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UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549



FORM
10-KSB



(Mark
One)

þANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For
the fiscal year ended  6/30/2006

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

For
the transition period from ______________ to________________

Commission
file number 000-50898





_____________FalconTarget,
Inc._____________

(Name
of Small Business Issuer in its charter)



|Delaware                                                           | 34-1996523                              
|------------------------------------------------------------------ | ----------------------------------------
|(State
				or other jurisdiction of incorporation or organization) | (I.R.S.
				Employer Identification No.)
|4201
				Massachusetts Ave NW #8037C, Washington, DC               | 20016                                   
|(Address
				of principal executive offices)                       | (Zip
				Code)                          



Issuer’s
telephone number (202)_364-8395_________________________



Securities
registered under Section 12(b) of the Act:

|Title
				of each class | Name
				of each exchange on which
				to
				be so registered each class is to be registered
|----------------------- | ---------------------------------------------------------------------------------------------
|N/A                     | N/A                                                                                          



Securities
registered under Section 12(g) of the Act:



____Common
Stock $0.000001 par value____

(Title
of class)



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.þYes ̈No



Persons
who respond to the collection of information contained in this form
are not required to respond unless the form displays a currently
valid OMB control number.



Check
if there is no disclosure of delinquent filers in response to Item
405 of Regulation S-B is not 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.þ

State
issuer’s revenues for its most recent fiscal year. $0

State
the aggregate market value of the voting and non-voting common equity
held by non-affiliates computed by reference to the price at which
the common equity was sold, or the average bid and asked price of
such common equity, as of a specified date within the past 60 days.
(See definition of affiliate in Rule 12b-2 of the Exchange Act.)

Note:
If determining whether a person is an affiliate will involve an
unreasonable effort and expense, the issuer may calculate the
aggregate market value of the common equity held by non-affiliates on
the basis of reasonable assumptions, if the assumptions are stated.

The
aggregate market value of shares of voting common stock held by
nonaffiliates of the Registrant is approximately $0 on June 30, 2006.

There
were 22,000,000 shares of the Registrant’s common stock
outstanding as of June 30, 2006.

Table
	of Contents


Part
	I	3 Forward Looking
	Statements	3 Item 1.
	Description of Business.	3 Item 2.
	Description of Property.	5 Item 3. Legal
	Proceedings.	5 PART
	II	5 Item 1. Market for
	Common Equity and Related Stockholder Matters.	5 Item 6.
	Management’s Discussion and Analysis or Plan of Operation.	6 Off-balance sheet
	arrangements	8 Item 7. Financial
	Statements.	8 Item 8. Changes in
	and Disagreements with Accountants on Accounting and Financial
	Disclosure.	16 Item 8A. Controls
	and Procedures.	16 Evaluation of
	Disclosure Controls and Procedures	16 Changes in
	Internal Controls	17 Item 8B. Other
	Information.	17 PART
	III	17 Item 9. Directors
	and Executive Officers of the Registrant and Compliance with Section
	16(a) of the Exchange Act.	17 Section 16(a)
	Beneficial Ownership Reporting Compliance	18 Code of Ethics	18 Audit Committee
	Financial Expert	18 Item 10. Executive
	Compensation.	18 Item 11. Security
	Ownership of Certain Beneficial Owners and Management.	19 Item 12. Certain
	Relationships and Related Transactions.	19 Item 13. Exhibits
	and Reports on Form 8-K.	20 (a) Exhibits:	20 (b) Reports on
	Form 8-K 	20 Item 14. Principal
	Accountant Fees and Services.	20 Audit and
	Non-Audit Fees 	20 SIGNATURES	21


Part
	I Forward Looking Statements In this filing references to "FalconTarget,"
	"we," "us," and "our" refer to
	FalconTarget, Inc. of Delaware. This Form 10-QSB contains certain forward-looking
	statements.  For this purpose any statements contained in this Form
	10-QSB that are not statements of historical fact may be deemed to
	be forward-looking statements. Without limiting the foregoing, words
	such as "may," "will," "expect,"
	"believe," "anticipate," "estimate" or
	"continue" or comparable terminology are intended to
	identify forward-looking statements. By their nature these
	statements involve substantial risks and uncertainties, and actual
	results may differ materially depending on a variety of factors,
	many of which are not within our control. These factors include but
	are not limited to economic conditions generally and in the
	industries in which we may participate; competition within our
	chosen industry, including competition from much larger competitors;
	technological advances and failure by us to successfully develop
	business relationships or consummate a business transaction, as
	defined below. Item 1. Description of
	Business. FalconTarget was incorporated on May 28, 2004 in
	the State of Delaware to engage in any lawful activity under the
	laws of Delaware. Due to an error in the transmission of the
	incorporation documents, the actual incorporation in Delaware
	occurred on October 6, 2004. Between these two dates we operated as
	a de facto corporation. We are a development stage company,
	whose activities to date have been limited to the organization of
	the company, the filing of this registration statement and
	activities incidental thereto. We have not conducted any research,
	development or other business, and have not been involved in any
	bankruptcy, receivership or similar proceeding, or any material
	reclassification, merger, consolidation, or purchase or sale of
	assets. We have offered no products or services, and have never
	owned any patents, trademarks, licenses, franchises, concessions,
	royalty agreements, labor contracts or other intellectual or
	intangible property. For these reasons we have incurred net
	operating losses which will increase continuously until we can
	consummate a Business Transaction that is profitable. There is no
	assurance that we will be able to identify a profitable opportunity
	and consummate a Business Transaction. We are a “blank check” company, also
	often referred to as a “shell” company, whose purpose is
	to engage in a reverse merger transaction with a private company,
	acquire assets or engage into other yet unspecified business or
	businesses (a “Business Transaction”). The term ”reverse
	merger” refers to a transaction where a private company seeks
	public listing and becomes a publicly traded company. The private
	company shareholders gain control of the public company by merging
	it in with their private company. Typically, the private company
	shareholders receive the majority of the shares of the public
	company (normally 85% to 95%) and the original public shareholders
	retain the remaining shares, and the combined entity may change its
	name to that of the private company. Officers and directors may be
	appointed or elected by the formerly private company's shareholders. We will attempt to locate and negotiate with such
	a company. A Business Transaction is likely take one of several
	forms. If we consummate a reverse merger, it is likely to be a: Stock for stock exchange: we would exchange
		stock in our company for ownership interests the private company;Merger; orStock for asset exchange:  we would exchange
		stock in our company for the assets of a privately held company.
		However, to trade the new shares of the combined public company it
		must first register the shares with the SEC. Other Business Transactions could take one of the
	following forms, without limitation: Purchase of assets;joint venture;franchise agreements;licensing agreement. We anticipate that such a reorganization will be
	tax free under the Internal Revenue Code (“IRC”). We believe that there are numerous firms seeking
	the perceived benefits of a fully reporting public company. Such
	perceived benefits may include facilitating or improving the terms
	on which additional financing may be sought. Relative to a private
	enterprise, a public company may more successful in attracting
	potential investors and investment banking firms for the purposes of
	raising additional funds. The consummation of a Business Transaction will
	dilute the holdings of our existing shareholders. We expect that our
	existing shareholders will hold only a small fraction of the equity
	of FalconTarget or its successor after a Business Transaction. There is no assurance that we will be able to
	find a private company to merge with. We have not identified any
	potential acquirers and will not be able to establish a marketing
	organization for ourselves. Even if we do find a potential acquirer,
	there is no guaranty that ultimately the negotiations will lead to a
	Business Transaction. The market for “blank check”
	companies is highly competitive and many well-funded and experienced
	organizations, including venture capital funds broker/dealers and
	investment banks, are offering similar businesses for sale. We are
	at a disadvantage when competing with these offerings. The Securities and Exchange Commission, as well
	as many states, has issued rules and regulations governing the
	activities of “blank check” companies such as us. This
	includes limitations on the issuance, sale, transfer and re-sale of
	our securities. Relevant thereto, Mr. Serge Atlan and Mr. Thomas
	Kirchner, our principal shareholders, have expressed an intention
	not to sell their respective shares until we have consummated a
	Business Transaction, and we are no longer classified as a "blank
	check" company. To ensure that any state laws are not violated
	through the resale of our securities, we will refuse to register the
	transfer of any of our securities to residents of any state which
	prohibits such resale if no exemption is available for such resales.
	We do not anticipate that a secondary trading market for our
	securities will develop in any state until subsequent to
	consummation of a Business Transaction, if at all. We do not expect to be affected by environmental
	regulations prior to the completion of a Business Transaction. We have filed a registration statement on a
	voluntary basis, pursuant to section 12(g) of the Securities
	Exchange Act of 1934 (the "Exchange Act"), in order to
	ensure that public information is readily accessible to all
	shareholders and potential investors, and to increase our access to
	financial markets. We have not made, and are not planning to make,
	an offering of “blank check” securities. We do not
	intend to undertake any offering of our securities, either debt or
	equity, until such time as we have successfully implemented our
	business plan, as described herein. Item 2. Description of
	Property. We do not own any property and do not maintain an
	office or other property. We currently maintain a mailing address at c/o
	Thomas Kirchner, 4201 Massachusetts Avenue N.W., Washington, DC
	20016. We pay no rent for the use of this mailing address. We do not
	believe that it will need to maintain an office at any time in the
	foreseeable future in order to carry out our plan of operations
	described herein and in our registration statement. Item 3. Legal Proceedings. We are not and have never been party to legal
	proceedings, and have no knowledge of any indication or threat of
	legal action. We are not aware of any proceedings contemplated by a
	government authority. PART
	II Item 1. Market for Common
	Equity and Related Stockholder Matters. There is no public trading market for our
	securities at this time and there is no assurance that a regular
	trading market will develop, or if developed, will be sustained. We
	have not applied for a listing on any public trading exchange.
	Following a Business Transaction we intend to apply for a listing of
	our stock on NASDAQ, if it meets the listing requirements, or if it
	does not meet the requirements, for inclusion in the
	over-the-counter market on the so-called “Pink Sheets”
	or the “OTC Bulletin Board.” Our Common Stock is currently held by two owners
	of record. We do not anticipate transactions in our stock prior to
	the consummation of a Business Transaction. We have never paid any dividends and do not
	anticipate doing so prior to consummating a Business Transaction.
	There is no guaranty that we will be able to pay dividends
	subsequent to the consummation of a Business Transaction. As we do not have any employees, we do not intend
	to issue securities under equity compensation plans and will not
	register any securities pursuant to such a plan prior to
	consummating a Business Transaction. Under regulations proposed by
	the SEC our future ability to issue securities under an equity
	compensation plan could be restricted for a period of time
	immediately following the consummation of a Business Transaction. Item 6. Management’s
	Discussion and Analysis or Plan of Operation. We have no operations or revenues. Our management
	has held discussions with several parties about engaging in a
	Business Transaction. Our management may enter into confidentiality
	agreements that may preclude them from disclosing the existence of
	specific discussions until the signing of a letter of intent or
	definitive agreement. Our business plan for the next twelve months is
	to continue to seek, investigate and, if such investigation
	warrants, acquire an interest in a business entity which desires to
	seek the perceived advantages of a corporation which has a class of
	securities registered under the Exchange Act. We will not restrict
	our search to any specific business, industry, or geographical
	location and we may participate in a business venture of virtually
	any kind or nature. Our management has unrestricted discretion in
	seeking and participating in a Business Transaction, subject to the
	availability of such opportunities, economic conditions and other
	factors. Management may acquire or participate in a Business
	Transaction based on the decision of management which will, in all
	probability, act without consent, vote, or approval of our
	shareholders. We do not and will not have any capital to
	attract the owners of Business Transactions who desire significant
	cash or other assets. However, we believe that the opportunity to
	acquire a controlling ownership interest in a publicly registered
	company may attract a private companies for several reasons: lower cost, shorter timeframe and less
		dilution than going public through an IPO;use of public equity for future
		acquisitions;higher prestige and better public
		visibility;compliance with a requirement for admission
		to quotation on the NASD OTC Bulletin Board or on the Nasdaq
		SmallCap Market;easier capital raising and borrowing from
		banks or other financial institutions;employees may find compensation through
		stock or options more attractive if their employer is a public
		company;better ability to transfer stock or other
		securities; in the case of foreign companies: entry into
		the U.S. securities markets, enhanced credibility with U.S.
		customers, easier mergers or acquisitions in the U.S.; facilitation of succession or retirement
		planning for owner/managers. There are also several disadvantages for private
	companies from going public through a merger with us: no aftermarket support through underwriters;no capital raised;increased regulation;requirement for audited financial
		statements;required publication of corporate
		information;required filings of periodic reports with
		the SEC. Some of the above disadvantages are general
	aspects of public companies are not specifically linked to going
	public through a reverse merger. We believe that our plan of operations will be
	conducted through the efforts of Serge Atlan and Thomas Kirchner,
	and will not require any additional funds. It is anticipated that
	Mr. Atlan and Mr. Kirchner will furnish us with Business Transaction
	candidates. We may or may not use any notices, advertisements or
	third parties in our search for Business Transactions. Our
	management will also investigate specific Business Transactions and
	negotiate, draft and execute relevant agreements, disclosure
	documents and other instruments. We may engage broker/dealers,
	including Atlantic Republic Securities Corp. which is owned by Mr.
	Serge Atlan, or investment banking firms to introduce us to
	candidates for Business Transactions. The selection of a Business Transaction in which
	to participate is complex and extremely risky and will be made by
	management in the exercise of its business judgment. We have not
	conducted any research to verify the existence of demand for our
	business plan. There is no assurance that we will be able to
	identify and acquire any Business Transaction which will ultimately
	prove to be beneficial to us and our shareholders. Prior to making a decision about participation in
	a Business Transaction, we plan to obtain written materials
	regarding the Business Transaction including, without limitation, a
	description of products, services and company history; management
	resumes; financial information; available projections with related
	assumptions; evidence of existing patents, trademarks or service
	marks or rights thereto; present and proposed forms of compensation
	to management; a description of transactions between the prospective
	entity and our affiliates during relevant periods; a description of
	present and required facilities; an analysis of risk and competitive
	conditions; and other relevant information. In many instances,
	however, we anticipate that the historical operations of a specific
	Business Transaction may not necessarily be indicative of the
	potential for the future because of the possible need to shift
	marketing approaches substantially, expand significantly, change
	product emphasis, change or substantially augment management, or
	make other changes. We will be dependent upon the owners of a
	Business Transaction to identify any such problems which may exist
	and to implement, or be primarily responsible for the implementation
	of, required changes. If a Business Transaction were to be consummated,
	it would involve typically the transfer of a controlling interest in
	FalconTarget to such company or its controlling shareholders.
	Management of FalconTarget would most likely vest with the
	management of of the other company, and our current management,
	officers and directors are unlikely to be involved with
	FalconTarget's management after a Business Transaction. Our
	shareholders will in all likelihood hold a substantially lesser
	percentage ownership interest in FalconTarget following any Business
	Transaction. The legal structure or method deemed by
	management to be suitable will be selected based upon our review and
	our relative negotiating strength. Such structure may include, but
	is not limited to, leases, purchase and sale agreements, licenses,
	joint ventures and other contractual arrangements. We will
	participate in a Business Transaction only after the negotiation and
	execution of appropriate agreements. Although the terms of such
	agreements cannot be predicted, generally such agreements will
	require certain representations and warranties of the parties
	thereto, will specify certain events of default, will detail the
	terms of closing and the conditions which must be satisfied by the
	parties prior to and after such closing and will include
	miscellaneous other terms. We are classified as a 'blank check' company
	under rules of the SEC and certain states. Under these regulations
	the public sale of securities of blank check companies is limited.
	We will not make any efforts to cause a market to develop in our
	securities until such time as we have successfully implemented our
	business plan and FalconTarget is no longer classified as a blank
	check company. We anticipate that additional securities may be
	registered and issued subsequent to a Business Transaction. The
	issuance of substantial additional securities and their potential
	sale into any trading market which may develop in our securities may
	have a depressive effect on the future value of our securities, if
	such a market develops, of which there is no assurance. The
	completion of any Business Transaction may result in a significant
	dilution to our present stockholders. We currently have no employees. Our management
	expects to confer with consultants, attorneys and accountants as
	necessary. We do not anticipate a need to engage any full-time
	employees so long as we are seeking and evaluating Business
	Transactions. We will determine the need for employees based upon
	the specific Business Transaction. The amount of time spent by
	Messrs. Atlan and Kirchner on the activities of FalconTarget is not
	predictable. Such time may vary widely from an extensive amount when
	reviewing a target company and effecting a Business Transaction to
	an essentially quiet time when activities of management focus
	elsewhere. It is not possible to predict the amount of time that
	will be required to spend to review a suitable target company.
	Messrs. Atlan and Kirchner will not perform any services on behalf
	of FalconTarget until after the effective date of this registration
	statement and will provide their services thereafter without charge
	or repayment by FalconTarget. We will not borrow any funds to make
	any payments to our management, its affiliates or associates. Upon
	consummation of a Business Transaction the number of employees may
	increase, depending on the nature and size of the Business
	Transaction. Since inception, we have had no revenues or sales
	and primarily financed our operations through the sale of our common
	stock and loans. We believe that our current cash needs can be met
	by loans from our directors, officers and shareholders for at least
	the next twelve months. However, if we obtain a Business
	Transaction, it may be necessary to raise additional capital. This
	may be accomplished by selling our common stock. Our management
	intends to actively seek Business Transactions during the next
	twelve months. Off-balance sheet arrangements We currently have no off-balance sheet contracts
	or other off-balance sheet arrangements. Item 7. Financial Statements. Pollard-Kelley Auditing
	Services, Inc.................................................... Auditing
	Services                                                   3250 West
	Market St, Suite 307, Fairlawn, OH 44333 330-864-2265      Report
	of Independent Registered Public Accounting Firm   Board
	of Directors Falcon
	Target, Inc. (
	A Development Stage Company) We
	have audited the accompanying balance sheets of Falcon Target,
	Inc.(a Development Stage Company) as of June 30, 2006 and 2005 , and
	the related statements of income, changes in shareholders’
	equity, and cash flows for the years ended June 30, 2006 and 2005,
	and the period from May 28, 2004( date of inception) through June
	30, 2006.  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
	conduct 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 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.  Due
	to the development stage of the Company and the substantial
	dependence on the success of a particular project, a “reverse
	merger”, the Company’s chances for survival depend
	solely of the success of that “reverse” merger”.
	The accompanying financial statements do not include any adjustments
	that might result from the outcome of this uncertainty.  In
	our opinion, the financial statements referred to above present
	fairly, in all material respects, the financial position of the
	Company at June 30, 2006 and 2005, and the results of its
	operations, changes in shareholders’ equity,  and its cash
	flows for the years ended June 30, 2006 and 2005,and the period from
	May 28, 2004 (date of inception) through June 30, 2006,  in
	conformity with U.S. generally accepted accounting standards.  Pollard-Kelley
	Auditing Services, Inc.  /S/
	Pollard-Kelley Auditing Services, Inc.  Fairlawn,
	Ohio August
	 31, 2006  FALCONTARGET,
	INC.A DEVELOPMENT STAGE COMPANYBALANCE SHEETJUNE 30,
	2006 ASSETS CURRENT ASSETS:
				June 30, 2006
				June 30, 2005
				June 30, 2004CASH
				$	88
				$	100
				$	100TOTAL
					CURRENT ASSETS
				88
				100
				100TOAL
					ASSETS:
				$	88
				$	100
				$	100 LIABILITIES AND STOCKHOLDERS'
	EQUITY CURRENT
					LIABILITIES:ACCOUNTS
					PAYABLE
				$	0
				$	1,000
				$0TOTAL
					CURRENT  LIABILITIES
				0
				1,000
				0LONG-TERM
					DEBT, NET OF CURRENT PORTION:LOAN
					FROM SHAREHOLDERS
				3,114
				1,614
				1,244TOTAL
					LONG-TERM DEBT, NET OF CURRENT
					PORTION
				3,114
				1,614
				1,244STOCKHOLDERS'
					EQUITY:COMMON
					STOCK, $0.000001 PAR VALUE; AUTHORIZED	100,000,000 SHARES;
					ISSUED AND OUTSTANDING: 	22,000,000 SHARES @.000001
				22
				22
				0PAID-IN
					CAPITAL
				78
				78
				100ACCUMULATED
					DEFICIT DURING	DEVELOPMENT STAGE
				(3,126)
				(2,614)
				(1,244)TOTAL
					STOCKHOLDERS' EQUITY
				(3,026)
				(2,514)
				(1,144)EARNINGS
					PER SHARE:NET
					LOSS OF -512, -1,370 AND -1,244; 	22,000,000 WEIGHTED
					AVERAGE NUMBER	OF COMMON SHARES OUTSTANDING
				(512)
				(1,370)
				(1,244)BASIC
					LOSS PER COMMON SHARE
				$(0.000023)
				$(0.000062)
				$(0.000057)TOTAL
					LIABILITIES AND STOCKHOLDERS' EQUITY
				$	88
				$	100
				$	100 SEE ACCOMPANYING NOTES AND AUDITOR'S
	REPORT FALCONTARGET,
	INC.A DEVELOPMENT STAGE COMPANYSTATEMENT OF INCOMEYEARS
	ENDED JUNE 30, 2006, JUNE 30, 2005AND PERIOD MAY 28, 2004 (DATE
	OF INCEPTION) THROUGH JUNE 30, 2004 REVENUE
			Twelve
				months through 6/30/2006
			Twelve
				months through 6/30/2005
			Inception
				through 6/30/2004INCOME
			0
			0
			0TOTAL
				REVENUE
			0
			0
			0COST
				OF SALES
			0
			0
			0TOTAL
				COST OF SALES
			0
			0
			0GROSS
				PROFIT
			0
			0
			0EXPENSESACCOUNTING
			500
			1,260
			1,000AUDIT
			0
			0
			0BANK FEES
			12
			0
			0CORPORATE
				SEAL
			0
			0
			0DUES AND
				SUBSCRIPTIONS
			0
			50
			114FRANCHISE
				TAX
			0
			0
			0INCORPORATION
			0
			0
			0POSTAGE
			0
			0
			2PRINTING
				AND REPRODUCTION
			0
			0
			3STOCK
				CERTIFICATE
			0
			0
			0TAX
			0
			60
			125TOTAL
				EXPENSES
			512
			1,370
			1,244NET
				INCOME
			(512)
			(1,370)
			(1,244)CUMULATIVE
				REVENUES SINCE INCEPTION
			0CUMULATIVE
				EXPENSES SINCE INCEPTION
			3,126  SEE ACCOMPANYING NOTES AND AUDITOR'S
	REPORT    FALCONTARGET, INC.A DEVELOPMENT
	STAGE COMPANYSTATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY   Balance May 28, 2004
				Common stockShares
				Amount
				Paid In Capital
				Retained Earnings
				TotalSale of Common Stock
				22,000,000
				22
				78
				
				100Loss
					for Period
				
				
				
				(1,244)
				(1,244)Balance June 30, 2004
				22,000,000
				22
				78
				(1,244)
				(1,144)Loss
					for Period
				
				
				
				(1,370)Balance June 30, 2005
				22,000,000
				22
				78
				(2,614)
				(2,514)Loss
					for Period
				
				
				
				(512)Balance
					June 30, 2006
				22,000,000
				22
				78
				(3,126)
				(3,126)                 SEE ACCOMPANYING NOTES AND AUDITOR'S
	REPORT FALCONTARGET,
	INC.A DEVELOPMENT STAGE COMPANYAUDITED
	STATEMENT OF CASH FLOWSYEARS ENDED JUNE 30, 2006, JUNE 30,
	2005AND PERIOD MAY 28, 2004 (DATE OF INCEPTION) THROUGH JUNE 30,
	2004 Twelve
				months through 6/30/2006
			Twelve
				months through 6/30/2005
			Inception
				through 6/30/2004CASH
				FLOW FROM OPERATING ACTIVITIESNET INCOME
			(512)
			(1,370)
			(1,244)ADJUSTMENTS
				TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING
				ACTIVITIESACCOUNTS
				PAYABLE
			0
			0
			0TOTAL
				ADJUSTMENTS
			0
			0
			0NET
				CASH PROVIDED BY OPERATIONS
			(512)
			(1,370)
			(1,244)CASH
				FLOW FROM INVESTING ACTIVITIESUSED FOR
			0
			0
			0NET
				CASH USED IN INVESTING
			0
			0
			0CASH
				FLOWS USED IN FINANCING ACTIVITIESPROCEEDS
				FROM:SHAREHOLDER'S
				LOAN
			500
			1,370
			1,244COMMON
				STOCK
			0
			0
			100USED
				FOR:SHAREHOLDER'S
				LOAN
			0
			0
			0COMMON
				STOCK
			0
			0
			0NET
				CASH PROVIDED BY FINANCING
			500
			1,370
			1,344NET
				INCREASE (DECREASE) IN CASH
			0
			0
			100SUMMARYCASH
				BALANCE AT END OF PERIOD
			88
			100
			100CASH
				BALANCE AT BEGINNING OF PERIOD
			100
			100
			100NET
				INCREASE (DECREASE) IN CASH
			0
			0
			100CUMULATIVE
				INFLOWS OF CASH SINCE INCEPTION
			100
			100
			100CUMULATIVE
				OUTFLOWS OF CASH SINCE INCEPTION
			12
			0
			0 SEE ACCOMPANYING NOTES
	AND AUDITOR'S REPORT FalconTarget,
	Inc.(A Development Stage Company)Notes to Audited Financial
	Statements for the year ended June 30th, 2006 NOTE 1. Summary of significant
	Business and Accounting Policies a. Organization The Company started operating as a
	blank check company on May 28, 2004. On October 6, 2004,
	FalconTarget, Inc. (the “Company”) became a corporation
	by filing with the Delaware Secretary of State. The intent of the
	Company is to be a “blank check” company, or also
	referred to as a “shell” company. We
	shall be considered to be in the development stage because no
	business operations have commenced, and there has been no revenue.
	We believe that we will remain a development stage company until
	such time as significant revenues have been generated, which is not
	expected to happen until after we complete a Business Transaction. b. Cash As of the Date of the Audit, the
	Company has one bank account. Inventory As of the Date of the Audit, the
	Company has no Inventory. Property and Equipment As of the Date of the Audit, the
	Company has no Property and Equipment. e. Current Liabilities As of the Date of the
	Audit, the Company has no Current Liabilities. f. Long Term Liabilities The Company's Long Term Liability of
	Shareholder's Loan represents the money loaned by the Shareholders
	to the Company for the start-up costs of the corporation. This loan
	is non-interest bearing. The Company's shareholders made payments on
	behalf of the Company for operating expenses and we are not
	obligated to reimburse them for these expenses. g. Loss Per Share Loss per share amounts are based on
	the weighted average shares outstanding of 22,000,000 as of June 30,
	2006, 22,000,000 as of June 30, 2005 and 22,000,000 as of June 30,
	2004. h. Reclassification Reclassification of expenses and
	liabilities occurred at the data entry level due to the categories
	set up by the Shareholder's who submitted the information. It has no
	effect on the balance of any one total account. NOTE 2. Capitalization The Company has authorized the
	issuance of 100,000,000 shares of common stock having $0.000001 par
	value. Of those authorized, 22,000,000 have been issued and are
	outstanding. NOTE 3. Statement of Income As of the Date of the Audit, the
	Company has no Revenue or Cost of Sales. The expenses incurred as of
	the Date of the Audit are the start-up costs of the Company. NOTE 4. As of the Date of the Audit, the only
	activity affection the Statement of Cash Flows were the start-up
	costs incurring the negative Net Income and the purchase of the
	Common Stock by the Shareholders giving the cash balance at the end
	of the period, as well as the ongoing costs of operating the blank
	check company. There are no payments for interest and income items. NOTE 6. Going Concern Due to the development stage of the
	Company and the substantial dependence on the success of a
	particular project, a “reverse merger”, the Company's
	chances for survival depend solely on the success of that “reverse
	merger”. NOTE 7. Management Plans and
	Intentions (Unaudited) As a “blank check” or
	“shell” company filing a Form 10-SB, the Company
	anticipates to engage in a reverse merger transaction with a private
	company, acquire assets or engage into other yet unspecified
	business or businesses. The term “reverse merger” refers
	to a transaction where a private company seeks public listing and
	becomes a publicly traded company. Item 8. Changes in and
	Disagreements with Accountants on Accounting and Financial
	Disclosure. None. Item 8A. Controls and
	Procedures. Evaluation of Disclosure Controls and Procedures Based on his evaluation of our disclosure
	controls and procedures, conducted as of a date within ninety (90)
	days prior to the filing date of this report on Form 10-KSB (the
	“Evaluation Date”), Messrs Atlan and Kirchner, our
	principal executive and financial officers, have concluded that they
	are the only individuals involved in FalconTarget’s disclosure
	process. We have no formal procedures in place for processing and
	assembling information to be disclosed in our periodic reports. Our
	system is designed so that information is retained by us and relayed
	to our accountants. Our principal executive officers and principal
	financial officer believe that as of the end of the period being
	reported, the our disclosure controls and procedures are effective
	to ensure that information required to be disclosed by us in the
	reports that we file or submit under the Exchange Act is recorded,
	processed, summarized and reported, within the required time
	periods. Further, we believe that, given its size and status as a
	blank check company with no operations, an extensive disclosure
	controls and procedures system is not necessary. At such time that a
	business transaction is consummated, our management will reevaluate
	the disclosure controls and procedures. Changes in Internal Controls No significant changes in our internal controls
	or in other factors that could significantly affect these controls
	following the Evaluation Date came to management’s attention. Item 8B. Other Information. None. PART
	III Item 9. Directors and
	Executive Officers of the Registrant and Compliance with Section
	16(a) of the Exchange Act. The following information with respect to the
	principal occupation or employment of each director and executive
	officer and in regard to other affiliations and business experience
	during the past five years, has been furnished to us by the
	respective directors. The table below sets forth the names, ages,
	positions and terms of office of our officers and directors. Name
				Age
				Position
				TermSerge Atlan
				48
				Director
				Through May 2007Thomas Kirchner
				37
				Director
				Through May 2007 Mr. Serge Atlan has served as Chairman of our
	Board of Directors and director since FalconTarget's inception. He
	is also the owner and principal of Atlantic Republic Investment
	Company and its subsidiary Atlantic Republic Securities Corp., a
	broker/dealer based in Westport, Connecticut that has been
	registered with the National Association of Securities Dealers and
	the Securities and Exchange Commission since 1992. Atlantic Republic
	Securities Corp. has not carried customer funds for several years
	nor does it currently have any intention of doing so in the
	foreseeable future. It has not participated in firm commitments,
	underwritings or private placements It has only traded equities for
	its own account for several years. Since March 1998, Mr. Serge Atlan
	has also been the founder and co-founder of various private ventures
	such as NetItrust Inc., Secretseal Inc., Yconcept Inc., Via
	Directory Inc., and BriteSmart Corp., all of those companies are or
	were technology related companies.  In the aggregate, Mr. Atlan
	spends less than 10% of his time on the management of those
	companies. Mr. Thomas Kirchner has served as a director of
	FalconTarget since its inception. He is simultaneously president and
	portfolio manager of the Pennsylvania Avenue Funds, a mutual fund
	registered with the SEC, and also acts as the principal of
	Pennsylvania Avenue Advisers LLC, an SEC-registered transfer agent,
	EDGAR filing agent and investment adviser. From 1999 until 2004 he
	was retained by Fannie Mae as a financial engineer. As president of
	the Pennsylvania Avenue Funds, he serves on the board of trustees of
	that issuer. There are no family relationships between our
	directors. Mssrs. Atlan and Kirchner  jointly own the website
	www.corporate-insiders.com, an EDGAR filing solution provider. They
	have agreed to waive usage fees if we utilize this website from time
	to time to submit filings to the EDGAR system, at least until we
	consummate a Business Transaction. Since May 2004 they have been
	also shareholders and directors of INverso Corp. During the last five years, none of our
	directors, persons nominated to become a director, executive
	officers, promoters or control persons has been involved in: (1) Any bankruptcy petition filed by or against
	any business of which such person was a general partner or executive
	officer either at the time of the bankruptcy or within two years
	prior to that time; (2) Any conviction in a criminal proceeding or
	being subject to a pending criminal proceeding (excluding traffic
	violations and other minor offenses); (3) Any order, judgment, or decree, not
	subsequently reversed, suspended or vacated, of any court of
	competent jurisdiction, permanently or temporarily enjoining,
	barring, suspending or otherwise limiting his involvement in any
	type of business, securities or banking activities; and (4) Being found by a court of competent
	jurisdiction (in a civil action), the Commission or the Commodity
	Futures Trading Commission to have violated a federal or state
	securities or commodities law, and the judgment has not been
	reversed, suspended, or vacated. Section 16(a) Beneficial
	Ownership Reporting Compliance Section 16(a) of the Exchange Act requires the
	Company’s officers and directors and persons who own 10% or
	more of a registered class of the Company’s equity securities
	to file reports of ownership and changes in ownership on Forms 3, 4
	and 5 with the SEC. Officers, directors and 10% or greater
	stockholders are required by SEC regulations to furnish the Company
	with copies of all Forms 3, 4 and 5 they file. Based solely on our review of the copies of such
	forms, we believe that our two directors, officers and stockholders
	complied with all filing requirements applicable to them with
	respect to transactions during the fiscal year ended June 30, 2006. Code of Ethics We have not yet adopted a code of ethics that
	applies to our principal executive officer, principal financial
	officer, principal accounting officer or controller, or persons
	performing similar functions. Our directors have chosen not to adopt
	such a code of ethics at this time because they are also our
	executive officer and chairman, and we have no other employees. Audit Committee Financial Expert We do not have an audit committee financial
	expert or an audit committee, because, in the opinion of our
	directors, our operations and finances are simple enough during the
	development stage to be understood fully by both directors. Item 10. Executive
	Compensation. Our executive officers and directors do not
	receive any compensation for their services rendered to us, have not
	received such compensation in the past, and are not accruing any
	compensation pursuant to any agreement with us. Annual Compensation
				Long-Term CompensationAwards
				PayoutsYear
				Salary
				Bonus
				Other
					Annual Compensation
				Restricted
					Stock Award(s)
				Securities
					Underlying Options/ SARs
				LTIP
					Payouts (1)
				All
					Other CompensationSerge
					Atlan
				2004
				$0
				$0
				$0
				-
				-
				$0
				$02005
				$0
				$0
				$0
				-
				-
				$0
				$0Thomas
					Kirchner
				2004
				$0
				$0
				$0
				-
				-
				$0
				$02005
				$0
				$0
				$0
				-
				-
				$0
				$0 (1) Includes securities, underlying options, and
	SARs. Our officers and director will not receive any
	finder’s fee, either directly or indirectly, as a result of
	his efforts to implement our business plan. We have adopted no retirement, pension, profit
	sharing, stock option or insurance programs or other similar
	programs for the benefit of our employees, but the Board of
	Directors may recommend adoption of one or more such programs in the
	future. Item 11. Security Ownership
	of Certain Beneficial Owners and Management. As of June 30, 2006, there were 22,000,000 shares
	of beneficial ownership in FalconTarget outstanding. The following
	table sets forth the beneficial owners of 5% of our securities as
	well as ownership by managers, officers and directors. Beneficial
	ownership is determined in accordance with the rules of the SEC and
	generally includes voting or investment power with respect to
	securities. Title of Class
				Name and Address of Beneficial
					Owner
				Amount and Nature of Beneficial
					Owner
				Percent of ClassCommon Stock
				Serge Atlan
					  320 Plaza RealBoca Raton, FL 33432
				11,000,000
				50%Common Stock
				Thomas Kirchner 4201 Massachusetts Ave NW
					Washington, DC 20016
				11,000,000
				50%Common Stock
				All Directors and Officers as a Group
				22,000,000
				100%  Item 12. Certain
	Relationships and Related Transactions. In order to allow us to maintain our liquidity,
	our directors, who are our controlling shareholders, have paid
	certain expenses related to our operations and have not yet
	requested reimbursement for these expenses. Mr. Serge Atlan is the principal of Atlantic
	Republic Securities Corp, which may search for Business Transactions
	on behalf of FalconTarget. Mr. Thomas Kirchner is the principal and owner of
	Pennsylvania Avenue Advisers LLC, which acts as transfer agent for
	our securities. Mr. Kirchner acts as attorney-in-fact for
	FalconTarget, Inc. Pursuant to the agreement between us and
	Pennsylvania Avenue Advisers LLC, transfer agent services are
	provided without charge until we consummate a Business Transaction. Item 13. Exhibits and Reports
	on Form 8-K. The following documents are filed as part of this
	report: (a) Exhibits: Number
				Description2.1
				Certificate of Incorporation (*)2.1
				By-Laws (**)6.1
				Indemnification Serge Atlan (**)6.2
				Indemnification Thomas Kirchner (**)6.3
				Transfer agent agreement (**)10
				Consent of Pollard-Kelley Auditing Services31.1
				Certification Serge Atlan31.2
				Certification Thomas Kirchner32.1
				Section 906 Certification Serge Atlan32.2
				Section 906 Certification Thomas Kirchner * Incorporated by reference to the Company’s
	Form 8-K, Current Report, filed with the SEC on November 1, 2004. ** Incorporated by reference to the Company’s
	Form 10-SB, Registration of Securities under Section 12(g) of the
	Exchange Act, filed with the SEC on August 10, 2004. (b) Reports on Form 8-K The Registrant did not file any Reports on Form
	8-K during the fourth quarter of fiscal year 2005. Item 14. Principal Accountant
	Fees and Services. Audit and Non-Audit Fees Aggregate fees for professional services rendered
	for FalconTarget by Pollard-Kelley Auditing Services for the year
	ended June 30, 2006 are set forth below. The aggregate fees included
	in the Audit category are fees billed for the fiscal years for the
	audit of the Company’s annual financial statements and review
	of financial statements and statutory and regulatory filings or
	engagements. The aggregate fees included in each of the other
	categories are fees billed during the year. 2005Audit fees
				$2,250Audit-related fees
				$0Tax fees
				$0Total
				$2,250  Audit Fees for the year ended June 30, 2006 were
	for professional services rendered for the audits of the financial
	statements of FalconTarget, consents, and other assistance required
	to complete the year-end audit of the financial statements. There were no Audit-Related Fees and no Tax Fees
	or fees that were classified as All Other Fees as of the fiscal year
	ended June 30, 2006. As we do not have a formal audit committee, we do
	not have audit committee pre-approval policies and procedures;
	however, the directors approved all of the audit-related, tax and
	all other fees. SIGNATURES In accordance with Section 12 of the Securities
	Exchange Act of 1934, the Registrant caused this registration
	statement to be signed on its behalf by the undersigned thereunto
	duly authorized. FalconTarget, Inc.  By: __/s/ SERGE
	ATLAN___________________ Date: September 22,
	2006 Serge Atlan, Chairman
	and Director  By: __/s/ THOMAS
	KIRCHNER_________________ Date: September 22,
	2006 Thomas Kirchner, Chief Executive Officer and Director