UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-Q (Mark One)  [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended March 31, 2010  [  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT  For the transition period from ________________ to _______________  000-24835 (Commission file number)  CEPHAS HOLDING CORP. (Exact name of small business issuer as specified in its charter)  Delaware 38-3399098 (State or other jurisdiction (IRS Employer of incorporation or organization) Identification No.)  2942 North 24th Street Ste. 114-508 Phoenix, AZ 85016 (Address of principal executive offices)  623-850-1356 (Issuer's telephone number)  N/A (Former name, former address and former fiscal year, if changed since last report)  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 [X]   No [ ]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [   ]   No [X]  State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: As of October 14, 2010  119,983,617shares of common stock  Transitional Small Business Disclosure Format (check one):  Yes [   ]   No [X]


CEPHAS HOLDING CORP. Index  Page Number  PART I. FINANCIAL INFORMATION 2  Item 1. Financial Statements 2  Consolidated Balance Sheet as of March 31, 2010 (unaudited) and December 31, 2009 3  Consolidated Statements of Operations for the three months ended March 31, 2010  and 2009 (unaudited) 4  Consolidated Statements of Cash Flows for the three months March 31, 2010 and 2009 (unaudited) 5  Notes to Consolidated Interim Financial Statements (unaudited) 6  Item 2. Management's Discussion and Analysis or Plan of Operation 14  Item 3. Controls and Procedures 17  PART II. OTHER INFORMATION 17  Item 1. Legal Proceedings 17  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18  Item 3. Defaults Upon Senior Securities 18  Item 4. Submission of Matters to a Vote of Security Holders 18  Item 5. Other Information 18  Item 6. Exhibits 18  SIGNATURES 18       PART I. FINANCIAL INFORMATION  Item 1. Financial Statements    CEPHAS HOLDING CORP. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMARCHDECEMBER31, 201031, 2009(UNAUDITED)(AUDITED)CURRENT ASSETS:Cash$          2,806$               176Prepaid expenses36,00036,000Investments20,000-TOTAL CURRENT ASSETS58,80636,176FIXED ASSETS - at costComputer and office equipment52,93052,930Less: Accumulated depreciation(52,930)(52,930)NET FIXED ASSETS--TOTAL ASSETS$        58,806$          36,176LIABILITIES AND STOCKHOLDERS' DEFICITCURRENT LIABILITIES:Accounts payable$      229,307$        229,307Accrued expenses909,250865,500Accrued interest1,896,6261,813,132Accrued derivative liability230,695230,695License fees payable200,000200,000Advances from an officer97,31697,466Due to related parties64,03864,038Notes payable - related party95,00097,500Notes payable550,250538,250Note payable - officer1,217,1491,217,149TOTAL CURRENT LIABILITIES5,489,6315,353,037COMMITMENTS AND CONTINGENCIES--STOCKHOLDERS' DEFICITSeries A Preferred Stock, $0.001 par value, 1,000,000 sharesauthorized; 2,225 shares issued and outstanding2222Series B Convertible Preferred Stock, $0.01 par value; 850,000shares authorized; 850,000 shares issued and outstandingauthorized; 1,000,000 Class A shares issued and outstanding8,5008,500Series C Convertible Preferred Stock, $0.01 par value; 147,775shares authorized; 147,775 shares issued and outstanding1,4781,478Common stock; $0.001 par value; 150,000,000 sharesauthorized; 97,983,679(December 31, 2009-94,883,679) issued and outstanding97,98494,884Additional paid-in capital16,418,42516,406,025Stock subscription receivable(156,300)(156,300)Non-controlling interest(10,395)(9,168)Accumulated deficit(21,790,539)(21,662,302)TOTAL STOCKHOLDERS' DEFICIT(5,430,825)(5,316,861)TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT$        58,806$          36,176  The accompanying notes are an integral part of these financial statements.   CEPHAS HOLDING CORP. AND SUBSIDIARIESCONSOLIDATED INTERIM STATEMENT OF OPERATIONS(UNAUDITED)THREE MONTHS ENDEDMARCH 31,20102009REVENUE$           172$               -COST OF REVENUE--GROSS PROFIT172-EXPENSES:Selling, general and administrative46,14244,259TOTAL EXPENSES46,14244,259LOSS FROM OPERATIONS(45,970)(44,259)OTHER INCOME (EXPENSE):Interest expense and financing costs(83,494)(83,439)TOTAL OTHER INCOME (EXPENSE)(83,494)(83,439)LOSS BEFORE PROVISION FOR INCOME TAXES$  (129,464)$    (127,698)PROVISION FOR INCOME TAXES--NET LOSS$  (129,464)$    (127,698)BASIC AND DILUTED LOSS PERCOMMON SHARE$      (0.001)$        (0.002)WEIGHTED AVERAGE NUMBER OFCOMMON SHARES OUTSTANDING -BASIC AND DILUTED95,011,07674,683,521  The accompanying notes are an integral part of these financial statements.    CEPHAS HOLDING CORP. AND SUBSIDIARIESCONSOLIDATED INTERIM STATEMENT OF CASH FLOWS(UNAUDITED)THREE MONTHS ENDEDMARCH 31,20102009CASH FLOWS FROM OPERATING ACTIVITIES:Net loss$      (129,464)$         (127,698)Adjustment to reconcile net loss to net cash used in operating activitiesStock issued for services rendered-375Depreciation-134Changes in operating assets and liabilities:Prepaid expenses--Accounts payable43,75043,750Accrued interest83,49483,439Net cash used in operating activities(2,220)-CASH FLOWS FROM INVESTING ACTIVITIES:Investment in Network Talent, LLC(20,000)-Net cash used in investing activities(20,000)-CASH FLOWS FROM FINANCING ACTIVITIES:Advances from an officer, net(150)-Notes payable25,000-Advances from related parties, net--Net cash provided by financing activities24,850-INCREASE (DECREASE) IN CASH2,630-CASH, Beginning of period17664CASH, End of period$           2,806$                   64SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:Interest paid$       166,878$          166,878Income taxes paid$                 -$                    -  The accompanying notes are an integral part of these financial statements.   CEPHUS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED NOTES TO INTERIM FINANCIAL STATEMENTS MARCH 31, 2010 (UNAUDITED) Note 1 - Organization and Significant Accounting Policies  Organization and Lines of Business Cephus Holding Corp formerly Legend Mobile, Inc., (the "Company"), was incorporated in Delaware on January 13, 1998 and is the successor to Interactive Entertainment Studio, Inc. (IES). IES was incorporated in the State of Nevada on May 27, 1997 and was merged into the Company in March 1998 for the sole purpose of changing the domicile of the Company to Delaware. On June 27, 2002, the Company filed a Certificate of Amendment to its Certificate of Incorporation to amend the Company's Certificate of Incorporation name from PTN Media, Inc. to Legend Mobile, Inc. In October 2008, the Company amended its articles to change the name to Cephus Holding Corp.  The Company is a developer and marketer of branded mobile phone applications for the iPhone platform. The Company is an approved developer by Apple Computer to distribute its products on their iTunes store. The Company currently sells the Iron Sheik Soundboard and it distributes free of charge MMA Underboss -a newswire dedicated to mixed martial arts news.  The Company also has a license from Mixed Martial Arts Champion, Fedor Emelianeko to produce iPhone applications under his brand and is currently developing that application.  In February 2001, the Company formed Legend Credit as a wholly owned subsidiary.  On April 1, 2003, Mr. Peter Klamka, CEO of the Company, contributed the rights to an affinity credit card business valued at $37,000 to Legend Credit. Mr. Klamka's contribution has been determined pursuant to Accounting Principles Board Opinion No. 29, "Non monetary Transactions," using his cost basis in the investment, which is the most readily determinable cost.  In exchange for this contribution, Legend Credit issued to Mr.  Peter Klamka 60% of the issued and outstanding shares of Legend Credit common stock and the Company issued to Mr. Klamka 850,000 shares of Series B convertible preferred stock. These issuances were valued at $22,200 and $14,800, respectively.  The Company retains a 40% minority interest in Legend Credit which is accounted for using the equity method.  Effective October 1, 2004, Mr. Klamka contributed an additional 10% interest in Legend Credit to the Company that was valued at $3,700 (10% of $37,000, the original value of the affinity credit card business). The Company now owns 50% of Legend Credit and accounts for the subsidiary using the acquisition method. The subsidiary currently has no business operations.  In July 1999, the Company formed Legend Studios, Inc. (formerly FragranceDirect.com, Inc.)  ("Legend Studios"), a majority owned subsidiary.   As of March 31, 2010, Legend Studios did not have any operations.  Basis of Presentation and Going Concern The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern.  The Company incurred a net loss for the three months ended March 31, 2010 of  $129,464  and at  March 31, 2010,  had an accumulated  deficit of $21,790,539 and a working  capital  deficit of $5,430,825. In addition, the Company generates minimal revenue from its operations and is in default on the payment of notes payable and license fee payable obligations. These conditions raise substantial doubt as to the Company's   ability to continue as a going concern.   These consolidated financial statements do not include any  adjustments that might result from the outcome of this uncertainty. These consolidated 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.  These interim financial statements however, do include all necessary adjustments to not make them misleading  The Company plans to take the following steps that it believes will be sufficient to provide the Company with the ability to continue in existence.  The Company is seeking additional equity or debt capital to expand its mobile application business.  Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its 91%-owned subsidiary, Legend Studios, and its 50% owned subsidiary, Legend Credit. Significant intercompany accounts and transactions have been eliminated. CEPHUS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED NOTES TO INTERIM FINANCIAL STATEMENTS MARCH 31, 2010 (UNAUDITED) Note 1 - Organization and Significant Accounting Policies (continued)  Cash and Cash Equivalents For purposes of the statements of cash flows, the Company defines cash equivalents as all highly liquid debt instruments purchased with a maturity of three months or less, plus all certificates of deposit.  Use of Estimates The preparation of consolidated financial statements in conformity with accounting  principles  generally accepted in the  United States of America requires management to make  estimates and  assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial  statements and the reported  amounts of revenue and expenses during the reporting periods. As of December 31, 2009, the Company used estimates in determining the value of common stock issued to consultants for services. Actual results could differ from these estimates.  Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash. The Company places its cash with high quality financial institutions and at times may exceed the FDIC $250,000 insurance limit. The Company extends credit based on an evaluation of the customer's financial condition, generally without collateral.  Exposure to losses on receivables is principally dependent on each customer's financial condition. The Company monitors its exposure for credit losses and maintains allowances for anticipated losses, as required.  Comprehensive Income The Company has adopted SFAS No. 130 (ASC220-10), "Reporting Comprehensive Income." This statement establishes standards for reporting comprehensive income and its components in a financial statement. Comprehensive income as defined includes all changes in equity (net assets) during a period from non-owner sources. Examples of items to be included in comprehensive income, which are excluded from net income, include foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities. Comprehensive income (loss) is  not presented in the Company's financial statements since there is no difference between net loss and comprehensive loss in any period presented.  Stock Based Compensation Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718).  During the three months ended March 31, 2010, the Company has not adopted a stock option plan and has not granted any stock options.  Stock-based compensation represents the cost related to common stock and options to purchase common stock granted to employees and related parties of the Company. The Company determines the cost of common stock grants at the date the common stock was issued, based on the quoted market price of the Companys common stock and recognizes the cost as expense over the requisite service period. The Company estimates the fair value of all warrants and options issued during the period using the Black-Scholes option-pricing model with the assumptions appropriate to the circumstances of the Company at the time of the transaction. There were no options or warrants issued during the three months ended March 31, 2010.  The Company records deferred tax assets for awards that result in deductions on the Companys income tax returns, based on the amount of compensation cost recognized and the Companys statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the Companys income tax return are recorded in Additional Paid-In Capital.      CEPHUS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED NOTES TO INTERIM FINANCIAL STATEMENTS MARCH 31, 2010 (UNAUDITED) Note 1 - Organization and Significant Accounting Policies (continued)   Fair Value of Financial Instruments For certain of the Company's  financial  instruments,  including  cash, accounts  payable,  accrued  expenses,  accrued  interest,  license fee payable, due to related parties, and advances from an officer,  the carrying  amounts  approximate fair value due to their short  maturities.  The amounts shown for notes payable also approximate fair value because current interest rates and terms offered to the Company for similar debt are substantially the same.  Property and equipment Property and equipment is recorded at cost. Depreciation is provided on a straight-line basis over estimated useful lives of the assets.  Expenditures for maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized.  Gains and losses on disposals are included in the results of operations.  Revenue Recognition The Company generates revenue from the sale of products on its web sites and through other channels, the sale of advertisements on radio stations it operated and service fees from the sale of  debit cards. The Company recognizes revenue for these product sales when the product is shipped to the customer.  The Company recognizes revenue from the radio stations it operated when advertisements were aired.  The Company recognizes service fee revenue from the sale of debit cards at the time the customer is sent the debit card.  Shipping and handling costs are recorded as revenue and related costs are charged to cost of sales.  Income Taxes Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.  Reclassifications Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statement presentation.  Impairment of Long-Lived Assets In October 2001, the FASB issued SFAS No. 144 (ASC 360), "Accounting for Impairment or Disposal of Long-Lived Assets".  This statement also amends ARB No. 51 (ASC 810), "Consolidated Financial Statements", to eliminate the exception to consolidation for a subsidiary for which control is likely to be impaired. SFAS No. 144 (ASC 360) requires that long-lived assets  to be  disposed  of by sale,  including  those of  discontinued operations,  be measured at the lower of carrying  amount or fair value less cost to sell,  whether  reported in  continuing  operations  or in discontinued  operations.  SFAS No. 144 (ASC 360)  broadens  the  reporting  of discontinued  operations  to include all  components  of an entity with operations  that can be  distinguished  from the rest of the entity and that will be eliminated from the ongoing  operations of the entity in a disposal  transaction.  SFAS No. 144 (ASC 360) also establishes a "primary-asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. The Company's adoption effective January 1, 2002 did not have a material impact to the Company's financial position or results of operations.        CEPHUS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED NOTES TO INTERIM FINANCIAL STATEMENTS MARCH 31, 2010 (UNAUDITED) Note 1 - Organization and Significant Accounting Policies (continued)  Earnings (Loss) Per Share The Company reports earnings (loss) per share in accordance with SFAS No. 128 (ASC 260), "Earnings per Share."  Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available.  Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share  except  that the denominator is increased to include the number of additional common shares that would  have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  Diluted earnings (loss) per share has not been presented since the effect of the assumed conversion of options and warrants to purchase common shares would have an anti-dilutive effect.  The following potential common shares have been excluded from the computation of diluted net loss per share for the three months ended March 31, 2010 and 2009 respectively because the effect would have been anti-dilutive:  20102009Conversion of Series A preferred stock44,50044,500Conversion of Series B preferred stock8,500,0008,500,000Conversion of Series C preferred stock14,777,50014,777,500Total23,322,00023,322,000       All warrants and stock options were cancelled during the year ended December 31, 2007.  Non-Controlling Interest In December 2007, the FASB issued SFAS No. 160 (ASC 810), Non-controlling Interests in Consolidated Financial Statements, an amendment of ARB No. 51 (ASC 810), which addresses the accounting and reporting framework for minority interests by a parent company. SFAS 160 (ASC 810) also addresses disclosure requirements to distinguish between interests of the parent and interests of the non-controlling owners of a subsidiary. SFAS 160 (ASC 810) became effective beginning with our first quarter of 2009. We will be reporting minority interest as a component of equity in our Consolidated Balance Sheets and below income tax expense in our Consolidated Statement of Operations. As minority interest will be recorded below income tax expense, it will have an impact to our total effective tax rate, but our total taxes will not change. For comparability, we will be retrospectively applying the presentation of our prior year balances in our Consolidated Financial Statements.  Recently Issued Accounting Pronouncements In April 2009, the Financial Accounting Standards Board (FASB) issued guidance for accounting for assets acquired and liabilities assumed in a business combination that arise from contingencies. This guidance modified earlier guidance to provide that contingent assets acquired or liabilities assumed in a business combination be recorded at fair value if the acquisition-date fair value can be determined during the measurement period. If not, such items would be recognized at the acquisition date if they meet the recognition requirements under GAAP for accounting for contingencies. In periods after the acquisition date, an acquirer shall account for contingent assets and liabilities that were not recognized at the acquisition date in accordance with other applicable GAAP, as appropriate. Items not recognized as part of the acquisition but recognized subsequently would be reflected in that subsequent periods income. This guidance, which was effective for the Company when issued, has no impact on the Companys current financial statements, but will apply to any future acquisitions.  In April 2009, the FASB issued guidance concerning interim disclosures about fair value of financial instruments requiring publicly traded companies to provide disclosure about the fair value of financial instruments whenever interim summarized financial information is reported. Previously, disclosures about the fair value of financial instruments were only required on an annual basis. Disclosure shall include the method(s) and significant assumptions used to estimate the fair value of financial instruments and shall describe changes in method(s) and significant assumptions, if any, during the period. This guidance was effective for interim and annual periods ending after June 15, 2009, and, as such, the Company began including this disclosure with its second quarter 2009 financial statements.  CEPHUS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED NOTES TO INTERIM FINANCIAL STATEMENTS MARCH 31, 2010 (UNAUDITED) Note 1 - Organization and Significant Accounting Policies (continued)  Recently Issued Accounting Pronouncements (continued) In May 2009, the FASB issued guidance regarding the disclosure of subsequent events. This guidance made no changes to current accounting but added required disclosures regarding the date through which the Company has evaluated subsequent events and whether that evaluation date is the date of financial statement issuance or the date the financial statements were available to be issued. This guidance was effective for interim and annual periods ending after June 15, 2009.  In June 2009, the FASB issued guidance changing the approach used to determine the primary beneficiary of a variable interest entity. The guidance requires ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity, amends previous guidance for determining whether an entity is a variable interest entity, and adds as a reconsideration event any change in facts and circumstances where the holders of the equity investment at risk, as a group, lose the power to direct the activities of the entity that most significantly impact the entitys economic performance. In addition, the revised guidance requires enhanced disclosures regarding an enterprises involvement in a variable interest entity. The new guidance is effective for the Company beginning January 1, 2010 and is not expected to have a material impact on the Companys financial statements.  In June 2009, the FASB issued FAS No.168 (ASC 105), The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles This statement established the FASB Accounting Standards Codification as the source of authoritative U.S. generally accepted accounting principles (GAAP). This statement is effective for financial statements issued for interim and annual periods ending after September 15, 2009. Adoption of this statement did not have a material effect on the Companys financial statements.  Subsequent to the issuance of FAS No. 168 (ASC 105), the FASB has released Accounting Standard Update Nos. 2009-01 through 2009-15. The Company has reviewed each of these updates and determined that none will have a material impact on the Companys financial statements.  Note 2  Property and Equipment  Property and equipment as at March 31, 2010 and December 31, 2009 consisted of the following:  20102009Computer equipment$      11,376$      11,376Less: Accumulated depreciation(11,376)(11,376)Net Fixed Assets$               0$           163      Depreciation expense for the three months ended March 31, 2010 and 2009 and 2008 was $0 and $134, respectively.  Note 3 - Accrued Expenses  Accrued expenses at March 31, 2010 and December 31, 2009 consisted of the following:    20102009Michael Jordan settlement$    468,750$    468,750Management salary437,500393,750Professional fees3,0003,000Total Accrued Expenses$    909,250$    865,500       The amount owing to Michael Jordan bears interest at 12% per annum and is currently in default.  Accrued interest on that settlement to date amounts to $403,642.   CEPHUS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED NOTES TO INTERIM FINANCIAL STATEMENTS MARCH 31, 2010 (UNAUDITED) Note 4 - Notes Payable - Officer  As of September 30, 2004, the Company converted $291,000 of advances from its CEO, Mr. Klamka, into a note payable that bears interest at 21% per annum and is payable upon demand.  As of March 31, 2010, the balance on this note is $263,496 with accrued interest related to this note amounted to $297,726.  During the year ended December 2006 the Company converted certain of the accrued amounts owing to the CEO and for salaries payable to the CEO into a note totaling $758,920.  This note is unsecured and bears interest at the rate of 21% per annum.  Accrued interest to date is $563,055.  Additional notes were issued during 2007 to Peter Klamka for unpaid salaries of $175,000 bearing interest at the rate of 8% per annum. Interest accrued to date is $33,250. Additionally, a note for expenses paid by Mr. Klamka on behalf of the Company totaling $29,733 was issued and bears interest at 10% per annum.  Interest accrued to date is $6,689.  The total amount due for notes payable  officer is $1,217,149 as of March 31, 2010.  Note 5 - Notes Payable  In July and August 1997, the Company received $56,250 through the issuance of 8% promissory notes and common stock purchase warrants to acquire Company stock.  In 1999, one of the note holders converted $25,000 of principal and $5,500 of accrued interest into 6,100 shares of the Company's common stock. The remainder of the notes, which amounts to $31,250, continues to be outstanding notwithstanding the fact that payments owed by the Company there under are now past due.  Interest accrued as of March 31, 2010 aggregated to $28,500.  In July and August of 1999, the Company's Subsidiaries, Legend Studios issued 10% promissory notes aggregating to $160,000.  The notes are due the earlier of one year or the completion of an initial public offering of Legend Studios common stock. In addition, Legend Studios issued to the note  holders  an  aggregate  of  96,000  two-year  stock  purchase warrants to purchase  Legend  Studios  common stock at $3.50 per share. During the year ended  December  31, 2002,  two note holders  converted principal  and accrued  interest  of $35,000  and  $13,358  into 48,358 shares of the Company's common stock. As of March 31, 2010, $125,000 of these notes and accrued interest of $130,209 are still outstanding. These notes were in default as of December 31, 2006.   In August  2001,  the Company  issued  notes  payable for  $100,000 and $300,000  which  were  due in 60 days  and 14  days,  respectively. The balance of those loans as of March 31, 2010 was $100,000 and $269,000, respectively.  In October 2003, the Company issued a note payable in the amount of $20,000.  The note was due 45 days after issuance.  The note was forgiven in 2009 and written off as other income.  During the three months ended March 31, 2010, the Company converted $15,500 of certain notes payable into 3,500,000 shares of the companys common stock.  On March 19, 2010, an outside party loaned the Company $25,000.  This loan is interest only at the rate of 7% per annum with no fixed terms of repayment and may be converted into common stock at $.005 per share.  The total amount due for notes payable is $550,250 as of March 31, 2010.  Note 6  Notes Payable  Related Party  The Company issued a note to Eric Joffe for unpaid salaries for 2006 for $100,000 of which $5,000 was repaid. The remaining balance of $95,000 bears interest at 7% per annum and accrued interest to date is $17,838.   CEPHUS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED NOTES TO INTERIM FINANCIAL STATEMENTS MARCH 31, 2010 (UNAUDITED) Note 7 - Stockholders' Deficit  Series A Preferred Stock The Company has 1,000,000 shares of $0.001 par value Series A Preferred Stock ("Series A") authorized of which 2,225 shares are issued and outstanding at March 31, 2010. Each share of Series A can be converted into 20 shares of common stock.  Series B Convertible Preferred Stock The Company has 850,000 shares of $0.01 par value Series B Convertible Preferred Stock (Series B) authorized of which 850,000 shares are issued and outstanding at March 31, 2010.  In the event of a voluntary or involuntary liquidation,  dissolution or winding  up of the  Company,  prior to the time  the  Series B  becomes convertible  into  common  shares,  the  holders  of  Series B shall be entitled to $0.01 per share. In the event of a voluntary or involuntary liquidation,  dissolution  or winding up of the Company  after the time the Series B becomes  convertible  into common  shares,  the holders of Series B shall be entitled  to share with the  holders of common  stock pari  passu in the assets of the  Company,  on an as  converted  basis, whether such assets are capital or surplus of any nature. The Series B shall be convertible upon the earlier to occur of: (i) the date the Company generates net profits in any two consecutive fiscal quarters or (ii) April 1, 2006.  The  conversion  of  Series B shall be on the  basis of ten  shares  of common  stock for one Series B share,  as may be adjusted  from time to time. Upon conversion, the holder of the Series B will be required to pay to the Company a conversion price for each share of common stock equal to $0.10.  The holders of the Series B shall vote on all matters with the holders of the common stock (and not as a separate class) on a ten votes per share basis.  The holders of the Series B shall be entitled to receive all notices relating to voting as are required to be given to the holders of the common stock.  During 2003, the Company issued to Mr. Peter Klamka, the Company's CEO, 850,000 shares of Series B as consideration for the contribution of an affinity credit card business to Legend Credit.  Series C Convertible Preferred Stock The Company has 147,775 shares of $0.01 par value Series C Convertible Preferred Stock (Series C) authorized of which 147,775 shares are issued and outstanding at March 31, 2010.  In the event of a voluntary or involuntary liquidation,  dissolution or winding  up of the  Company  prior  to the time  the  Series C  becomes convertible  into  common  shares,  the  holders  of  Series C shall be entitled to $0.01 per share. In the event of a voluntary or involuntary liquidation,  dissolution  or winding up of the Company  after the time the Series C becomes  convertible  into common  shares,  the holders of Series C shall be  entitled  to share with the holders of  shares of common stock and Series B convertible preferred stock pari passu in the assets of the Company, on an as converted  basis, whether such assets are capital or surplus of any nature.   The Series C shall be convertible upon the earlier to occur of:  (i) the date the Company  generates net profits in any two consecutive fiscal quarters; (ii) April 1, 2006; or (iii) any date that the market price per share of common stock equals or exceeds $0.50.  The  conversion of Series C shall be on the  basis of one hundred shares of common stock for one Series C share,  as may be adjusted  from time to time. Upon conversion, the holder of the Series C will be required to pay to the Company a conversion price for each share of common stock equal to $0.10.       CEPHUS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED NOTES TO INTERIM FINANCIAL STATEMENTS MARCH 31, 2010 (UNAUDITED) Note 7 - Stockholders' Deficit (continued)  Series C Convertible Preferred Stock (continued) The holders of the Series C shall vote on all matters with the holders of the common stock (and not as a separate class) on a ten votes per share basis.  The holders of the Series C shall be entitled to receive all notices relating to voting as are required to be given to the holders of the common stock.  During 2004, the Company issued to Mr. Peter Klamka, the Company's CEO, 147,775 shares of Series C as consideration for the contribution of an additional 10% ownership in Legend Credit. (See Note 3)  Common Stock During the three months ended March 31, 2010 the Company issued a total of 3,100,000 common shares to convert notes payable for a total consideration of $15,500.  Note 8 - Commitments and Contingencies  Litigation Legend Studios, Inc. vs. Quorum Radio Partners, Inc., Quorum Radio Partners of Virginia, Inc. and Quorum Communications, Inc.  Legend Studios lawsuit arises from defendants' breach of the parties' Asset Purchase Agreement and Time Brokerage Agreement that govern the sale, programming, operations and revenues of certain radio stations (KELE-AM, KELE-FM, WIQO, WKEY and WKCI). Legend Studios seeks specific performance of the agreements, as well as in excess of $1.5 million in damages.  Defendants have been served with the complaint, but have not filed answers and may be subject to entry of default.  Quorum Radio Partners of Virginia, Inc., however, filed a bankruptcy petition after being served with the complaint, which stays Legend Studios proceedings solely against that entity.  In the ordinary course of business, the Company is generally subject to claims, complaints, and legal actions. At March 31, 2010, management believes that the Company is not a party to any action which would have a material impact on its financial condition, operations, or cash flows.  Commitments In September, 2007, Legend Credit, Inc. entered into an agreement with UCE, Inc. in which the Company agreed to contribute $500,000 toward production, marketing and promotion costs for a weekly mixed martial arts event scheduled and produced by UCE, Inc.  The Company contributed $29,562 toward the agreed-upon.  The investment of $29,562 was fully impaired during the year ended December 31, 2008.  In March 2010 the Company purchased $20,000 worth of units in Network Talent, LLC.      Item 2. Management's Discussion and Analysis or Plan of Operation  Forward looking statements  This report contains certain 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. Shareholders are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, our ability to fully establish our proposed websites and our ability to conduct business with Palm, Inc. and be successful in selling products. Although we believe the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the report will prove to be accurate.  GENERAL  The following discussion and analysis should be read in conjunction with our consolidated financial statements and related footnotes for the year ended December 31, 2009 included in our Annual Report on Form 10-K.  The discussion of results, causes and trends should not be construed to imply any conclusion that such results or trends will necessarily continue in the future.  We were incorporated in Delaware on January 13, 1998 and are the successor to Interactive Entertainment Studio, Inc. (IES). IES was incorporated in the State of Nevada on May 27, 1997 and was merged into us in March 1998 for the sole purpose of changing the domicile of the company to Delaware. This merger was retroactively reflected in the December 31, 1997 financial statements. On June 27, 2002 we changed our name to Legend Mobile, Inc. In October 2008, the Company amended its articles to change the name to Cephas Holding Corp. . We are a developer and marketer of  mobile phone applications for the iPhone platform. We currently have three apps available to consumers. Our three apps our Iron Sheik Soundboard, MMAUnderboss and Metal News.  We have a contract with undisputed, mixed martial arts heavyweight champion, Fedor Emelinenko, granting us the right to develop iPhone applications.  We are currently developing applications under the license granted from Mr. Emelinenko.   We are currently negotiating with several other celebrity personalities outside of combat sports for iPhone applications. There can be no assurance we will succeed in securing any of these brands or if we do successfully bringing a product to market.  Since our inception, we have incurred significant losses and at March 31, 2010 our current liabilities exceeded current assets. In addition, we are delinquent in certain payments due for license fees and notes payable. In an effort to preserve our cash, we are currently using shares of our common stock to pay down debt.  We may be unable to continue in existence unless we are able to arrange additional financing and achieve profitable operations. We plan to raise additional capital   Significant Accounting Policies and Estimates  Management's Discussion and Analysis of Financial Condition and Results of Operations  discusses the Company's consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates and judgments on historical experiences and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The most significant accounting estimates inherent in the preparation of the Company's financial statements relate to the allowance for doubtful accounts. These accounting policies are described at relevant sections in this discussion and analysis and in the notes to the consolidated financial statements included in this Annual Report on Form l0-KSB for the year ended December 31, 2009.  Results of Operations  Three  months ended  March 31, 2010  vs. March 31, 2009  Revenue for the three months ended March 31, 2010 was $0 compared to $0 for the three months ended March 31, 2009  The cost of revenue for the nine months ended March 31, 2010 was $0 since there was no revenue as compared to  $0 for the period ended March 31, 2009  Selling, general and administrative expenses for the nine months ended March 31, 2010 was $134,854  as compared to $142,651 for the nine months ended March 31, 2009.  Interest expense and financing costs for the nine months ended March 31, 2010 was $250,317 as compared to $ 166,878 for the nine months ended March 31 , 2009.  Liquidity and Capital Resources  We have incurred an accumulated deficit since our inception of $21,790,539. In order for us to continue in existence, we will have to raise additional capital through the sale of equity or debt or generate sufficient profits from operations, or a combination of both.  Off-balance sheet arrangements  There are no off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.  Item 3. Controls and Procedures  As required by SEC rules, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures at the end of the period covered by this report. This evaluation was carried out under the supervision and with the participation of our management, including our principal executive officer and principal financial officer. Based on this evaluation, these officers have concluded that the design and operation of our disclosure controls and procedures  are effective except in regard weakness in our controls related to the issuance of shares for the year ending December 31, 2009. There were no changes in our internal control over financial reporting or in other factors that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  Disclosure controls and procedures are our controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities & Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SECs rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.   Part II. OTHER INFORMATION  Item 1. Legal Proceedings  The company is party to legal proceedings from time to time. None of the legal proceedings in managements opinion would have an adverse material impact on the company.  On September 26, 2008, Mr. Denner filed a suit against the Company and Mr. Klamka in the Iowa District Court for Polk County alleging, among other things, that the Companys and Mr. Klamkas failure to pay a loan made by Mr. Denner to the Company constituted a breach of contract.  Mr. Denner is seeking compensatory damages plus interest and costs. The loan was made by Mr. Denner in 2001 in the principal amount of $100,000 and bears interest only upon default at a rate of 24% per annum.  As Of July 31, 2010 case against Cephas Holdings f/k/a Legend Mobile and Peter Klamka,, individually, was dismissed.  There are several judgments against our company that could effect our operations  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  During the quarter ended March 31, 2010 the Company issued 3,100,000 for a total of consideration of $15,500.  Item 3. Defaults Upon Senior Securities  None  Item 4. Submission of Matters to a Vote of Security Holders  None  Item 5. Other Information  None  Item 6. Exhibits   31.1 Certification of the Chief Executive Officer and Principal Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  32.1 Certification of the Chief Executive Officer and Principal Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002   SIGNATURES  In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  Cephas Holding ,Corp.    Dated: October 18, 2010 By: /s/ Peter Klamka Peter Klamka, Principal  Executive Officer  and Principal Financial  Officer   EXHIBIT 31.1  CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002  I, Peter Klamka, certify that:  1. I have reviewed this quarterly report on Form 10-Q of Cephas Holding Corp.;  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 small business issuer as of, and for, the periods present in this report;  4. The small business issuer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)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the small business issuer 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 small business issuer, 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 principals;  c) Evaluated the effectiveness of the small business issuer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 small business issuers internal control over financing reporting that occurred during the small business issuers most recent fiscal quarter (the small business issuers fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuers internal control over financial reporting; and  5. The small business issuers other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuers auditors and the audit committee of the small business issuer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 small business issuers ability to record, process, summarize and report financial information; and  b) Any fraud, whether or not material, that involved management or other employees who have a significant role in the small business issuers internal control over financial reporting.   Dated:  October 18, 2010  /s/ Peter Klamka Peter Klamka Chief Executive Officer (Principal Executive Officer)       EXHIBIT 32.1  CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002  In connection with the Quarterly Report of Cephas Holding Corp. (the "Registrant") on Form 10-Q for the period ending March 31, 2010 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Peter Klamka, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:  (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.  Dated:  October 18, 2010  /s/ Peter Klamka Peter Klamka Chief Executive Officer (Principal Executive Officer)