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 March31, 2007  [  ] 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)  212-252-2459 (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 May  18, 2007 25,298,021 shares of common stock  Transitional Small Business Disclosure Format (check one):  Yes [   ]   No [X]        LEGEND MOBILE, INC. Index  Page Number  PART I. FINANCIAL INFORMATION 2  Item 1. Financial Statements 2  Consolidated Balance Sheet as of March 31, 2007 (unaudited) 3  Consolidated Statements of Operations for the three months ended March 31, 2007 and 2006 (unaudited) 4  Consolidated Statements of Cash Flows for the three months March 31, 2007 and 2006 (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 INTERIM BALANCE SHEETAS AT MARCH 31, 2007(UNAUDITED)CURRENT ASSETS:Cash$                 79Inventory19,909TOTAL CURRENT ASSETS19,988FIXED ASSETS - at costComputer and office equipment11,376Less: Accumulated depreciation(10,275)NET FIXED ASSETS1,101TOTAL ASSETS$          21,089LIABILITIES AND STOCKHOLDERS' DEFICITCURRENT LIABILITIES:Accounts payable$        190,635Accrued expenses686,908Accrued interest861,332License fees payable200,000Due to related parties174,371Notes payable1,435,170Note payable - officer288,496TOTAL CURRENT LIABILITIES3,836,912COMMITMENTS AND CONTINGENCIES-STOCKHOLDERS' DEFICITSeries A Preferred Stock, $0.001 par value, 1,000,000 sharesauthorized; 2,225 shares issued and outstanding22Series 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 outstanding8,500Series C Convertible Preferred Stock, $0.01 par value; 147,775shares authorized; 147,775 shares issued and outstanding1,478Common stock; $0.001 par value; 75,000,000 sharesauthorized; 25,298,021 issued and outstanding25,298Additional paid-in capital15,724,389Stock subscription receivable(156,300)Accumulated deficit(19,419,210)TOTAL STOCKHOLDERS' DEFICIT(3,815,823)TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT$          21,089  The accompanying notes are an integral part of these financial statements.            LEGEND MOBILE, INC. AND SUBSIDIARIESCONSOLIDATED INTERIM STATEMENT OF OPERATIONS(UNAUDITED)THREE MONTHS ENDEDMARCH 31,20072006REVENUE$           165$               -COST OF REVENUE125-GROSS PROFIT40-EXPENSES:Selling, general and administrative2,29730,475TOTAL EXPENSES2,29730,475LOSS FROM OPERATIONS(2,257)(30,475)OTHER INCOME (EXPENSE):Interest expense and financing costs(88,802)(48,959)TOTAL OTHER INCOME (EXPENSE)(88,802)(48,959)LOSS BEFORE PROVISION FOR INCOME TAXES$    (91,059)$      (79,434)PROVISION FOR INCOME TAXES--NET LOSS$    (91,059)$      (79,434)BASIC AND DILUTED LOSS PERCOMMON SHARE$      (0.004)$        (0.004)WEIGHTED AVERAGE NUMBER OFCOMMON SHARES OUTSTANDING -BASIC AND DILUTED25,298,02120,298,021    The accompanying notes are an integral part of these financial statements.            LEGEND MOBILE, INC. AND SUBSIDIARIESCONSOLIDATED INTERIM STATEMENT OF CASH FLOWS(UNAUDITED)THREE MONTHS ENDEDMARCH 31,20072006CASH FLOWS FROM OPERATING ACTIVITIES:Net loss$        (91,059)$           (79,434)Adjustment to reconcile net loss to net cash used in operating activitiesDepreciation134134Changes in operating assets and liabilities:Inventory125-Accounts payable(4,000)-Accrued expenses-(25,000)Accrued interest88,80248,959Net cash used in operating activities(5,998)(55,341)CASH FLOWS FROM FINANCING ACTIVITIES:Advances from an officer, net-68,130Advances to(from) related parties, net5,691(2,250)Net cash provided by financing activities5,69165,880INCREASE (DECREASE) IN CASH(307)10,539CASH, Beginning of period3861CASH, End of period$                79$            10,540SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:Interest paid$         88,802$            48,959Income 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, 2006 included in the Company's Annual Report on Form 10-KSB.  The results of the three months ended March 31, 2007 are not necessarily  indicative of the results to be expected for the full year ending December 31, 2007.  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  amend  the  Company's   Certificate  of Incorporation name from PTN Media, Inc. to Legend Mobile, Inc.  The  Company is a  developer  and  marketer of branded  mobile  phone  products, including  faceplates,   phone  accessories,   SMS  services,  and  mobile  data applications.  Through the Company's 50% owned subsidiary,  Legend Credit,  Inc. (formerly PTN Wireless,  Inc. ("Legend  Credit"),  the Company also develops and markets stored value cards, including gift cards bearing the Visa and MasterCard logo.  Effective October 1, 2004, Mr. Klamka, the Company's CEO and 60% owner of Legend  Credit,  contributed  an additional 10% interest in Legend Credit to the Company.  Legend  Credit  currently  markets  the Hello Kitty  reloadable  debit MasterCard  card.  The Hello Kitty card is sold via the  www.hellokittycard.com. Hello  Kitty is one of the most  recognized  animated  characters  in the world.  Legend Credit  generates  revenues on the Hello Kitty Debit  MasterCard  card by charging  cardholders a suite of fees, including an initial processing fee of up to $14.95,  a monthly  fee of up to $2.95,  and an ATM  withdrawal  fee of up to $1.50.  The Company derives limited  revenues from the sale of covers for mobile phones. The Company's suppliers require it to purchase these products and resell them to  consumers  and  wholesalers.  The Company  created  products  under its licenses from athletes,  entertainers,  and popular trademarks. The Company also sells a NASCAR-themed, SMS-based text messaging service called "Racemobile.com". The  Company  also is seeking to sell  mobile  application  software  either via over-the-air   download  or  bundled  with  a  particular  mobile  phone.  These applications may be sold as a subscription or as a single download.  The Company has entered into an agreement  with the American  Society of Composers,  Authors and Publishers ("ASCAP") for the licensing of ringtones for mobile phones. ASCAP maintains the rights to 8 million copyrighted musical works.  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).  Legend Credit signed a two-year license agreement with Mark Burnett  Productions to create gift cards,  debit cards,  and virtual  cards using the  trademarks of "The  Apprentice"  television  show,  including  the name and likeness of Donald Trump.  "The  Apprentice"  premiered  January 8, 2004, and immediately  became a cultural  phenomenon,  scoring the highest ratings for any new series introduced throughout the 2003-04 season.  "The  Apprentice"  resumed its hot streak in the fall,  delivering  the  strongest  ratings  among  viewers  aged  18-49  of  any unscripted  series through the first half of the 2004-05  television  season and the third-highest average among viewers aged 18-49 for all series. The show also continues to deliver the strongest concentration on primetime network television of upscale  viewers in such key categories as viewers aged 18-49 living in homes with incomes of $75,000 and more.  Legend Credit  expects to market the cards in the third quarter of 2005.  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 three  months  ended March 31, 2007 and at Marchr 31, 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.           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,  2006 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 March 31, 2007,  as Legend  Studios,  on a stand-alone basis,   had  a  stockholders'   deficit  as  of  such  date.  The  accompanying consolidated  statements of operations for the three months ended March 31, 2007 and 2006 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  March 31, 2007  as  Legend  Credit,  on a  stand-alone  basis,  had  a stockholders' deficit as of such date. The accompanying consolidated statements of operations for the three months ended March 31, 2007 do not reflect the minority interest's share of Legend Credits' losses for the three months ended March 31, 2007 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, 2007.  Each share of Series A can be converted  into 20 shares of common  stock. Series A shares have no voting rights.            LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)  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, 2007.  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 authorized of which 147,775 shares are issued and outstanding at March 31, 2007.  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.           LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   Common Stock ------------------  In February 2006, the Company issued 5,000,000 of common stock to retire $25,000 in notes and interest payable.  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 three months ended March 31, 2007 and 2006 because  the  effect  would  have  been  anti-dilutive:    2007          2006   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             LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   NOTE 4  RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS  In May 2005,  the FASB issued SFAS No.  154,  "Accounting  Changes and Error Corrections",  which  replaces APB Opinion No. 20,  "Accounting Changes",  and SFAS No. 3,  "Reporting  Accounting  Changes in Interim Financial  Statements - An Amendment of APB Opinion No. 28".  SFAS No. 154 provides  guidance on the  accounting for and reporting of changes in accounting principles and error corrections.  SFAS No. 154 requires retrospective  application  to prior period  financial  statements  of voluntary changes in accounting principles and changes required by new accounting standards when the standard does not include specific transition provisions, unless it is impracticable to do so. SFAS No. 154 also requires certain disclosures for restatements due to correction of an error. SFAS No. 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005, and are required to be adopted by the Company as of January 1, 2006. The impact that the adoption of SFAS No. 154 will have on the Company's results of operations and financial condition will depend on the nature of future accounting changes adopted by the Company and the nature of transitional guidance provided in future accounting pronouncements.  In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid Financial Instruments - an amendment of FASB Statements No. 133 and 140". This Statement permits fair value of re-measurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation; clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities"; establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and amended SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities", to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. SFAS No. 155 is effective for all financial instruments acquired, issued, or subject to a re-measurement (new basis) event occurring after the beginning of an entity's first fiscal year that begins after September 15, 2006. The Company is currently reviewing the effect, if any, the proposed guidance will have on its financial position and operations.  In March 2006, the FASB issued SFAS No. 156, "Accounting for  Servicing of Financial Assets", which amends SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and  Extinguishments of Liabilities". In a significant change to current guidance, SFAS No. 156 permits an entity to choose either of the following subsequent  measurement methods for each class of separately recognized servicing assets and servicing liabilities: (1) Amortization Method or (2) Fair Value Measurement Method. SFAS No. 156 is effective as of the beginning of an entity's first fiscal year that begins after September 15, 2006. The Company is currently reviewing the effect, if any, the proposed guidance will have on its financial position and operations.   LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)            In July 2006, the FASB issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprises' financial statements in accordance with SFAS No. 109, "Accounting for Income Taxes". FIN 48 prescribes a recognition threshold and measurement attributable for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognizing, classification, interest and penalties, accounting in interim periods, disclosures and transitions. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Company is  currently reviewing the effect, if any, FIN 48 will have on its financial position and operations.  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.  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 is not expected to have 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           LEGEND MOBILE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)   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 would be 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.   Table of Contents Item 2.Management's Discussion and Analysis or Plan of OperationForward looking statements
                    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, 2006 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.  On June 27, 2002 we changed our name to Legend Mobile, Inc.  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.  Since our inception, we have incurred significant losses and at March 31, 2007 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 "The Apprentice" gift card through Legend Credit, Inc.  We will continue to seek out licenses for popular trademarks in the areas of mobile communications and stored value products.     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, 2006.  Results of Operations    Three months ended March  31, 2007  vs. March 31, 2006  Revenue for the three months ended March 31, 2007 was $165 Compared to  zero For the period ended March 31, 2006  The cost of revenue for the three months ended March  31, 2007 was $1,125 Compared to  zero for the period ended March 31, 2006  Selling, general and administrative expenses for the three months ended March  31, 2007 decreased by $28,178 from $30,475 for the three months ended March  31, 2006 to $2,297 for the three months ended March  31, 2007.  Interest expense and financing costs for the three months ended March  31, 2007 increased by $39,843 or 81% from $48,959   for the three months ended March  31, 2006 to $ 88,802   for the three months ended March  31, 2007.      Liquidity and Capital Resources   We have incurred net losses since our inception of $18,228,480. 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. 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 June 14, 2005, Betty Brown Revocable Trust (the Trust) by and through Betty Brown, trustee, Betty Brown individually, and Nancy Larson filed suit in the Iowa District Court for Polk County, Iowa, against Legend Mobile and Peter Klamka, our CEO.  On January 10, 2007, the case against Legend Mobile and Peter Klamka was dismissed.   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.   In the ordinary course of business, the Company is generally subject to claims, complaints, and legal actions. At March 31, 2007, 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.    May 21, 2007 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-QSB 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) 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  c) 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.          May 21, 2007 /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-QSB for the quarter ending March 31, 2007 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:  May 21, 2007By:
/s/ Peter KlamkaPrincipal  Executive Officer  andPrincipal Financial  Officer