UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB (Mark One)  [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended September 30, 2008  [  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT  For the transition period from ________________ to _______________  000-24835 (Commission file number)  LEGEND MOBILE, INC. (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.)  244 Fifth Ave. Ste. P203 New York, New York 10001 (Address of principal executive offices)  734-274-5845 (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 September 30, 2008 73,813,521 shares of common stock  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. Large accelerated filer  ̈Accelerated filer  ̈       Non-accelerated filer    ̈ (Do not check if a smaller reporting company)Smaller reporting company ý         LEGEND MOBILE, INC. Index  Page Number  PART I. FINANCIAL INFORMATION 2  Item 1. Financial Statements 2  Consolidated Balance Sheet as of June 30, 2008 (unaudited) 3  Consolidated Statements of Operations for the nine months ended September 30, 2008 and 2007 and three months ended September 30, 2008 and 2007 (unaudited) 4  Consolidated Statements of Cash Flows for the nine months ended September 30, 2008 and 2007 (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                 LEGEND MOBILIE AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSSEPTEMBERDECEMBER30, 200831, 2007(UNAUDITED)(AUDITED)CURRENT ASSETS:Cash$64$47Prepaid expenses--Investments2956229562TOTAL CURRENT ASSETS2962629609FIXED ASSETS - at costComputer and office equipment1137611376Less: Accumulated depreciation(11079)(10677)NET FIXED ASSETS297699TOTAL ASSETS$29923$30308LIABILITIES AND STOCKHOLDERS' DEFICITCURRENT LIABILITIES:Accounts payable$190635$190635Accrued expenses767472555908Accrued interest12833331113330Accrued derivative liability250744250744License fees payable200000200000Advances from an officer10281695300Due to related parties7468983688Notes payable - other9500095000Notes payable565750565750Note payable - officer12296491229649TOTAL CURRENT LIABILITIES47600884380004COMMITMENTS 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 outstanding85008500Series C Convertible Preferred Stock, $0.01 par value; 147,775shares authorized; 147,775 shares issued and outstanding14781478Common stock; $0.001 par value; 75,000,000 sharesauthorized; 73,813,521(December 31, 2007-71,513,521) issued and outstanding7381371513Additional paid-in capital1633472116324521Stock subscription receivable(156300)(156300)Accumulated deficit(20992399)(20599430)TOTAL STOCKHOLDERS' DEFICIT(4730165)(4349696)       TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT$29923$30308The accompanying notes are an integral part of thesefinancial statements.         LEGEND MOBILE, INC. AND SUBSIDIARIESCONSOLIDATED INTERIM STATEMENT OF OPERATIONS(UNAUDITED)THREE MONTHS ENDEDNINE MONTHS ENDEDSEPTEMBER 30,SEPTEMBER 30,2008200720082007REVENUE$                -$1000$              -$1165COST OF REVENUE---125GROSS PROFIT-1000-1040EXPENSES:Selling, general and administrative4418443401142651664446TOTAL EXPENSES4418443401142651664446LOSS FROM OPERATIONS(44184)(42401)(142651)(663406)OTHER INCOME (EXPENSE):Interest expense and financing costs(83439)(78802)(250317)(177604)TOTAL OTHER INCOME (EXPENSE)(83439)(78802)(250317)(177604)LOSS BEFORE PROVISION FOR INCOME TAXES($127623)($121203)($392968)($841010)PROVISION FOR INCOME TAXES----NET LOSS($127623)($121203)($392968)($841010)BASIC AND DILUTED LOSS PERCOMMON SHARE($0.002)($0.005)($0.005)($0.033)WEIGHTED AVERAGE NUMBER OFCOMMON SHARES OUTSTANDING -BASIC AND DILUTED73273521252980217327352125298021The accompanying notes are an integral part of these financial statements.         LEGEND MOBILE, INC. AND SUBSIDIARIESCONSOLIDATED INTERIM STATEMENT OF CASH FLOWS(UNAUDITED)NINE MONTHS ENDEDSEPTEMBER 30,20082007CASH FLOWS FROM OPERATING ACTIVITIES:Net loss($392968)($919812)Adjustment to reconcile net loss to net cash used in operating activitiesStock issued for services rendered3500547544Depreciation402402Changes in operating assets and liabilities:Inventory-125Prepaid expenses(1000)-Accounts payable211564111001Accrued interest170003256405Net cash used in operating activities(8499)(4335)CASH FLOWS FROM FINANCING ACTIVITIES:Advances from an officer, net7516-Advances (to)from related parties, net10003958Net cash provided by financing activities85163958INCREASE (DECREASE) IN CASH17(377)CASH, Beginning of period47386CASH, End of period$64$9SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:Interest paid$250317$256406Income taxes paid$                 -$                    -The accompanying notes are an integral part of these financial statements.         LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   NOTE 1 - BASIS OF PRESENTATION  The unaudited  consolidated  financial  statements  have been prepared by Legend Mobile,  Inc.  (the  "Company")  pursuant  to the rules and  regulations  of the Securities and Exchange  Commission.  The information  furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are in the opinion of  management  necessary  to fairly  present  the  operating results for the respective periods. Certain information and footnote disclosures normally  present  in  annual  consolidated  financial  statements  prepared  in accordance with accounting principles generally accepted in the United States of America  have  been  omitted  pursuant  to such  rules  and  regulations.  These consolidated financial statements should be read in conjunction with the audited consolidated  financial statements and footnotes for the year ended December 31, 2007 included in the Company's Annual Report on Form 10-KSB.  The results of the nine months ended September 30, 2008 are not necessarily  indicative of the results to be expected for the full year ending December 31, 2008.  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. This merger was  retroactively  reflected  in the  December  31, 1997  financial statements.  On June 27, 2002,  the Company filed a Certificate  of Amendment to its  Certificate  of  Incorporation  to  change its name from PTN Media, Inc. to Legend Mobile, Inc The Company is in the process of filing  a Certificate of Amendment to its Certificate of Incorporation to change its name from Legend Mobile, Inc. to Cephas Holding Corp and to increase its authorized shares of common stock form 75,000,000 to 150,000,000.  The  Company is a  developer  and  marketer of branded  mobile  phone  products, including  faceplates,   phone  accessories,   SMS  services,  and  mobile  data applications.   The Company  created  products  under its licenses from athletes,  entertainers,  and popular trademarks. The Company also markets a mixed martial arts, SMS-based text messaging service called "MMASMS.COM". In addition, the Company has entered into  a term sheet with Big  John McCarthy, a world recognized, MMA personality, to use his image under license to develop iPhone applications in the categories of fighting, fighting related sports games, casino games and fitness.  The company is exploring product development opportunities for both the iPhone and Android mobile phone platforms.  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,  "Nonmonetary  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%        LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   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  at was  valued  at $3,700  (10% of $37,000, the original value of the affinity credit card business).   In  July  1999,   the   Company   formed,   Legend   Studios,   Inc.   (formerly FragranceDirect.com,  Inc.) ("Legend  Studios"),  a majority  owned  subsidiary. Through this entity, the Company sold fragrance  products over the Internet.  On June 28, 2004,  Legend  Studios  entered  into a  definitive  agreement to begin operating seven radio stations owned by Quorum Radio  Partners,  Inc. and Quorum Radio  Partners  of  Virginia,  Inc.  Under the terms of the  agreement,  Legend Studios  was to  operate  for a 12-month  term,  beginning  July 1, 2004,  seven stations located in Virginia, West Virginia and Missouri.  Under this agreement, Legend  Studios  paid $50,000 for the right to operate the ratio  stations,  and that amount is being amortized over for a 12-month period. In February 2005, the Quorum  entities forced Legend Studios to cease operating the radio stations and indicated that they were unwilling to proceed with Legend  Studios'  acquisition of the stations.  Consequently, in February 2005, Legend Studios filed a lawsuit with the Supreme Court of New York County against Quorum Radio  Partners,  Inc., Quorum Radio  Partners of Virginia,  Inc, and Quorum  Communications,  Inc. This lawsuit  alleges that the defendants  breached the asset purchase  agreement and local marketing  agreement. The  Company has expensed the unamortized  portion of the $50,000  payment that Legend Studios made under the operating  agreement and has  discontinued  recognition  of this  revenue,  given that the  Company is no longer able to control the radio operations.  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 nine  months  ended September 30, 2008 and 2007, had an accumulated  deficit and a working  capital  deficit.  In addition,  the Company  generates  minimal revenue from its operations and is in default on the payment of note  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.  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, through its subsidiary, Legend Credit, Inc., continues to sell branded debit cards. The Company is also seeking additional equity capital to expand its cellular phones faceplates,  mobile  data  services,  and mobile  applications business. We have also started developing software for the apple iphone and the Android mobile operating system,however,  we have not entered into a  definitive agreement. For the marketing and sale of any such products.        LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)  Accounting Policies -------------------------  The accounting  policies  followed by the Company are set forth in Note 1 to the Company's  consolidated  financial  statements  included in its annual report on Form  10-KSB  for the year ended  December  31,  2007 and which is  incorporated herein by reference. Specific reference is made to this report for a description of the Company's  securities and the notes to the financial  statements included therein.  Minority Interest --------------------  The  accompanying  consolidated  financial  statements do not reflect a minority interest  liability as of September 30, 2008,  as Legend  Studios,  on a stand-alone basis,   had  a  stockholders'   deficit  as  of  such  date.  The  accompanying consolidated  statements of operations for the nine months ended September 30, 2008 and 2007 do not reflect the minority  interest's share of Legend Studios' losses for  said  periods  as  the  related  accrual  would  result  in  the  Company's recording of a minority interest receivable.  In addition, during the year ended December 31, 2004, the Company's ownership in Legend  Credit  increased  to 50%  resulting  in the Company  consolidating  the financial  statement  of  Legend  Credit  with  the  Company.  The  accompanying consolidated  financial  statements do not reflect a minority interest liability as  of  September 30, 2008  as  Legend  Credit,  on a  stand-alone  basis,  had  a stockholders' deficit as of such date. The accompanying consolidated statements of operations for the nine months ended September 30, 2008 do not reflect the minority interest's share of Legend Credits' losses for the nine months ended September 30, 2008 as the related accrual would result in the Company's recording of a minority interest receivable.  NOTE 2 - STOCKHOLDERS' DEFICIT  Series A Convertible Preferred Stock ---------------------------------------------  The Company has 2,225 shares of $0.001 par value Series A Convertible  Preferred Stock  authorized of which 2,225 shares are issued and  outstanding at March 31, 2008.  Each share of Series A can be converted  into 20 shares of common  stock. Series A shares have no voting rights.  Series B Convertible Preferred Stock -------------------------------------------- The Company has 850,000 shares of $0.01 par value Series B Convertible Preferred Stock authorized of which 850,000 shares are issued and outstanding at March 31, 2008.  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.         LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   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 authorized of which 147,775 shares are issued and outstanding at March 31, 2008.  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.  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 hundred  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.  Common Stock ------------------  In February 2008, the Company issued 1,800,000 of common stock to retire $9,000 in notes payable.  In June 2008, the Company issued  500,000 shares of S-8 common stock for services rendered totaling $3,500.        LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   NOTE 3  EARNING(LOSS) PER SHARE  The Company reports earnings (loss) per share in accordance with SFAS No. 128,  "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 six months ended June 30, 2008 and 2007 because  the  effect  would  have  been  anti-dilutive:    2008          2007   Conversion of Series A preferred stock  44,500          44,500  Conversion of Series B convertible preferred stock 8,500,000     8,500,000 Conversion of Series C convertible preferred stock         14,777,500   14,777,500 Stock options issued to employees and consultants under the Company's stock option plan 1,150,000     1,150,000 Warrants issued to officers 231,000        231,000 Warrants issued for services 50,000          50,000 Warrants issued with notes 100,000        100,000 Warrants issued for penalty/interest 234,000        234,000 Warrants issued with note conversion3 300,000  300,000  25,387,000  25,387,000   NOTE 4  RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS   In September 2006, the FASB issued SFAS No. 157, "Fair Value Measures" ("SFAS No. 157"). SFAS No157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles ("GAAP"), expands disclosures about fair value measurements, and applies under other accounting pronouncements that require or permit fair value measurements. SFAS No. 157 does not require any new fair value measurements, however the FASB anticipates that for some entities, the application of SFAS No. 157 will change current practice. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, which for the Company would be its fiscal year beginning November 1, 2008. The implementation of SFAS No. 157 is not expected to have a material impact on the Company's results of operations and financial condition.         LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   In September 2006, the Financial Accounting Standards Board ("FASB") issued SFAS No. 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 requires employers to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multi-employer 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 requires 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. The provisions of SFAS No. 158 are effective for employers with publicly traded equity securities as of the end of the fiscal year ending after December 15, 2006. The adoption of this statement has not had  a material effect on the Company's future reported financial position or results of operations.  In September 2006, the Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin No. 108 (Topic 1N), "Quantifying Misstatements in Current Year Financial Statements" ("SAB No. 108"). SAB No. 108 addresses how the effect of prior year uncorrected misstatements should be considered when quantifying misstatements in current year financial statements. SAB No. 108 requires SEC registrants (i) to quantify misstatements using a combined approach which considers both the balance sheet and income statement approaches; (ii) to evaluate whether either approach results in quantifying an error that is material in light of relevant quantitative and qualitative factors; and (iii) to adjust their financial statements if the new combined approach results in a conclusion that an error is material. SAB No. 108 addresses the mechanics of correcting misstatements that include effects from prior years. It indicates that the current year correction of a material error that includes prior year effects may result in the need to correct prior year financial statements even if the misstatement in the prior year or years is considered immaterial. Any prior year financial statements found to be materially misstated in years subsequent to the issuance of SAB No. 108 would be restated in accordance with SFAS No. 154, "Accounting Changes and Error Corrections." Because the combined approach represents a change in practice, the SEC staff will not require registrants that followed an acceptable approach in the past to restate prior years' historical financial statements. Rather, these registrants can report the cumulative effect of adopting the new approach as an adjustment to the current year's beginning balance of retained earnings. If the new approach is adopted in a quarter other than the first quarter, financial statements for prior interim periods within the year of adoption may need to be restated. SAB No. 108 is effective for fiscal years ending after November 15, 2006, which for Company was its fiscal year beginning December 1, 2007. The implementation of SAB No. 108 is not expected to have a material impact on the Company's results of operations and financial condition.  In October 2006, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) Financial Accounting Standard (FAS) 123(R)-5, Amendment of FSP FAS 123(R)-1, (FSP FAS 123(R)-5) to address whether a change to an equity instrument in connection with an equity restructuring should be considered a modification for the purpose of applying FSP No. FAS 123(R)-1, Classification and Measurement of Freestanding Financial Instruments Originally Issued in Exchange for Employee Services under FAS Statement No 123(R) (FSP FAS 123(R)-1). FSP FAS 123(R)-1 states that financial instruments issued to employees in exchange for past or future services are subject to the provisions of SFAS 123(R) unless the terms of the award are modified when the holder is no longer an employee. In FSP FAS 123(R)-5, the FASB staff concluded that changes to the terms of an award that are      LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   made solely due to an equity restructuring are not considered modifications as described in FSP FAS 123(R)-1 unless the fair value of the award increases, anti-dilution provisions are added, or holders of the same class of equity instruments are treated unequally. FSP FAS 123(R)-5 is effective for the first reporting period beginning after October 10, 2006. The adoption of FSP FAS 123(R)-5 did not have a material impact on the Companys condensed consolidated financial statements.  On February 15, 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Liabilities (SFAS No. 159). Under this Standard, the Company may elect to report financial instruments and certain other items at fair value on a contract-by-contract basis with changes in value reported in earnings. This election is irrevocable. SFAS No. 159 provides an opportunity to mitigate volatility in reported earnings that is caused by measuring hedged assets and liabilities that were previously required to use a different accounting method than the related hedging contracts when the complex provisions of SFAS No. 133 are not met. SFAS No. 159 is effective for years beginning after November 15, 2007. The Company does not believe it will have an impact on its consolidated financial statements.  In December 2007, the FASB issued SFAS No. 141(R), Business Combinations (SFAS 141R). SFAS 141R amends SFAS 141 and provides guidance for recognizing and measuring identifiable assets and goodwill acquired, liabilities assumed, and any non-controlling interest in the acquiree. It also provides disclosure requirements to enable users of the financial statements to evaluate the nature and financial effects of the business combination. SFAS 141R will be effective for fiscal years beginning on or after December 15, 2008 and will be applied prospectively.  In December  2007, the FASB issued FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements  An Amendment of ARB No. 51 (Statement 160). Statement 160 establishes new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. Specifically, Statement 160 requires the recognition of a noncontrolling interest (minority interest) as equity in the consolidated financial statements and separate from the parents equity. The amount of net income attributable to the noncontrolling interest will be included in consolidated net income on the face of the income statement. Statement 160 clarifies that changes in a parents ownership interest in a subsidiary that do not result in deconsolidation are equity transactions if the parent retains its controlling financial interest. In addition, Statement 160 requires that a parent recognize a gain or loss in net income when a subsidiary is deconsolidated. Such gain or loss will be measured using the fair value of the noncontrolling equity investment on the deconsolidation date. Statement 160 also includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interest. Statement 160 is effective for fiscal years, and interim periods within those fiscal years, beginning with the quarter ended December 31, 2008. Earlier adoption is prohibited.  In February 2008, the FASB issued FASB Staff Position FAS 157-2 (FSP FAS 157-2)  Effective Date of FASB Statement No. 157 which delays the effective date of SFAS No. 157 for non-financial assets and non-financial liabilities that are recognized or disclosed in the financial statements on a nonrecurring basis to fiscal years beginning after November 15, 2008.  These non-financial items include assets and liabilities such as reporting units measured at fair value in a goodwill impairment test and non-financial assets acquired and non-financial liabilities assumed in a business combination. The Company has not applied the provisions of SFAS No. 157 to its non-financial assets and non-financial liabilities in accordance with FSP FAS 157-2.       LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)    In June 2008, the FASB issued FSP No. EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities. This guidance states that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and should be included in the computation of earnings per share using the two-class method outlined in SFAS No. 128, Earnings per Share. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The adoption of this new guidance on January 1, 2009 should not have an effect on our reported earnings per share.           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 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 I Phone applications in our new categories 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, 2007 included in our Annual Report on Form 10-KSB.  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.  Our board of directors and holders of our shares representing a majority of our voting power have authorized a change in our name. We are in the process of changing  our name to Cephas Holding Corp  We are a developer and marketer of branded mobile phone products including faceplates, phone accessories, SMS services, and mobile data applications. Through our subsidiary Legend Credit, Inc. (which we own 50%), we also develop and market stored value cards including gift cards bearing the Visa and MasterCard logo. Legend Credit intends to develop and market additional branded consumer payment products including debit cards, gift cards, and credit cards. We currently market a MasterCard debit card using the trademarks of The Apprentice television show. Through our 91% subsidiary, Legend Studios, Inc., (formerly Fragrancedirect.com Inc.), we have entered into a local marketing agreement to operate and asset purchase agreement to purchase seven radio stations in Virginia, West Virginia, and Missouri on June 30, 2004. These agreements became the subject of litigation in February 2005. We are currently focusing on the development of I Phone applications in the categories of fighting, fighting related sports games, casino games and fitness.  Since our inception, we have incurred significant losses and at September 30, 2008 our current liabilities exceeded current assets. In addition, we are delinquent in certain payments due for license fees and notes payable. 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 and expect to generate cash from the sale of mobile applications and advertising on Mobile applications we  will continue to seek out licenses for popular trademarks in the areas of mobile communications and stored value products, such as Big John McCarthy.  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, 2007.  Results of Operations   Three months ended September 30, 2008  vs. September  30,  2007  Revenue for the three months ended September  30, 2008 was $0 compared to $1,000  for the three months ended September  30, The cost of revenue for the three months ended September  30,2008 was $0 since there was no revenue as compared to  $125,000  for the period ended September  30,  Selling, general and administrative expenses for the three months ended September 30, 2008 was $44,184 as compared to $43,401 for the three months ended September 30, 2007.  Interest expense and financing costs for the three months ended September  30,, 2008 was $83,439   as compared to $78,802 for the three months ended September  30,2007  Nine months ended September 30, 2008  vs. September 30, 2007  Revenue for the nine months ended September 30, 2008 was $0 compared to $1,165 for the nine months ended September 30, 2007.  The cost of revenue for the nine months ended September 30, 2008 was $0 since there was no revenue as compared to $125 for the nine months ended September 30, 2007.  Selling, general and administrative expenses for the nine months ended September 30, 2008 was $142,651 as compared to $664,446 for the nine  months ended June 30, 2007.  The current nine month period includes $131,250 for salary to Peter Klamka while the bulk of the expense for September 30, 2008 was for consulting fees paid for with stock.  Interest expense and financing costs for the nine months ended September 30, 2008 was $250,317 as compared to $ 177,604 for the nine months ended September 30, 2007. All of these amounts for both years have been accrued and have not been paid to date.  Liquidity and Capital Resources  We have incurred net losses since our inception of $20,991,399. During the nine months ended September 30, 2008 our cash flows from financing activities were derived from advances from an officer and advances from related parties. 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 4T. 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, our officers have concluded that the design and operation of our disclosure controls and procedures are effective. 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.  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's proceedings solely against that entity.  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 August 31, 2008  the entire $100,000 principal amount in addition to accrued interest of $169,665 is past due.  The loan converts into shares of the Companys common stock at a rate of $1 or the closing price of the commons stock for the previous trading day which based upon August 31, 2008 data would be 38,523,678 shares of the Companys common stcok.        In the ordinary course of business, the Company is generally subject to claims, complaints, and legal actions. At September 30, 2008, 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.  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  None   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.  LEGEND MOBILE, INC.    November 14, 2008 By: /s/ Peter Klamka Peter Klamka, Principal  Executive Officer  and Principal Financial  Officer         Exhibit 31.1 CERTIFICATIONS  I, Peter Klamka, Chief Executive and Principal Accounting Officer of Legend Mobile, Inc., certify that:  1. I have reviewed this Quarterly Report on Form 10-Q of  Legend Mobile, Inc.;  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 presented in this report;  4. I am 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 13a-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 principles;and   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 changes in the small business issuers internal control over financial 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. 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 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 involves management or other employees who have a significant role in the small business issuers internal control over financial reporting.       November 14,  2008 /s/ Peter Klamka Peter Klamka, Principal  Executive Officer  and Principal Financial  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 Legend Mobile, Inc. (the Company) on Form 10-Q for the quarter ending September 30, 2008, 2008 as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned, in the capacities and on the date indicated below, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his 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 Company.  Dated:  November 14, 2008By:
/s/ Peter KlamkaPrincipal  Executive Officer  andPrincipal Financial  Officer