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, 2006
                               -----------------


[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the transition period from _______________ to _______________


                         Commission File No. 333-125268


                          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)


                   11951 S.E. 57TH STREET, MORRISTON, FL 32668
                   -------------------------------------------
                    (Address of principal executive offices)


                                  352-486-4541
                                  ------------
                           (Issuer's telephone number)

<PAGE>

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 Exhchange Act. [ ]

     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      ___ 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:$2,869.

     As of March 31, 2007, there were 1,430,000 shares of our common stock held
by non-affiliates valued at $572,000 based upon sale price of our common stock
within the last 60 days.

     As of March 31, 2007, the registrant had outstanding 2,930,500 shares of
its Common Stock, par value $.001.

     Transitional Small Business Disclosure Format YES [ ] NO [X]

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

                       DOCUMENTS INCORPORATED BY REFERENCE
                       -----------------------------------

     None

                                        2
<PAGE>

                                TABLE OF CONTENTS

INTRODUCTION

PART I

Item 1.  Business............................................................  4

Item 2.  Properties..........................................................  7

Item 3.  Legal Proceedings...................................................  7

Item 4.  Submission of Matters to a vote of security holders.................  8


PART II

Item 5.  Market for common equity and related stockholder matters and Small
         Business Issuer Purchase of Equity Securities.......................  8

Item 6.  Management's discussion and analysis or plan or operation...........  8

Item 7.  Consolidated Financial Statements................................... 12


PART III

Item 8.  Changes & Disagreements with Accountants............................ 23

Item 8A. Controls & Procedures............................................... 23

Item 8B. Other Information................................................... 24

Item 9.  Directors, Executive officers, Promoters and Control person
         and Corporate Governances; Compliance with Section 16(a)
         of the Exchange Act................................................. 24

Item 10. Executive Compensation.............................................. 26

Item 11. Security Ownership of certain beneficial owners and Management...... 27

Item 12. Certain relationships and related transactions,
         and Director Independence........................................... 28

Item 13. Exhibits............................................................ 28

Item 14. Principal Accounting Fees and Services ............................. 28

                                        3
<PAGE>

                                     PART I

ITEM 1.   DESCRIPTION OF BUSINESS.

     Southern Sauce Company, Inc. was incorporated in the State of Florida in
December 2004. Our business plan is 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 so we
consider ourselves to be a development stage Company.

     Our offices are located at 11951 S.E. 57th Street, Morriston, FL 32668
and our phone number is 352-486-4541.

Overview

     A stroll through any supermarket or gourmet market will confirm that the
market for specialty foods such as barbecue sauce is substantial and highly
competitive. More objective statistics are published by various trade
organizations and trade publications. For example, Supermarket News Sales
Yearbook published in August 2004, which covers food sales at supermarkets, drug
stores and mass merchandisers, reported that sales of barbecue sauces at
supermarkets were $350,573,100 during the 52 weeks ending June 13, 2004(1).
Progressive Grocer's 57th Annual Consumer Expenditures Study published in
September 2004, based on five years of comparable scan data from A C Nielsen and
estimates by Progressive Grocer's researchers, reported that 2003 sales of
barbecue sauces at supermarkets were $353,590,000(2).

     Other indications of the vibrancy of the barbecue market may be inferred
from collateral sources, such as the variety of barbecue grill models offered in
such stores as Home Depot and Sears as well as specialized grill stores.
According to exclusive consumer research by Mintel International (Chicago), as
reported in Prepared Foods, February 2004, some 73% of American families own a
barbecue grill. The outdoor barbecue market, estimated at $3.93 billion, can be
segmented into charcoal, gas, and electric grills, as well as barbecue equipment
accessories.(3)

     Consumer interest in barbecue can also be inferred from the number of
barbecue books in print. The website of the National Barbecue Association,
nbbqa.org, offers 41 barbecue books for sale. A search for "barbecue" in the
book section of the online bookseller amazon.com returns over 600 entries.

     While the market for barbecue sauces is considerable, it has low barriers
to entry. Besides the largest national brands, Kraft, Heinz and Hunts, there are
a large number of barbecue sauce products designed to appeal to regional tastes
which are generally sold locally.
_________

(1) Data from this report published by The Association for Dressings and Sauces
and available on the web at http://www.dressings-sauces.org/condiment_trends_
press.html#sales.

(2) Data from this report published by The Association for Dressings and Sauces
and available on the web at http://www.dressings-
sauces.org/condiment_trends_press.html#sales.

(3) Prepared Foods. February 2004. Available on the web at
http://www.preparedfoods.com/CDA/ArticleInformation/features/BNP_Features_Item
/0,1231,119152,00.html

                                        4
<PAGE>

Marketing Plan

     As a new entrant into a market with a number of established brands we will
seek to differentiate our initial barbecue sauce by appealing to consumers to
give our product a try and building customer loyalty on the following bases:

          (a) Brand positioning.
          (b) Product ingredients and taste.
          (c) Consumer education.
          (d) Marketing approach.

     We will seek to position our initial barbecue sauce product towards men
because we believe they are the primary users of barbecue sauce. Our initial
product, a mustard-based yellow barbecue sauce, looks and tastes different from
the established national brands. We will seek to stress the difference of our
product, both appearance and taste, and challenge consumers to "try something
new on your barbecue". We will also seek to educate consumers about the proper
way to use barbecue sauce. For example, we believe that many barbecue cooks
utilize barbecue sauce improperly. Food should not be basted or soaked with
barbecue sauce before being put on the grill. Rather, barbecue sauce should be
used at the latter part of cooking process to avoid burning in the intense heat
of the barbecue grill.

Distribution

     Our target market for initial product distribution will be specialty
gourmet food stores. These retailers compete by selling products which are not
generally available at large supermarket chains and are highly selective in
their merchandising. We believe that consumers choose to shop at specialty
gourmet food stores for a different shopping experience and that they are open
to try a new product not available at the chain supermarkets or supported by
large advertising budgets. We believe that gourmet food stores are more willing
to try a new product and will place initial orders in small amounts.

     In order to establish initial distribution we anticipate that we will
directly approach gourmet food stores to purchase our products through our
management and attend trade shows for the gourmet food trade. We will also seek
to establish our brand through public relations, an internet site and an
internet blog.

     Subject to initial success of our initial product introduction, we will
seek to engage food brokers to represent us in contacting distributors and
larger retailers. At that point we anticipate formulating a sales and marketing
presentation to aid the brokers in representing our products to retail and
distributor buyers. The key competitive factors in influencing a purchasing
decision on this level include the product quality, packaging, sales history,
profitability, and consumer demand. If a buyer decides to accept our product,
other issues such as the cost of acquiring shelf space (slotting fees) and our
specific commitments to marketing programs will be negotiated. Slotting fees can
take the form of cash payments and/or free product allowances.

         We cannot assure you that we will be successful in establishing
distribution for our initial product or that our sales will be sufficient to
enable us to achieve positive cash flow and earnings.

Manufacturing

     We use a contract packer to manufacture our products according to our
specifications, which include our products' recipes, ingredients, graphics and
packaging on an as needed basis. We are responsible for having all the
components of the products shipped to the contract packer. We do not anticipate
entering into an exclusive or long term agreement with any packers.

                                        5
<PAGE>

Raw Materials and Suppliers

     We believe that there are a number of sources available for product
ingredients, packaging, and printing for our products. We do not anticipate that
it will be necessary to execute any exclusive or long term agreements for such
raw material and supplies.

Promotion and Advertising

     We intend to initially rely upon point of purchase promotions, trade
magazines, public relations and the internet to promote our products. Point of
purchase promotional advertising will constitute the most significant portion of
our promotion and advertising activities. This will include sampling programs,
displays and brochures which we intend to provide to each retail outlet for our
products in an effort to get customers to try our product. We will rely on
public relations to trade publications to enhance retailer awareness of our
products. Internet will be utilized for consumer awareness and retailer
awareness purposes.

Trademarks, Patents and Intellectual Property

     We expect to seek trademark protection for our products as soon as each
product trademark is selected, as well as our slogan -Try something new on your
Barbecue. We will do a search of existing trademarks prior to selecting
trademarks for our products. We believe that trademark protection will be
important to brand name recognition and distributor and consumer loyalty to our
products. We intend to register our important trademarks in the United States.
We will use our best efforts to maintain the confidentiality of our product
recipes through confidentiality agreements and physical security but do not
anticipate that it will be possible to secure patents for our products.

Our initial product

     Our initial product is a yellow mustard based barbecue sauce formulated in
the tradition of the classic mustard based barbecue sauce popular in South
Carolina. Our sauce is made from all natural ingredients and contains no
cholesterol. It can be used on any food grilled on the barbecue grill as well as
on the table as a dipping sauce. We licensed the recipe for our initial product
from David E. Jordan, a stockholder and promoter of our company. Initial sales
began in 2006.

Our license agreement

     We have an exclusive worldwide license agreement with David E. Jordan, a
shareholder and father of our president, allowing us to use a recipe developed
by Mr. Jordan for our initial yellow mustard-based barbecue sauce. Under the
license agreement, we have the exclusive right to use the recipe and related
know-how of Mr. Jordan. We issued Mr. Jordan 500,000 shares of our common stock
as consideration for the license. We agreed to exercise our best efforts,
consistent with good business practice, to undertake and maintain the commercial
scale production, marketing and distribution of products embodying the subject
matter of the recipe. Mr. Jordan may cancel and terminate the license in the
event that we have not introduced a product into the commercial marketplace
based on his recipe and recognize revenues of $500,000 from sale of such 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.

                                        6
<PAGE>

Future products

     We intend to introduce new products including other unusual barbecue sauce
recipes and a smoked salt condiment product which we have already developed.
However, there can be no assurance that any future products will be successfully
marketed.

Government Regulation

     The production, distribution and sale of food products are subject to the
Federal Food, Drug and Cosmetic Act, the Occupational Safety and Health Act and
various federal and state statutes regulating the production, sale, safety,
advertising, promotion, labeling and ingredients of such products. We intend to
comply with all such regulations.

     We cannot predict the impact of possible changes that may be required in
response to future legislation, rules or regulations. Food and Drug
Administration regulations may, in certain circumstances, affect the ability of
the Company, as well as others in the industry, to develop and market new
products.

     Although we expect to package our barbecue sauce products in glass bottles,
such bottles are not currently required to be in returnable containers in
compliance with recycling laws which are applicable to beverage containers. If
such recycling laws are extended to our products we may be required to make
material expenditures which may have a material adverse effect on our business.

Competition

     The specialty foods business is highly competitive. In the barbecue sauce
market we will compete with products sold by established multi-line food
companies such as Kraft as well as a large number of smaller suppliers with
products appealing to regional and national tastes. Many of these competitors
have established channels of distribution of their products, greater financial
and other resources than we do. Competition can take many forms, including the
product taste and other attributes, pricing of products, discounts and
promotions, advertising and payments for access to store shelf space. We believe
that we will be able to compete based upon the unusual taste and appearance of
our initial product and our distribution and promotion plans designed to engage
consumers to try our product.

Employees

     As of December 31, 2006, 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% of their business time on the business of the
Company. We anticipate that we will begin hiring employees as needed to support
our entry into our proposed specialty food business.

ITEM 2.   DESCRIPTION OF PROPERTY.

     Our company is currently housed in the home of our president. We do not pay
our president for use of such space. We anticipate that we will rent separate
office facilities when needed to support the growth of our business. We do not
currently anticipate the need for warehouse space for our business. We expect
all warehouse and shipping of our products to be conducted by the packing firms
engaged to manufacture our products.

ITEM 3.   LEGAL PROCEEDINGS.

     None.

                                        7
<PAGE>

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.

        Quarter Ended               High Bid             Low Bid
        -------------               --------             -------
     September 30, 2006               .40                  .15
     December 31, 2006                .40                  .40

Holders.

     As of December 31, 2006 there were approximately 52 holders of our common
stock.

Dividends.

     There are no present material restrictions that limit our ability to pay
dividends on common stock or preferred stock. The Company has not paid any
dividends with respect to its common stock or preferred stock, and does not
anticipate payment of dividends in the foreseeable future.

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

FORWARD LOOKING INFORMATION

     The following discussion and analysis of the Company's financial condition
and results of operations should be read with the condensed financial statements
and related notes contained in this quarterly report on Form 10-KSB ("Form
10-KSB"). All statements other than statements of historical fact included in
this Form 10-KSB are, or may be deemed to be, forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements involve known and unknown
risks, uncertainties and other factors that may cause the Company's actual
results, levels of activity, performance or achievements to be materially
different than any expressed or implied by these forward-looking statements. In
some cases, you can identify forward-looking statements by terminology such as
"may," "will," "should," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential," "continue," or the negative of these terms
or other comparable terminology. Important factors that could cause actual
results to differ materially from those discussed in such forward-looking
statements include: 1. General economic factors including, but not limited to,
changes in interest rates and trends in disposable income; 2. Information and
technological advances; 3. Cost of products sold; 4. Competition; and 5. Success
of marketing, advertising and promotional campaigns. The Company is subject to

                                        8
<PAGE>

specific risks and uncertainties related to its business model, strategies,
markets and legal and regulatory environment. You should carefully review the
risks described in this Form 10-KSB and in other documents the Company files
from time to time with the SEC. You are cautioned not to place undue reliance on
the forward-looking statements, which speak only as of the date of this Form
10-KSB. The Company undertakes no obligation to publicly release any revisions
to the forward-looking statements to reflect events or circumstances after the
date of this document.

CRITICAL ACCOUNTING POLICIES

     The Company has identified the policies outlined below as critical to its
business operations and an understanding of its results of operations. The
listing is not intended to be a comprehensive list of all of the Company's
accounting policies. In many cases, the accounting treatment of a particular
transaction is specifically dictated by accounting principles generally accepted
in the United States, with no need for management's judgment in their
application. The impact and any associated risks related to these policies on
the Company's business operations is discussed throughout Management's
Discussion and Analysis or plan of operations where such policies affect the
Company's reported and expected financial results. For a detailed discussion on
the application of these and other accounting policies, see the Notes to
Financial Statements. The Company's preparation of the financial statements
requires it to make estimates and assumptions that affect the reported amount of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of the Company's financial statements, and the reported amounts of revenue
and expenses during the reporting period. There can be no assurance that actual
results will not differ from those estimates.

LONG-LIVED INTANGIBLE ASSETS.

     The carrying value of long-lived intangible assets is reviewed if the facts
and circumstances suggest that they may be impaired. If this review indicates
that the assets will not be recoverable over the remaining amortization period,
then the carrying values of the assets are reduced to their estimated fair
values. There was no impairment loss for the year ending December 31, 2006.

PLAN OF OPERATION.

     Our primary focus over the course of the next 12 months will be to
concentrate on achieving additional sales and distribution of our initial
product, a mustard-based yellow barbeque sauce, which was introduced into the
commercial marketplace in the quarter ended March 31, 2006. Sales to date have
been directly to retail markets. We will seek a wholesaler to carry the product
in order to obtain wider distribution than can be achieved through direct
solicitation.

     We anticipate that sales of our initial product will generate sufficient
cash flow to support our operations for the next twelve months. However, this is
based on our assumption of achieving significant sales of our product and there
can be no assurance that such sales levels will be achieved. Therefore, we may
require additional financing through factoring of accounts receivable, loans and
other arrangements, including the sale of additional common stock or preferred
stock.

     There can be no assurance that such additional financing will be available,
or if available, can be obtained on satisfactory terms. To the extent that any
such financing involves the sale of our equity securities, the interests of our
then existing stockholders, including the investors in this offering, could be
substantially diluted. In the event that we do not have sufficient capital to
support our operations we may have to curtail our operations.

                                        9
<PAGE>

     If we are successful in achieving a substantial sales volume for our
initial product we may need to engage other employees and service organizations
to provide needed services as the need for them arise. These could include
services such as computer systems, sales, marketing, advertising, public
relations, cash management, collections, accounting, and administration.

     We are subject to certain reporting and other compliance requirements of a
publicly reporting company. We will be subject to certain costs for such
compliance which private companies may not choose to make. We have identified
such costs as being primarily for audits, legal advice, filing expenses and
shareholder communications and estimate the cost to be approximately $22,000 for
the next twelve months.

     We will seek to control the operating and general and administrative
expenses of our operations to be within the cash available. If our initial sales
results indicate that our business can establish and fulfill a demand for our
initial product on a basis which will lead to establishment of a profitable
business we may seek additional sources of cash to grow the business. We do not
currently have any commitments for the sale of our proposed products or for
additional financing.

RISK FACTORS

     We are subject to a number of risks, some of which are discussed below.
Before deciding to invest in our company or to maintain or increase your
investment, you should carefully consider the risks described below, in addition
to the other information contained in this Annual Report on Form 10-KSB, our
Quarterly Reports on 10-QSB; and in our other filings with the Securities and
Exchange Commission, including any subsequent reports filed on Forms 10-KSB,
10-QSB and 8-K. The risks and uncertainties described below are not the only
ones that we face. Additional risks and uncertainties not presently known to us
or that we currently deem immaterial may also affect our business and results of
operations. If any of these risks actually occur, our business, financial
condition or results of operations could be seriously harmed.

BECAUSE WE ONLY RECENTLY BEGAN COMMERCIAL SALES OF OUR INITIAL PRODUCT, OUR
BUSINESS MAY NOT BE SUCCESSFUL.

     Our company was incorporated in December 2004 and we began commercial sales
of our initial product during the year ended December 31, 2006. We do not have
sufficient experience to judge the commercial acceptance of our initial product.
Investing in a business in the start-up phase is riskier than investing in a
business that has already begun selling products and has a history of
operations.

OUR INDEPENDENT AUDITORS HAVE RAISED SUBSTANTIAL DOUBTS ABOUT OUR ABILITY TO
CONTINUE AS A GOING CONCERN.

     Our independent auditors have raised substantial doubts about our ability
to continue as a going concern in their reports on our financial statements for
the years ended December 31, 2006 and 2005. If we are unable to continue as
going concern we would experience additional losses from the write-down of
assets.

BECAUSE WE MAY NOT BE SUCCESSFUL IN DEVELOPING OUR PROPOSED SPECIALTY FOOD
BUSINESS, THIS IS A RISKY INVESTMENT.

     The establishment of any new business is difficult and there can be no
assurance that the products we introduce will be a commercial success.

                                       10
<PAGE>

BECAUSE OUR PRODUCTS MAY NOT BE COMMERCIALLY SUCCESSFUL, WE MAY NOT BE ABLE TO
CONTINUE IN BUSINESS.

     In order to achieve profitable operations we are dependent upon market
acceptance of our products, substantial sales and the ability to produce and
distribute products at satisfactory cost levels, none of which can be assured.
We have recently introduced our initial barbecue sauce product into the
marketplace and have not achieved sufficient sales to achieve profitable
operations.

WE RELY ON A LICENSE FROM OUR CONTROLLING STOCKHOLDER FOR THE RECIPE FOR OUR
FIRST PRODUCT. OUR RIGHT TO USE SUCH RECIPE MAY BE TERMINATED UNDER CERTAIN
CIRCUMSTANCES AND THIS MAY RESULT IN A CONFLICT OF INTEREST, WHICH COULD BE
DETRIMENTAL TO US.

     Under the terms of the license of the recipe for our proposed first
product, the Licensor may cancel and terminate our use of the recipe in the
event we have not introduced a product into the commercial marketplace based on
the recipe and recognized revenues of $500,000 from such 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. In the event we make an
outright sale of the license or sub-license of the recipe we are required to
share in the proceeds equally (50/50 split) with Mr. Jordan. Although we believe
all transactions between Southern Sauce Company, Inc. and Mr. Jordan have been
and will be fair, the terms of the license agreement may cause our business to
be adversely affected.

For example,

     Mr. Jordan could exercise his control to put himself in a position to
terminate the license and obtain the rights to the recipe or influence the terms
of an acquisition of the company to obtain a 50% share of the proceeds.

WE MAY NEED ADDITIONAL CAPITAL TO ENABLE US TO INTRODUCE OUR FIRST PRODUCT INTO
THE MARKETPLACE, WHICH MEANS WE MAY NOT BE ABLE TO CONTINUE OPERATING OUR
BUSINESS.

     We have no current arrangements with respect to, or sources of any
additional capital, and there can be no assurance that such additional capital
will be available to us when needed. If we are unable to obtain additional
capital this would have a material adverse effect on us and would cause us to be
unable to continue the sales of our first product. To the extent that any such
financing involves the sale of our equity securities, the interests of our then
existing stockholders, including the investors in this offering, could be
substantially diluted. In the event that we do not have sufficient capital to
support our operations we may have to curtain our operations.

OUR OFFICERS AND DIRECTORS HAVE NO EXPERIENCE IN THE SPECIALTY FOOD BUSINESS OR
MANAGING PUBLIC COMPANIES, MAKING IT LESS LIKELY THAT OUR BUSINESS WILL BE
SUCCESSFUL.

     None of our officers and directors has any background or experience in the
specialty food business or managing public companies. Investing in a business
which is run by persons who have no experience in the industry in which it will
operate is riskier than investing in a business that has a management team with
experience in its industry. Investing in a public company which is run by
persons who have no experience in operating public companies is riskier than
investing in a business that has a management team with experience in the
operation of public companies.

                                       11
<PAGE>

WE HAVE NO FULL TIME EMPLOYEES AND OUR OFFICERS ONLY WORK FOR US ON AN "AS
NEEDED" BASIS, WHICH MEANS OUR MANAGEMENT MAY BE INADEQUATE TO OPERATE OUR
BUSINESS.

     We do not currently employ any full-time employees. All of our activities
to date have been undertaken by our officers who only devote approximately 5% of
their time to operating our business as needed. We cannot assure you that our
management will be able to devote sufficient time to our business in the future
or that we will be able to hire employees when needed to support our specialty
food business.

LIQUIDITY AND CAPITAL RESOURCES

     During the year ended December 31, 2006, working capital decreased $35,807
to a deficit of ($9,739) from working capital of $26,068. The primary reasons
for the decrease are a decrease in cash of $23,331, an increase in accounts
payable of $13,957, offset by an increase in inventories of $1,480. During this
same period, stockholders' equity decreased $36,121 to ($8,797) from $27,324.
The decrease in stockholders' equity is primarily due to the common stock issued
for services of $7,500 and preferred stock issued for cash of $3,000 offset by
the net loss for the year of ($46,622).

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

ITEM 7.  CONSOLIDATED FINANCIAL STATEMENTS


                           SOUTHERN SAUCE COMPANY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                              FINANCIAL STATEMENTS

                                TABLE OF CONTENTS


Report of Independent Registered Public Accounting Firm ..................... 13

Financial Statements:

     Balance Sheet as of December 31, 2006 .................................. 14

     Statements of Operations for the years ended December 31, 2006
     and 2005,and for the period from December 1, 2004 (inception)
     through through December 31, 2006 ...................................... 15

     Statement of Changes in Stockholders' equity (deficit) for the
     period from December 1, 2004 (inception) through December 31, 2006 ..... 16

     Statements of Cash Flows for the year ended December 31, 2006 and
     2005, for the period from December 1, 2004 (inception) through
     through December 31, 2006 .............................................. 17

Notes to Financial Statements ............................................... 18


                                       12
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
Southern Sauce, Inc.
Morriston, Florida

We have audited the accompanying balance sheet of Southern Sauce, Inc. (a
development stage company) as of December 31, 2006, and the related statements
of operations, stockholders' equity (deficit) and cash flows for the years ended
December 31, 2006 and 2005, and the period from December 1, 2004 (inception) to
December 31, 2006. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on the
financial statement 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. An audit includes examining on a
test basis, evidence supporting the amount 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, Inc. as of
December 31, 2006, and the results of their operations and their cash flows for
the years ended December 31, 2006 and 2005,and the period from December 1, 2004
(inception) to December 31, 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 a stockholder's deficit of $98,431 at
December 31, 2006, and had net a loss and cash used in operations of $46,622 and
$26,331, respectively, for the year ended December 31, 2006. This raises
substantial doubt about its ability to continue as a going concern. Management's
plans in regards to 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

Boca Raton, Florida
March 28, 2007

                                       13
<PAGE>

SOUTHERN SAUCE COMPANY, INC
(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEET
DECEMBER 31, 2006


ASSETS

CURRENT ASSETS
  Cash and cash equivalents ......................................     $  3,411
  Inventories ....................................................        1,480
                                                                       --------
Total current assets .............................................        4,891

License, net .....................................................          942
                                                                       --------
Total assets .....................................................     $  5,833
                                                                       ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
  Accounts payable ...............................................     $ 14,630
                                                                       --------
Total current liabilities ........................................       14,630

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT
  Preferred stock; $.001 par value; authorized 15,000,000
    shares; none issued and outstanding ..........................            -
  Common stock, $.001 par value; authorized 100,000,000
    shares; issued and outstanding 2,930,500 shares ..............        2,931
  Additional paid-in capital .....................................       86,703
  Deficit accumulated during the development stage ...............      (98,431)
                                                                       --------
Total stockholders' deficit ......................................       (8,797)
                                                                       --------
Total liabilities and stockholders' deficit ......................     $  5,833
                                                                       ========

                 See accompanying notes to financial statements.

                                       14
<PAGE>
<TABLE>
SOUTHERN SAUCE COMPANY, INC
(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2006 AND 2005, AND
THE PERIOD FROM DECEMBER 1, 2004 (INCEPTION) THROUGH DECEMBER 31, 2006
<CAPTION>

                                                             YEAR ENDED                DECEMBER 1, 2004
                                                            DECEMBER 31,             (INCEPTION) THROUGH
                                                       2006             2005          DECEMBER 31, 2006
                                                   -----------      -----------      -------------------
<S>                                                <C>              <C>              <C>
Net Sales ....................................     $     2,869      $         -          $     2,869
Cost of Sales ................................           3,054                -                3,377
                                                   -----------      -----------          -----------
Gross Profit .................................            (185)               -                 (508)

COSTS AND EXPENSES:
  Selling, general and administrative expenses          71,558           47,830              123,078
                                                   -----------      -----------          -----------
                                                        71,558           47,830              123,078
                                                   -----------      -----------          -----------
Loss from operations .........................         (71,743)         (47,830)            (123,586)

OTHER INCOME (EXPENSE):
  Other income ...............................          25,000                -               25,000
  Interest income ............................             121               34                  155
                                                   -----------      -----------          -----------
    Total other income (expense) .............          25,121               34               25,155
                                                   -----------      -----------          -----------

LOSS BEFORE INCOME TAXES .....................         (46,622)         (47,796)             (98,431)
INCOME TAXES .................................               -                -                    -
                                                   -----------      -----------          -----------
NET LOSS .....................................     $   (46,622)     $   (47,796)         $   (98,431)
                                                   ===========      ===========          ===========


BASIC AND DILUTED NET LOSS PER SHARE .........     $     (0.02)     $     (0.02)         $     (0.04)
                                                   ===========      ===========          ===========

WEIGHTED AVERAGE SHARES OUTSTANDING
  BASIC AND DILUTED ..........................       2,882,142        2,342,192            2,572,213
                                                   ===========      ===========          ===========

                             See accompanying notes to financial statements.

                                                   15
</TABLE>
<PAGE>
<TABLE>
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, 2006
<CAPTION>
                                                                                                          Deficit
                                                                                                        Accumulated
                                                                                           Additional   during the
                                              Common Stock           Preferred Stock        Paid-in     Development
                                           Shares    Par Value     Shares     Par Value     Capital        Stage       Equity
                                         ----------  ----------  ----------   ----------   ----------   -----------  ----------
<S>                                      <C>         <C>         <C>          <C>          <C>          <C>          <C>
BALANCE, DECEMBER 1, 2004 (INCEPTION) .           -  $        -           -   $        -   $        -   $        -   $        -
Common stock issued for cash ..........     610,000         610           -            -        4,390            -        5,000
Common stock issued for license .......     500,000         500           -            -        1,070            -        1,570
Common stock issued for services ......     490,000         490           -            -        3,523            -        4,013
  Net loss December 31, 2004 ..........           -           -           -            -            -       (4,013)      (4,013)
                                         ----------  ----------  ----------   ----------   ----------   ----------   ----------
BALANCE, December 31, 2004 ............   1,600,000  $    1,600           0   $        -   $    8,983   $   (4,013)       6,570
                                         ==========  ==========  ==========   ==========   ==========   ==========   ==========
Common stock issued for cash ..........     900,000         900           -            -       35,100            -       36,000
Preferred stock issued for cash .......           -           -       3,255            3       32,547            -       32,550
  Net loss December 31, 2005 ..........           -           -           -            -            -      (47,796)     (47,796)
                                         ----------  ----------  ----------   ----------   ----------   ----------   ----------
                                          2,500,000  $    2,500       3,255   $        3   $   76,630   $  (51,809)      27,324
                                         ==========  ==========  ==========   ==========   ==========   ==========   ==========
Common stock issued for services ......      75,000          75           -            -        7,425            -        7,500
Preferred stock issued for cash .......           -           -         300            -        3,000            -        3,000
Conversion of Preferred Stock to Common     355,500         356      (3,555)          (3)        (352)           -            1
  Net loss December 31, 2006 ..........           -           -           -            -            -      (46,622)     (46,622)
                                         ----------  ----------  ----------   ----------   ----------   ----------   ----------
                                          2,930,500  $    2,931           -   $        0   $   86,703   $  (98,431)      (8,797)
                                         ==========  ==========  ==========   ==========   ==========   ==========   ==========

                                        See accompanying notes to financial statements.

                                                               16
</TABLE>
<PAGE>
<TABLE>
SOUTHERN SAUCE COMPANY, INC
(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2006 AND 2005, AND
THE PERIOD FROM DECEMBER 1, 2004 (INCEPTION) THROUGH DECEMBER 31, 2006
<CAPTION>

                                                                YEAR ENDED             DECEMBER 1, 2004
                                                               DECEMBER 31,          (INCEPTION) THROUGH
                                                            2006          2005        DECEMBER 31, 2006
                                                          --------      --------     -------------------
<S>                                                       <C>           <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss ............................................     $(46,622)     $(47,796)         $(98,431)
Adjustments to reconcile net loss to net
 cash used in operating activities:
  Amortization ......................................          314           314               628
  Issuance of common stock for services .............        7,500             -            11,513
  Change in assets and liabilities
    Inventories .....................................       (1,480)            -            (1,480)
    Accounts payable ................................       13,957           674            14,631
                                                          --------      --------          --------
Net cash used in operating activities ...............      (26,331)      (46,808)          (73,139)
                                                          --------      --------          --------

CASH FLOWS FROM INVESTING ACTIVITIES
                                                          --------      --------          --------
Net cash used in investing activities ...............            -             -                 -
                                                          --------      --------          --------

CASH FLOWS FROM FINANCING ACTIVITIES
  Common stock issued for cash ......................            -        36,000            41,000
  Preferred stock issued for cash ...................        3,000        32,550            35,550
                                                          --------      --------          --------
Net cash provided by  financing activities ..........        3,000        68,550            76,550
                                                          --------      --------          --------

NET (DECREASE) INCREASE  IN CASH AND CASH EQUIVALENTS      (23,331)       21,742             3,411
CASH AND CASH EQUIVALENTS, beginning of period ......       26,742         5,000                 -
                                                          --------      --------          --------
CASH AND CASH EQUIVALENTS, end of period ............     $  3,411      $ 26,742          $  3,411
                                                          ========      ========          ========

Supplementary 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.

                                                   17
</TABLE>
<PAGE>

                           SOUTHERN SAUCE COMPANY, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                DECEMBER 31, 2006
                     NOTES TO UNAUDITED 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.

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 Collectability is reasonably assured

The Company closely follows the provisions of Staff Accounting Bulletin No. 104
as described above. For the year ended December 31, 2006 and 2005 and for the
period from December 1, 2004 (inception) to December 31, 2006, the Company has
recognized minimal revenues.

                                       18
<PAGE>

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.

INTANGIBLE ASSETS

Intangible assets consist of license agreements which are recorded at cost and
amortized over a straight-line basis. The amortization expense for years ended
December 31, 2006 and 2005 was $314 and $314 respectively.

The Company evaluates the recoverability of identifiable intangible assets
whenever events or changes in circumstances indicate that an intangible asset's
carrying amount may not be recoverable. There was no impairment loss for the
year ending December 31, 2006.

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.

During the three months ended March 31, 2006, the Company issued 300 shares of
Series A convertible preferred stock at $10.00 per share, for a total of $3,000.

During the three months ended March 31, 2006, the Company issued 75,000 shares
of common stock for services rendered at a value of $7,500.

During the three months ended March 31, 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 December 31, 2006.

NOTE 4 - OTHER INCOME

On September 1, 2006 the Company entered into a No Shop Agreement with a third
party involving a potential business acquisition with the company. Under the
agreement the Company would not negotiate or provide other information with
respect to a competing transaction until September 19, 2006 in exchange for a
nonrefundable $25,000 payment. The third party forfeited this deposit.

                                       19
<PAGE>

NOTE 5 - 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, 2006 totaling $98,431. The start-up costs will be amortized over one hundred
eighty months beginning in the year of initial operations.

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

                  2006     2005
                  ----     ----

     Current      $  -     $  -
     Deferred        -        -
                  ----     ----
                  $  -     $  -
                  ====     ====

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

                                                           2006          2005
                                                           ----          ----

     Computed at the statutory rates (34%) .........     $(15,851)     $(16,262)
     Non deductible expenses .......................        1,180           246
     State income taxes (net of federal tax benefit)       (1,692)       (1,710)
     Change in valuation Allowance .................       16,363        17,726
                                                         --------      --------
     Tax provision (benefit) .......................     $      -      $      -
                                                         ========      ========

The significant temporary differences that give rise to a deferred tax asset as
of December 31, 2006 and 2005 are as follows:

                                                    2006            2005
                                                    ----            ----
     Deferred tax asset:
     Capitalized start up costs ...........         37,000          17,726
                                                  --------        --------
          Total deferred tax asset ........         37,000          17,726
          Less valuation allowance ........        (37,000)        (17,726)
                                                  --------        --------
          Net deferred tax asset ..........       $      -        $      -
                                                  ========        ========

The net change in the total valuation allowance for the year ended December 31,
2006 was an increase of $19,274.

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, 2006.

                                       20
<PAGE>

NOTE 6 - RECENT ACCOUNTING PRONOUNCEMENTS

     In June 2006, the Financial Accounting Standards Board ("FASB") issued
Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes,"
which prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. In accordance with FIN 48, the Company
must adjust its financial statements to reflect only those tax positions that
are more-likely-than-not to be sustained as of the adoption date. The effective
date of FIN 48 for the Company is January 1, 2007. The adoption of FIN 48 is not
expected to have a material impact on the Company's condensed consolidated
financial statements.

     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.

NOTE 7 - 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, 2006 and 2005, the Company had no amounts in
excess of FDIC insured limit.

NOTE 8 - 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. For the periods ended December 31, 2006 and 2005, the Company
reported a net loss, therefore no common shares equivalent were included in
diluted net loss per common share because the affect would be anti-dilutive.

                                       21
<PAGE>

     The following reconciles amounts reported in the financial statements:
<TABLE>
<CAPTION>
                                                                                  December 1, 2004
                                                                                    (Inception)
                                                  Year ended       Year ended         through
                                                  December 31,     December 31,     December 31,
                                                      2006             2005             2006
                                                  -----------      -----------      -----------
<S>                                               <C>              <C>              <C>
     Net loss ...............................     $   (46,622)     $   (47,796)     $   (98,431)
                                                  ===========      ===========      ===========
     Denominator for basic loss per share -
     Weighted average shares ................       2,882,142        2,342,192        2,572,213

     Denominator for diluted loss per share -
     Basic and diluted loss per common share      $      (.02)     $      (.02)     $      (.04)
                                                  ===========      ===========      ===========
</TABLE>

NOTE 9 - GOING CONCERN

     As reflected in the accompanying financial statements, the Company had a
net loss for the year ended December 31, 2006 of $46,622 and net cash used in
operations of $26,331, and a deficit accumulated from inception to December 31,
2006 of $98,431. At December 31, 2006, 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.

     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 10 - 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
will be 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
     -----------------------
     2007 ............ $ 314
     2008 ............   314
     2009 ............   314
                       -----
                       $ 942
                       =====

                                       22
<PAGE>

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

     (a) On November 16, 2005, Southern Sauce Company, Inc. (the "Company")
dismissed Daszkal Bolton LLP as the Company's independent registered public
accounting firm. The decision to change the Company's independent registered
public accounting firm was approved by the Company's Board of Directors.

     (b) During the fiscal year ended December 31, 2004 and the interim period
through November 16, 2005, there were no disagreements with Daszkal Bolton LLP
on any matter of accounting principles or practices, financial statement
disclosure, or accounting scope or procedure, which disagreements, if not
resolved to the satisfaction of Daszkal Bolton LLP, would have caused Daszkal
Bolton LLP to make reference thereto in its reports on the financial statements
for such years.

     (c) During the fiscal year ended December 31, 2004 and the interim period
through November 16, 2005, there were no reportable events.

     (d) The report of Daszkal Bolton LLP on the Company's financial statements
as of and for the fiscal year ended December 31, 2004 contained no adverse
opinion or disclaimer of opinion and were not qualified or modified as to
uncertainty, audit scope, or accounting principle, other than uncertainty as to
the Company's ability to continue as a going concern.

     (e) We have requested that Daszkal Bolton LLP furnish a letter addressed to
the Securities and Exchange Commission (the "SEC") stating whether Daszkal
Bolton LLP agrees with the above statements made by us. A copy of this letter
addressed to the Securities and Exchange Commission, dated November 21, 2005, is
filed as Exhibit 16 to our Current Report on Form 8-K filed November 22, 2005.

     (f) On November 21, 2005, the Company engaged Sherb & Co., LLP, as its new
independent registered public accounting firm. The Company has not consulted
with Sherb & Co., LLP during the fiscal year ended December 31, 2004 and through
November 16, 2005, on either the application of accounting principles or type of
opinion Sherb & Co., LLP might issue on the Company's financial statements.

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.

                                       23
<PAGE>

     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.

Item 8B.  Other Information.

     None.

                                    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 E. Jordon          51        President, Chief Executive Officer, Director
Francis A. Rebello        56        Treasurer, Secretary, Director
Anand Kumar               62        Director
Todd W. Rowley            48        Director
Bob Bova                  47        Director

     ROBERT E. 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.

     FRANCIS A. REBELLO has been our Treasurer, Secretary and a director since
December 2004. Mr. Rebello has been a project manager for the Satilla Regional
Cancer Treatment Center, Waycross, Georgia since November 2002. From November
1984 to January 2002 Mr. Rebello was employed by American Express Company as an
instructional designer. Mr. Rebello attended school between January 2002 and
November 2002.

     ANAND KUMAR was elected as a director in February 2006. He has been
Executive Vice President of Ariel Way, Inc. since February 2, 2005 and was a
director and Executive Vice President of an Ariel Way predecessor since August
10, 2004. During Mr. Kumar's professional career, spanning almost 35 years, he
founded and operated a number of companies including the founding in 1992 of an
international consulting company, Communications Strategies Group, advising
foreign telecommunications administrations such as among others Iceland Telecom,
Andorra Telecom, Cyprus Telecom, Bangladesh Telecom Board and U.S. domestic
carriers including Cable & Wireless, Comsat RSI, AT&T, Sprint, MCI, Startec
Global Communications and various others. During this period Mr. Kumar also
helped build a European based telecommunications carrier, Esprit Telecom, later
acquired by Global TeleSystems, and an international satellite teleport,
Satellite Media Services, operating in the U.K. Prior to 2000 Mr. Kumar in
January 1999, Mr. Kumar established Global TeleSolutions, Inc. for the
origination and termination of multiple types of international telephony and
data traffic. Prior to this, Mr. Kumar co-founded and participated in building
the international operating locations for an international telecommunications
carrier, Facilicom International, Inc. in Washington, D.C. In addition to
establishing multiple gateway telecommunications switch locations and offices in
more than 12 foreign locations, Mr. Kumar was also part of the raising of $300
million in high-yield debt financing. In 1986, Mr. Kumar co-founded and served
as the President until 1992 of Washington International Teleport, WIT, an
international satellite teleport in Alexandria, Virginia. WIT evolved to operate
30 large satellite antennas for multiple satellites for a diverse group of

                                       24
<PAGE>

customers from MCI to CNN. It was built to offer both back haul services on
optical fiber and microwave connections and diverse types of satellite based
services for full time and ad-hoc users. Previous to these activities Mr. Kumar
was also for a number of years in various managerial capacities within the Bell
operating company environment, such as Bell Canada, Bell Northern Research, and
AT&T. Mr. Kumar is trained as an Electrical Engineer both at the undergraduate
and graduate levels in the U.S. and was a doctorate candidate in communications
studying under the guidance of professors from MIT.

     TODD W. ROWLEY was elected as a director in 2006. Mr. Rowley has worked for
the Wachovia Corporation since 1987 having begun his career at First Virginia
Bank in 1980. His most recent role is as a Senior Vice President and Senior
Relationship Manager in the Metropolitan Washington region's Commercial Banking
Division. Prior to that, Mr. Rowley served as a Portfolio Partner in First
Union's Strategic Ventures Group that was responsible for the overall management
of the institution's strategic investment portfolio; the Wachovia Corporation
has since acquired First Union Bank. Mr. Rowley has earned national recognition
for his work in support of small and minority businesses and regional economic
development, by having been named the U.S. Small Business Administration's
Financial Services Advocate of the Year for both 1993 and 1996. He was also
recognized by Fairfax County, Northern VA, as its Small Business Advocate of the
Year in 1992 and 1995. His financial support of small businesses that seek to
complete exporting transactions has also earned him Preferred and Level A
lending status from the Export-Import Bank of the United States. This
designation is awarded to less than 0.1 percent of all U.S. export lenders. A
native of southeastern Michigan, Mr. Rowley has lived and worked in the
Metropolitan Washington, D.C. region for over 22 years. He holds a bachelors
degree in business administration and speech communications from Adrian College,
a graduate degree in banking finance from the Stonier Graduate School of Banking
at the University of Delaware and a Master of Business Administration degree
with honors from Virginia Polytechnic Institute's R.B. Pamplin College of
Business. Mr. Rowley serves on the advisory boards of Virginia Polytechnic
Institute, "Virginia Tech", George Mason University, and the Metropolitan
Washington Regional Information/High Technology Project. Mr. Rowley also serves
on the board of directors for the Northern Virginia Technology Council, the
National Association of Workforce Boards, the Boy Scouts of America, the
Northern Virginia Workforce Investment Board, Leadership Fairfax Inc., REGION,
the Metropolitan Washington Alzheimer's Association, the National Kidney
Foundation - Capital Area, the Northern Virginia Community College Education
Foundation, and the Fairfax County Superintendent's Advisory Board; and is an
active member of Leadership Charlotte.

     BOB BOVA was elected as a director in February 2006. Mr. Bova is President
& CEO of Enfotec, Inc. Mr. Bova, who has over 20 years' experience in the
Information Technology field, works with the engineering team to provide the
open systems vision of Enfotec for the future of securing corporate data.
Delivering on introducing new technology to the market, Mr. Bova is recognized
in the Venture Capital, Entrepreneurial and Analyst communities in Southern
California as a resource for emerging technologies and their companies and helps
them evaluate their potential. As a previous Director at U.S. Bank/Oliver Allen
Corp., Mr. Bova started the Secure Networking Division and grew it to over $12
million in revenues within two years. He developed a worldwide scope of business
and services by partnering with companies such as IBM, Memorex/Telex, HP and
others. In 1997, Mr. Bova left U.S. Bank/Oliver Allen Corp. to start the ISG
division, SSL Technology, at Rainbow Technologies and grew that from $0 to $37
million in revenues in just under three years. Key development relationships
here included Intel, Sun Microsystems, HP, Dell, F5 and Nortel. As the Executive
Vice President of Asita Technologies, Mr. Bova was responsible for developing
the sales, marketing, administration, support, and finance infrastructures as
well as raising $24 million in funding for the organization. In addition to
developing and staffing Asita Technologies' worldwide headquarters in Irvine,
California, he established the organization in the Pacific Rim, Europe and North
America. In the local community of Southern California, Mr. Bova has received

                                       25
<PAGE>

special commendation awards from Concept 7 Foster Family Agency, The Red Cloud
Indian Society as well as captaining the local Neighborhood Watch organization
in partnership with the Irvine Police Department. Mr. Bova holds an MBA in
Marketing from National University and an Undergraduate degree from Syracuse
University.

DIRECTOR INDEPENDENCE

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

     The Board has determined that directors Anand Kumar, Todd W. Rowley and Bob
Bova are independent directors within The NASDAQ Stock Market's director
independence standards. Directors Robert E. Jordan and Francis A. Rebello are
not independent. 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 A. Rebello, who are not independent,
constitute the audit committee. The Board has determined that Mr. Rebello is an
audit committee financial expert.

     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 Exhibit 14 to Company's report
on Form 10-K for the year ended December 31, 2005.

ITEM 10.  EXECUTIVE COMPENSATION.

                           SUMMARY COMPENSATION TABLE

     The following table presents compensation information for the year ended
December 31, 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 2006.
<TABLE>
<CAPTION>
Name and Principal                                                             All Other
Position                    Year     Salary     Bonus     Options Awards     Compensation     Total
-----------------------     ----     ------     -----     --------------     ------------     -----
<S>                         <C>      <C>        <C>       <C>                <C>              <C>
Robert E. Jordan,           2006       -          -             -                  -            0
President/CEO

Francis A. Rebello,         2006       -          -             -                  -            0
Treasurer and Secretary
</TABLE>

                                       26
<PAGE>

                         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, 2006

     The Company does not have any equity compensation plans outstanding as of
December 31, 2006.

                              DIRECTOR COMPENSATION

     The following table sets forth compensation earned or paid to our
independent directors in 2006. Such compensation consisted of 25,000 shares of
our common stock issued to each director who is not a named executive officer.
<TABLE>
<CAPTION>
                   Fees Earned                  Non-equity
                   or Paid in      Stock      Incentive Plan      All Other
    Name              Cash         Awards      Compensation      Compensation     Total
--------------     -----------     ------     --------------     ------------     ------
<S>                <C>             <C>        <C>                <C>              <C>
Anand Kumar                        $2,500            -                 -          $2,500
Todd W. Rowley                     $2,500            -                 -          $2,500
Bob Bova                           $2,500            -                 -          $2,500
</TABLE>

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

     The following table sets forth, as of December 31 , 2006, the beneficial
ownership of our 2,500,000 outstanding shares of Common Stock by (1) the only
persons who own of record or are known to own beneficially, more than 5% of our
Common Stock; (2) each director and executive officer; and (3) all directors and
officers as a group.

                                     Number of             Percent
Name                                  Shares          Beneficially Owned
----                                 ---------        ------------------

Robert E. Jordan ............          122,500               4.1 %
Francis A. Rebello ..........          122,500               4.1 %
David E. Jordan .............        1,110,000              37.8 %
Anand Kumar .................           25,000                *
Todd W Rowley ...............           25,000                *
Bob Bova ....................           25,000                *
                                     ---------              ------
All directors and officers
 as a group 5 persons) ......          320,000              10.9 %

The address of David E. Jordan is 333 North Ocean Blvd., Deerfield Beach,
Florida 33441.

Promoters

     We were founded in December 2004. David E. Jordan and Robert E. Jordan were
instrumental in our organization and may be considered promoters of our company.
They received no consideration for their services in connection with our
organization, but David E. Jordan received 500,000 shares of common stock for
licensing a barbecue sauce to us and Robert E. Jordan received 122,500 shares of
common stock for serving as a director until the next annual meeting of
shareholders. David E. Jordan also purchased 610,000 shares of our common stock
for $5,000 in December 2004.

                                       27
<PAGE>

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

     We have an exclusive worldwide license agreement with David E. Jordan, a
shareholder and father of our president, allowing us to use a recipe developed
by Mr. Jordan for our initial yellow, mustard-based barbecue sauce. Under the
license agreement, we have the exclusive right to use the recipe related
know-how of Mr. Jordan. We issued Mr. Jordan 500,000 shares of our common stock
as consideration for the license. We agreed to exercise our best efforts,
consistent with good business practice, to undertake and maintain the commercial
scale production, marketing and distribution of products embodying the subject
matter of the recipe. Mr. Jordan may cancel and terminate the license in the
event that we have not introduced a product into the commercial marketplace
based on his recipe and recognized revenues of $500,000 from sale of such
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.

     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

Number    Description
------    -----------

3.1       Articles of Incorporation *
3.2       By-laws *
10.1      License Agreement *
14        Code of Ethics **
31.1      Certificate of Principal Executive Officer Pursuant to Section 302 of
           the Sarbanes-Oxley Act.
31.2      Certificate of Principal Financial Officer Pursuant to Section 302 of
           the Sarbanes-Oxley Act.
32.1      Certificate of Principal Executive Officer Pursuant to Section 906 of
           the Sarbanes-Oxley Act
32.2      Certificate of Principal Financial Officer Pursuant to Section 906 of
           the Sarbanes-Oxley Act

* 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.

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

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

     The following is a summary of the fees billed to the Company by its
principal accounting firm during the calendar years ended December 31, 2006 and
2005:

Fee Category                          2006           2005
------------                          ----           ----

Audit Fees ..................       $15,000        $21,829
Audit-related fees ..........       $     0        $     0
Tax Fees ....................       $ 1,000        $     0
All other fees ..............       $     0        $     0
Total fees ..................       $16,000        $21,829

                                       28
<PAGE>

     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 consolidated
financial statements of the Company contained in the Company's Annual Report on
Form 10-KSB for the Company's 2006 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 consolidated 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 consolidated financial statements be
included in the Company's Annual Report on Form 10-KSB for its 2006 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.

                                       29
<PAGE>

                                   SIGNATURES

     In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                        SOUTHERN SAUCE COMPANY,  INC.

April 3, 2007                           By: /s/ Robert I. Jordan
                                            --------------------
                                            Robert Jordan, President
                                            (principal executive officer)


April 3, 2007                           By: /s/ Francis A. Rebello
                                            ----------------------
                                            Francis A. Rebello, Treasurer
                                            (principal accounting officer)


     In accordance with the Exchange Act, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on
the dates indicated.


Signature                             Title                           Date
---------                             -----                           ----


/s/ Robert E. Jordan        President                              April 3, 2007
--------------------        (principal executive officer)
Robert E. Jordan            and director


/s/ Francis A. Rebello      Treasurer, Secretary                   April 3, 2007
----------------------      (chief accounting officer)
Francis A. Rebello          and director


/s/ Anand Kumar             Director                               April 3, 2007
---------------
Anand Kumar


/s/ Todd W. Rowley          Director                               April 3, 2007
------------------
Todd W. Rowley


/s/ Bob Bova                Director                               April 3, 2007
------------
Bob Bova

                                       30