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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 10-QSB



xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934



For the Quarterly Period Ended September 30, 2006



 ̈TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934



For the Transition Period From  to



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Commission File Number 333-123169



AMERICAN MEDIA SYSTEMS CO.

(Exact name of registrant as specified in its charter)



|Nevada                                                         |  | 87-0736406                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



5190 Neil Road, Suite 430, Reno, Nevada         89502

(Address of principal executive offices)                (Zip Code)



Registrants telephone number, including area code:    866-651-2219



Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x     No ̈



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ̈     Nox



APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by court.

Yes  ̈     No ̈



APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the Issuer's classes of common equity, as of the latest practicable date: Common, $.00001 par value per share: 2,000,000 outstanding as of November 14, 2006.



Transitional Small Business Disclosure Format (check one):

Yes  ̈     Nox



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|                                                                                  |                                        |                                                        |                  |                 |            
|--------------------------------------------------------------------------------- | -------------------------------------- | ------------------------------------------------------ | ---------------- | --------------- | -----------
|                                                                                  |                                        |                                                        |                  | September 30    | December 31
|                                                                                  |                                        |                                                        |                  | 2006            | 2005       
|                                                                                  |                                        |                                                        |                  |                 |            
|                                                                                  |                                        |                                                        |                  | (Unaudited)     | (Audited)  
|ASSETS                                                                           
|                                                                                  |                                        |                                                        |                  |                 |            
|CURRENT ASSETS                                                                    |                                        |                                                        |                 
|                                                                                  | Cash                                   |                                                        | $         64,228 | $        87,821
|                                                                                  | Account receivable                     | 559                                                    | 5,189           
|                                                                                  | Prepaid expenses                       | 597                                                    | 5,894           
|                                                                                  | Inventory (Note 2 & 5)                 | -                                                      | 2,394           
|                                                                                  |                                        |                                                        |                 
|                                                                                  |                                        |                                                        |                  |                 |            
|                                                                                  |                                        |                                                        |                  | 65,384          | 101,298    
|EQUIPMENT                                                                         |                                        | 29,017                                                 | 35,029          
|INTELLECTUAL PROPERTY (Note 5)                                                    | -                                      | 2                                                     
|DEFERRED DVD PRODUCTION COST (Note 5)                                             | -                                      | 8,215                                                 
|                                                                                  |                                        |                                                       
|                                                                                  |                                        |                                                        |                  |                 |            
|TOTAL ASSETS                                                                      |                                        | $        94,401                                        | $      144,544  
|                                                                                  |                                        |                                                        |                 
|                                                                                  |                                        |                                                        |                  |                 |            
|                                                                                  |                                        |                                                        |                  |                 |            
|LIABILITIES                                                                      
|                                                                                  |                                        |                                                        |                  |                 |            
|CURRENT LIABILITIES                                                               |                                        |                                                       
|                                                                                  | Accrued liabilities                    | $         1,526                                        | $       10,311  
|                                                                                  | Accounts payable                       | 6,823                                                  | 16,383          
|                                                                                  | Sales taxes payable                    | (1,263)                                                | 3,098           
|                                                                                  | Corporate income taxes payable         | 1,176                                                  | 2,738           
|                                                                                  | Advances from related parties (Note 6) | 22,892                                                 | 3,692           
|                                                                                  |                                        |                                                        |                 
|                                                                                  |                                        |                                                        |                  |                 |            
|Total Liabilities                                                                 |                                        | 31,154                                                 | 36,222          
|                                                                                  |                                        |                                                        |                 
|                                                                                  |                                        |                                                        |                  |                 |            
|                                                                                  |                                        |                                                        |                  |                 |            
|STOCKHOLDERS' EQUITY                                                             
|Common stock                                                                      |                                        |                                                        |                 
|                                                                                  | Authorized:                            |                                                        |                  |                
|                                                                                  |                                        | 50,000,000 shares, $0.00001 par value;                 |                  |                
|                                                                                  | Issued and outstanding:                |                                                        |                 
|                                                                                  |                                        | 2,000,000 common shares (December 31, 2005: 2,000,000) | 20               | 40             
|                                                                                  |                                        |                                                        |                  |                 |            
|ADDITIONAL PAID-IN CAPITAL                                                        | 94,380                                 | 94,360                                                
|                                                                                  |                                        |                                                        |                  |                 |            
|DONATED CAPITAL                                                                   | 67,876                                 | 58,276                                                
|                                                                                  |                                        |                                                        |                  |                 |            
|(DEFICIT)                                                                         | (99,029)                               | (44,354)                                              
|                                                                                  |                                        |                                                       
|                                                                                  |                                        |                                                        |                  |                 |            
|TOTAL STOCKHOLDERS' EQUITY                                                        | 63,247                                 | 108,322                                               
|                                                                                  |                                        |                                                       
|                                                                                  |                                        |                                                        |                  |                 |            
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                        | $        94,401                        | $      144,544                                        
|                                                                                  |                                        |                                                       
|                                                                                  |                                        |                                                        |                  |                 |            
|The accompanying notes are an integral part of these consolidated balance sheets.

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|                                                                                         |                                                       | Three months ended |               | Three months ended |              | Nine months ended |               | Nine months ended
|---------------------------------------------------------------------------------------- | ----------------------------------------------------- | ------------------ | ------------- | ------------------ | ------------ | ----------------- | ------------- | -----------------
|                                                                                         |                                                       | September 30       |               | September 30       |              | September 30      |               | September 30     
|                                                                                         |                                                       | 2006               |               | 2005               |              | 2006              |               | 2005             
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|REVENUE                                                                                  | $    12,737                                           |                    | $     12,825  |                    | $    26,121  |                   | $     18,421 
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|COST OF GOODS SOLD                                                                       | (8,522)                                               |                    | (1,003)       |                    | (9,242)      |                   | (2,022)      
|                                                                                         |                                                       |                    |               |                    |              |                   |              
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|GROSS PROFIT                                                                             | 4,215                                                 |                    | 11,822        |                    | 16,879       |                   | 16,399       
|                                                                                         |                                                       |                    |               |                    |              |                   |              
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|GENERAL AND ADMINISTRATIVE EXPENSES                                                      |                                                       |                    |               |                    |              |                   |              
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         | Advertising                                           | -                  |               | -                  |              | 1,225             |               | -                
|                                                                                         | Audit fees                                            | 1,526              |               | -                  |              | 2,572             |               | 252              
|                                                                                         | Bank charges and interest                             | 72                 |               | 242                |              | 191               |               | 302              
|                                                                                         | Consulting fees                                       | 13,585             |               | 14,400             |              | 41,443            |               | 43,200           
|                                                                                         | Depreciation                                          | 2,004              |               | 2,346              |              | 6,012             |               | 7,258            
|                                                                                         | Loss (gain) on foreign exchange                       | (24)               |               | (100)              |              | (1,594)           |               | (108)            
|                                                                                         | Legal fees                                            | -                  |               | 133                |              | 1,598             |               | 133              
|                                                                                         | Office                                                | 1,435              |               | 921                |              | 5,122             |               | 1,833            
|                                                                                         | Rent                                                  | 3,800              |               | 3,309              |              | 10,756            |               | 8,682            
|                                                                                         | Telephone and communication                           | 1,071              |               | 1,840              |              | 4,182             |               | 5,242            
|                                                                                         | Transfer agent fees                                   | 1,288              |               | -                  |              | 1,963             |               | -                
|                                                                                         | Website and software maintenance                      | -                  |               | -                  |              | -                 |               | 48               
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         |                                                       | (24,757)           |               | (23,091)           |              | (73,470)          |               | (66,842)         
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|LOSS FROM OPERATIONS                                                                     | (20,542)                                              |                    | (11,269)      |                    | (56,591)     |                   | (50,443)     
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|OTHER INCOME                                                                             |                                                       |                    |               |                    |              |                   |              
|                                                                                         | Film production equipment sale, net                   | -                  |               | -                  |              | 1,643             |               | -                
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|(LOSS) FROM CONTINUING OPERATIONS                                                        | (20,542)                                              |                    | (11,269)      |                    | (54,948)     |                   | (50,443)     
|                                                                                         |                                                       |                    |               |                    |              |                   |              
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|DISCONTINUED OPERATIONS (Note 5)                                                         |                                                       |                    |               |                    |              |                   |              
|                                                                                         | Gain (loss) from operations of discontinued Component | -                  |               | -                  |              | 273               |               | -                
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|NET (LOSS)                                                                               | $   (20,542)                                          |                    | $   (11,269)  |                    | $   (54,675) |                   | $   (50,443) 
|                                                                                         |                                                       |                    |               |                    |              |                   |              
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|Basic and diluted net loss per share                                                     | $        (0.01)                                       |                    | $      (0.01) |                    | $     (0.03) |                   | $      (0.05)
|                                                                                         |                                                       |                    |               |                    |              |                   |              
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|Weighted average shares outstanding                                                      | 2,000,000                                             |                    | 1,000,000     |                    | 2,000,000    |                   | 1,000,000    
|                                                                                         |                                                       |                    |               |                    |              |                   |              
|                                                                                         |                                                       |                    |               |                    |              |                   |               |                  
|The accompanying notes form an integral part of these consolidated financial statements.

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|                                                                             |           |              |              | Additional  |                   | During the         | Total 
|---------------------------------------------------------------------------- | --------- | ------------ | ------------ | ----------- | ----------------- | ------------------ | ------
|                                                                             |           | Common Stock | Paid-in      | Donated     | Development       | Stockholders'     
|                                                                             |           |              |              |             |                   |                   
|                                                                             |           | Shares       | Amount       | Capital     | Capital           | Stage              | Equity
|                                                                             |           |              |              |             |                   |                    |       
|                                                                             |           |              |              |             |                   |                    |       
|Balance on December 06, 2004                                                 | -         | $      -     | $          - | $         - | $               - | $                -
|                                                                             |           |              |              |             |                   |                    |       
|Issue of common stock for cash at $0.50 per share on December 6, 2004        | 1         | -            | 1            | -           | -                 | 1                 
|                                                                             |           |              |              |             |                   |                    |       
|Cancellation of common stock                                                 | (1)       | -            | (1)          | 1           | -                 | -                 
|                                                                             |           |              |              |             |                   |                    |       
|Issue of common stock for assets at $0.0444 per share on December 7, 2004    | 1,000,000 | 10           | 44,390       | -           | -                 | 44,400            
|                                                                             |           |              |              |             |                   |                    |       
|Donated services                                                             | -         | -            | -            | 675         | -                 | 675               
|                                                                             |           |              |              |             |                   |                    |       
|Net (loss) for the period                                                    | -         | -            | -            | -           | (8,714)           | (8,714)           
|                                                                             |           |              |              |             |                   |                   
|                                                                             |           |              |              |             |                   |                    |       
|Balance on December 31, 2004                                                 | 1,000,000 | 10           | 44,390       | 676         | (8,714)           | 36,362            
|                                                                             |           |              |              |             |                   |                    |       
|Issue of common stock for cash at $0.50 per share on October 3, 2005         | 1,000,000 | 10           | 49,990       | -           | -                 | 50,000            
|                                                                             |           |              |              |             |                   |                    |       
|Donated services                                                             | -         | -            | -            | 57,600      | -                 | 57,600            
|                                                                             |           |              |              |             |                   |                    |       
|Net (loss) for the year                                                      | -         | -            | -            | -           | (35,640)          | (35,640)          
|                                                                             |           |              |              |             |                   |                   
|                                                                             |           |              |              |             |                   |                    |       
|Balance, December 31, 2005                                                   | 2,000,000 | 20           | 94,380       | 58,276      | (44,354)          | 108,322           
|                                                                             |           |              |              |             |                   |                    |       
|Donated services                                                             | -         | -            | -            | 9,600       | -                 | 9,600             
|                                                                             |           |              |              |             |                   |                    |       
|Net (loss) for the period                                                    | -         | -            | -            | -           | (54,675)          | (54,675)          
|                                                                             |           |              |              |             |                   |                   
|                                                                             |           |              |              |             |                   |                    |       
|Balance, September 30, 2006                                                  | 2,000,000 | 20           | 94,380       | 67,876      | (99,029)          | $        63,247   
|                                                                             |           |              |              |             |                   |                   
|                                                                             |           |              |              |             |                   |                    |       
|The accompanying notes are an integral part of these consolidated statements

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|                                                                                         |                                                                        |                                |                  | Nine months ended  |         | Nine months ended
|---------------------------------------------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------ | ---------------- | ------------------ | ------- | -----------------
|                                                                                         |                                                                        |                                |                  | September 30       |         | September 30     
|                                                                                         |                                                                        |                                |                  | 2006               |         | 2005             
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|OPERATING ACTIVITIES                                                                     |                                                                        |                                |                 
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|                                                                                         | Loss from operations                                                   | $           (54,675)           |                  | $         (50,443)
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|                                                                                         | Items not requiring cash outlay                                        |                                |                  |                   
|                                                                                         |                                                                        | Consulting fees                | 9,600            |                    | 43,200 
|                                                                                         |                                                                        | Depreciation                   | 6,012            |                    | 7,258  
|                                                                                         |                                                                        | Gain on sale of subsidiary     | (2,389)          |                    | -      
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|                                                                                         | Cash provided by (used in) changes in operating assets and liabilities |                                |                 
|                                                                                         |                                                                        | Accounts receivable            | 4,630            |                    | (4,420)
|                                                                                         |                                                                        | Prepaid expenses               | 5,297            |                    | -      
|                                                                                         |                                                                        | Inventory                      |                  | -                  |         | (16,511)         
|                                                                                         |                                                                        | Accounts payable               | (9,560)          |                    | 10,811 
|                                                                                         |                                                                        | Sales taxes payable            | (4,361)          |                    | (640)  
|                                                                                         |                                                                        | Accrued liabilities            | (8,785)          |                    | -      
|                                                                                         |                                                                        | Deferred revenue               | -                |                    | 40,996 
|                                                                                         |                                                                        | Corporate income taxes payable | (1,562)          |                    | -      
|                                                                                         |                                                                        | Advances from a related party  | 19,200           |                    | 2,450  
|                                                                                         |                                                                        |                                |                  |                    |        
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|Net Cash used in operating activities                                                    | (36,593)                                                               |                                | 32,701          
|                                                                                         |                                                                        |                                |                 
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|INVESTING ACTIVITIES                                                                     |                                                                        |                                |                 
|                                                                                         | Purchase of equipment                                                  | -                              |                  | (1,881)           
|                                                                                         | Payments for intellectual property                                     | -                              |                  | (2)               
|                                                                                         | Cash proceeds from sale of subsidiary                                  | 13,000                         |                  | -                 
|                                                                                         |                                                                        |                                |                  |                   
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|Net Cash provided by financing activities                                                | 13,000                                                                 |                                | (1,883)         
|                                                                                         |                                                                        |                                |                 
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|Increase in cash and cash equivalents                                                    | (23,593)                                                               |                                | 30,818          
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|Cash and cash equivalent -  beginning of the period                                      | 87,821                                                                 |                                | 1               
|                                                                                         |                                                                        |                                |                 
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|Cash and cash equivalent - end of  the period                                            | $           64,228                                                     |                                | $         30,819
|                                                                                         |                                                                        |                                |                 
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|Supplemental Disclosure                                                                  |                                                                        |                                |                 
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|                                                                                         | Interest expense                                                       | -                              |                  | -                 
|                                                                                         | Taxes                                                                  |                                | -                |                    | -      
|                                                                                         | Foreign exchange (gain) loss                                           | (1,594)                        |                  | 140               
|                                                                                         |                                                                        |                                |                  |                   
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|SUPPLEMENTAL DISCLOSURE OF NON-CASH                                                      |                                                                        |                                |                 
|INVESTING AND FINANCING ACTIVITIES                                                       |                                                                        |                                |                 
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|Donated services                                                                         | 9,600                                                                  |                                | 43,200          
|                                                                                         |                                                                        |                                |                  |                    |         |                  
|The accompanying notes form an integral part of these consolidated financial statements.



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NOTE 1 - BASIS OF PRESENTATION

These unaudited financial statements have been prepared in accordance with the instructions to SEC Form 10-QSB. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted pursuant to such instructions. These unaudited interim financial statements should be read in conjunction with the audited financial statements and notes thereto as at December 31, 2005.

In the opinion of the Company's management, all adjustments considered necessary for a fair presentation of these unaudited financial statements have been included and all such adjustments are of a normal, recurring nature. Operating results for the nine-month period ended September 30, 2006 are not necessarily indicative of the results that can be expected for the year ended December 31, 2006.

Management has determined that the Company has ceased to be a development stage company as at January 31, 2006, and accordingly, these financial statements do not include the additional information that is required to be disclosed by development stage companies. Prior to the 2006 fiscal year the Company was considered a development stage company.

The Company does not generate sufficient cash flow from operations to fund its activities and has therefore relied principally upon the issuance of securities for financing.  The Company intends to continue relying upon the issuance of securities to finance its operations and development activities, however there can be no assurance it will be successful in raising the funds necessary to maintain operations, or that a self-supporting level of operations will ever be achieved. The likely outcome of these future events is indeterminable. These factors together raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustment to reflect the possible future effect on the recoverability and classification of the assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

NOTE 2 - INVENTORY

|                           | September 30, 2006 | December 31, 2005
|-------------------------- | ------------------ | -----------------
|                           | $                  | $                
|                           |                    |                  
|Raw materials and supplies | -                  | -                
|Work in progress           | -                  | -                
|Finished goods             | -                  | 2,394            
|                           |                    |                  
|                           |                    |                  
|                           | -                  | 2,394            
|                           |                    |                  

NOTE 3 - COMMON STOCK

Effective January 27, 2006, the Company completed a two shares for one share stock split. Effective September 29, 2006, the Company completed a one share for two shares stock consolidation. The Company's share transactions disclosed in these financial statements have been restated retroactively to reflect the above stock transactions.

There are no shares subject to warrants, options or other agreements as at September 30, 2006.

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NOTE 4 - SEGMENT INFORMATION

During the quarter ended June 30, 2006 the company sold all operations and assets associated with its Instructional DVD segment. Financial information pertaining to the Instructional DVD segment has been provide under the heading Discontinued operations.

NOTE 5 - DISCONTINUED OPERATIONS

During the quarter ended June 30, 2006 the company sold all operations and assets associated with its Instructional DVD segment. Total proceeds from the sale were $13,000 and the Company realized a gain on the sale of $273. The gain is included under the caption 'Gain (loss) from operations of discontinued Component' on the income statement.

NOTE 6 - RELATED PARTY TRANSACTIONS AND BALANCES

The following represents related party transactions and balances not disclosed elsewhere in the financial statements:

(i) During the nine months ended September 30, 2006, the Company purchased $2,231 (2005 - $Nil) of DVD inventory from True North Entertainment, a company wholly owned by its President.

(ii) During the nine months ended September 30, 2006, the Company paid $31,843 in consulting fees to AJ Vesak Ltd (2005 - $Nil), a company wholly owned by its President.

(iii) During the nine months ended September 30, 2006, the Company received $9,600 of donated consulting services from its President (2005 $ 43,200).

The transactions between the Company and the related party were consummated at the price agreed upon by the parties.

NOTE 7 - CONCENTRATION OF RISK

The Company relies on the expertise of it's President and major shareholder, Mr. Vesak. Mr. Vesak has a thorough knowledge of television and feature film production.

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Item 2.  Management's Discussion and Analysis or Plan of Operation.

Forward-Looking Statements

This Form 10-QSB includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this Form 10-QSB, other than statements of historical facts, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including operating costs, future capital expenditures (including the amount and nature thereof), and other such matters are forward-looking statements. Although we believe the expectations expressed in such forward-looking statements are based on reasonable assumptions within the bounds of our knowledge of our business, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.  Because our stock is a penny stock, each time we refer to the Litigation Reform Act, the safe harbor does not apply.

Factors that could cause actual results to differ materially from those in forward-looking statements include: the change of business focus; continued availability of capital and financing; general economic, market or business conditions; acquisition opportunities or lack of opportunities; changes in laws or regulations; risk factors listed from time to time in our reports filed with the Securities and Exchange Commission; and other factors.

American Media Systems Co is a Nevada company incorporated on December 6, 2004. We are a startup film and production company that specializes in television and feature film aerial cinematography. On May 31, 2006 we sold our instructional DVD segment.

Employees and Consultants

The Registrant has no employees. The company's CEO, A.J. Vesak is retained as a consultant.

Plan of Operations

Our specific goal is to expand on our customer base for our film and production segment. In order to effectively pursue that goal we divested Craft College Inc., our instructional DVD segment on May 31, 2006.

With the funds we currently have our priority of expenditures is to pay rent, legal, audit and transfer agent fees and those related to our Exchange Act reporting obligations and second to increase the marketing of our film and media productions services. We intend to accomplish the foregoing through the following milestones:

1. Continue to distribute our film and production demo reel to various advertising and creative agencies.

2. Continue to distribute our corporate awareness DVD to prospective advertising agencies and other firms we believe fit within the target market for our services.

Management's Discussion and Analysis of Financial Condition and Results of Operations.

During the nine months ending September 30, 2006 we realized sales of $26,121 (2005 - $ 18,421) and gross margin of $16,879 (2005 - $16,399). Our revenues are generated from aerial film and production.

During the nine months ending September 30, 2006, we incurred a loss from continuing operations of $54,948  (2005 - loss of $50,443). The major components to expenses faced by the company during the nine months were consulting fees of $41,443 (2005 - $43,200), rent of $10,756 (2005 - $ 8,682), depreciation of $6,012 (2005 - $7,258), general office expenses of $5,122 (2005 - $1,833), telephone and communication of $4,182 (2005 - $ 5,242), transfer agent fees of $1,963 (2005 - $nil) legal fees of $1,598 (2005 - $ 133), and advertising of $1,225 (2005 - $ nil). The balance of our expenses during the nine months have been audit fees of $2,572 (2005 - $252), bank and interest charges of $191 (2005 - $ 302), and gain on foreign exchange of $1,594 (2005 - $ 108).

As of September 30, 2006 the Company has current liabilities of $31,154 compared to $36,222 at December 31, 2005. The current liabilities consist of $6,823 in accounts payable (December 31, 2005 - $ 16,383), $ 1,526 accrued liabilities (December 31, 2005 - $10,311), $(87) in sales and corporate income taxes (receivable) payable (December 31, 2005 - $5,836), and $ 22,892 due to a related party (December 31, 2005 - $3,692). There is no long-term debt. The Company may in the future invest in short-term investments from time to time but there can be no assurance that these investments will result in profit or loss.

During the most recent quarter we paid AJ Vesak Ltd, a company wholly owned by our President and CEO, $13,584 in consulting fees.

Our future growth and success will be dependent on our ability to develop new markets and to grow the customer base for our aerial cinematography services. If we cannot succeed in developing new markets and grow our customer base then our prospects for growth are substantially undermined.

Off balance-sheet arrangements

We do not have any off balance-sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Recent accounting pronouncements

There have been no recent accounting pronouncement since the filing of the Company's Form 10-QSB, filed on August 21, 2006, that in the estimation of management are expected to have, upon adoption, a material impact on the Company's financial statements.

Item 3.  Controls and Procedures.

(a)   Evaluation of Disclosure Controls and Procedures:  Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based upon and as of the date of that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports the Company files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required.

(b)   Changes in Internal Control over Financial Reporting:  There were no changes in the Company's internal control over financial reporting identified in connection with the Company evaluation of these controls as of the end of the period covered by this report that could have significantly affected those controls subsequent to the date of the evaluation referred to in the previous paragraph, including any correction action with regard to significant deficiencies and material weakness.

There were no significant changes in the Company's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any significant deficiencies or material weaknesses of internal controls that would require corrective action.



Item 1. Legal Proceedings

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

This use of proceeds information is being disclosed pursuant to our SB-2 registration statement file # 333-123164 declared effective on July 15, 2005. The offering commenced on July 16, 2005 and was terminated on October 3, 2005 with 2,000,000 shares of common stock issued and $50,000 raised.

Pursuant to the SB-2 registration statement we registered 2,000,000 shares for sale by the issuer for maximum proceeds of $100,000 of which 1,000,000 shares were sold for total proceeds of $50,000.

There was no underwriter in the offering and no funds have been paid for underwriting discounts or commissions, finders' fees, or to underwriters in connection with the offering.

We paid total expenses of $10,787 including legal, audit, and transfer agent fees related to the offering. All these fees were paid directly by the issuer and none of the fees were paid to a director, officer, 10% security owners, or any individual or firm with insider or related party affiliation with the issuer.

Net proceeds to the issuer after taking account of expense related to the registration statement were $39,213. From the effective date to September 30, 2006 the issuer has used $20,650 for rent, general legal, and office expenses and $4,195 for production of DVDs for a total of $24,845 of the net offering proceeds.

Item 3. Defaults Upon Senior Securities

None

Item 4. Submissions of Matters to a Vote of Security Holders

None

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

|Exhibit No. | Exhibit Description                                                                                                                                                          
|----------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|            |                                                                                                                                                                              
|31.1        | Certification of Principal Executive and Financial Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended.
|            |                                                                                                                                                                              
|32.1        | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Executive and Financial Officer)           
|            |                                                                                                                                                                              

(b) Reports on Form 8-K filed during the quarter.

On August 25, 2006, we filed a current report on Form 8-K disclosing the amendment to section 3.14 of the Company's bylaws.



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.

|                         | AMERICAN MEDIA SYSTEMS CO.(Registrant)
|------------------------ | --------------------------------------
|                         |                                       
|Dated: November 14, 2006 | BY:                                   
|                         |