**U.
      S. Securities and Exchange Commission**


Washington,
      D. C. 20549




**FORM
      10-KSB**




**x
      ANNUAL REPORT UNDER
      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF**


1934




For
      the
      fiscal year ended December 31, 2007




**o
      TRANSITION REPORT UNDER
      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE**


**ACT
      OF 1934**




For
      the
      transition period from _______________ to _______________




*Commission
      File No.* *000-51972*




**SOUTHERN
      SAUCE COMPANY, INC.**


(Name
      of
      small business issuer as in its charter)





FLORIDA
            
            11-3737500(State
                or other jurisdiction of
            
            (IRS
                Employer Identification No.)incorporation
                or organization)





**31200
      VIA COLINAS, SUITE 200**


**WESTLAKE
      VILLAGE, CA 91362**


(Address
      of principal executive offices)





**(818)
      597-7552**


(Issuer's
      telephone number)





Copies
      to:


Marc
      Ross, Esq.


Sichenzia
      Ross Friedman Ference LLP


61
      Broadway, 32 nd Floor


New
      York,
      NY 10006


(212)
      930-9700





11951
      S.E. 57 th Street


Morriston,
      FL 32668


(Former
      name and former address, if changed since last report)








Securities
      Registered under Section 12(b) of the Exchange Act: None




Securities
      Registered under Section 12(g) of the Exchange Act: Common Stock




Check
      whether the issuer is not required to file reports pursuant to Section
      13 or 15(d) of the Exchange Act. o




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. x
      Yes o No









Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B contained in this form, and no disclosure will be contained,
      to
      the best of Registrant's knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB or any
      amendment to this Form 10-KSB. x




State
      Issuer's revenues for its most recent fiscal year: $774.




As
      of
      March 13, 2008,
      there were 1,005,500 shares
      of
      our common stock held by non-affiliates valued at $784,290 based
      upon sale price of our common stock within the last 60 days.




As
      of
      March 13, 2008, the registrant had outstanding 2,930,500 shares of its Common
      Stock, par value $0.001.




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




DOCUMENTS
      INCORPORATED BY REFERENCE




None




Transitional
      Small Business Disclosure Format YES o NO x







**S** **OUTHERN
      SAUCE COMPANY INC.**


**2007
      ANNUAL REPORT ON FORM 10-KSB**


**TABLE
      OF CONTENTS**





**PART
                I.**Item
                1.  Description of Business
            
            
            1Item
                2.  Description of Property
            
            
            1Item
                3.  Legal Proceedings
            
            
            2Item
                4.  Submission of Matters to a Vote of Security
                Holders
            
            
            2**PART
                II.**Item
                5.  Market for Common Equity and Related Stockholder
                Matters
            
            
            2Item
                6.  Management's Discussion and Analysis
            
            
            2Item
                7.  Financial Statements
            
            
            F-1Item
                8.  Changes In and Disagreements With Accountants on Accounting and
                Financial Disclosure
            
            
            6Item
                8A.  Controls and Procedures
            
            
            6**PART
                III.**Item
                9.  Directors, Executive Officers, Promoters and Control
                Persons;Compliance
                With Section 16(a) of the Exchange Act
            
            
            7Item
                10.  Executive Compensation
            
            
            7Item
                11.  Security Ownership of Certain Beneficial Owners and Management
                and Related Stockholder Matters
            
            
            8Item
                12.  Certain Relationships and Related Transactions
            
            
            9Item
                13.  Exhibits and Reports
            
            
            9Item
                14.  Principal Accountant Fees and Services
            
            
            10Signatures
            
            
            11Certifications







**Forward
      Looking Statements**




This
      report on Form 10-KSB and other reports we file from time to time with the
      Securities and Exchange Commission (collectively the "Filings") contain or
      may
      contain forward looking statements and information that are based upon beliefs
      of, and information currently available to, our management as well as estimates
      and assumptions made by our management. When used in the Filings the words
      "anticipate", "believe", "estimate", "expect", "future", "intend", "plan" or
      the
      negative of these terms and similar expressions as they relate to us or our
      management identify forward looking statements. Such statements reflect our
      current view with respect to future events and are subject to risks,
      uncertainties, assumptions and other factors (including the risks contained
      in
      the section of this report entitled "Risk Factors") relating to our industry
      and
      our operations and results of operations. Should one or more of these risks
      or
      uncertainties materialize, or should the underlying assumptions prove incorrect,
      actual results may differ significantly from those anticipated, believed,
      estimated, expected, intended or planned.




Although
      we believe that the expectations reflected in the forward looking statements
      are
      reasonable, we cannot guarantee future results, levels of activity, performance
      or achievements. Except as required by applicable law, including the securities
      laws of the United States, we do not intend to update any of the forward-looking
      statements to conform these statements to actual results. The following
      discussion should be read in conjunction with our financial statements and
      the
      related notes that appear elsewhere in this report.









**PART
      I**




**ITEM
      1. DESCRIPTION OF BUSINESS.**




Southern
      Sauce Company, Inc. ,
      ("we",
      "us", "our company", "our" or "Southern Sauce") was
      incorporated in the State of Florida in December 2004. Our business plan was to
      establish a successful specialty food business based on proprietary recipes for
      barbecue sauces and other condiments for the retail market. We began commercial
      sales of our first product in the fiscal year ended December 31, 2006. Sales
      were $2,869 for the year ended December 31, 2006 and $774 for the
      year ended December 31, 2007. In February 2008, following a change of control,
      we suspended our specialty food operations and management is seeking alternative
      business opportunities.




Our
      offices are located at 31200
      Via
      Colinas, Suite 200, Westlake Village, CA 91362 and our
      phone number is (818)
      597-7552 .




**Overview**




Our
      business plan was to establish a successful specialty food business based on
      proprietary recipes for barbecue sauces and other condiments for the retail
      market. Effective February 14, 2008, our former shareholders entered into an
      agreement, effecting a change of control.




As
      of February
      14, 2008 ,
      our
      board of directors determined that the implementation of our business plan
      prior
      to the change in control was no longer financially feasible. We are pursuing
      an
      acquisition strategy, whereby we will seek to acquire undervalued businesses
      with a history of operating revenues in markets that provide room for growth
      ("Acquisition Strategy"). We will engage in identifying, investigating and,
      if
      warranted, acquiring companies that will enhance our revenues and increase
      shareholder value.




Our
      Acquisition Strategy is focused on pursuing a strategy of growth by acquiring
      undervalued businesses with a history of operating revenues. We will utilize
      several criteria to evaluate prospective acquisitions including whether the
      business to be acquired (1) is an established business with viable services
      or
      products, (2) has an experienced and qualified management team, (3) has room
      for
      growth and/or expansion into other markets, (4) is accretive to earnings, (5)
      offers the opportunity to achieve and/or enhance profitability, and (6)
      increases shareholder value.




**Competition
      of Our Acquisition Strategy**




In
      connection with our Acquisition Strategy, we expect to encounter intense
      competition from other entities having business objectives similar to ours,
      including: venture capital firms, blind pool companies, large industrial and
      financial institutions, small business investment companies and wealthy
      individuals. Many of these entities are well-established and have greater
      experience, financial resources and technical knowledge than us. Our limited
      financial resources may compel us to select certain less attractive acquisition
      prospects than those of our competitors.




Management
      believes that the future of the Company is dependent upon the consummation
      of a
      merger, acquisition or other business combination between the Company and a
      viable operating entity. There can be no assurance that we will be able to
      complete any merger, acquisition or other business combination between us and
      a
      viable operating entity. Additionally, management believes that we may need
      to
      raise additional funds through equity or debt financing to complete a merger,
      acquisition or other business combination between us and a viable operating
      entity. There can be no assurance that we will be able to successfully complete
      an equity or debt financing to complete an acquisition, merger or other business
      combination between us and a viable operating entity.




**Change
      of Control**




On
      February 14, 2008, pursuant to the Stock Purchase and Sale Agreement, by and
      among Vision Opportunity China LP (“Vision”), and Lomond International Inc.
      (“Lomond”), as agent for the other purchasers (together with Vision, the
“Purchasers”), and the sellers (the “Sellers”), the Purchasers purchased an
      aggregate of 2,575,000 shares of common stock, par value $0.001 per share,
      of
      Southern Sauce Company Inc. from the Sellers in consideration for a purchase
      price, in the aggregate amount of $635,000. The sale represents a change of
      control of the Company and the Shares acquired by the Purchasers represent
      approximately 87.9% of the issued and outstanding capital stock of the Company
      calculated on a fully-diluted basis.




**Employees**




As
      of
      December 31, 2007, we have no full-time employees. All activities since our
      organization have been undertaken by our officers as needed. Our officers do
      not
      currently spend all of their time on our business and estimate they devote
      approximately 5% or
      less of
      their
      business time on the business of the Company.




**ITEM
      2. DESCRIPTION OF PROPERTY.**




Our
      current administrative activities are conducted in a portion of the premises
      occupied by our secretary. He has agreed to waive the payment of any rent for
      use of the offices and we consider any use of those premises to be
      immaterial.




1




**ITEM
      3. LEGAL PROCEEDINGS.**




None.




**ITEM
      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.**




None.




**PART
      II**




**ITEM
      5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND
      SMALL** **BUSINESS ISSUER PURCHASE OF EQUITY SECURITIES.**




**Market
      Information.**




Our
      common stock began trading on the over the counter market under the symbol
      SSAU
      in 2006 and two quotations are available on the Over-The-Counter Bulletin
      Board.




The
      following sets forth the high and low bid prices reported by the OTCBB. These
      quotations reflect inter-dealer prices without retail markup, markdown or
      conversion and may not represent actual transactions.





**Common
                Stock**Fiscal
                Year 2007
            
            **High**
            
            **Low**First
                Quarter
            
            $
            0.40
            
            $
            0.35Second
                Quarter
            
            $
            0.40
            
            $
            0.27Third
                Quarter
            
            $
            0.50
            
            $
            0.30Fourth
                Quarter
            
            $
            0.50
            
            $
            0.30





**Common
                Stock**Fiscal
                Year 2006
            
            **High**
            
            **Low**First
                Quarter
            
            $
            —
            
            $
            —Second
                Quarter
            
            $
            —
            
            $
            —Third
                Quarter
            
            $
            0.40
            
            $
            0.35Fourth
                Quarter
            
            $
            0.40
            
            $
            0.35




**Holders.**




As
      of
      December 31, 2007 there were approximately 52 holders of our common
      stock.




**Dividends**




We
      have
      not paid any cash dividends on our common stock to date, and we do not
      anticipate declaring or paying any dividends in the foreseeable future. We
      anticipate that for the foreseeable future we will follow a policy of retaining
      earnings, if any, in order to finance the expansion and development of our
      business. Payment of dividends is within the discretion of our board of
      directors and will depend upon our earnings, capital requirements and operating
      and financial condition, among other factors.




**ITEM
      6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION AND FORWARD LOOKING
      INFORMATION.**




**Overview**




As
      of February
      14, 2008 ,
      our
      board of directors determined that the implementation of the Company's business
      plan prior to the change in control was no longer financially feasible. As
      of that
      date we are
      pursuing an acquisition strategy, whereby we will seek to acquire undervalued
      businesses with a history of operating revenues in markets that provide room
      for
      growth ("Acquisition Strategy"). We will engage in identifying, investigating
      and, if warranted, acquiring companies that will enhance our revenues and
      increase shareholder value.




Our
      Acquisition Strategy is focused on pursuing a strategy of growth by acquiring
      undervalued businesses with a history of operating revenues. We will utilize
      several criteria to evaluate prospective acquisitions including whether the
      business to be acquired (1) is an established business with viable services
      or
      products, (2) has an experienced and qualified management team, (3) has room
      for
      growth and/or expansion into other markets, (4) is accretive to earnings, (5)
      offers the opportunity to achieve and/or enhance profitability, and (6)
      increases shareholder value.




2




**CRITICAL
      ACCOUNTING POLICIES**




Our
      financial statements 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, liabilities, revenues and expenses.
      Note 2 of the
      Notes to Financial Statements describes the significant accounting policies
      used
      in the preparation of the financial statements. Certain of these significant
      accounting policies are considered to be critical accounting policies, as
      defined below. We do not believe that there have been significant changes to
      our
      accounting policies during the year ended December 31, 2007, as compared to
      those policies disclosed in the December 31, 2006 financial statements filed
      in
      our Annual Report on Form 10-KSB with the SEC on April 10, 2007.




A
      critical accounting policy is defined as one that is both material to the
      presentation of our financial statements and requires management to make
      difficult, subjective or complex judgments that could have a material effect
      on
      our financial condition and results of operations. Specifically, critical
      accounting estimates have the following attributes: 1) we are required to make
      assumptions about matters that are highly uncertain at the time of the estimate;
      and 2) different estimates we could reasonably have used, or changes in the
      estimate that are reasonably likely to occur, would have a material effect
      on
      our financial condition or results of operations.




Estimates
      and assumptions about future events and their effects cannot be determined
      with
      certainty. We base our estimates on historical experience and on various other
      assumptions believed to be applicable and reasonable under the circumstances.
      These estimates may change as new events occur, as additional information is
      obtained and as our operating environment changes. These changes have
      historically been minor and have been included in the consolidated financial
      statements as soon as they became known. Based on a critical assessment of
      our
      accounting policies and the underlying judgments and uncertainties affecting
      the
      application of those policies, management believes that our consolidated
      financial statements are fairly stated in accordance with accounting principles
      generally accepted in the United States, and present a meaningful presentation
      of our financial condition and results of operations. We believe the following
      critical accounting policies reflect our more significant estimates and
      assumptions used in the preparation of our consolidated financial
      statements:




Use
      of
      Estimates - These financial statements have been prepared in accordance with
      accounting principles generally accepted in the United States and, accordingly,
      require 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.
      Specifically, our management has estimated our net operating loss for tax
      purposes and value of equity based compensation. Actual results could differ
      from those estimates.




Cash
      and
      Equivalents - We maintain our cash in bank deposit accounts, which at times,
      may
      exceed federally insured limits. We have not experienced any losses in such
      account.




**Going
      Concern**




We
      are
      currently in the process of changing our business plan. At present, we have
      sufficient capital on hand to fund our operations only through March of 2008.
      There can be no assurance that upon implementing our new business plan, we
      will
      be successful or that we will start producing sufficient revenues to maintain
      our operations. The foregoing matters raise substantial doubt about our ability
      to continue as a going concern.




**PLAN
      OF OPERATION.**




We
      are
      pursuing an Acquisition Strategy, whereby we will seek to acquire undervalued
      businesses with a history of operating revenues in markets that provide room
      for
      growth. We will primarily engage in identifying, investigating and, if
      investigation warrants, acquiring companies that will enhance our revenues
      and
      increase shareholder value. Our Acquisition Strategy is focused on pursuing
      a
      strategy of growth by acquiring undervalued businesses with a history of
      operating revenues. We will utilize several criteria to evaluate prospective
      acquisitions including whether the business to be acquired (1) is an established
      business with viable services or products, (2) has an experienced and qualified
      management team, (3) has room for growth and/or expansion into other markets,
      (4) is accretive to earnings, (5) offers the opportunity to achieve and/or
      enhance profitability, and (6) increases shareholder value.




**UNCERTAINTIES
      AND OTHER RISK FACTORS THAT**


**MAY
      AFFECT OUR FUTURE RESULTS AND FINANCIAL CONDITION**





We
      have
      described below a number of uncertainties and risks which, in addition to
      uncertainties and risks presented elsewhere in this annual report, may adversely
      affect our business, operating results and financial condition.  The
      uncertainties and risks enumerated below as well as those presented elsewhere
      in
      this annual report should be considered carefully in evaluating our company
      and
      our business and the value of our securities.




3




***We
      have Limited Resources***





We
      have
      limited resources. We are now pursuing an acquisition strategy, whereby we
      will
      seek to acquire undervalued businesses with a history of operating revenues
      in
      markets that provide room for growth. Other than nominal interest income, we
      will only derive revenues through the acquisition of a target company. There
      can
      be no assurance that any target company, at the time of the Company's
      consummation of an acquisition of the target, or at any time thereafter, will
      derive any material revenues from its operations or operate on a profitable
      basis. Based on our limited resources, we may not be able to effectuate our
      business plan and consummate any additional acquisitions. There can be no
      assurance that we will have sufficient financial resources to permit the
      achievement of our business objectives.





***We
      May Not be Able to Continue as Going Concern***





Based
      on
      our limited operations, lack of revenue and relatively minimal assets there
      can
      be no assurance that we will be able to continue as a going concern or complete
      a merger, acquisition or other business combination.





***We
      Will Need Additional Financing in Order to Execute Our Business Plan and it
      may
      be Extremely Expensive***





We
      will
      be entirely dependent upon our limited available financial resources to
      implement our acquisition strategy. We cannot ascertain with any degree of
      certainty the capital requirements for the successful execution of our
      acquisition strategy. In the event that our limited financial resources prove
      to
      be insufficient to implement our acquisition strategy, we will be required
      to
      seek additional financing. Also, in the event of the consummation of an
      acquisition, we may require additional financing to fund the operations or
      growth of the target. Additionally, as we are considered a “shell” or “blank
      check” company, purchasers of our securities cannot currently rely on Rule 144
      promulgated under the Securities Act with regard to the resale of their shares.
      Accordingly, any financing in the form of equity may be deeply discounted to
      compensate the investors for the added risk and inability to rely on Rule 144.
      Depending on such discount, our current shareholders may be substantially
      diluted.





***Additional
      Financing May Not Be Available to Us***





There
      can
      be no assurance that additional financing will be available on acceptable terms,
      or at all. To the extent that additional financing proves to be unavailable
      when
      needed, we would, in all likelihood, be compelled to abandon plans of further
      acquisitions, and would have minimal capital remaining to pursue other targets.
      Our inability to secure additional financing, if needed, could also have a
      material adverse effect on our continued development or growth. We have no
      arrangements with any bank or financial institution to secure additional
      financing and there can be no assurance that any such arrangement, if required
      or otherwise sought, would be available on terms deemed to be commercially
      acceptable to us and in our best interests.





***Competition
      for Acquisitions***





We
      expect
      to encounter intense competition from other entities having business objectives
      similar to ours. Many of these entities, including venture capital firms,
      partnerships and corporations, blind pool companies, large industrial and
      financial institutions, small business investment companies and wealthy
      individuals, are well-established and have extensive experience in connection
      with identifying and effecting acquisitions directly or through affiliates.
      Many
      of these competitors possess greater financial, technical, human and other
      resources than us and there can be no assurance that we will have the ability
      to
      compete successfully. Our financial resources will be limited in comparison
      to
      those of many of our competitors. This inherent competitive limitation may
      compel us to select certain less attractive acquisition prospects. There can
      be
      no assurance that such prospects will permit us to achieve our stated business
      objectives.





***We
      May Be Subject to Uncertainty in the Competitive Environment of a
      Target***





In
      the
      event that we succeed in completing an acquisition, we will, in all likelihood,
      become subject to intense competition from competitors of the target. In
      particular, certain industries which experience rapid growth frequently attract
      an increasingly large number of competitors, including competitors with greater
      financial, marketing, technical, human and other resources than the initial
      competitors in the industry. The degree of competition characterizing the
      industry of any prospective target cannot presently be ascertained. There can
      be
      no assurance that, subsequent to a consummation of an acquisition, we will
      have
      the resources to compete effectively in the industry of the target, especially
      to the extent that the target is in a high growth industry.





***We
      May Pursue an Acquisition with a Target Operating Outside the United States:
      Special Additional Risks Relating to Doing Business in a Foreign
      Country***





We
      may
      effectuate an acquisition with a target whose business operations or even
      headquarters, place of formation or primary place of business are located
      outside the United States. In such event, we may face the significant additional
      risks associated with doing business in that country. In addition to the
      language barriers, different presentations of financial information, different
      business practices, and other cultural differences and barriers that may make
      it
      difficult to evaluate such a target, ongoing business risks may result from
      the
      internal political situation, uncertain legal systems and applications of law,
      prejudice against foreigners, corrupt practices, uncertain economic policies
      and
      potential political and economic instability that may be exacerbated in various
      foreign countries.




4




***The
      Uncertain Structure of an Acquisition May Result in Risks Relating to the Market
      for Our Common Stock***





We
      may
      form one or more subsidiary entities to effect an acquisition and may, under
      certain circumstances, distribute the securities of subsidiaries to our
      stockholders. There can be no assurance that a market would develop for the
      securities of any subsidiary distributed to stockholders or, if a market were
      to
      develop, no assurances as to the prices at which such securities might
      trade.





***We
      Expect to Pay No Cash Dividends***





We
      do not
      expect to pay dividends to the holders of common stock. The payment of
      dividends, if any, will be contingent upon our revenues and earnings, if any,
      capital requirements, and general financial condition. The payment of any
      dividends will be within the discretion of our Board of Directors. We presently
      intend to retain all earnings, if any, to implement our business plan;
      accordingly, the Board of Directors does not anticipate declaring any dividends
      to the holders of common stock in the foreseeable future.





***Taxation
      Considerations May Impact the Structure of an Acquisition and Post-merger
      Liabilities***





Federal
      and state tax consequences will, in all likelihood, be major considerations
      for
      us in consummating an acquisition. The structure of an acquisition or the
      distribution of securities to stockholders may result in taxation of us, the
      target or stockholders. Typically, these transactions may be structured to
      result in tax-free treatment to both companies, pursuant to various federal
      and
      state tax provisions. We intend to structure any acquisition so as to minimize
      the federal and state tax consequences to both us and the target. Management
      cannot assure that an acquisition will meet the statutory requirements for
      a
      tax-free reorganization, or that the parties will obtain the intended tax-free
      treatment upon a transfer of stock or assets. A non-qualifying reorganization
      could result in the imposition of both federal and state taxes, which may have
      an adverse effect on both parties to the transaction.





***We
      May Be Deemed an Investment Company and Subjected to Related
      Restrictions***





The
      regulatory scope of the Investment Company Act of 1940, as amended (the
      "Investment Company Act"), which was enacted principally for the purpose of
      regulating vehicles for pooled investments in securities, extends generally
      to
      companies engaged primarily in the business of investing, reinvesting, owning,
      holding or trading in securities. The Investment Company Act may, however,
      also
      be deemed to be applicable to a company which does not intend to be
      characterized as an investment company but which, nevertheless, engages in
      activities which may be deemed to be within the definitional scope of certain
      provisions of the Investment Company Act. We believe that our anticipated
      principal activities, which will involve acquiring control of an operating
      company, will not subject us to regulation under the Investment Company Act.
      Nevertheless, there can be no assurance that at some future point we will not
      be
      deemed to be an investment company. If we are deemed to be an investment
      company, we may become subject to certain restrictions relating to our
      activities, including restrictions on the nature of our investments and the
      issuance of securities. In addition, the Investment Company Act imposes certain
      requirements on companies deemed to be within its regulatory scope, including
      registration as an investment company, adoption of a specific form of corporate
      structure and compliance with certain burdensome reporting, record keeping,
      voting, proxy, disclosure and other rules and regulations. In the event of
      the
      characterization of us as an investment company, our inability to satisfy such
      regulatory requirements, whether on a timely basis or at all, would, under
      certain circumstances, have a material adverse effect on us.




**LIQUIDITY
      AND CAPITAL RESOURCES**





During
      the year ended December 31, 2007, working capital increased $36,500 to a surplus
      of $26,761 from a deficit of ($9,739). The primary reasons for the increase
      are
      an increase in cash of $32,382 from the other income received from four
      nonrefundable fees (Note 10), offset by a decrease in accounts payable of
      $4,521. During this same period, stockholders’ equity increased $36,186 to
      $27,389 from ($8,797). The increase in stockholders’ equity is due to the net
      income for the period of $36,186.





There
      are
      no assurances that the Company will be successful in achieving profitable
      operations or continue as a going concern.




5




**ITEM
      7. CONSOLIDATED FINANCIAL STATEMENTS**




SOUTHERN
      SAUCE COMPANY, INC.


(A
      DEVELOPMENT STAGE COMPANY)





Index
      to
      Financial Statements




PageReport
                of Independent Registered Public Accounting Firm
            
            
            F-1Balance
                Sheet
            
            
            F-2Statements
                of Operations
            
            
            F-3Statements
                of Changes in Stockholders’Equity
            
            
            F-4Statements
                of Cash Flows
            
            
            F-5Notes
                to the Financial Statements
            
            
            F-6





Report
          of
          Independent Registered Public Accounting Firm
 
 To
          the
          Board of Directors and Shareholders
 Southern
          Sauce Company, Inc.
 Westlake
          Village, CA 91362
 
 We
          have
          audited the balance sheet of Southern Sauce Company, Inc. (a development
          stage company)
          as of December 31, 2007, and the accompanying related statements of operations, changes
          in stockholders’ equity (deficit) and cash flows for the years ended December
          31, 2007 and
          2006,
          and the period from December 1, 2004 (inception) to December 31, 2007.
          These financial
          statements are the responsibility of the Company’s management. Our
          responsibility is to
          express an opinion on these financial statements based on our
          audits.
 
 We
          conducted our audits in accordance with the standards of the Public Company
          Accounting Oversight
          Board (United States). Those standards require that we plan and perform
          the
          audit to obtain
          reasonable assurance about whether the financial statements are free of
          material misstatement.
          The Company is not required to have, nor were we engaged to perform, an
          audit of its
          internal control over financial reporting. Our audit included consideration
          of
          internal control over
          financial reporting as a basis for designing audit procedures that are
          appropriate in the circumstances, but not for the purposes of expressing
          an
          opinion on the effectiveness of the Company’s
          internal control over financial reporting. Accordingly, we express no such
          opinion. An
          audit
          includes examining, on a test basis, evidence supporting the amounts and
          disclosures in the
          financial statements. An audit also includes assessing the accounting principles
          used and significant
          estimates made by management, as well as evaluating the overall financial
          statement presentation.
          We believe that our audits provide a reasonable basis for our
          opinion.
 
 In
          our
          opinion, the financial statements referred to above present fairly, in
          all
          material respects, the
          financial position of Southern Sauce Company, Inc. as of December 31, 2007
          and
          the results of
          its
          operations and its cash flows for the years ended December 31, 2007 and
          2006, in conformity
          with accounting principles generally accepted in the United States of
          America.
 
 The
          accompanying financial statements have been prepared assuming that the
          Company
          will continue
          as a going concern. As discussed in Note 8 to the financial statements,
          the
          Company has an
          accumulated deficit as of December 31, 2007 and no source of revenue, which
          raises substantial
          doubt about its ability to continue as a going concern. Management’s
          plans concerning
          these matters are also described in Note 8. The financial statements do
          not
          include any
          adjustments that might result from the outcome of this uncertainty.
   /s/
                    Sherb & Co., LLP
                  Certified
                    Public Accountants
 March
          4,
          2008
 Boca
          Raton, Florida
  F-1


**Southern
      Sauce Company, Inc**


**(A
      Development Stage Company)**


**Balance
      Sheet**


**December
      31, 2007**





**Assets****Current
                assets**Cash
                and cash equivalents
            
            $
            35,793Inventories
            
            
            1,077Prepaid
                expense
            
            
            1,000Total
                current assets
            
            
            37,870License,
                net
            
            
            628Total
                assets
            
            $
            38,498**Liabilities
                and Stockholders' Equity****Current
                liabilities**Accounts
                payable
            
            $
            10,109Loan
                payable
            
            
            1,000Total
                current liabilities
            
            
            11,109**Stockholders'
                equity**Preferred
                stock; $.001 par value; authorized 15,000,000shares;
                none issued and outstanding
            
            
            -Common
                stock, $.001 par value; authorized 100,000,000 shares; issued and
                outstanding 2,930,500 shares
            
            
            2,931Additional
                paid-in capital
            
            
            86,703Deficit
                accumulated during the development stage
            
            
            (62,245
            )Total
                stockholders' equity
            
            
            27,389Total
                liabilities and stockholders' equity
            
            $
            38,498





See
      accompanying notes to financial statements.


F-2





**Southern
      Sauce Company, Inc**


**(A
      Development Stage Company)**


**Statements
      of Operations**


**Year
      Ended December 31, 2007 and 2006, and**


**the
      period from December 1, 2004 (inception) through December 31,
      2007**





**YEAR ENDED**
            
            **DECEMBER 1, 2004****DECEMBER 31,**
            
            **(INCEPTION) THROUGH****2007**
            
            **2006**
            
            **DECEMBER 31, 2007****Net
                sales**
            
            $
            774
            
            $
            2,869
            
            $
            3,643Cost
                of sales
            
            
            403
            
            
            3,054
            
            
            3,780Gross
                profit
            
            
            371
            
            
            (185
            )
            
            (137
            )**Costs
                and expenses:**Selling,
                general and administrative expenses
            
            
            76,745
            
            
            71,558
            
            
            199,82376,745
            
            
            71,558
            
            
            199,823Loss
                from operations
            
            
            (76,374
            )
            
            (71,743
            )
            
            (199,960
            )**Other
                income (expense):**Other
                income
            
            
            112,560
            
            
            25,000
            
            
            137,560Interest
                income
            
            
            -
            
            
            121
            
            
            155Total
                other income (expense)
            
            
            112,560
            
            
            25,121
            
            
            137,715**Income
                (loss) before income taxes**
            
            
            36,186
            
            
            (46,622
            )
            
            (62,245
            )**Income
                taxes**
            
            
            -
            
            
            -
            
            
            -**Net
                income (loss)**
            
            $
            36,186
            
            $
            (46,622
            )
            $
            (62,245
            )**Basic
                and diluted net income (loss) per share**
            
            $
            0.01
            
            $
            (0.02
            )
            $
            (0.02
            )**Weighted
                average shares outstanding**Basic and
                diluted
            
            
            2,930,500
            
            
            2,882,142
            
            
            2,688,457





See
      accompanying notes to financial statements.


F-3




**Southern
        Sauce Company, Inc**
 **(A
        Development Stage Company)**
 **Statement
        of Changes in Stockholders' Equity (Deficit)**
 **For
        the period from December 1, 2004 (inception) through December 31,
        2007**
 
 DeficitAdditional
              
              Accumulated during theCommon Stock
              
              
              
              Preferred Stock
              
              
              
              Paid-in
              
              DevelopmentShares
              
              Par Value
              
              Shares
              
              Par Value
              
              Capital
              
              Stage
              
              Equity**Balance,
                  December 1, 2004 (inception)**
              
              
              -
              
              $
              -
              
              
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -Common
                  stock issued for cash (.008 per share)
              
              
              610,000
              
              
              610
              
              
              -
              
              
              -
              
              
              4,390
              
              
              -
              
              
              5,000Common
                  stock issued for license
              
              
              500,000
              
              
              500
              
              
              -
              
              
              -
              
              
              1,070
              
              
              -
              
              
              1,570Common
                  stock issued for services
              
              
              490,000
              
              
              490
              
              
              -
              
              
              -
              
              
              3,523
              
              
              -
              
              
              4,013Net
                  loss December 31, 2004
              
              
              -
              
              
              -
              
              
              -
              
              
              
              
              
              -
              
              
              (4,013
              )
              
              (4,013
              )**Balance,**
                  December 31, 2004
              
              
              1,600,000
              
              
              1,600
              
              
              0
              
              
              -
              
              
              8,983
              
              
              (4,013
              )
              
              6,570Common
                  stock issued for cash (.04 per share)
              
              
              900,000
              
              
              900
              
              
              -
              
              
              -
              
              
              35,100
              
              
              -
              
              
              36,000Preferred
                  stock issued for cash
              
              
              -
              
              
              -
              
              
              3,255
              
              
              3
              
              
              32,547
              
              
              -
              
              
              32,550Net
                  loss December 31, 2005
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (47,796
              )
              
              (47,796
              )**Balance,**
                  December 31, 2005
              
              
              2,500,000
              
              
              2,500
              
              
              3,255
              
              
              3
              
              
              76,630
              
              
              (51,809
              )
              
              27,324Common
                  stock issued for services
              
              
              75,000
              
              
              75
              
              
              -
              
              
              -
              
              
              7,425
              
              
              -
              
              
              7,500Preferred
                  stock issued for cash
              
              
              -
              
              
              -
              
              
              300
              
              
              -
              
              
              3,000
              
              
              -
              
              
              3,000Conversion
                  of Preferred Stock to Common
              
              
              355,500
              
              
              356
              
              
              (3,555
              )
              
              (3
              )
              
              (352
              )
              
              -
              
              
              1Net
                  loss December 31, 2006
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (46,622
              )
              
              (46,622
              )**Balance,**
                  December 31, 2006
              
              
              2,930,500
              
              
              2,931
              
              
              -
              
              
              0
              
              
              86,703
              
              
              (98,431
              )
              
              (8,797
              )Net
                  income December 31, 2007
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              36,186
              
              
              36,186**Balance,**
                  December 31, 2007
              
              
              2,930,500
              
              $
              2,931
              
              
              -
              
              $
              0
              
              $
              86,703
              
              $
              (62,245
              )
              $
              27,389
 
 See
        accompanying notes to financial statements.
  F-4




**Southern
        Sauce Company, Inc**
 **(A
        Development Stage Company)**
 **Statements
        of Cash Flows**
 **Year
        Ended December 31, 2007 and 2006, and**
 **the
        period from December 1, 2004 (inception) through December 31,
        2007**
 
 **YEAR ENDED**
              
              **DECEMBER 1, 2004****DECEMBER 31,**
              
              **(INCEPTION) THROUGH****2007**
              
              **2006**
              
              **DECEMBER 31, 2007****Cash
                  flows from operating activities**Net
                  income (loss)
              
              $
              36,186
              
              $
              (46,622
              )
              $
              (62,245
              )Adjustments
                  to reconcile net income (loss) to net cash
                  provided by (used in) operating activities:Amortization
              
              
              314
              
              
              314
              
              
              943Issuance
                  of common stock for services
              
              
              -
              
              
              7,500
              
              
              11,513Change
                  in assets and liabilitiesInventories
              
              
              403
              
              
              (1,480
              )
              
              (1,077
              )Prepaid
                  expenses
              
              
              (1,000
              )
              
              -
              
              
              (1,000
              )Accounts
                  payable
              
              
              (4,521
              )
              
              13,957
              
              
              10,109Net
                  cash provided by (used in) operating activities
              
              
              31,382
              
              
              (26,331
              )
              
              (41,757
              )**Cash
                  flows from investing activities**Net
                  cash from investing activities
              
              
              -
              
              
              -
              
              
              -**Cash
                  flows from financing activities**Shareholder
                  loan payable
              
              
              1,000
              
              
              -
              
              
              1,000Common
                  stock issued for cash
              
              
              -
              
              
              -
              
              
              41,000Preferred
                  stock issued for cash
              
              
              -
              
              
              3,000
              
              
              35,550Net
                  cash provided by financing activities
              
              
              1,000
              
              
              3,000
              
              
              77,550**Net
                  increase (decrease) in cash and cash equivalents**
              
              
              32,382
              
              
              (23,331
              )
              
              35,793**Cash
                  and cash equivalents,**beginning of period
              
              
              3,411
              
              
              26,742
              
              
              -**Cash
                  and cash equivalents,**end of period
              
              $
              35,793
              
              $
              3,411
              
              $
              35,793Supplementary
                  information:Cash
                  paid for :Interest
              
              $
              -
              
              $
              -
              
              $
              -Income
                  taxes
              
              $
              -
              
              $
              -
              
              $
              -Non
                    cash transactions affecting operating,financing and investing
                    activities:Issuance
                  of common stock for license
              
              $
              -
              
              $
              -
              
              $
              1,570
 
 See
        accompanying notes to financial statements.




F-5




**SOUTHERN
      SAUCE COMPANY, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**December
      31, 2007**


**NOTES
      TO FINANCIAL STATEMENTS**





**NOTE
      1 - DESCRIPTION OF BUSINESS AND DEVELOPMENT STAGE RISK**





Southern
      Sauce Company, Inc. was formed to make and sell specialty food products. It
      is
      seeking to introduce its first product, a barbecue sauce, into the commercial
      marketplace.





The
      Company began commercial sales of its initial product, a barbeque sauce, during
      the year ended December 31, 2006. Since its inception, the Company has been
      dependent upon the receipt of capital investment to fund its continuing
      activities. In addition to the normal risks associated with a new business
      venture, there can be no assurance that the Company's business plan will be
      successfully executed. Our ability to execute our business model will depend
      on
      our ability to obtain additional financing and achieve a profitable level of
      operations. There can be no assurance that sufficient financing will be
      obtained, or can we give any assurance that we will generate substantial
      revenues or that our business operations will prove to be profitable.





**NOTE
      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**





**Cash
      and Cash equivalents**





The
      Company considers all highly liquid debt instruments with original maturities
      of
      three months or less to be cash equivalents. The Company has no cash
      equivalents.





**Use
      of Estimates**





The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect certain reported amounts and disclosures. Accordingly, actual results
      could differ from those estimates.





**Inventories**





Inventories
      are valued at the lower of cost or market on a first-in, first-out (FIFO) basis,
      and include finished goods.





**Income
      Taxes**




Income
      taxes are accounted for in accordance with SFAS No. 109, Accounting for Income
      Taxes. SFAS No. 109 requires the recognition of deferred tax assets and
      liabilities to reflect the future tax consequences of events that have been
      recognized in the Company's financial statements or tax returns. Measurement
      of
      the deferred items is based on enacted tax laws. In the event the future
      consequences of differences between financial reporting bases and tax bases
      of
      the Company's assets and liabilities result in a deferred tax asset, SFAS No.
      109 requires an evaluation of the probability of being able to realize the
      future benefits indicated by such assets. A valuation allowance related to
      a
      deferred tax asset is recorded when it is more likely than not that some or
      the
      entire deferred tax asset will not be realized.




**Earnings
      (loss) Per Share**





The
      financial statements are presented in accordance with Statement of Financial
      Accounting Standards No. 128 ("SFAS 128"), "Earnings Per Share". Basic earnings
      per share is computed using the weighted average number of common shares
      outstanding during the period. Diluted earnings per share reflect the potential
      dilution from the exercise or conversion of securities into common
      stock.




F-6





**SOUTHERN
      SAUCE COMPANY, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**December
      31, 2007**


**NOTES
      TO FINANCIAL STATEMENTS**




**Revenue
      Recognition**





The
      Company recognizes revenue when:





o
      Persuasive evidence of an arrangement exists;





o
      Shipment has occurred;





o
      Price
      is fixed or determinable; and





o
      Collectibility is reasonably assured





The
      Company closely follows the provisions of Staff Accounting Bulletin No. 104
      as
      described above. For the year ended December 31, 2007 and 2006 and for the
      period from December 1, 2004 (inception) to December 31, 2007, the Company
      has
      recognized minimal revenues.





**Impairment
      of Long-Lived Assets**





Intangible
      assets consist of license agreements which are recorded at cost and amortized
      over a straight-line basis. The amortization expense for the years ended
      December 31, 2007 and 2006 was $314 and $314 respectively.




In
      accordance with Statement of Financial Accounting Standards (SFAS) No. 144,
      "Accounting for the Impairment or Disposal of Long-Lived Assets", the Company
      periodically reviews its long-lived assets for impairment whenever events or
      changes in circumstances indicate that the carrying amount of the assets may
      not
      be fully recoverable. The Company recognizes an impairment loss when the sum
      of
      expected undiscounted future cash flows is less than the carrying amount of
      the
      asset. The amount of impairment is measured as the difference between the
      asset's estimated fair value and its book value. The Company did not record
      any
      impairment charges during the year ended December 31, 2007.




**NOTE
      3 - EQUITY TRANSACTIONS**





During
      the year ended December 31, 2004, the Company issued 610,000 shares of common
      stock to an initial investor for cash of $5,000.





During
      the year ended December 31, 2004, the Company issued 500,000 shares of common
      stock for the purchase of the license to distribute its initial product from
      the
      majority shareholder. The value of the license was determined to be the legal
      costs to create the license, which was $1,570.





During
      the year ended December 31, 2004, the Company issued 490,000 shares of common
      stock for services rendered at a value of $4,013.





During
      the year ended December 31, 2005, the Company issued 900,000 shares of common
      stock at $.04 per share, for a total of $36,000.





During
      the year ended December 31, 2005, the Company issued 3,255 shares of Series
      A
      convertible preferred stock at $10.00 per share, for a total of $32,550.




F-7




**SOUTHERN
      SAUCE COMPANY, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**December
      31, 2007**


**NOTES
      TO FINANCIAL STATEMENTS**




In
      the
      first quarter of 2006,
      the Company issued 300 shares of Series A convertible preferred stock at $10.00
      per share, for a total of $3,000.





In
      the
      first quarter of 2006, the
      Company issued 75,000 shares of common stock for services rendered at a value
      of
      $7,500.





In
      the
      first quarter of 2006, the
      holders of 3,555 shares of Series A convertible preferred stock exercised the
      right to convert such shares into 355,500 shares of common stock. No Series
      A
      convertible preferred stock
      remains outstanding as of March 31, 2007.




**NOTE
      4 - INCOME TAXES**





For
      income tax purposes, the Company has elected to capitalize start-up costs
      incurred during the period from December 1, 2004 (inception) through December
      31, 2005 totaling $45,829. The start-up costs are being amortized over one
      hundred eighty months beginning January 1, 2006.





The
      provision for income taxes for the years ended December 31, consists of the
      following components:





2007
            
            2006Current
            
            $
            -
            
            $
            -Deferred
            
            
            -
            
            
            -$
            -
            
            $
            -




Reconciliation
      of the Federal Statutory Income Tax rate to the Company’s effective income tax
      rate is as follows:





2007
            
            2006Computed
                at the statutory rates (34%)
            
            $
            12,303
            
            $
            (15,851
            )Non
                deductible expenses
            
            
            760
            
            
            1,180State
                income taxes (net of federal tax benefit)
            
            
            1,314
            
            
            (1,692
            )Other
            
            
            46
            
            
            (2,911
            )Change
                in valuation Allowance
            
            
            (14,423
            )
            
            19,274Tax
                provision (benefit)
            
            $
            -
            
            $
            -




F-8





**SOUTHERN
      SAUCE COMPANY, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**December
      31, 2007**


**NOTES
      TO FINANCIAL STATEMENTS**




The
      significant temporary differences that give rise to a deferred tax asset as
      of
      December 31, 2007 and 2006 are as follows:




**2007**
            
            **2006**Deferred
                tax asset:Net
                operating loss carry forwards
            
            $
            4,843
            
            $
            18,116Capitalized
                start up costs
            
            
            14,946
            
            
            16,096Total
                deferred tax asset
            
            
            19,789
            
            
            34,212Less
                valuation allowance
            
            
            (19,789
            )
            
            (34,212
            )Net
                deferred tax asset
            
            $
            -
            
            $
            -




The
      net
      change in the total valuation allowance for the year ended December 31, 2007
      was
      a decrease of $14,423.




In
      assessing the reliability of deferred tax assets, management considers whether
      it is more likely than not that some portion or all of the deferred tax assets
      will not be realized. The ultimate realization of deferred tax assets is
      dependent upon the generation of future taxable income during the periods in
      which those temporary differences become deductible. Management considers
      projected future taxable income and tax planning strategies in making this
      assessment. Based on its evaluation, the Company has provided for a full
      valuation allowance to offset the deferred tax asset at December 31,
      2007.




At
      December 31, 2007 the Company had net operating loss carryforwards of
      approximately $12,870 available to offset future taxable income through tax
      year
      2026. These net operating loss carryforwards may be limited pursuant to IRS
      Section 382 in the event of a change in ownership of the Company.




**NOTE
      5 – RECENT ACCOUNTING PRONOUNCEMENTS**




In
      September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS
      157”), which clarifies the definition of fair value, establishes guidelines for
      measuring fair value, and expands disclosures regarding fair value
      measurements.  SFAS 157 does not require any new fair value measurements
      and eliminates inconsistencies in guidance found in various prior accounting
      pronouncements.  SFAS 157 will be effective for the Company on January 1,
      2008. The Company is currently evaluating the impact of adopting SFAS 157 on
      its
      financial position, cash flows, and results of operations.




In
      September 2006, the Securities and Exchange Commission (“SEC”) released Staff
      Accounting Bulletin No. 108, “Considering the Effects of Prior Year
      Misstatements when Quantifying Misstatements in Current Year Financial
      Statements” (“SAB 108”). SAB 108 provides interpretive guidance on the SEC’s
      views on how the effects of the carryover or reversal of prior year
      misstatements should be considered in quantifying a current year misstatement.
      The provisions of SAB 108 will be effective for the Company for the fiscal
      year
      ended December 31, 2006. The Company is currently evaluating the impact of
      applying SAB 108 but does not believe that the application of SAB 108 will
      have
      a material effect on its financial position, cash flows, and results of
      operations.




F-9





**SOUTHERN
      SAUCE COMPANY, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**December
      31, 2007**


**NOTES
      TO FINANCIAL STATEMENTS**




February
      2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets
      and Financial Liabilities-including an amendment of FAS 115" (Statement 159).
      Statement 159 allows entities to choose, at specified election dates, to measure
      eligible financial assets and liabilities at fair value that are not otherwise
      required to be measured at fair value. If a company elects the fair value option
      for an eligible item, changes in that item's fair value in subsequent reporting
      periods must be recognized in current earnings. Statement 159 is effective
      for
      fiscal years beginning after November 15, 2007. We are currently evaluating
      the
      potential impact of Statement 159 on our financial statements. The Company
      is
      currently evaluating the timing of adoption and the impact that adoption might
      have on its financial position or results of operations.




**NOTE
      6– CONCENTRATION OF CREDIT RISK**





Financial
      instruments that potentially subject the Company to concentrations of credit
      risk consist principally of cash deposits. Accounts at each institution are
      insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000.
      At
      December 31, 2007, the Company had no amounts in excess of FDIC insured
      limit.





**NOTE
      7 - NET LOSS PER SHARE**





The
      Company's basic and diluted net loss per share amounts have been computed by
      dividing the results by the weighted average number of outstanding common
      shares. The Company currently has no common shares equivalents.





The
      following reconciles amounts reported in the financial statements:





Year ended
              December 31, 2007
            
            Year ended
              December 31, 2006
            
            December 1, 2004
              (Inception) through
              December 31, 2007Net
                income (loss)
            
            $
            36,186
            
            $
            (46,622
            )
            $
            (62,245
            )Denominator
                for basic loss per share -Weighted
                average shares
            
            
            2,930,500
            
            
            2,882,142
            
            
            2,688,457Denominator
                for diluted loss per share -Basic
                and diluted loss per common share
            
            $
            .01
            
            $
            (.02
            )
            $
            (.02
            )




**NOTE
      8 - GOING CONCERN**





As
      reflected in the accompanying financial statements, the Company had deficit
      accumulated from inception to December 31, 2007 of $62,245.  At
      December 31, 2007, the Company has minimal operating revenues. The ability
      of
      the Company to continue as a going concern is dependent on the Company’s ability
      to further implement its business plan and raise capital. The financial
      statements do not include any adjustments that might be necessary if the Company
      is unable to continue as a going concern.




F-10





**SOUTHERN
      SAUCE COMPANY, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**December
      31, 2007**


**NOTES
      TO FINANCIAL STATEMENTS**





The
      Company is currently a development stage company and its continued existence
      is
      dependent upon the Company’s ability to resolve its liquidity problems,
      principally by obtaining additional debt financing and/or equity capital. The
      Company has yet to generate a significant internal cash flow, and until
      licensing or sales of products commence, the Company is highly dependent upon
      debt and equity funding, should continuing debt and equity funding requirements
      not be met the Company’s operations may cease to exist.





**NOTE
      9 – LICENSE AGREEMENT**





On
      December 1, 2004, the Company entered into a license agreement for the exclusive
      worldwide license of the recipe for its initial product. The license is being
      amortized over five years using the straight line method. The licensor may
      cancel and terminate the license in the event the Company has not introduced
      one
      or more products into the commercial market place based on the recipe and
      recognized revenue of $500,000 from sales of the product by September 30, 2006.
      We have not achieved this level of sales as of September 30, 2006 so the license
      is subject to termination by the licensor. We are not required to pay Mr. Jordan
      any additional fees for use of the recipe. However, in the event we make an
      outright sale of the license or sub-license of the recipe we shall share in
      the
      proceeds equally (50/50 split) with Mr. Jordan.





The
      estimated amortization expense over the next three years is as follows:




**Year Ending December 31**2008
            
            $
            3142009
            
            $
            314$
            628





**NOTE
      10 – OTHER INCOME**




In
      April,
      2007 the Company entered into a Letter of Intent with a third party involving
      a
      potential business acquisition with the Company. Under the agreement the Company
      will not negotiate or provide other information with respect to a competing
      transaction until June 15, 2007 in exchange for a nonrefundable $25,000 payment.
      On June 15, 2007 the Company received an additional $25,000 nonrefundable
      payment to extend the period until July 31, 2007. On August 1, 2007 the Company
      received an additional $10,000 nonrefundable payment to extend the period until
      August 31, 2007. On August 31, 2007 the Company received an additional $15,000
      nonrefundable payment. On October 7, 2007 the Company received an additional
      $12,500 nonrefundable payment to extend the period until November 15, 2007.
      On
      November 15, 2007 the Company received an additional $25,060 nonrefundable
      payment.




**NOTE
      11 – SUBSEQUENT EVENTS**




On
      February 14, 2008, pursuant to the Stock Purchase and Sale Agreement, by and
      among Vision Opportunity China LP (“Vision”), and Lomond International Inc.
      (“Lomond”), as agent for the other purchasers (together with Vision, the
“Purchasers”), and the sellers (the “Sellers”), the Purchasers purchased an
      aggregate of 2,575,000 shares of common stock, par value $0.001 per share,
      of
      Southern Sauce Company Inc. from the Sellers in consideration for a purchase
      price, in the aggregate amount of $635,000. The sale represents a change of
      control of the Company and the Shares acquired by the Purchasers represent
      approximately 87.9% of the issued and outstanding capital stock of the Company
      calculated on a fully-diluted basis.


F-11




**ITEM
      8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE.**




None.




**ITEM
      8A. CONTROLS AND PROCEDURES.**




The
      Company maintains disclosure controls and procedures that are designed to ensure
      that information required to be disclosed in the Company's Exchange Act reports
      is recorded, processed, summarized and reported within the time periods
      specified in the Securities and Exchange Commission rules and forms, and that
      such information is accumulated and communicated to the Company's management
      to
      allow timely decisions regarding required disclosure based closely on the
      definition of "disclosure controls and procedures" in Rule 13a-15(e) and
      15d-15(e). In designing and evaluating the disclosure controls and procedures,
      management recognized that any controls and procedures, no matter how well
      designed and operated, can provide only reasonable assurance of achieving the
      desired control objectives, and management necessarily was required to apply
      its
      judgment in evaluating the cost-benefit relationship of possible controls and
      procedures.




The
      Company carried out an evaluation, under the supervision and with the
      participation of our principal executive officer and principal financial
      officer, of the effectiveness of the design and operation of the Company's
      disclosure controls and procedures as of the end of the period covered in this
      report. Based on the foregoing, our principal executive officer and principal
      financial officer concluded that the Company's disclosure controls and
      procedures were effective.





There
      has
      been no change in our internal controls over financial reporting that occurred
      during the period covered by this Annual Report on Form 10-KSB that has
      materially affected, or is reasonably likely to materially affect, our internal
      controls over financial reporting.





**Management’s
      Annual Report on Internal Control Over Financial Reporting** .





Southern
      Sauce’s management is responsible for establishing and maintaining adequate
      control over financial reporting for Southern Sauce, as such term is defined
      in
      Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Under
      the supervision and with the participation of Southern Sauce’s management,
      including our principal executive and principal financial officers, Southern
      Sauce conducted an evaluation of the effectiveness of its internal control
      over
      financial reporting based on the framework in Internal Control - Integrated
      Framework issued by the Committee of Sponsoring Organizations of the Treadway
      Commission (the “COSO Framework”). Based on this evaluation under the COSO
      Framework management concluded that its internal control over financial
      reporting was effective as of December 31, 2007.





This
      annual report does not include an attestation report of the Company’s registered
      public accounting firm regarding internal control over financial reporting.
      Management’s report was not subject to attestation by the Company’s registered
      public accounting firm pursuant to temporary rules of the Securities and
      Exchange Commission that permit the company to provide only management’s report
      in this annual report.




**Item
      8B. Other Information.**




None.


6




**PART
      III**




**ITEM
      9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSON AND CORPORATE
      GOVERNANCES; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE** **ACT.**




Our
      directors and executive officers are:




**Name**
            
            **Age**
            
            **Position**Robert
                Jordan
            
            52
            
            President,
                Chief Executive Officer and
              DirectorJohn
                Vogel
            
            53
            
            Director




***Robert
      Jordan*** **.** Robert
      Jordan has been our President, Chief Executive Officer and a director since
      December 2004. Mr. Jordan has been retired from practicing law for over five
      years. He is a member of the Florida Bar. In 1999 Mr. Jordan filed for personal
      bankruptcy under Chapter 13 due to his inability to meet his financial
      obligations due to an illness. He was discharged from bankruptcy in January
      2004.





***John
      Vogel*** .
      Mr. John Vogel joined the Company in February 2008. He was a director and
      co-founder of Century 21 Ability, Inc. from the period 1996 to December 2005.
      Mr. Vogel also served as Chief Executive Officer, President, Secretary and
      Chairman of the Board of UniPro Financial Services, Inc. Mr. Vogel also
      served as an officers and board member of International Imaging Systems, Inc.
      from September of 2006 until October of 2007, when the company merged with
      Baorun China Group Limited. Mr. Vogel has over 30 years of experience in
      marketing and sales, including 13 years at World Savings Bank (WSB); VP District
      and VP Regional Loan Origination and VP Sales Manager and VP of Real Estate
      (Owned).




**DIRECTOR
      INDEPENDENCE**




The
      following information concerning director independence is based on the director
      independence standards of The NASDAQ Stock Market Corporate Governance
      Rules.




Robert
      E.
      Jordan and John Vogel are not independent directors within
      The NASDAQ Stock Market's director independence standards. In determining
      independence, the Board reviews and seeks to determine whether directors have
      any material relationship with the Company, direct or indirect, which would
      interfere with the exercise of independent judgment in carrying out the
      responsibilities of a director.  The
      Board
      reviews business, professional, charitable and familial relationships of the
      directors in determining independence.  The
      Board
      has not designated a separate compensation or nominating committee.




**AUDIT
      COMMITTEE**




Directors
      Robert E. Jordan and
      Francis Rebello ,
      who are not
      independent, constituted the
      audit
      committee .




The
      Board
      has not designated a separate compensation or nominating committee.




Our
      officers are elected annually by the board of directors and may be replaced
      or
      removed by the board at any time. Our directors are elected by our shareholders
      annually and serve until the election and qualification of their successors
      or
      their earlier resignation or removal.




**CODE
      OF ETHICS**




We
      have
      adopted a Code of Ethics, as filed as an exhibit to the Company's annual report
      on Form 10-KSB for the year ended December 31, 2005.




**ITEM
      10. EXECUTIVE COMPENSATION.**




**SUMMARY
      COMPENSATION TABLE**




The
      following table presents compensation information for the year s ended
      December 31, 2007
      and 2006
      for
      the persons who served as our principal executive officer and each of our two
      other most highly compensated executive officers whose aggregate salary and
      bonus was more than $100,000 in such year. We refer to these executive officers
      as our "named executive officers" elsewhere in this annual report. No
      compensation was paid in 2007 or
      2006 .


7





*Summary
      Compensation Table*





Name
                and
              Principal
              Position
            Year
            Salary
              ($)
            Bonus
              ($)
            Stock
              Awards
              ($)
            Option
              Awards
              ($)
            Non-Equity
              Incentive
                Plan
              Compensation
              ($)
            Nonqualified
              Deferred
              Compensation
              Earnings
              ($)
            All
                Other
              Compensation
              ($)
            Total
              ($)(a)
            (b)
            (c)
            (d)
            (e)
            (f)
            (g)
            (h)
            (i)
            (j)Robert
                Jordan, President / CEO
            2007
            —
            —
            —
            —
            —
            —
            —
            02006
            —
            —
            —
            —
            —
            —
            —
            0Francis
                A. Rebello, Treasurer and Secretary
            2007
            —
            —
            —
            —
            —
            —
            —
            02006
            —
            —
            —
            —
            —
            —
            —
            0




**EXECUTIVE
      EMPLOYMENT CONTRACTS**




Our
      named
      executive officers serve "at will" with no written employment agreements. They
      do not currently receive any compensation for such services.




**EQUITY
      COMPENSATION PLAN INFORMATION AS OF DECEMBER 31, 2007**




The
      Company does not have any equity compensation plans outstanding as of December
      31, 2007.




**DIRECTOR
      COMPENSATION**




No
      compensation earned or paid to our independent directors in 2007.




**ITEM
      11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
      MANAGEMENT.**





The
      following table sets forth certain information known to the Company with respect
      to the beneficial ownership of our voting stock as of March 3, 2008 by (i)
      all
      persons who are beneficial owners of five percent (5%) or more of a class of
      our
      voting stock, (ii) each current director, (iii) the executive officers named
      in
      the Summary Compensation Table of the Executive Compensation section of this
      Form 10-KSB and (iv) all current directors and executive officers as a group.
      As
      of March 3, 2008, there were 2,930,500 shares of common stock outstanding and
      no
      shares of Preferred Stock outstanding. Unless otherwise indicated, each of
      the
      stockholders has sole voting and investment power with respect to the shares
      beneficially owned, subject to community property laws, where applicable.




**SECURITY
        OWNERSHIP OF CERTAIN BENEFICIAL OWNERS**




**Title of Class**
            
            **Name and Address**
              **of Beneficial Owner**
            
            **Amount and**
              **Nature****of**
              **Beneficial**
              **Ownership**
            
            **Percentage**
              **of Class****(1)**Common
            
            
            Castle
                Bison, Inc.
              31200
                Via Colinas, Suite 200
              Westlake
                Village, CA 91362
            
            
            170,000
            
            
            5.80Common
            
            
            Ralph
                O. Olson
              9263
                Wild Elk Place
              Parker,
                CO 80134
            
            
            305,000
            
            
            10.40Common
            
            
            Martin
                A. Sumichrast
              11125
                Colonial Country Lane
              Charlotte,
                NC 28277
            
            
            305,000
            
            
            10.40Common
            
            
            Vision
                Opportunity China LP
              Sarnia
                House, Suites 13 and 15
              Le
                Truchot
              St
                Peter Port
              Guernsey
                GY1 4NA
            
            
            1,355,000
            
            
            46.24




8





**SECURITY
        OWNERSHIP OF MANAGEMENT**




**Title of Class**
            
            **Name and Address**
                **of Beneficial Owner**
            
            **Amount and Nature**
              **of Beneficial Ownership**
            
            **Percentage**
              **of Class****(1)**Common
            
            
            All
                directors and executive officers as a group (3 persons)
            
            
            0
            
            
            0
            %




(1)
            Applicable
                percentage of ownership is based on 2,930,000 shares of common stock
                outstanding as of March 3, 2008 for each stockholder. Beneficial
                ownership
                is determined in accordance with the rules of the SEC and generally
                includes voting of investment power with respect to securities. Shares
                of
                common stock subject to securities exercisable or convertible into
                shares
                of common stock that are currently exercisable or exercisable within
                60
                days of December 31, 2007 are deemed to be beneficially owned by
                the
                person holding such options for the purpose of computing the percentage
                of
                ownership of such persons, but are not treated as outstanding for
                the
                purpose of computing the percentage ownership of any other
                person.




**ITEM
      12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
      INDEPENDENCE.**




Our
      Board
      of Directors requires that all related party transactions be reviewed and
      approved by an independent body of the Board of Directors.




**ITEM
      13. EXHIBITS**




**EXHIBIT NO.**
            
            **DESCRIPTION**3.1
            
            Articles
                of Incorporation*3.1
            
            Bylaws*10.1
            
            License
                Agreement*10.2
            
            Stock
                Purchase and Sale Agreement***14
            
            Code
                of Ethics**31.1
            
            Certificate
                of Principal Executive Officer Pursuant to Section 302 of the
                Sarbanes-Oxley Act(filed herewith)32.1
            
            Certificate
                of PrincipalFinancialOfficer
                Pursuant to Section 906 of the Sarbanes-Oxley Act(filed herewith)




*
            These
                exhibits were filed under the same exhibit number with our registration
                statement on Form SB-2 (file no. 333-125268) and are incorporated
                herein
                by reference.


9




**
            Incorporated
                by reference to the Company's report on Form 10-KSB for the year
                ended
                December 31, 2005.




***
            Incorporated
                by reference to the Company's report on Form 8-K filed on February
                20,
                2008.




**ITEM
      14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.**




The
      following table sets forth the aggregate fees billed to us by our principal
      accountant, Sherb & Co., LLP for the periods indicated.




**2006**
            
            **2007**Audit
                Fees
            
            $
            15,000
            
            $
            16,000Audit
                Related Fees
            
            
            —Tax
                Fees
            
            
            1,000
            
            
            1,000All
                Other Fees
            
            
            —Total
            
            $
            16,000
            
            $
            17,000





AUDIT
      FEES. - Consists of fees for professional services rendered by our principal
      accountants for the audit of our annual financial statements and the review
      of
      financial statements included in our Forms 10-QSB or services that are normally
      provided by our principal accountants in connection with statutory and
      regulatory filings or engagements.




AUDIT-RELATED
      FEES. - Consists of fees for assurance and related services by our principal
      accountants that are reasonably related to the performance of the audit or
      review of our financial statements and are not reported under "Audit
      Fees."




TAX
      FEES.
      - Consists of fees for professional services rendered by our principal
      accountants for tax compliance, tax advice and tax planning.




ALL
      OTHER
      FEES. - Consists of fees for products and services provided by our principal
      accountants, other than the services reported under "Audit Fees," "Audit-Related
      Fees" and "Tax Fees" above.




The
      Audit
      Committee, comprised of Robert E. Jordan and Francis A. Rebello, has reviewed
      and discussed with Sherb & Co., LLP the audited financial statements of the
      Company contained in the Company's Annual Report on Form 10-KSB for the
      Company's 2007 fiscal year. The Audit Committee has also discussed with Sherb
      & Co., LLP the matters required to be discussed pursuant to SAS No. 61
      (Codification of Statements on Auditing Standards, AU Section 380), which
      includes, among other items, matters related to the conduct of the audit of
      the
      Company's financial statements.




The
      Audit
      Committee has received and reviewed the written disclosures and the letter
      from
      Sherb & Co., LLP required by Independence Standards Board Standard No. 1
      (Independence Discussions with Audit Committees), and has discussed with Sherb
      & Co., LLP its independence from the Company.




The
      Audit
      Committee has considered whether the provision of services other than audit
      services is compatible with maintaining auditor independence. Based on the
      review and discussions referred to above, the Audit Committee recommended to
      the
      Board of Directors that the audited financial statements be included in the
      Company's Annual Report on Form 10-KSB for its 2007 fiscal year for filing
      with
      the SEC.




**Audit
      Committee's Pre-Approval Policies**




The
      Audit
      Committee's policy is now to pre-approve all audit services and all permitted
      non-audit services (including the fees and terms thereof) to be provided by
      the
      Company's independent auditor; provided, however, pre-approval requirements
      for
      non-audit services are not required if all such services (1) do not aggregate
      to
      more than five percent of total revenues paid by the Company to its accountant
      in the fiscal year when services are provided; (2) were not recognized as
      non-audit services at the time of the engagement; and (3) are promptly brought
      to the attention of the Audit Committee and approved prior to the completion
      of
      the audit by the Audit Committee.




The
      Audit
      Committee pre-approved all of fees described above.


10


**SIGNATURES**





In
      accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
      this report to be signed on its behalf by the undersigned, thereunto duly
      authorized.




Date:
                  March 18, 2008
              **SOUTHERN SAUCE COMPANY INC.**By:
              /s/
                  Robert JordanName:
              Robert
                  JordanTitle:
              President, Principal Executive Officer




Pursuant
      to the requirements of the Securities Exchange Act of 1934, this report has
      been
      signed by the following persons on behalf of the Registrant and in the
      capacities and on the dates indicated.




**SIGNATURE**
              
              
              
              **DATE**/s/
                  Robert Jordan
              
              President
                  (Principal Executive Officer
              
              March
                  18, 2008Robert Jordan
              
              and
                  Principal Accounting Officer)/s/
                  John Vogel
              
              Director
              
              March
                  18, 2008John Vogel




11