proceedings	19
ITEM 1A	Risk Factors	19
ITEM 2	Unregistered Sales of Equity Securities and Use of Proceeds	19
ITEM 3	Defaults Upon Senior Securities	19
ITEM 4	Submission of Matters to a Vote of Security Holders	19
ITEM 5	Other Information	19
ITEM 6	Exhibits	20

PART I - FINANCIAL INFORMATION

This Quarterly Report includes forward-looking statements within the meaning of the Securities Exchange Act of 1934 (the “Exchange Act”). These statements are based on management’s beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning possible or assumed future results of operations of the Company set forth under the heading “Management’s Discussion and Analysis of Financial Condition or Plan of Operation.” Forward-looking statements also include statements in which words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “consider” or similar expressions are used.

Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions. The Company’s future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

ITEM 1Financial Statements

Balance Sheets September 30, 2007 (Unaudited) and
March 31, 2007	4
Statements of Operations for the Three Month and Six Month Periods
Ended September 30, 2007, 2006 and 2005 (Unaudited)	5
Statements of Cash Flows for the Six Month Periods Ended
September 30, 2007, 2006 and 2005 (Unaudited)	6
Notes to Unaudited Financial Statements	7

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MORRIS BUSINESS DEVELOPMENT COMPANY

(Formerly, Electronic Media Central Corporation)

BALANCE SHEETS

(Unaudited)

	As of September 30, 2007			As of March 31, 2007
ASSETS
CURRENT ASSETS
Cash & cash equivalents	$	4,341		$	1,118
Accounts receivable, net of allowance for
doubtful accounts of $4,200 and $3,700, respectively		13,342			10,988
Due from related parties		90,506			76,037
Total assets	$	108,189		$	88,144
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable & accrued expenses	$	92,692		$	77,924
Notes payable - related parties		114,600			114,000
Due to related party		9,534			7,850
Due to officer		158,714			138,704
Total current liabilities		375,540			338,478
STOCKHOLDERS' DEFICIT
Preferred stock, $0.001 par value;
10,000,000 shares authorized;
none issued and outstanding		-			-
Common stock, $0.02 par value;
40,000,000 shares authorized;
1,300,000 and 1,300,000 shares issued and outstanding respectively		26,000			26,000
Additional paid in capital		42,600			42,600
Accumulated deficit		(335,951	)		(318,935	)
Total stockholders' deficit		(267,351	)		(250,335	)
Total liabilities and stockholders' deficit	$	108,189		$	88,144

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

4

MORRIS BUSINESS DEVELOPMENT COMPANY
(Formerly, Electronic Media Central Corporation)
STATEMENTS OF OPERATIONS
(Unaudited)
	For the Three Month Periods Ended September 30,									For the Six Month Periods Ended September 30,
	2007			2006			2005			2007			2006			2005
Net revenues	$	35,759		$	40,055		$	68,032		$	61,492		$	123,286		$	105,984
Cost of revenues		20,831			25,230			38,512			34,035			78,595			64,526
Gross profit		14,928			14,824			29,520			27,457			44,690			41,458
Operating expenses
Professional fees		5,313			9,309			12,508			10,584			20,537			15,369
Salaries and related expenses		6,403			8,940			8,778			12,785			17,692			17,887
Other		5,805			4,475			11,014			11,242			9,219			19,486
Total operating expenses		17,521			22,725			32,301			34,611			47,449			52,742
Loss from operations		(2,593	)		(7,900	)		(2,781	)		(7,154	)		(2,758	)		(11,284	)
Other income (expense)
Other income		-			-			-			-			805			-
Interest expense		(4,714	)		(3,468	)		(2,860	)		(9,062	)		(7,010	)		(5,900	)
Total other expense		(4,714	)		(3,468	)		(2,860	)		(9,062	)		(6,205	)		(5,900	)
Income (loss) before income taxes		(7,307	)		(11,369	)		(5,641	)		(16,216	)		(8,964	)		(17,184	)
Provision for income taxes		-									800			800			800
Net loss		(7,307	)		(11,369	)		(5,641	)	$	(17,016	)	$	(9,764	)	$	(17,984	)
Basic and diluted weighted average number of  common stock outstanding		1,300,000			1,300,000			1,127,174			1,300,000			1,300,000			1,063,934
Basic and diluted net loss per share		(0.01	)		(0.01	)		(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.02	)
Weighted average number of shares used to compute basic and diluted earnings (loss) per share is the same as the effect of dilutive securities is anti-dilutive

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

5

MORRIS BUSINESS DEVELOPMENT COMPANY

(Formerly, Electronic Media Central Corporation)

STATEMENTS OF CASH FLOWS

FOR THE SIX MONTH PERIODS ENDED SEPTEMBER 30, 2007, 2006, AND 2005

(Unaudited)

	2007			2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(17,016	)	$	(9,764	)	$	(17,985	)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
Decrease (Increase) in accounts receivable		(2,354	)		104,404			50,507
Increase (Decrease) in accounts payable		14,768			(60,222	)		(31,590	)
Net cash provided by (used in) operating activities		(4,603	)		34,418			932
CASH FLOWS FROM FINANCING ACTIVITIES
Common shares issued for cash		-			-			45,000
Increase (decrease) in due to officer		20,009			14,925			(14,633	)
Decrease (Increase) in receivables from related party		(12,184	)		(45,739	)		(34,427	)
Net cash provided by (used in) financing activities		7,825			(30,814	)		(4,060	)
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS		3,223			3,604			(3,128	)
CASH & CASH EQUIVALENTS, BEGINNING BALANCE		1,118			6,448			6,865
CASH & CASH EQUIVALENTS, ENDING BALANCE	$	4,341		$	10,052		$	3,737
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION
Interest paid during the year	$	-		$	-		$	-
Taxes paid during the year	$	-		$	-		$	-

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

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MORRIS BUSINESS DEVLOPMENT COMPANY

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 1 ORGANIZATION

On April 1, 1998, Electronic Media Central Corporation (“the Company”) or now renamed to Morris Business Development Company (“MBDC”) was incorporated in California (formerly a division of Internet Infinity, Inc. (III). The Company is engaged in providing services for duplication, replication and packaging of DVDs and CDs.

As of May 12, 2006 the Company filed Form N-54A with the United States Securities Exchange Commission to become a business development company by certifying that it is a closed-end company (mutual fund) organized and operated for the purpose of making investments in securities described in section 55 (a)(1) through (3) of the Investment Company Act of 1940; and that it will make available significant managerial assistance with respect to issuers of such securities to the extent required by the act.

The Company has commenced the development of new management consulting services to assist client companies in complying with the reporting requirements to the government and in communicating with shareholders, customers and the public and the accessing of needed growth capital.

On March 29, 2007 the Company registered a name change to Morris Business Development Company with the California Secretary of State.

NOTE 2 BASES OF PRESENTATION AND BUSINESS

The accompanying financial statements have been prepared by MBDC (the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included herein are adequate to make the information presented not misleading. The unaudited financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary to fairly state the financial position as of September 30, 2007 and 2006, and the results of operations and cash flows for the related interim periods ended September 30, 2007, 2006 and 2005. The results of operations for the three month period ended September 30, 2007, are not necessarily indicative of the results that may be expected for the fiscal year ended March 31, 2008, or any other period.

The accounting policies followed by the Company and other information are contained in the notes to the Company’s financial statements filed on July 3, 2007, as part of the Company’s annual report on Form 10-KSB for the year ended March 31, 2007. This quarterly report should be read in conjunction with such annual report.

7

MORRIS BUSINESS DEVLOPMENT COMPANY

NOTES TO UNAUDITED FINANCIAL STATEMENTS

Use of estimates

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 and 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.

Reclassifications

Certain comparative amounts have been reclassified to conform to the current year's presentation.

Recent Pronouncements

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

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

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MORRIS BUSINESS DEVLOPMENT COMPANY

NOTES TO UNAUDITED FINANCIAL STATEMENTS

a.	A brief description of the provisions of this Statement
b.	The date that adoption is required

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

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

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

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

NOTE 3 UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has accumulated deficit of $335,951 at September 30, 2007, and its total liabilities exceeds its total assets by $267,351.

In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. The Company is actively pursuing additional funding and potential merger or acquisition candidates and strategic partners, which would enhance stockholders’ investment. Management believes that the above actions will allow the Company to continue operations through the next fiscal year.

9

MORRIS BUSINESS DEVLOPMENT COMPANY

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 4 ACCRUED EXPENSES

Accrued expenses consisted of the following at:

		9/30/07		3/31/07
Account payable	$	44,495	$	25,605
Accrued state tax		3,157		2,357
Accrued interest		42,040		37,642
Accrued accounting		3,000		12,500
Total	$	92,692	$	77,924

NOTE 5 RELATED PARTY TRANSACTIONS

The Company has a receivable of $90,506 and $76,037 from a payable of $9,354 and $7,850 to parties related through common shareholder and officer of the Company as of September 30, 2007 and March 31, 2007, respectively. The amounts are for a temporary loan in the normal course of business, interest free, unsecured and due on demand.

The Company has a note payable to a related party through common shareholder and officer. The note amounts to $114,600 as of September 30, 2007 and $114,000 as of March 31, 2007, due on demand, and is secured by assets of MBDC. Interest shall accrue at 6% per annum, due and payable upon demand. This note is for the remaining unpaid consulting fees and office expense provided by the related party. During the six month period ended September 30, 2007, $600 of unpaid office expense was added to the note. The company recorded interest of $4,577 for the six month periods ended September 30, 2007. The interest payable amounting to $42,040 at September 30, 2007 and $37,642 at March 31, 2007 is included in the accompanying financial statements.

The Company has a payable to the Company’s chairman. The loan amounting $158,714 at September 30, 2007 and $122,899 at March 31, 2007, carries an interest rate of 6% per annum, is unsecured and due on March 31, 2008. The company recorded interest of $4,485, for the six month period ended September 30, 2007. The total interest payable on the loan amounted to $20,289 at September 30, 2007 and $15,805 at March 31, 2007 and has been included in due to officer in the accompanying financial statements.

George Morris is the chairman of MBDC. As of September 30, 2007 and March 31, 2007, Mr. Morris’ beneficial ownership percentages of related companies’ common stock is as follows:

	9/30/07	3/31/07
Morris Business Development Company (the Company)	82.9%	82.87%
Internet Infinity, Inc.	85.1%	85.06%
Morris & Associates, Inc.	71.3%	71.30%
Apple Realty, Inc.	100.0%	100.00%

10

MORRIS BUSINESS DEVLOPMENT COMPANY

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 6 CONCENTRATION OF CREDIT RISK

For the six month period ended September 30, 2007, revenue from one customer represents 41% of the Company’s total revenue. Accounts receivable balance outstanding from this customer as of September 30, 2007 was $4,942.

For the three month period ended September 30, 2007, the Company has two vendors who represent 50% of total purchases. Accounts payable balances outstanding as of September 30, 2007 for these vendors were $18,296.

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ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Disclaimer Regarding Forward Looking Statements

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national and local general economic and market conditions; demographic changes; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission.

Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

Overview

We focus on the development of opportunities to invest in eligible portfolio companies providing early stage capital, strategic guidance and operational support.

Our principal objective is current consulting income and long-term capital appreciation. We may invest in debt securities of these companies, or may acquire an equity interest in the form of common or preferred stock, warrants or options to acquire stock or the right to convert the debt securities into stock. We may invest alone, or as part of a larger investment group. Consistent with our status as a BDC and the purposes of the regulatory framework for BDC’s under the 1940 Act, we will provide managerial assistance, potentially in the form of a consulting agreement or in the form of a board of director’s seat, to the developing companies in which we invest.

In addition, we may acquire either a minority or controlling interest in mature companies in a roll-up strategy. It is anticipated that any acquisitions will be primarily in exchange for our common stock, or a combination of cash and stock. The principal objective of acquisitions pursuant to a roll-up strategy would be to consolidate an industry and either sell the acquired entities as a larger unit, or take the unit public through an initial public offering, spin-off to our shareholders, or reverse merger into a publicly traded shell corporation.

We operate as an externally managed investment company. Our operations will be governed by an Investment Advisory Management Agreement to be entered into between us and a new investment advisory limited liability company which will be formed and wholly-owned by our Chairman, George Morris. We have not elected to qualify to be taxed as a regulated investment company as defined under Subchapter M of the Internal Revenue Code.

12

Our common stock trades on the over-the-counter bulletin board under the symbol “MBDV”.

Our financial statements have been prepared assuming we will continue as a going concern. Because we have historically incurred operating losses, and expect those losses to continue in the future, our Certified Public Accountants included an explanatory paragraph in their report raising substantial doubt about our ability to continue as a going concern.

Regulation as a BDC

Although the 1940 Act exempts a BDC from registration under that Act, it contains significant limitations on the operations of BDC’s. Among other things, the 1940 Act contains prohibitions and restrictions relating to transactions between a BDC and its affiliates, principal underwriters and affiliates of its affiliates or underwriters, and it requires that a majority of the BDC’s directors be persons other than “interested persons,” as defined under the 1940 Act. The 1940 Act also prohibits a BDC from changing the nature of its business so as to cease to be, or to withdraw its election as, a BDC unless so authorized by the vote of the holders of a majority of its outstanding voting securities. BDC’s are not required to maintain fundamental investment policies relating to diversification and concentration of investments within a single industry.

Generally, a BDC must be primarily engaged in the business of furnishing capital and providing managerial expertise to companies that do not have ready access to capital through conventional financial channels. Such portfolio companies are termed “eligible portfolio companies.” More specifically, in order to qualify as a BDC, a company must (1) be a domestic company; (2) have registered a class of its equity securities or have filed a registration statement with the Securities and Exchange Commission pursuant to Section 12 of the Securities Exchange Act of 1934; (3) operate for the purpose of investing in the securities of certain types of portfolio companies, namely immature or emerging companies and businesses suffering or just recovering from financial distress; (4) extend significant managerial assistance to such portfolio companies; and (5) have a majority of “disinterested” directors (as defined in the 1940 Act).

An eligible portfolio company is, generally, a U.S. company that is not an investment company and that (1) does not have a class of securities registered on an exchange or included in the Federal Reserve Board’s over-the-counter margin list; or (2) is actively controlled by a BDC and has an affiliate of a BDC on its board of directors; or (3) meets such other criteria as may be established by the Securities and Exchange Commission. Control under the 1940 Act is generally presumed to exist where a BDC owns 25% of the outstanding voting securities of the company.

The 1940 Act prohibits or restricts companies subject to the 1940 Act from investing in certain types of companies, such as brokerage firms, insurance companies, investment banking firms and investment companies. Moreover, the 1940 Act limits the type of assets that BDC’s may acquire to “qualifying assets” and certain assets necessary for its operations (such as office furniture, equipment and facilities) if, at the time of acquisition, less than 70% of the value of the BDC’s assets consist of qualifying assets. Qualifying assets include: (1) securities of companies that were eligible portfolio companies at the time the BDC acquired their securities; (2) securities of bankrupt or insolvent companies that were eligible at the time of the BDC’s initial acquisition of their securities but are no longer eligible, provided that the BDC has maintained a substantial portion of its initial investment in those companies; (3) securities received in exchange for or distributed in or with respect to any of the foregoing; and (4) cash items, government securities and high-quality short-term debt. The 1940 Act also places restrictions on the nature of the transactions in which, and the persons from whom, securities can be purchased in order for the securities to be considered qualifying assets. These restrictions include limiting purchases to transactions not involving a public offering and acquiring securities from either the portfolio company or its officers, directors, or affiliates.

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A BDC is permitted to invest in the securities of public companies and other investments that are not qualifying assets, but those kinds of investments may not exceed 30% of the BDC’s total asset value at the time of the investment.

A BDC must make significant managerial assistance available to the issuers of eligible portfolio securities in which it invests. Making available significant managerial assistance means, among other things, any arrangement whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted does provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company. The portfolio company does not have to accept the BDC’s offer of managerial assistance, and if they do accept may be required to pay prevailing market rates for the services.

We do not currently have any subsidiaries or EPC’s, however we do have an operating division that provides services for the duplication, replication, and packaging of DVD’s and CD’s. We are actively seeking quality eligible portfolio companies in which to make an investment and provide managerial assistance.

Three Months ended September 30, 2007 compared to the Three Months ended September 30, 2006 and 2005

Results of Operations

Introduction

During the three months ended June 30, 2006, we elected to become subject to certain sections of the Investment Company Act of 1940 by becoming a Business Development Company. During that quarter, and the quarter ended September 30, 2006, our DVD and CD division continued to be our sole source of revenues.

Revenues and Income (Loss) from Operations

Our revenue, cost of revenue, total operating expenses and income (loss) from operations for the three months ended September 30, 2007, as compared to the three months ended September 30, 2006 and 2005, and June 30, 2007, are as follows:

	3 Months Ended September 30, 2007			3 Months Ended September 30, 2006			Percentage Change Increase (Decrease)		3 Months Ended September 30, 2005			3 Months Ended June 30, 2007
Revenue	$	35,759		$	40,055			(11)%	$	68,032		$	23,337
Cost of revenue		20,831			25,230			(17)%		38,512			12,809
Total operating expenses		17,521			22,725			(23)%		32,301			17,809
Income (loss) from operations	$	(2,593	)	$	(7,900	)		67%	$	(2,781	)	$	(6,561	)

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Our revenues for the three months ended September 30, 2007 decreased to $35,759 compared to $40,055 for the three months ended September 30, 2006, $68,032 for the three months ended September 30, 2005, and $23,337 for the three months ended June 30, 2007. The decrease in revenues for the second quarter of 2007 compared to the second quarter of 2006 was due to reduced purchases of replication services. The decrease in revenues for the quarter ended June 30, 2007 was a result of lower sales to our largest customer.

While our revenues for the current quarter decreased by 11% compared to a year earlier (they increased by 37% compared to last quarter), our total operating expenses decreased by 23% (2% compared to last quarter), resulting in our loss from operations for the three months ended September 30, 2007 being $2,593 as compared to $7,900 for the three months ended September 30, 2006 and a loss from operations of $2,781 for the three months ended September 30, 2005 and $6,561 for the three months ended June 30, 2007.

Our cost of revenue as a percentage of revenue was 58%, 63%, and 57% for the three month periods ending September 30, 2007, 2006, and 2005, respectively. Our cost of revenue as a percentage of revenue for the three months ended June 30, 2007 was 55%. The change in our cost of revenue as a percentage of revenue in recent periods is attributed to changing bid prices for a different product mix.

Non-Operating Income (Expense) and Net Income (Loss)

Our other income, interest expense, and net income (loss) for the three months ended September 30, 2007, as compared to the three months ended September 30, 2006 and 2005, and June 30, 2007, are as follows:

	3 Months Ended September 30, 2007			3 Months Ended September 30, 2006			Percentage Change Increase (Decrease)		3 Months Ended September 30, 2005			3 Months Ended June 30, 2007
Other income	$	-		$	-			-%	$	-		$	2,000
Interest expense		(4,714	)		(3,468	)		36%		(2,860	)		(4,348	)
Net income (loss)	$	(7,307	)	$	(11,369	)		(36)%	$	(5,641	)	$	(9,709	)

The interest expense for each of the quarters presented is related to notes owed to our Chairman George Morris.

Six Months ended September 30, 2007 compared to the Six Months ended September 30, 2006 and 2005

Results of Operations

Introduction

During the six months ended September 30, 2006, we elected to become subject to certain sections of the Investment Company Act of 1940 by becoming a Business Development Company. Since that time, our DVD and CD division continued to be our sole source of revenues.

15

Revenues and Income (Loss) from Operations

Our revenue, cost of revenue, total operating expenses and income (loss) from operations for the six months ended September 30, 2007, as compared to the six months ended September 30, 2006 and 2005, are as follows:

	6 Months Ended September 30, 2007			6 Months Ended September 30, 2006			Percentage Change Increase (Decrease)		6 Months Ended September 30, 2005
Revenue	$	61,492		$	123,286			(50)%	$	105,984
Cost of revenue		34,035			78,595			(57)%		64,526
Total operating expenses		34,611			47,449			(27)%		52,742
Income (loss) from operations	$	(7,154	)	$	(2,758	)		(159)%	$	(11,284	)

Our revenues for the six months ended September 30, 2007 decreased to $61,492 compared to $123,286 for the six months ended September 30, 2006 and $105,984 for the six months ended September 30, 2005. The decrease in revenues for 2007 compared to 2006 was due to lower sales to our largest customer.

While our revenues for the current six month period decreased by 50% compared to a year earlier, our total operating expenses decreased by $12,838, or 27%, resulting in a greater loss from operations for the six months ended September 30, 2007 of $(7,154) as compared to $(2,758) for the six months ended September 30, 2006. We had a loss from operations of $11,284 for the six months ended September 30, 2005, primarily because of greater total operating expenses.

Our cost of revenue as a percentage of revenue was 55%, 64% and 61% for the six month periods ending September 30, 2007, 2006, and 2005, respectively. The variance in our cost of revenue as a percentage of revenue in recent periods is attributed to increased price competition.

16

Non-Operating Income (Expense) and Net Income (Loss)

Our other income, interest expense, and net income (loss) for the six months ended September 30, 2007, as compared to the six months ended September 30, 2006 and 2005, are as follows:

	6 Months Ended September 30, 2007			6 Months Ended September 30, 2006			Percentage Change Increase (Decrease)		6 Months Ended  September 30, 2005
Other income	$			$	805			(100)%	$	-
Interest expense		(9,062	)		(7,010	)		29%		(5,900	)
Net income (loss)	$	(17,016	)	$	(9,764	)		(74)%	$	(17,984	)

The interest expense for each of the six-month periods presented is related to notes owed to our Chairman, George Morris.

Liquidity and Capital Resources

Introduction

During the six months ended September 30, 2007, we had a net loss of $(17,016), but a negative cash flow from operations of $4,603. During our first quarter, we had both a small net loss and a small negative cash flow from operations. Because our revenues are small, almost any change in our revenues or operating expenses has a material effect, and we anticipate that our net profit or loss, and operating profit or loss, will continue to vary widely from time period to time period.

Our cash and cash equivalents, accounts receivable, total current assets, total current liabilities, and total liabilities as of September 30, 2007, compared to September 30, 2006 and June 30, 2007, are as follows:

	September 30,		September 30,		June 30,
	2007		2006		2007
Cash	$	4,341	$	10,052	$	2,944
Accounts receivable		13,342		20,363		12,511
Total current assets		17,684		30,415		15,454
Total assets		108,190		94,050		98,446
Total current liabilities		375,540		304,704		358,489
Total liabilities		375,540		304,704		358,489

Cash Requirements

Our cash requirements are expected to remain stable over the next 12 months. Our cash is utilized primarily for professional fees associated with being a public, reporting company and with the acquisition of eligible portfolio companies.

17

Sources and Uses of Cash

Operations and Financing

During the six months ended September 30, 2007, we generated positive cash flow of $3,223. This was a result of net cash used in operating activities of $4,603, offset by net cash used in financing activities of $7,825. Net cash provided by operating activities consisted primarily of an increase in accounts receivable of $2,354, offset by an increase in accounts payable of $14,768. We anticipate that we will continue to operate at approximately break-even and generate a small positive cash flow from the operations of our DVD and CD division as we shift to the eCommerce business model.

Critical Accounting Policies

Our accounting policies are fully described in Note 2 to our consolidated financial statements. The following describes the general application of accounting principles that impact our consolidated financial statements.

Our results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principals generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to bad debt, inventories, investments, intangible assets, income taxes, financing operations, and contingencies and litigation.

We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

Since we have very few assets and only one operating division there is no quantitative information, as of September 30, 2007, about market risk that has any impact on our present business. Once we begin making investments in additional eligible portfolio companies we anticipate there will be market risk sensitive instruments and we will disclose the applicable market risk information at that time.

Our primary financial instruments are cash in banks and money market instruments. We do not believe that these instruments are subject to material potential near-term losses in future earnings from reasonably possible near-term changes in market rates or prices. We do not have derivative financial instruments for speculative or trading purposes. We are not currently exposed to any material currency exchange risk.

ITEM 4. Controls and Procedures

Evaluation of disclosure controls and procedures. The Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief 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 that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective and provide reasonable assurances that the information the Company is required to disclose in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time period required by the Commission's rules and forms. Further, the Company’s officers concluded that its disclosure controls and procedures are also effective to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is accumulated and communicated to its management, including its chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure. There were no significant changes in the Company's internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.

18

PART II - OTHER INFORMATION

ITEM 1.  Legal proceedings

In the ordinary course of business, we may be from time to time involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. However, in the opinion of our management, matters currently pending or threatened against us are not expected to have a material adverse effect on our financial position or results of operations.

ITEM 1A Risk Factors

At the time we filed our Annual Report on Form 10-K, we were a Small Business Issuer as defined in Regulation S-B, and thus did not include risk factors in our filing.

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds

There have been no events which are required to be reported under this Item.

ITEM 3 Defaults Upon Senior Securities

There have been no events which are required to be reported under this Item.

ITEM 4 Submission of Matters to a Vote of Security Holders

There have been no events which are required to be reported under this Item.

ITEM 5 Other Information

There have been no events which are required to be reported under this Item.

19

ITEM 6 Exhibits

(a)Exhibits

3.1 (1)	Articles of Incorporation of Electronic Media Central Corporation
3.2 (4)	Articles of Amendment to Articles of Incorporation
3.3 (1)	Bylaws
10.1 (2)	Distribution Agreement Between Electronic Media Central and L&M Media, Inc., dba Apple Media
14.1 (3)	Code of Ethics
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.1	Chief Executive Officer Certification Pursuant to 18 USC, Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Chief Financial Officer Certification Pursuant to 18 USC, Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(1) Incorporated by reference to our Form 10-SB, Commission file number 000-32345, filed with the Commission on February 13, 2001.

(2) Incorporated by reference to the Registrant’s Registration Statement on Form 10-SB/A, filed on April 13, 2001.

(3) Incorporated by reference to the Registrant’s Annual Report on Form 10-KSB, filed on July 13, 2004.

(4) Incorporated by reference to the Registrant’s Annual Report on Form 10-K, filed on July 3, 2007.

20

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	/s/ Roger Casas
Dated:November 13, 2007	By:Roger Casas
	Its:Chief Executive Officer
	/s/ George P. Morris
Dated:November 13, 2007	By:George P. Morris
	Its:Chief Financial Officer

EX-31.1

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

I, Roger Casas, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Morris Business Development Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant‘s internal control over financial reporting.

Date: November 13, 2007	By:	/s/ Roger Casas
		Roger Casas
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

I, George P. Morris, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Morris Business Development Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant‘s internal control over financial reporting.

Date: November 13, 2007	By:	/s/ George P. Morris
		George P. Morris
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morris Business Development Company (the “Company”) on Form 10-Q for the quarter ended September 30, 2007, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Roger Casas, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 13, 2007	/s/ Roger Casas
	By: Roger Casas
	Its: Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Morris Business Development Company and will be retained by Morris Business Development Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morris Business Development Company (the “Company”) on Form 10-Q for the quarter ended September 30, 2007, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, George P. Morris, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 13, 2007	/s/ George P. Morris
	By: George P. Morris
	Its: Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Morris Business Development Company and will be retained by Morris Business Development Company and furnished to the Securities and Exchange Commission or its staff upon request.