UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549





FORM
      10-QSB





x
      QUARTERLY REPORT
      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES


EXCHANGE
      ACT OF 1934





For
      the
      quarterly period ended March 31, 2008





o
      TRANSITION REPORT
      PURSUANT TO SECTION 13 OR 15(d) OF THE


SECURITIES
      EXCHANGE ACT OF 1934





For
      the
      transition period from _______ to _______





**FORGEHOUSE,
      INC.**


**(Exact
      name of registrant as specified in Charter)**




Nevada
            
            333-124304
            
            20-1904354**(State
                or other jurisdiction of**
              **incorporation
                or organization)**
            
            **(Commission
                File No.)**
            
            **(IRS
                Employee Identification
                No.)**





1575
      Northside Drive NW, Building 300, Suite 375


Atlanta,
      Georgia, 30318


**(Address
      of Principal Executive Offices)**




(954)
      462-8757


**(Issuer
      Telephone number)**




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





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes x No o





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





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: 28,000,000 shares of common stock issued
      and
      outstanding at May 19, 2008.





Transitional
      Small Business Disclosure Format: Yes o No x









FORGEHOUSE,
      INC.


FORM
      10-QSB


QUARTERLY
      PERIOD ENDED MARCH 31, 2008





INDEX





PageCautionary
                Statements Regarding Forward Looking Information
            1PART
                I - FINANCIAL INFORMATIONItem
                1 – Financial StatementsBalance
                Sheet (Unaudited) -March
                31, 2008
            F-1Statement
                of Operations (Unaudited) -For
                the three months Ended March 31, 2008
            F-2Statement
                of Cash Flows (Unaudited) -For
                the three months Ended March 31, 2008
            F-3Notes
                to Unaudited Financial Statements
            F-4Item
                2 - Management's Discussion and Analysis or Plan of
                Operation
            2Item
                3 – Controls and Procedures
            7PART
                II - OTHER INFORMATIONItem
                2 – Unregistered Sales of Equity Securities and Use of
                Proceeds
            8Item
                6 - Exhibits
            8Signatures
            10









**CAUTIONARY
      STATEMENTS REGARDING FORWARD-LOOKING INFORMATION**





This
      Quarterly Report contains “forward-looking statements” within the meaning of the
      Private Securities Litigation Reform Act of 1995 that are based on current
      management’s expectations. These statements may be identified by their use of
      words like “plans,” “expect,” “aim,” “believe,” “projects,” “anticipate,”
“intend,” “estimate,” “will,” “should,” “could,” and other expressions that
      indicate future events and trends. All statements that address expectations
      or
      projections about the future, including statements about our business strategy,
      expenditures, and financial results are forward-looking statements. Our
      management believes that the expectations reflected in such forward-looking
      statements are accurate. However, management cannot assure you that such
      expectations will occur.




Actual
      results could differ materially from those in the forward looking statements
      due
      to a number of uncertainties including, but not limited to, those discussed
      in
      this section. Factors that could cause future results to differ from these
      expectations include general economic conditions, further changes in our
      business direction or strategy; and competitive factors. As a result, the
      identification and interpretation of data and other information and their use
      in
      developing and selecting assumptions from and among reasonable alternatives
      requires the exercise of judgment. To the extent that the assumed events do
      not
      occur, the outcome may vary substantially from anticipated or projected results,
      and accordingly, no opinion is expressed on the achievability of those
      forward-looking statements. No assurance can be given that any of the
      assumptions relating to the forward-looking statements specified in the
      following information are accurate, and management assumes no obligation to
      update any such forward-looking statements. You should not unduly rely on these
      forward-looking statements, which speak only as of the date of this Quarterly
      Report. Except as required by law, management is not obligated to release
      publicly any revisions to these forward-looking statements to reflect events
      or
      circumstances occurring after the date of this report or to reflect the
      occurrence of unanticipated events.  For
      purposes of the following discussion and analysis, references to “we,” ‘‘our,”
“us,” refers to ForgeHouse (defined below).




1










**ForgeHouse,
      Inc.**




**Combined
      Financial Statements**





***As
      of March 31, 2008 and***


***For
      Each of the Three Month Periods Ended March 31, 2008 and
      2007***











**ForgeHouse,
      Inc.**




**Notes
      to the Combined Financial Statements**


***As
      of March 31, 2008 and***


***For
      Each of the Three Month Periods Ended March 31, 2008 and
      2007***











Combined
                Financial Statements of ForgeHouse, Inc.(a Nevada
                Corporation):Combined
                Balance Sheet as of March 31, 2008
            2Combined
                Statements of Operations for Each of the Three Month Periods Ended
                March
                31, 2008 and 2007
            3Combined
                Statements of Cash Flows for Each of the Each of the Three Month
                Periods
                Ended March 31, 2008 and 2007
            4Notes
                to Combined Financial Statements
            6











**ForgeHouse,
        Inc.**
    **Combined
        Balance Sheet**
 ***March
        31, 2008***







*ASSETS*


Current
                assets:Cash
            
            $
            280,881Accounts
                receivable - trade
            
            
            21,052Prepaid
                insurance
            
            
            7,052Escrowed
                funds
            
            
            202,336Total
                current assets
            
            
            511,321Equipment,
                net of accumulated depreciation of $28,915
            
            
            19,760Software
                development costs, net of accumulated amortization of
                $104,000
            
            
            69,333**Total
                assets**
            
            **$**
            **600,414***LIABILITIES
                AND STOCKHOLDERS' DEFICIT*Current
                liabilities:Accounts
                payable - trade
            
            $
            652,132Related
                party payable
            
            
            28,767Accrued
                payroll and related expenses
            
            
            36,570Accrued
                expenses
            
            
            174,357Accrued
                interest on notes payable
            
            
            14,017Current
                portion of obligations under capital leases
            
            
            4,396Notes
                payable - current
            
            
            280,000Total
                current liabilities
            
            
            1,190,239Obligations
                under capital leases
            
            
            3,247Related
                party notes payable, less current portion
            
            
            1,120,000**Total
                liabilities**
            
            **$**
            **2,313,486**Commitments
                and contingenciesStockholders'
                deficit:Preferred
                stock, $.001 par value, 10,000,000 shares authorized,
              Series
                  A preferred stock,2,000,000 shares issued and
                  outstanding
            
            $
            2,000Common
                stock, $.001 par value, 100,000,000 shares authorized,
              28,000,000
                shares issued and outstanding
            
            
            28,000Additional
                paid in capital
            
            
            3,364,264Accumulated
                deficit
            
            
            (5,107,336
            )**Total
                stockholders' deficit**
            
            **$**
            (1,713,072
            )**Total
                liabilities and stockholders' deficit**
            
            **$**
            **600,414**






The
      accompanying notes are an integral part of the combined financial
      statements.





2





**ForgeHouse,
        Inc.**
  **Combined
        Statement of Operations**
 ***For
        each of the Three Month Periods Ended March 31, 2008 and
        2007***










For
                theThree
                Month Period Ended March 31,2008
            
            2007Service
                contract revenue
            
            $
            46,128
            
            $
            21,396Product
                revenue
            
            
            22,686
            
            
            3,874Net
                revenues
            
            
            68,814
            
            
            25,270Operating
                expenses:Costs
                of revenues
            
            
            22,896
            
            
            14,150Software
                development costs
            
            
            46,857
            
            
            65,472Payroll
                related expenses
            
            
            235,876
            
            
            52,611Professional
                fees
            
            
            60,723
            
            
            9,648Depreciation
                and amortization
            
            
            9,441
            
            
            9,127Stock
                based charges
            
            
            333,878
            
            
            -General
                and administrative
            
            
            110,878
            
            
            57,562Total
                operating expenses
            
            
            820,549
            
            
            208,570Loss
                from operations
            
            
            (751,735
            )
            
            (183,300
            )Other
                expense:Interest
                expense
            
            
            (101,786
            )
            
            (82,216
            )Other
                expense
            
            
            -
            
            
            -Total
                other expense
            
            
            (101,786
            )
            
            (82,216
            )Loss
                before extraordinary item, net of income taxes
            
            
            (853,521
            )
            
            (265,516
            )Gain
                on restructuring of debt
            
            
            365,834
            
            
            -**Net
                Loss**
            
            **$**
            **(487,687**
            **)**
            **$**
            **(265,516**
            **)****Loss
                per share - basic and diluted****Loss
                per share, before extraordinary item**
            
            **$**
            **(0.04**
            **)**
            **$**
            **(0.02**
            **)****Net
                loss per share**
            
            **$**
            **(0.02**
            **)**
            **$**
            **(0.02**
            **)****Weighted
                average shares outstanding**
            
            
            **23,571,429**
            
            
            **15,000,000**







3


**ForgeHouse,
          Inc.**
  **Combined
          Statement of Cash Flows**
 ***For
          each of the Three Month Periods Ended March 31, 2008 and
          2007***







Three
                Month Period Ended March 31,2008
            
            2007*Cash
                flows used in operating activities:*Net
                loss
            
            $
            (487,687
            )
            $
            (265,516
            )Adjustments
                to reconcile net loss to net cash
              (used
                in) operating activities:Depreciation
            
            
            774
            
            
            461Amortization
                of software development costs
            
            
            8,667
            
            
            8,667Gain
                on restructure of debt
            
            
            (365,834
            )
            
            -Amortization
                of stock based charges
            
            
            333,878
            
            
            -Decrease
                (increase) in assets:Escrowed
                funds
            
            
            (195,222
            )
            
            -Accounts
                receivable - trade
            
            
            21,270
            
            
            (4,797
            )Prepaid
                expenses and other current assets
            
            
            -
            
            
            790Inventory
            
            
            -
            
            
            (6,549
            )Increase
                (decrease) in liabilities:Accounts
                payable - trade
            
            
            (3,530
            )
            
            56,399Accrued
                interest on debt
            
            
            (280,602
            )
            
            81,501Accrued
                expenses
            
            
            (10,448
            )
            
            (6,644
            )Accrued
                payroll
            
            
            9,372
            
            
            -Related
                party payable
            
            
            (91,792
            )
            
            -**Cash
                used in operating activities**
            
            
            **(1,061,154**
            **)**
            
            **(135,688**
            **)***Cash
                flows used in investing activities:*30%
                purchase of ForgeHouse LLC
            
            
            (171,430
            )
            
            -Recapitalization
                of Milk Bottle Cards Inc. - reverse merger
            
            
            (8,860
            )
            
            -Acquisition
                of equipment
            
            
            (6,411
            )
            
            -**Cash
                used in investing activities**
            
            
            **(186,701**
            **)**
            
            **-***Cash
                flows provided by financing activities:*Proceeds
                from the issuance of related party debt
            
            
            (300,000
            )
            
            -Payments
                on debt
            
            
            (206,591
            )
            
            -Proceeds
                from the sale of preferred A stock
            
            
            2,100,000
            
            
            -Proceeds
                from owners
            
            
            -
            
            
            149,763Purchase
                and retirement of stock
            
            
            (50,000
            )
            
            -Payment
                on capital lease
            
            
            (1,017
            )
            
            -Dissolution
                of variable interest entity
            
            
            (3,944
            )
            
            -Net
                increase (decrease) in bank overdrafts
            
            
            (9,712
            )
            
            (14,075
            )**Cash
                provided by financing activities**
            
            
            **1,528,736**
            
            
            **135,688****Net
                increase (decrease) in cash**
            
            
            **280,881**
            
            
            **-****Cash
                at beginning of period**
            
            
            **-**
            
            
            **-****Cash
                at end of period**
            
            **$**
            **280,881**
            
            **$**
            **-**







4


**ForgeHouse,
          Inc.**
  **Combined
          Statement of Cash Flows**
 ***For
          each of the Three Month Periods Ended March 31, 2008 and
          2007***




*Supplemental
      Disclosure of Cash Flow Information*





Three
                Month Period Ended March 31,2008
            
            2007Cash
                paid during the fiscal years for:Interest
            
            $
            383,235
            
            $
            8,415Income
                taxes
            
            
            -
            
            
            -







5
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***










**1.**  **Description
      of the Company's Business**




*Nature
      of Operations*




ForgeHouse,
      Inc. (the Company) (formerly Milk Bottle Cards, Inc) is currently engaged in
      sales and the development of ongoing enhancement to OneVision®, its proprietary
      software system. The Company’s OneVision® system is a web based application that
      offers a virtual command and control system for certain compliance, physical
      security and maintenance applications.




*Basis
      of Presentation*




The
      Company was incorporated under the laws of the state of Nevada in November
      2004
      for the purpose of producing, distributing and marketing a collection of
      greeting cards. ForgeHouse, LLC (ForgeHouse) (a Georgia LLC) was formed in
      the
      state of Georgia in June 2002 for the purpose of developing and selling physical
      security industry applications software. ForgeHouse operated through April
      2007
      as a company in the development stage. The Company is currently engaged in
      the
      development and sale of OneVision®, its proprietary software product. OneVision®
is a web based application that serves as the virtual control and command system
      for compliance, security and maintenance operations.




On
      July
      31, 2007, the Company entered into a Nonbinding Letter of Intent with Milk
      Bottle Cards, Inc. (Milk Bottle) (Merger Agreement). The Merger Agreement,
      as
      amended, was approved by the ForgeHouse, LLC members and the Board of Directors
      of Milk Bottle and closed on January 31, 2008. For accounting purposes, the
      transaction is considered a “reverse merger” under which ForgeHouse is
      considered the acquirer of Milk Bottle. Accordingly, the purchase price was
      allocated among the fair values of the assets and liabilities of Milk Bottle
      while the historical results are those of ForgeHouse, but they were
      retroactively restated (a recapitalization) for the equivalent number of shares
      received by the Company in the exchange transaction. Earnings per share for
      the
      periods prior to the merger transaction have been restated to reflect the number
      of equivalent shares received by the ForgeHouse members. The ForgeHouse members
      as a result of the merger transaction own approximately 35% of the
      Company.




*Principles
      of Consolidation*




The
      combined financial statements include the accounts of ForgeHouse, Inc. and
      its
      wholly owned subsidiary. All significant transactions among the combined
      entities have been eliminated upon consolidation.







6
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**1.**  **Description
      of the Company's Business, Continued**




*Interim
      financial Statements*




The
      accompanying unaudited combined financial statements have been prepared in
      accordance with accounting principles generally accepted in the United States
      of
      America for interim financial information and in accordance with the
      instructions to Form 10-Q and Rule 310b of Regulation SB. Accordingly, they
      do
      not include all of the information and footnotes required by accounting
      principles generally accepted in the United States of America for complete
      financial statements. In the opinion of management, all material adjustments
      (consisting of normal recurring accruals) necessary for a fair presentation
      have
      been included. Operating results for the three months ended March 31, 2008
      are
      not necessarily indicative of the results that may be expected for the year
      ending December 31, 2008.




For
      further information, refer to the audited financial statements and footnotes
      thereto of ForgeHouse, LLC as of December 31, 2007 and the results of operations
      for the two years then ended which are included as attachments to the Form
      8-K/A
      filed on April 24, 2008.




**2.**  **Summary
      of Significant Accounting Policies**




*Transition
      from Development Stage Operations and the Start of Ongoing
      Operations*




In
      April
      2007, ForgeHouse entered into a licensing agreement with a national physical
      security industry provider (the "Licensee"). In this licensing agreement the
      Company granted an exclusive license to the Licensee for the use, marketing
      and
      distribution rights to the Company's OneVision® software for use by the Licensee
      in its own physical security service operations and the right to sub-lease
      OneVision® to all non-governmental physical security service entities in the
      United States. The execution of this agreement marked ForgeHouse’s transition
      from the development stage to ongoing operations. Accordingly, the Company’s
      operations in 2007 do not reflect inception-to-date information nor was it
      treated as an entity in the development stage.




*Revenue
      Recognition*




The
      Company recognizes revenue only when all of the following criteria have been
      met:




·
            Persuasive
                evidence of an arrangement exists;


·
            Delivery
                has occurred or services have been
                rendered;


·
            The
                fee for the arrangement is fixed or determinable;
                and


·
            Collectability
                is reasonably assured.





7
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**2.**  **Summary
      of Significant Accounting Policies, Continued**




The
      Company recognizes revenue from monthly access fees charged to customers for
      access to the Company's OneVision® software as well as certain related licensee
      hardware sales, technical support fees, applications programming and training
      services.




*Service
      Contract Revenue*




The
      Company recognizes revenue on service contracts ratably over applicable contract
      periods or as services are performed. Amounts billed and collected before the
      services are performed are included in deferred revenues.




The
      agreement with the Licensee provides for payments to the Company at a base
      service fee of $10,000 per month along with an annual per user service fee
      payable at the beginning of each service year that Licensee utilizes the
      OneVision® service. The annual user service fees are a minimum of $1,140 per
      year, with additional optional services and hardware available. The Company's
      per user service fee rates are subject to an upward rate adjustment if the
      Licensee does not meet certain agreed upon user participation levels. Further,
      in order for the Licensee to maintain the exclusivity rights in the United
      States, the Licensee must meet minimum user participation levels and have paid
      all fees due under the agreement.




*Product
      Revenue*




Sales
      are
      recorded when products are shipped to customers. Provisions for discounts and
      rebates to customers, estimated returns and allowances, and other adjustments
      are provided for in the same period the related sales are recorded. In instances
      where products are configured to customer requirements, revenue is recorded
      upon
      the successful completion of the Company’s final test procedures and the
      customer’s acceptance.




*Escrowed
      Funds*




At
      March
      31, 2008, the Company had funds that were available and restricted to certain
      Board approved Company operating expenses. The unexpended portion of these
      funds
      at March 31, 2008, which amounted to $202,336, has been classified as “Escrowed
      funds” - a current asset in the accompanying Balance Sheet.




*Use
      of Estimates*




The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States requires us to make estimates and
      assumptions that affect the reported amounts of assets, liabilities, revenues
      and expenses and disclosure of contingent obligations in the financial
      statements and accompanying notes. Our most significant assumptions relate
      to
      recording net revenue, collectability of accounts receivable, useful







8
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***





**2.**  **Summary
      of Significant Accounting Policies, Continued**




lives
      and
      impairment of tangible and intangible assets, accruals, income taxes,
      stock-based compensation expense and other factors. The estimation process
      requires assumptions to be made about future events and conditions, and as
      such,
      is inherently subjective and uncertain. Actual results could differ materially
      from our estimates.




*Concentration
      of Credit Risk*




At
      March
      31, 2008, the Company had $180,881 on deposit that exceeded United States (FDIC)
      federally insurance limit of $100,000 per bank. The Company believes this credit
      risk is mitigated due to the financial strength of the financial
      institution.




*Software
      Development Costs*




The
      Company accounts for development costs related to software products to be sold,
      leased, or otherwise marketed in accordance with FASB SFAS No. 86, *Accounting
      for the Costs of Computer Software to Be Sold, Leased, or Otherwise
      Marketed* .
      Software development costs are expensed as incurred until technological
      feasibility has been established, at which time such costs are capitalized
      until
      the product is available for general release to customers. The Company's
      software was available July 1, 2003, for general release approximately seven
      months after the establishment of technological feasibility and, accordingly,
      the Company capitalized certain software development costs incurred during
      that
      period. SFAS No. 2, *Accounting
      for Research and Development Costs* ,
      establishes accounting and reporting standards for research and development.
      During the three month periods ended March 31, 2008 and 2007, the Company did
      not capitalize any software development costs. The Company capitalized $173,333
      in software development costs as of March 31, 2008. The Company expensed $46,857
      and $65,472 as research and development expense during the three month periods
      ended March 31, 2008 and 2007, respectively.




In
      accordance with SFAS No. 2, the costs the Company incurs to enhance its existing
      products are expensed in the period they are incurred and included in software
      development costs in the statements of operations.




Amortization
      of capitalized software development costs begins when the product is available
      for general release. Amortization is provided on a product-by-product basis
      on
      the straight-linemethod over the software product's economic useful life. Unamortized
      capitalized software development costs determined to be in excess of net
      realizable values of the product are expensed immediately. During the three
      month periods ended March 31, 2008 and 2007, amortization of software
      development costs totaled $8,667 and $8,667, respectively.







9
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**2.**  **Summary
      of Significant Accounting Policies, Continued**




Management
      has concluded that the software development costs have no residual value and
      a
      5-year period of amortization, with the amortization period starting with the
      first general sale of the product after the beta site. This occurred in April
      2005.




The
      Company includes in software development expense those costs related to the
      following software development activities:




·
            Conceptual
                formulation and design of possible product or process
                alternatives;


·
            Testing
                in search for, or evaluation of, product or process
                alternatives;


·
            Modification
                of the formulation or design of a product or process;
                and


·
            Engineering
                activity required to advance the design of a product to the point
                that it
                meets specific functional and economic requirements and is ready
                for
                production.




Future
      amortization of the software development costs is as follows for the years
      ended
      March 31:




2008
            
            $
            34,6672009
            
            
            34,6662010
            
            
            -2011
            
            
            -2012
                and thereafter
            
            
            -




*Fair
      Value of Financial Instruments*






As
      of
      January 1, 2008, the Company adopted Statement of Financial Accounting Standards
      No. 157, “Fair Value Measurements,” (FAS 157). In February 2008, the Financial
      Accounting Standards Board, or FASB, issued FASB Staff Position No. FAS 157-2, *Effective
      Date of FASB Statement No.157* ,
      which
      provides a one year deferral of the effective date of FAS 157 for non-financial
      assets and non-financial liabilities, except those that are recognized or
      disclosed in the financial statements at fair value at least annually.
      Therefore, we adopted the provisions of FAS 157 with respect to our financial
      assets and liabilities only. FAS 157 define fair value, establishes a framework
      for measuring fair value under GAAP and enhances disclosures about fair value
      measurements. Fair value is defined under FAS 157 as the exchange price that
      would be received for an asset or paid to transfer a liability (an exit price)
      in the principal or most advantageous market for the asset or liability in
      an
      orderly transaction between market participants on the measurement date.
      Valuation techniques used to measure fair value under FAS 157 must maximize
      the
      use of observable inputs and minimize the use of unobservable inputs.







10
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**2.**  **Summary
      of Significant Accounting Policies, Continued**




We
      utilize the market approach to measure fair value for our financial assets
      and
      liabilities. The market approach uses prices and other relevant information
      generated by market transactions involving identical or comparable assets or
      liabilities. The standard describes a fair value hierarchy based on three levels
      of inputs, of which the first two are considered observable and the last
      unobservable, that may be used to measure fair value which are the following:




Level
      1:
      Quoted prices (unadjusted) in active markets that are accessible at the
      measurement date for assets or liabilities. The fair value hierarchy gives
      the
      highest priority to Level 1 inputs.




Level
      2:
      Observable prices that are based on inputs not quoted on active markets, but
      corroborated by market data.




Level
      3:
      Unobservable inputs are used when little or no market data is available. The
      fair value hierarchy gives the lowest priority to Level 3 inputs.




In
      determining fair value, we utilize valuation techniques that maximize the use
      of
      observable inputs and minimize the use of unobservable inputs to the extent
      possible as well as the consideration of counterparty credit risk in its
      assessment of fair value.




The
      adoption of this statement did not have a material impact on our combined
      results of operations and financial condition. The carrying values of our cash,
      cash equivalents and marketable securities, carried at fair value as of March
      31, 2008, are classified in the table below in one of the three categories
      described above:




*Fair
      Value Measurements at March 31, 2008*


Level
                1
            
            Level
                2
            
            Level
                3
            
            TotalCash
                & Equivalents
            
            $
            280,881
            
            
            -
            
            
            -
            
            $
            280,881Escrowed
                Funds
            
            
            202,336
            
            
            -
            
            
            -
            
            
            202,336Cash,
                Cash Equivalents and Escrowed Funds
            
            $
            483,217
            
            
            -
            
            
            -
            
            $
            483,217




*Basic
      and Diluted Loss Per Share*




In
      accordance with FASB Statement No. 128, *Earnings
      per Share* ,
      the
      Company calculates basic and diluted net loss per share using the weighted
      average number of common shares outstanding during the periods presented, and
      adjusts the amount of net loss used in this calculation for preferred stock
      dividends declared during the period, if any.







11
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***





**2.**  **Summary
      of Significant Accounting Policies, Continued**




We
      incurred a net loss in each period presented, and as such, did not include
      the
      effect of potentially dilutive common stock equivalents in the diluted net
      loss
      per share calculation, as their effect would be anti-dilutive for all periods.
      Dilutive common stock equivalents would include the common stock issuable upon
      the conversion of preferred stock and the exercise of warrants and stock options
      that have conversion or exercise prices below the market value of our common
      stock at the measurement date.




The
      following data shows the amounts used in computing basic loss per share for
      the
      three month periods ended March 31, 2008 and 2007.




As
        of
        March 31, 2008, the Company had issued
        and outstanding common stock equivalents comprised of copmmonstock options
        and
        warrants that can be converted into 3,136,000 shares of common stock. As
        of
        March 31, 2007 there were no common stock equivalents issued and
        outstanding.


*Cash*




The
      Company considers deposits that can be redeemed on demand and investments that
      have original maturities of less than three months, when purchased, to be cash
      equivalents. As of March 31, 2008, the Company’s cash was deposited in one
      financial institution and there were no cash equivalents present.




*Accounts
      Receivable - Trade and Allowance for Doubtful Accounts*




Trade
      accounts receivable are stated at the amount the Company expects to collect.
      The
      Company provides an allowance for doubtful accounts equal to the estimated
      uncollectible amounts. The Company’s estimate is based on its historical
      collection experience and a review of the current status of trade accounts
      receivable. It is reasonably possible that the Company’s estimate of the
      allowance for doubtful accounts will change. Based on the Company's status
      as a
      development stage company until 2007 and past level of sales, the Company has
      not experienced any accounts receivable that could not be collected, and as
      such, the allowance for doubtful accounts is zero at March 31, 2008. As the
      Company expands, it fully expects the allowance for doubtful accounts to
      increase from zero.




*Inventory*




The
      Company buys and resells hardware as necessary, but does not carry inventory
      on-hand for extended periods of time, and did not have any inventory on-hand
      at
      March 31, 2008.







12
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**2.**  **Summary
      of Significant Accounting Policies, Continued**




*Prepaid
      Expenses*




The
      Company's prepaid expenses consist mainly of amounts paid for annual insurance
      contracts. The amounts are expensed ratably over the term of the
      contract.




*Equipment*




Equipment
      is recorded at cost. Depreciation is provided over the estimated useful lives
      of
      the related assets using the straight-line method for financial statement
      purposes. The Company uses other depreciation methods (generally, accelerated
      depreciation methods) for tax purposes where appropriate. Repairs and
      maintenance are expensed as incurred. When equipment is retired, sold, or
      otherwise disposed of, the asset’s carrying amount and related accumulated
      depreciation are removed from the accounts and any gain or loss is included
      in
      operations. During the thre -month periods ended March 31, 2008 and 2007, the
      Company did not dispose of any equipment. The estimated useful lives of computer
      and office equipment are as follows:




EstimatedUsefulLivesComputer
                equipment
            3
                yearsOffice
                equipment
            7
                years




*Leases*




The
      Company reviews all leases for capital or operating classification at their
      inception under the guidance of the Financial Accounting Standards Board's
      (FASB) Statement of Financial Accounting Standards (SFAS) No. 13, *Accounting
      for Leases* ,
      as
      amended. The Company uses its incremental borrowing rate in the assessment
      of
      lease classification and defines the initial lease term to exclude lease
      extension periods.




For
      leases that contain rent escalations, the Company records the total rent payable
      during the lease term, as defined above, on a straight-line basis over the
      term
      of the lease.




*Impairment
      of Long-Lived Assets*




In
      accordance with SFAS No. 144, *Accounting
      for the Impairment or Disposal of Long-Lived Assets* ,
      long-lived assets, such as property and equipment, and intangible assets subject
      to amortization are reviewed for impairment whenever events or changes in
      circumstances indicate that the carrying amount of an asset may not be
      recoverable. Recoverability of assets to be held and used is measured by a
      comparison of the carrying amount of an asset to estimated undiscounted future
      cash flows expected to be generated by the asset. If the carrying amount of
      an
      asset exceeds its estimated undiscounted future cash flows, an impairment charge
      is recognized for the amount by which the carrying amount of the asset exceeds
      the fair value of the asset. Fair value is determined based on the estimated







13
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***





**2.**  **Summary
      of Significant Accounting Policies, Continued**




discounted
      future cash flows expected to be generated by the asset. The factors considered
      by management in performing this assessment include current operating results
      and trends and prospects, as well as the effects of obsolescence and economic
      factors.




*Deferred
      Revenue - Amounts Billed in Advance*




The
      Company recognizes revenue as earned. Amounts billed in advance of the period
      in
      which service is rendered will be recorded as a liability under “Deferred
      revenue.” The Company did not have any deferred revenue at March 31,
      2008.




*General
      and Administrative Expense*




General
      and administrative expense includes the cost of maintaining the infrastructure
      of the Company that is not directly related to delivery services. Also included
      in this category would be the provision for doubtful accounts
      receivable.




*Income
      Taxes*




Deferred
      tax assets and liabilities are recognized for the future tax consequences
      attributable to differences between the financial statement carrying amounts
      of
      existing assets and liabilities and their respective tax bases. Deferred tax
      assets, including tax loss and credit carryforwards, and liabilities are
      measured using enacted tax rates expected to apply to taxable income in the
      years in which those temporary differences are expected to be recovered or
      settled. The effect on deferred tax assets and liabilities of a change in tax
      rates is recognized in income in the period that includes the enactment date.
      Deferred income tax expense represents the change during the period in the
      deferred tax assets and deferred tax liabilities. The components of the deferred
      tax assets and liabilities are individually classified as current and
      non-current based on their characteristics. Deferred tax assets are reduced
      by a
      valuation allowance when, in the opinion of management, it is more likely than
      not that some portion or all of the deferred tax assets will not be realized.




*Reclassification
      of Accounts*




Certain
      reclassifications have been made to prior-year comparative financial statements
      to conform to the current year presentation. These reclassifications had no
      effect on previously reported results of operations or financial position.




*Recent
      Accounting Pronouncements*




In
      June
      2006, FASB issued Interpretation No. 48, *Accounting
      for Uncertainty in Income Taxes - an Interpretation of FASB Statement No.
      109* (FIN
      48), which clarifies the accounting for uncertainty in income taxes recognized
      in an enterprise's financial statements in







14
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**2.**  **Summary
      of Significant Accounting Policies, Continued**




*Recent
      Accounting Pronouncements, Continued*




accordance
      with SFAS No. 109, *Accounting
      for Income Taxes* .
      The
      interpretation prescribes a recognition threshold and measurement attribute
      for
      the financial statement recognition and measurement of a tax position taken
      or
      expected to be taken in a tax return. FIN 48 requires recognition of tax
      benefits that satisfy a greater than 50% probability threshold. FIN 48 also
      provides guidance on de-recognition, classification, interest and penalties,
      accounting in interim periods, disclosure, and transition. FIN 48 is effective
      for the Company beginning January 1, 2008. The Company believes that adoption
      of
      FIN 48 will not have a material effect on its financial position, results of
      operations, or cash flows.




In
      December 2007, the FASB issued Statement of Financial Accounting Standards
      No.
      141 (revised 2007), *Business
      Combinations* ,
      (FAS
      141(R)) and No. 160, *Noncontrolling
      Interests in Combined Financial Statements, an amendment of ARB No.
      51* (FAS
      160). FAS 141(R) will change how business acquisitions are accounted for and
      FAS
      160 will change the accounting and reporting for minority interests, which
      will
      be recharacterized as noncontrolling interests and classified as a component
      of
      equity. The Company will adopt both FAS 141(R) and FAS 160 as of January 1,
      2009
      and neither pronouncement is expected to have a material impact on the Company’s
      financial statements.




**3.**  **Variable
      Interest Entity**




15
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***





**3.**  **Variable
      Interest Entity, Continued**




Forgehouse determined
      its debt servicing of the GS Security's SBA loan required GS Security to be
      recognized as a variable interest entity as defined in FIN 46R. Forgehouse
      concluded that it was the primary beneficiary and, as a result, combined its
      financial operating results with those of GS Security from January 1, 2005
      through January31, 2008.. The combination of GS Security with Forgehouse did
      not
      materially affect its operating results or its financial condition. As of March
      31, 2008 GS Security is no longer combined with ForgeHouse Inc.as a result
      of
      the satisfaction of the SBA Loan in February 2008 (Note 7 - Debt). For
      consistency, the ForgeHouse statement of operations for the three month period
      ended March 31, 2007 does
      not include the operations of the VIE.




**4.**  **Accounts
      Receivable - Trade**




Accounts
      receivable - trade is comprised of the following at March 31, 2008:




Accounts
                receivable - trade
            
            $
            21,052Allowance
                for doubtful accounts receivable
            
            
            -**Accounts
                receivable - trade, net**
            
            **$**
            **21,052**




The
        Company did not provide for an allowance for doubtful accounts as of March
        31,
        2008. as
        all
        open account balances were determined to be collectibleThe accounts receivable
        -
        trade account as of March 31, 2008 (and also those that arise from future
        operations) are pledged as security as part of the Company's loans with the
        private and commercial lenders (Note 7 - Debt).


**5.**  **Equipment**






Equipment,
      net is comprised of the following at March 31, 2008:




Computer
                equipment
            
            $
            31,843Office
                equipment
            
            
            1,337Computer
                equipment not yet placed in service
            
            
            6,411Equipment
                under capital lease
            
            
            9,085Total
                equipment
            
            
            48,676Less:
                accumulated depreciation
            
            
            (28,915
            )**Equipment,
                net**
            
            **$**
            **19,761**




Depreciation
      expense amounted to $774 and $461 for the three month periods ended March 31,
      2008 and 2007, respectively. All of the equipment with a
      net book value of $19,761 was pledged as security for the Company's two loans
      with the private lender (Note 7 - Debt).


16
 
 **ForgeHouse,
              Inc.**
  **Notes
              to the Consolidated Financial Statements**
 ***As
              of March 31, 2008 and***
 ***For
              Each of the Three Month Periods Ended March 31, 2008 and
              2007***





16
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***





**6.**  **Obligations
      under Capital Leases**




The
      Company leases certain equipment under a capital lease. The equipment under
      such
      capital lease is recorded at the lower of the present value of the minimum
      lease
      payments or the fair value of the equipment. Equipment held under capital
      leases is included in the Balance Sheet as s equipment net was $9,085, at March
      31, 2008. Accumulated depreciation of the leased equipment at March 31, 2008
      was
      $379. Depreciation of assets under such capital lease is included in
      depreciation expense.




The
      future minimum lease payments required under the capital leases and the present
      value of the net minimum lease payments as of March 31, 2008, are as
      follows:




Twelve
                months ending
              March 31
            
            Amount2009
            
            $
            5,1012010
            
            
            3,4002011
            
            
            -2012
            
            
            -Thereafter
            
            
            -Total
                minimum lease payments
            
            
            8,501Less:
                amount representing interest
            
            
            (858
            )Present
                value of net minimum lease payments
            
            
            7,643Less:
                current maturities of capital lease obligations
            
            
            (4,396
            )Long-term
                capital lease obligations
            
            $
            3,247




**7.**  **Debt**




17
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***





**7.**  **Debt,
      Continued**


*Debt*
  *The
        debt as of March 31, 2008 is comprised of the following:*
  Debt,
        unsecured


Long
                term loan that was restructured and re-written as of January 31,
                2008 with
                a principal amount of $200,000 that accrues interest at a rate of
                6% per
                annum until maturity and 8% after maturity, with payments of $40,000
                due
                every six months beginning December 31, 2008 until and including
                December
                31, 2010. This note must be prepaid in whole or in part upon the
                closing
                of any equity or debt financing of the Company in the amount of 20%
                of the
                net funding received.Debt,
                unsecured as of March 31, 2008.
            
            $
            200,000Long
                    termportion of the debt, unsecured, as of March 31,
                    2008
            
            
            (40,000
            )Long
                term debt, unsecured, as of March 31, 2008
            
            $
            160,000




Long
      Term
      Debt, Secured




Long
                term loan that was restructured and re-written as of January 31,
                2008 with
                a principal amount of $1,200,000, that accrues interest at a rate
                of 6%
                per annum and is secured by substantially all of the assets of the
                Company. The note calls for principal payments of $240,000 commencing
                on
                December 31, 2008 and continuing every six months until and including
                December 31, 2010. This note must be prepaid in whole or in part
                upon the
                closing of any equity or debt financing of the Company in the amount
                of
                20% of the net funding received.
            
            $
            1,200,000Less
                current portion
            
            
            (240,000
            )Long
                term debt, secured, as of March 31, 2008
            
            $
            960,000Total
                long term debt at March 31, 2008
            
            $
            1,120,000





18
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**7.**  **Debt,
      Continued**




*Short
      Term Notes Payable - Secured*




North
      Atlanta National Bank - Small Business Administration Guaranteed
      Loan




On
      August
      19, 2002, the Company's VIE entered into a loan agreement with North Atlanta
      National Bank (the "Lender") which was guaranteed by the Small Business
      Administration (the "SBA Loan"). The SBA loan at March 31, 2008, had a face
      value of $456,000 with a variable interest rate based on the Wall Street Journal
      prime rate plus 2.75% per annum. The SBA Loan required monthly payments of
      $6,331 and originated in August 2002 with all unpaid principal and interest
      due
      at maturity in August 2010. The amount of the monthly SBA Loan payment was
      subject to annual adjustment each August so that the principal balance is
      amortized ratably over the remaining term of the loan. The interest rate at
      March 31, 2007 was 11.0% and at February 5, 2008 (the date the note was
      satisfied - see Note 1.) was 10.0%. The SBA Loan's variable interest rate was
      subject to adjustment on a calendar quarter basis. The weighted-average interest
      rate for the three month period ended March 31, 2007 and period from January
      1,
      2008 to February 5, 2008 was 11.0% and 10.0%, respectively. The SBA Loan wass
      secured by substantially all of the assets (both tangible and intangible) of
      the
      Company and GS Security (Note 3, Variable Interest Entity). The loan was fully
      satisfied in February 2008.




Specific
      costs related to the SBA Loan were capitalized upon issuance of the debt and
      were being amortized to interest expense using the effective interest rate
      method over the five-year term of the debt. During the year ended December
      31,
      2006, the remaining unamortized balance was expensed to amortization expense
      as
      the loan became in default at December 31, 2006.




Milk
      Bottle Bridge Loan




In
      the
      fourth quarter of 2007, the Company obtained a short term bridge loan from
      Milk
      Bottle Cards, Inc. in the amount of $300,000, which came in four tranches
      throughout the 4th quarter of 2007. The loan was needed to continue the
      operations of the Company until the reverse merger was finalized (Note 1.-
      Description of Company's Business). The loan was guaranteed personally by the
      CEO and COO of the Company. The loan had an interest rate of 6% per annum and
      was satisfied during the first quarter of 2008. A portion of the funds came
      from
      a related party, who was an investor in the Series A Preferred Unit sale (Note
      10 - Equity Transactions) in January 2008.







19
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***





**7.**  **Debt,
      Continued**




*Long
      Term Debt - Unsecured*




After
      All Group




In
      August
      2006, the Company borrowed $200,000 from a group ("After All") that consisted
      of
      some of the same owners (who were Members of the LLC) of Arngrove Group
      Holdings, Ltd. The loan was unsecured and interest accrues at a rate of 20%
      per
      annum, which is calculated monthly and rolled into the principal balance of
      the
      loan. The loan term was six months from the issuance date and has been extended
      on a month-to-month basis at the discretion of After All. This note payable
      was
      restructured on January 31, 2008 and all accrued interest was forgiven, which
      is
      included in the gain on the restructuring of debt in the statement of
      operations. The restructured note is at an interest rate of 6% per annum, with
      scheduled principal payments of $40,000 to be made starting December 31, 2008,
      and every six months thereafter, up to and including December 31, 2010. The
      long
      and current principal balance and accrued interest at March 31, 2008 was
      $160,000, $40,000 and $2,002, respectively. Interest accrues at 8% beyond
      maturity. This note must be prepaid in whole or in part upon the closing of
      any
      equity or debt financing of the Company in the amount of 20% of the net funding
      received.




*Long
      Term Notes Payable - Secured*




Arngrove
      Group Holdings Ltd.




In
      May
      2005, the Company entered into a combination debt, sale of Members' equity
      and
      services agreement transaction (the "Agreement") with Arngrove Group Holdings
      Ltd (a United Kingdom entity) ("Arngrove"). The Agreement provided the Company
      with a line-of-credit facility (the "Loan Agreement") that called for Arngrove
      to advance the Company as requested up to $100,000 per month, with a maximum
      aggregate principal amount not to exceed $1,200,000 over the twelve month period
      ending May 2006. The Loan Agreement was evidenced by a note payable with a
      not-to-exceed face amount of $1,200,000 with a fixed interest rate of 10.0%
      per
      annum. The Loan Agreement for financial reporting purposes was discounted at
      inception to reflect an effective interest rate yield of 29.7% (as of the date
      the Loan Agreement promissory note was created); its initial discount recognized
      was $114,622. The discount was being accreted ratably over the initial life
      of
      the Loan Agreement promissory note. The required annual interest only payments
      were to commence as of June 1, 2006, but were not made. As such, in 2006, the
      Loan Agreement's restrictive covenants went into default and all of the
      unaccreted discount was expensed.







20
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***





**7.**  **Debt,
      Continued**




The
      Agreement also included a services contract that provided for Arngrove to
      provide certain consulting services and to receive a fee (the "Fee") of
      approximately $120,000 each year, payable monthly within 7 days of each
      month-end. The Fee was a required portion of the Agreement. It is being treated
      by the Company as additional interest. The Company determined that the nature
      of
      the consultancy services called for in the Agreement were investor's due
      diligence procedures or were not provided to the Company at all. The Company
      did
      not make any Fee payments to Arngrove as provided for in the service contract
      until the agreement was restructured at January 31, 2008, at which time payments
      totaling $368,571 were made to satisfy all accrued interest and management
      fees
      on the Arngrove and After All notes. This resulted in a first quarter gain
      on
      the restructuring of debt of $365,834.




The
      Agreement included the sale of Members equity to four individuals related to
      Arngrove for $300,000 and a 30% interest in the Company (Note 10). This was
      a
      necessary provision to obtain the loan, which was why the Company accepted
      the
      investment at a discounted price. The Company, based on prior equity
      investments, estimated the fair value of the 30% equity interest at $600,000.
      The Company trifurcated the values of the loan, equity interest, and service
      contract based on the net cash received from the agreement, resulting in the
      recording of the equity investment at a value of $414,622 and a discount on
      the
      underlying loan of $114,622, to be amortized over the life of the loan. However,
      as mentioned above, the loan discount was accelerated when the note became
      in
      default in 2006. This 30% interest was purchased by Milk Bottle Cards, Inc
      at
      January 31, 2008 for $171,430.




The
      Company restructured the debt in January 2008 as part of the reverse merger
      transaction (Note 10 - Equity), and, as such, the debt is classified as a long
      term Note Payable on the face of the balance sheet. This note payable was
      restructured on January 31, 2008 at an interest rate of 6% per annum, with
      scheduled principal payments of $240,000 to be made starting December 31, 2008
      and every six months thereafter, up to and including December 31, 2010. Interest
      accrues at 8% beyond maturity. The The amount of stated interest related to
      this
      Loan Agreement was included in accrued interest and was $12,015 at March 31,
      2008. This note must be prepaid in whole or in part upon the closing of any
      equity or debt financing of the Company in the amount of 20% of the net funding
      received.




The
      Company incurred interest expense in the three month periods ended March 31,
      2008 and 2007 of $101,786 and $82,216, respectively, all of which was charged
      to
      operations.




Debt
      is
      scheduled to mature during the years ended March 31 as follows:




2009
            
            $
            280,0002010
            
            
            560,0002011
            
            
            560,0002012
            
            
            -2013
                and beyond
            
            
            -





21
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**8.**  **Commitments
      and Contingencies**




*Financial
      Results, Liquidity and Management's Plan*




The
      Company’s success will depend in part on its ability to obtain patents (one is
      now pending in 36 countries) and to expand its OneVision® product license
      holders and related revenue, to maintain its trade secrets, and to operate
      without infringing on the proprietary rights of others, both in the United
      States and other countries. There can be no assurance that patents issued to
      or
      licensed by the Company will not be challenged, invalidated, or circumvented,
      or
      that the rights granted there under will provide proprietary protection or
      competitive advantages to the Company.




The
      accompanying financial statements as of March 31, 2008 have been prepared
      assuming the Company will continue as a going concern. The Company, over time,
      has experienced recurring losses and negative cash flows from operations, and
      as
      of March 31, 2008, the Company’s current liabilities exceeded its current assets
      by $678,918 and its total liabilities exceeded its total assets by $1,713,072.
      The Company also has substantial debt that was restructured in January 2008
      (Note 7 - Debt). These factors raise substantial doubt about the Company's
      ability to continue as a going concern. During 2008, management intends to
      raise
      additional debt and/or equity financing to fund future operations, ongoing
      software development costs and debt retirement needs. The Company’s marketing
      plan is to assist its licensees and to promote the expand acceptance and use
      of
      its OneVision®product, and to develop additional applications in industries
      where there is significant anticipated demand requirements. Management believes
      that its plans will contribute towards achieving profitability but there is
      no
      assurance that they can be implemented; or that the results will be of a
      sufficient level necessary to meet the Company’s ongoing cash needs. No
      assurances can be given that the Company can obtain sufficient working capital
      through borrowings from a related party or lending institutions or that the
      continued implementation of its business plan will generate sufficient revenues
      in the future to sustain ongoing operations.




The
      accompanying financial statements do not include any adjustments to reflect
      the
      possible future effects on the recoverability and classification of assets
      or
      the amounts and classifications of liabilities that may result from the possible
      inability of the Company to continue as a going concern. As discussed in Note
      10
      - Equity Transactions, the Company was able to obtain additional working capital
      in connection with the reverse acquisition in January 2008.







22
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**8.**  **Commitments
      and Contingencies, Continued**




*Legal
      Actions*




Certain
      conditions may exist as of the date the financial statements are issued, which
      may result in a loss to the Company, but which will only be resolved when one
      or
      more future events occur or fail to occur. The Company’s management and its
      legal counsel assess such contingent liabilities, and such assessment inherently
      involves an exercise of judgment. In assessing loss contingencies related to
      legal proceedings that are pending against the Company or unasserted claims
      that
      may result in such proceedings, the Company’s legal counsel evaluates the
      perceived merits of any legal proceedings or unasserted claims as well as the
      perceived merits of the amount of relief sought or expected to be sought
      therein.




If
      the
      assessment of a contingency indicates that it is probable that a material loss
      has been incurred and the amount of the liability can be estimated, then the
      estimated liability would be accrued in the Company’s financial statements. If
      the assessment indicates that a potentially material loss contingency is not
      probable but is reasonably possible, or is probable but cannot be estimated,
      then the nature of the contingent liability, together with an estimate of the
      range of possible loss if determinable and material, would be
      disclosed.




Loss
      contingencies considered remote are generally not disclosed unless they involve
      guarantees, in which case the guarantees would be disclosed.




*Operating
      Leases*




The
      Company recognized rental expense of $8,829 and $16,339 for the three month
      periods ended March 31, 2008 and 2007, respectively. The Company occupied its
      Norcross, Georgia facility under a rental agreement that had a lease term that
      expired in March 2007. The Company began subleasing space from a third party
      for
      $1,500 per month in October 2007 on a month-to-month basis.




*Concentration
      of Credit Risk*




Financial
      instruments, which potentially subject the Company to concentrations of credit
      risk, consist primarily of the accounts receivable - trade. The Company operates
      in a market segment that is highly competitive and rapidly changing. Significant
      technological changes, shifting customer requirements, the emergence of
      competitive products with new capabilities and other factors could negatively
      impact the Company's operating results.







23
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**8.**  **Commitments
      and Contingencies, Continued**




The
      Company had 2 customers that individually comprised more than 10% of the
      accounts receivable - trade balance, for a total of 97% of the accounts
      receivable - trade balance at March 31, 2008.




2
      customers were individually responsible for more than 10% of the revenue for
      the
      three month period ended March 31, 2008, totaling 91% of the Company's sales
      during the period. These customers individually made up more than 10% of the
      Company's sales during 2007, totaling 88% of total sales during the three month
      period ended March 31, 2007.




The
      Company made 100% of its hardware purchases for resale from one vendor in the
      three month period ended March 31, 2008. The Company feels that this vendor
      could be easily replaced.




If
      the
      Company were to lose any of these customers or vendors, the impact on its
      financial statements would be unknown, but could be significant. The Company
      has
      not experienced any such loss of customers or vendors as of March 31,
      2008.




**9.**  **Related
      Party Transactions**




*Member
      Loans*




Two
      individuals, who are the only Members of the former ForgeHouse, LLC managing
      Member, TWE International, LLC (a Georgia Limited Liability Company) ("TWE
      Members") have from time to time and as required since the Company's inception
      in 2002, advanced funds to ForgeHouse to meet ongoing operational cash flow
      needs. All amounts advanced and unpaid through August 2007 have been recorded
      as
      capital contributions (Note 10 - Equity Transactions). As of March 31, 2008,
      there were amounts due to the two TWE Members of $28,767 for funds they advanced
      to the ForgeHouse between September and December 2007.




*Personal
      Guarantees*




VIE's
      SBA Loan




TWE
      Members provided personal guarantees for the VIE's SBA loan (Note 7 - Debt)
      that
      was fully satisfied in February 2008. Each of the personal guarantees was for
      an
      amount not to exceed the SBA Loan principal balance plus costs and unpaid
      accrued interest.




Milk
      Bottle Bridge Loan






TWE
      Members provided personal guarantees for the Milk Bottle bridge loan (Note
      7 -
      Debt). Each of the personal guarantees was for an amount not to exceed the
      loan
      principal balance plus costs and unpaid accrued interest.







24
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**9.**  **Related
      Party Transactions, Continued**




*Contributed
      Services*




An
      individual, who was an equity holder of ForgeHouse and a shareholder of the
      Company, provided software development services during the year ended December
      31, 2007. The contributed services provided to ForgeHouse were recorded at
      a
      fair value of $54,000 and the equity holder did not receive additional
      membership units or capital participation (Note 10 - Equity Transactions).




**10.**  **Equity
      Transactions**




*Capital
      Contributions*




During
      the year ended December 31, 2007, the two largest equity holders in ForgeHouse
      contributed $200,943 of additional-paid-in-capital.




In
      the
      year ended December 31, 2007, a ForgeHouse equity holder contributed as
      additional-paid-in-capital the amount due him by the ForgeHouse for past
      software programming services related to the ongoing software system development
      of OneVision ® .
      The
      fair value of the contributed services was $54,000 based on the fair value
      of
      the services. The total amount was charged to operations as software development
      costs.




*Sale
      of Units*




On
      January 31, 2008, the Company sold 2,000,000 units, each unit consisted of
      one
      share of the Company's Series A Preferred stock and one warrant to purchase
      a
      share of the Company's common stock. The total proceeds from this transaction
      was $2,100,000. Each of the Series A Preferred shares is convertible into the
      Company's common stockk on a one-to-one basis. The warrants have an exercise
      price of $1.00 and expire 5 years from the grant date.







25
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**10.**  **Equity
      Transactions, Continued**




*Options
      Activity*




A
      summary
      of the option activity as of March 31, 2008, and changes during the period
      then
      ended is presented below:




WeightedAverageWeighted
            
            Remaining
            
            AggregateNumber
                of
            
            Average
            
            Contractual
            
            IntrinsicOptions
            
            Exercise
                Price
            
            Term
                (Years)
            
            ValueOutstanding
                atDecember
                31, 2007
            
            
            -
            
            
            -
            
            
            -
            
            
            -Granted
            
            
            1,136,000
            
            $
            1.00
            
            
            5.65
            
            $
            844,855Exercised
            
            
            -
            
            
            -
            
            
            -
            
            
            -Forfeited
            
            
            -
            
            
            -
            
            
            -
            
            
            -Expired
            
            
            -
            
            
            -
            
            
            -
            
            
            -Outstanding
                atMarch
                31, 2008
            
            
            1,136,000
            
            $
            1.00
            
            
            5.65
            
            $
            844,855Exercisable
                atMarch
                31, 2008
            
            
            386,000
            
            $
            1.00
            
            
            7.24
            
            $
            306,985




On
      January 31, 2008, the Company granted options to purchase 186,000 shares of
      its
      common stock to the Company's Chief Operating Officer immediately following
      the
      Merger Agreement as a condition for entering his employment agreement. The
      options have an exercise price of $1.00, vest immediately and expire 10 years
      from the grant date.




On
      January 31, 2008, the Company granted options to purchase 75,000 shares of
      its
      common stock to both the Company's Chief Strategy Officer and the Chief
      Technology Officer immediately following the Merger Agreement for entering
      their
      employment agreements. The options have an exercise price of $1.00, vest
      immediately and expire in 5 years from the grant date.




On
      January 31, 2008, the Company granted options to purchase 225,000 shares of
      its
      common stock to each of two employees for past services immediately following
      Merger Agreement. The options have an exercise price of $1.00, vest evenly
      on
      each of the first three anniversaries of the grant date and expire 5 years
      from
      the grant date.




In
      February 2008, the Company granted options to purchase 350,000 shares of its
      common stock to the Company's Chief Financial Officer for entering his
      employment agreement. The options have an exercise price of $1.00, 50,000 vest
      immediately, and the remaining 300,000 vest evenly on each of the first three
      anniversaries of the grant date and expire 5 years from the grant
      date.







26
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**10.**  **Equity
      Transactions, Continued**




The
      assumptions used in the Black-Scholes option pricing model for the stock options
      granted during the three month period ended March 31, 2008 were as
      follows:


For
                theThree
                MonthPeriod
                EndedMarch
                31, 2008Risk-free
                interest rate
            
            
            2.78
                to 3.60%Expected
                volatility of common stock
            
            
            92%Dividend
                yield
            
            $
            0.00Expected
                life of options
            
            
            5
                yearsWeighted
                average fair market value of options granted
            
            $
            0.74




*Warrant
      Activity*




A
      summary
      of the warrant activity as of March 31, 2008, and changes during the period
      then
      ended is presented below:




WeightedAverageNumber
                of
            
            ExerciseWarrants
            
            Price**Outstanding,
                December 31, 2007**
            
            
            -
            
            
            -Issued
            
            
            2,000,000
            
            $
            1.00Exercised
            
            
            -
            
            
            -**Outstanding,
                March 31, 2008**
            
            
            **2,000,000**
            
            **$**
            **1.00****Exercisable,
                March 31, 2008**
            
            
            **2,000,000**
            
            **$**
            **1.00**




On
      January 31, 2008, the Company sold 2,000,000 units, each unit consisted of
      one
      share of the Company's Series A Preferred stock and one warrant to purchase
      a
      share of the Company's common stock. The warrants have an exercise price of
      $1.00 and expire 5 years from the grant date.




*Shares
      Reserved for Future Issuance*




The
      Company has reserved shares for future issuance upon exercise of outstanding
      options and warrants as follows:




Options
            
            
            1,136,000Warrants
            
            
            2,000,000**Reserved
                shares at March 31, 2008**
            
            
            **3,136,000**





27
 **ForgeHouse,
            Inc.**
 **Notes
            to the Combined Financial Statements**
 ***As
            of March 31, 2008 and***
 ***For
            Each of the Three Month Periods Ended March 31, 2008 and
            2007***







**11.**
            **Earnings
                Per Share**




In
      accordance with FASB Statement No. 128, Earnings Per Share, the Company
      calculates basic and diluted net loss per share using the weighted average
      number of common shares outstanding during the periods presented and adjust
      the
      amount of net loss, used in this calculation, for preferred stock dividends
      declared during the period.




The
      Company incurred a net loss in each period presented, and as such, did not
      include the effect of potentially dilutive common stock equivalents in the
      diluted net loss per share calculation, as their effect would be anti-dilutive
      for all periods. Potentially dilutive common stock equivalents would include
      the
      common stock issuable upon the conversion of the convertible note payable and
      the exercise of warrants and stock options that have conversion or exercise
      prices below the market value of the Company’s common stock at the measurement
      date. As of March 31, 2008, all potentially dilutive common stock equivalents
      amounted to 3,136,000 shares.




The
      following table illustrates the computation of basic and diluted net loss per
      share:




For
                the
            
            For
                theThree
                Month
            
            Three
                MonthPeriod
                Ended
            
            Period
                EndedMarch
                31, 2008
            
            March
                31, 2007Numerator:Net
                loss
            
            $
            (487,687
            )
            $
            (265,516
            )Denominator:Denominator
                for basic and diluted net loss per share-weighted average number
                of common
                shares outstanding
            
            
            23,571,429
            
            
            15,000,000Basic
                and diluted net loss per share
            
            $
            (0.02
            )
            $
            (0.02
            )




The
      following table sets forth potential shares of common stock that are not
      included in the diluted net loss per share because to do so would be
      anti-dilutive since the Company reported net losses in all the reporting
      periods:




For
                the
            
            For
                theThree
                Month
            
            Three
                MonthPeriod
                Ended
            
            Period
                EndedMarch
                31, 2008
            
            March
                31, 2007Options
                to purchase shares of common stock
            
            
            1,136,000
            
            
            -Warrants
                to purchase shares of common stock
            
            
            2,000,000
            
            
            -**Total**
            
            
            **3,136,000**
            
            
            **-**










28




**ITEM
      2. MANAGEMENTS DISCUSSION AND ANALYSIS OF PLAN OF
      OPERATIONS.**





The
      following discussion of the financial condition and results of operation of
      ForgeHouse, Inc. (“ForgeHouse,” the “Company,” “we,” “us,” and, as noted, the
“Resulting Company”) should be read in conjunction with the financial statements
      and the notes to those statements included herein. This discussion includes
      forward-looking statements that involve risk and uncertainties. Actual results
      may differ materially from those anticipated in the forward-looking
      statements.





**Overview
      of Venture**





In
      July
      2007, the members (the “Members”) of ForgeHouse, LLC, a Georgia limited
      liability company (the “Operating Company”) entered into a Nonbinding Letter of
      Intent with Milk Bottle Cards, Inc. (“Milk Bottle”) (a non-operating public
      shell corporation), whereby the Members were to exchange their membership
      interests for Milk Bottle common stock and cash. On January 31, 2008 Milk Bottle
      and the Members entered certain agreements (the “Exchange Agreement”) that
      resulted in the exchange of all of their membership interests in the Operating
      Company for 10,500,000 shares of common stock of Milk Bottle (approximately
      37.5% of all outstanding common stock of the Company as of the closing of the
      exchange transaction) and cash of approximately $171,500.





Concurrently
      with the closing of the exchange transaction, ForgeHouse entered into a private
      placement of 2,000,000 units of its securities (the “Preferred Stock Financing”)
      that resulted in net proceeds of $1,850,000 (net of Preferred Stock Financing
      fees and expenses of $250,000). Each unit consisted of one share of Series
      A
      Preferred Stock and one three-year common stock purchase warrant, exercisable
      for one share of common stock at $1.00 per share.





We
      used a
      portion of the net proceeds of the Preferred Stock Financing to repay certain
      debt, conclude the exchange transaction, and strengthen our balance sheet.
      Upon
      the closing of the Preferred Stock Financing, we repaid a bank loan
      (approximately $220,000), paid an agreed-upon sum for interest and fees from
      a
      prior series of private financings (approximately $369,000), and repaid certain
      stockholder loans (approximately $92,000).





ForgeHouse
      is in the business-to-business arena and is focused on providing scalable,
      Enterprise-class web-based solutions that increase productivity and
      accountability by workflow optimization. Our markets range from Fortune 1000
      companies to Government to Small and Medium Enterprises and Businesses (SMEs
      and
      SMBs).





We
      will
      need to obtain additional operating capital during the balance of our 2008
      fiscal year to fund continuing software development and to increase our sales
      team to penetrate and gain traction in the markets identified as critical to
      our
      business success. Although we are considering various debt or equity financings,
      there can be no assurance that any financing will be available to us on terms
      acceptable to us or at the time that we that we would require such financing.
      Failure to obtain any such financing will result in our inability to effectuate
      our business plan. As of the date of this Quarterly Report, we have not entered
      into any agreements and have not received any commitments to obtain any such
      financing. ****





**Results
      of Operations (Quarter Ended March 31, 2008 in Comparison to Quarter Ended
      March
      31, 2007)**




Financial
      statements for the three months ended March 31, 2007, contain information of
      both the Operating Company combined with GS Security Group, a variable interest
      entity; financial statements for the three months ended March 31, 2008, contain
      information of the Operating Company (through January 31, 2008, the date of
      the
      closing of the exchange transaction) and of the Resulting Company (combined
      with
      GS Security Group through February 2008, when the Bank Loan was
      repaid.





**Net
      Revenues**


Net
      revenues for the three months ended March 31, 2008 ,
      increased to $69,000 from $25,000 in the prior year, an increase of
      approximately 172%. Revenues from the ASP service increased by approximately
      43%, while sales of hardware increased by approximately 380%. One customer
      accounted for 78% and another for 13% of total net revenues for the three months
      ended March 31, 2008.




2




**Cost
      of Revenues**





Cost
      of
      revenues for the three months ended March 31, 2008, decreased to $69,000 from
      $80,000 in the prior year. Cost of revenues primarily consists of Software
      Development cost and cost of Hardware purchased for resale. Cost of sales as
      a
      percentage of sales is 91% for the period ending March 31, 2008, and 315% for
      the prior period. We anticipate that our cost of sales will remain relatively
      unchanged for the remainder of the year.





**Operating
      Expenses**





Total
      operating expenses for the three months ended March 31, 2008, increased to
      $751,000 from $129,000 in the prior year. The expense breakdown is as
      follows:





**Operating
                Expenses**
            
            **2008**
            
            **2007**
            
            **Var
                B(W)**
            
            **Var
                B(W)****$'000**
            
            **$'000**
            
            **$'000**
            ****
            **%**Payroll
                related expenses
            
            
            236
            
            
            53
            
            
            (183
            )
            
            (348
            )%Professional
                fees
            
            
            61
            
            
            10
            
            
            (51
            )
            
            (529
            )%Depreciation
                and Amortization
            
            
            9
            
            
            9
            
            
            (0
            )
            
            (3
            )%Stock
                based charges
            
            
            334
            
            
            0
            
            
            (334
            )
            
            N/AGeneral
                and Administrative
            
            
            111
            
            
            58
            
            
            (53
            )
            
            (93
            )%**Total**
            ****
            ****
            **751**
            ****
            ****
            **129**
            
            
            (622
            )
            
            (482
            )%





*
            ***Payroll
                expenses***were attributable to salaries, benefits, related taxes and group
                health
                insurance to our officers and employees. We anticipate that payroll
                expenses will increase during the remainder of our current fiscal
                year.
                Our plan is to expand the sales and support staff in order to meet
                our
                growth targets.





*
            ***Professional
                fees***represent both accounting and legal fees. We anticipate that our
                professional fees will decrease during the balance of the fiscal
                year, as
                a material amount of professional service fees were incurred during
                the
                three months ended March 31, 2008, in connection with the exchange
                transaction and the related SEC
                filings.





*
            ***Depreciation
                and Amortization expenses***represent depreciation of fixed assets over three years and amortization
                of software development over five years. We expect depreciation expenses
                to increase for the balance of this fiscal year as we acquire additional
                fixed assets for the use of an expected increasing number of
                employees.





*
            ***Stock
                Based Charges***represent the amortization of stock options issued to management
                and
                certain of our other employees. Since the total option value is amortized
                over the vesting period, the charges were higher for this quarter
                because
                certain of the options vested immediately on the date of the grant.
                We
                anticipate that stock based charges will be significantly lower for
                the
                balance of this fiscal year.





*
            ***General
                and Administrative expenses***are primarily comprised of Occupancy & Equipment, Travel &
                Entertainment, Printing & Stationary, Postage & Delivery, Office
                Supplies, and Fees. We expect these expenses to moderate during the
                balance of this fiscal year, as a major portion of the expenses to
                date
                related to the exchange transaction. In May, 2008, we entered into
                a
                four-year lease agreement for our offices, as a result of which we
                will
                relocate headquarters from Atlanta, Georgia to Alpharetta, Georgia.
                Due to
                the cost involved in moving to the new facilities Occupancy cost
                will
                increase slightly during the balance of
                year.





**Other
      Expense**





For
      the
      three months ended March 31, 2008, interest expense amounted to $102,000 and
      was
      attributable to two notes payable. These notes were renegotiated in January
      2008
      as described in Liquidity and Capital Resources, below.




3




**Net
      Loss**


We
      reported a loss from operations of $488,000 for the three months ended March
      31,
      2008, compared to $266,000 for the prior year, or a net loss per share of $.02.
      The overall net loss increased in comparison with last year due to the increases
      in Operating Expenses described above, notwithstanding a one-time gain on
      restructuring of debt of $365,000 that was partially offset by stock-based
      charges of $334,000.





**Liquidity
      and Capital Resources**





Liquidity
      is the ability of a company to generate funds to support its current and future
      operations, satisfy its obligations, and otherwise operate on an ongoing basis.
      At March 31, 2008, we had a cash balance of $483,000 and a working capital
      deficit of $679,000. During the three months ended March 31, 2008, as a result
      of the Preferred Stock Financing, we funded our operations and repaid certain
      obligations. Our balance sheet at March 31, 2008 reflects long-term notes
      payable of $1,120,000. In January 2008, we amended the terms and provisions
      of
      these notes. In connection with such amendments, the holders thereof waived
      an
      aggregate of $366,000 in accrued interest and reduced the interest rates from
      10% and 20% to 6% per year. All principal and accrued interest thereon will
      mature beginning December 2008. Additionally the debt holders waived any default
      that had occurred.





Net
      cash
      flows used in operating activities for the three months ended March 31, 2008
      amounted to $1,061,000 and were primarily attributable to our net loss of
      $488,000, payment of an agreed-upon sum for interest and fees from a prior
      series of private financings $369,000, and repayment of stockholder loans
      $92,000. Net cash flows used in investing activities for the three months ended
      March 31, 2008 amounted to $187,000 and were primarily used for the exchange
      agreement described above. Net cash flows provided by financing activities
      for
      the three months ended March 31, 2008, amounted to $1,528,000 and were primarily
      attributable to the $1,850,000 net proceeds of the Preferred Stock Financing,
      as
      offset by repayment of a short-term loan in the amount of $300,000, and
      repayment of SBA bank loan $220,000.





At
      March
      31, 2008, we had cash of $281,000, which represented a net increase in cash
      during the three months ended March 31, 2008 of $281,000.  We have no
      currently planned material commitments for capital expenditures; however, other
      than our current cash, we presently have no other alternative source of
      operating capital, without which we may be unable to continue software
      development, to increase our sales team to penetrate and gain traction in the
      markets identified as critical to our business success, or to have the capital
      necessary to fund our ongoing operations and obligations. Although we are
      considering various debt or equity financings, there can be no assurance that
      any financing will be available to us on terms acceptable to us or at the time
      that we that we would require such financing. Failure to obtain any such
      financing will result in our inability to effectuate our business plan. As
      of
      the date of this Quarterly Report, we have not entered into any agreements
      and
      have not received any commitments to obtain any such financing.





**Off-Balance
      Sheet Arrangements**





We
      have
      no off-balance sheet arrangements at March 31, 2008.





**Critical
      Accounting Policies and Estimates**





Our
      discussion and analysis of our financial condition and results of operations
      are
      based on our financial statements, which have been prepared in accordance with
      accounting principles generally accepted in the United States of America. The
      preparation of these financial statements requires us to make estimates and
      judgments that affect the reported amounts of assets, liabilities and expenses.
      On an ongoing basis, we evaluate our estimates and judgments, including those
      related to accrued expenses, fair valuation of stock related to stock-based
      compensation and income taxes. We based our estimates on historical experience
      and on various other assumptions that we believe to be reasonable under the
      circumstances, the results of which form the basis for making judgments about
      the carrying values of assets and liabilities that are not readily apparent
      from
      other sources. Actual results may differ from these estimates under different
      assumptions or conditions.





Use
      of
      Estimates





In
      preparing the financial statements, management is required to make estimates
      and
      assumptions that affect the reported amounts of assets and liabilities as of
      the
      date of the statements of financial condition, revenues, and expenses for the
      period then ended. Actual results may differ significantly from those estimates.
      Significant estimates made by management include, but are not limited to,
      stock-based compensation, valuation of debt discounts, and useful life of
      property and equipment.




4




Accounts
      Receivable





We
      have a
      policy of reserving for uncollectible accounts based on its best estimate of
      the
      amount of probable credit losses in its existing accounts receivable. We
      periodically review our accounts receivable to determine whether an allowance
      is
      necessary based on an analysis of past due accounts and other factors that
      may
      indicate that the realization of an account may be in doubt. Account balances
      deemed to be uncollectible are charged to the allowance after all means of
      collection have been exhausted and the potential for recovery is considered
      remote.




Inventories





Inventories
      are stated at the lower of cost or market utilizing the first-in, first-out
      method and consist of raw materials related to our products. We intend to write
      down inventory for estimated obsolescence or unmarketable inventory based upon
      assumptions and estimates about future demand and market conditions. If actual
      market conditions become less favorable than those projected by us, additional
      inventory write-downs might be required.





Property
      and Equipment





Property
      and equipment are carried at cost. Depreciation and amortization are provided
      using the straight-line method over the estimated economic lives of the assets.
      The cost of repairs and maintenance is expensed as incurred; major replacements
      and improvements are capitalized. When assets are retired or disposed of, the
      cost and accumulated depreciation are removed from the accounts, and any
      resulting gains or losses are included in income in the year of
      disposition.





Revenue
      Recognition





We
      follow
      the guidance of the SEC’s Staff Accounting Bulletin No. 104, “Revenue
      Recognition in Financial Statements.” In general, we record revenue when
      persuasive evidence of an arrangement exists, services have been rendered or
      product delivery has occurred, the sales price to the customer is fixed or
      determinable, and collectability is reasonably assured.




The
      following policies reflect our specific criteria for our revenue stream: We
      generate revenue from the sale of our beverage products. Revenues from the
      sale
      of these items are recognized upon delivery of the product to the customer.
      Consideration given by us to a customer (including a reseller of our products)
      such as slotting fees is accounted for as a reduction of revenue when recognized
      in our income statement.




Stock
      Based Compensation





We
      adopted Statement of Financial Accounting Standards No. 123 (revised
      2004), *Share Based Payment* (“SFAS
      No. 123R”). SFAS No. 123R establishes the financial accounting and
      reporting standards for stock-based compensation plans. As required by SFAS
      No. 123R, we recognized the cost resulting from all stock-based payment
      transactions including shares issued under our stock option plans in the
      financial statements.





Non-Employee
      Stock-Based Compensation




The
      cost
      of stock based compensation awards issued to non-employees for services are
      recorded at either the fair value of the services rendered or the instruments
      issued in exchange for such services, whichever is more readily determinable,
      using the measurement date guidelines enumerated in Emerging Issues Task Force
      Issue (“EITF”) 96-18, “Accounting for Equity Instruments That Are Issued to
      Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or
      Services” (“EITF 96-18”).




5




Recent
      Accounting Pronouncements





In
      September 2006, the FASB issued Statement of Financial Accounting Standards
      No.
      157, “Fair Value Measurements” (“FAS 157”). This Statement defines fair value as
      used in numerous accounting pronouncements, establishes a framework for
      measuring fair value in generally accepted accounting principles and expands
      disclosure related to the use of fair value measures in financial statements.
      The Statement is to be effective for the Company’s financial statements issued
      in 2008; however, earlier application is encouraged. The
      adoption of this interpretation did not have an impact on the Company’s
      financial position, results of operations, or cash flows.





In
      September 2006, the SEC issued Staff Accounting Bulletin No. 108, *considering
      the Effects of Prior Year Misstatements when quantifying Misstatements in
      Current Year Financial Statements* (“SAB 108”).
      SAB 108 requires companies to evaluate the materiality of identified
      unadjusted errors on each financial statement and related financial statement
      disclosure using both the rollover approach and the iron curtain approach,
      as
      those terms are defined in SAB 108. The rollover approach quantifies
      misstatements based on the amount of the error in the current year financial
      statement, whereas the iron curtain approach quantifies misstatements based
      on
      the effects of correcting the misstatement existing in the balance sheet at
      the
      end of the current year, irrespective of the misstatement’s year(s) of origin.
      Financial statements would require adjustment when either approach results
      in
      quantifying a misstatement that is material. Correcting prior year financial
      statements for immaterial errors would not require previously filed reports
      to
      be amended. If a Company determines that an adjustment to prior year financial
      statements is required upon adoption of SAB 108 and does not elect to
      restate its previous financial statements, then it must recognize the cumulative
      effect of applying SAB 108 in fiscal 2006 beginning balances of the
      affected assets and liabilities with a corresponding adjustment to the fiscal
      2006 opening balance in retained earnings. SAB 108 is effective for interim
      periods of the first fiscal year ending after November 15, 2006. The
      adoption of SAB 108 did not have an impact on the Company’s financial
      statements.





In
      December 2006, FASB Staff Position No. EITF 00-19-2, *“Accounting
      for Registration Payment Arrangements,”* was
      issued. The FSP specifies that the contingent obligation to make future payments
      or otherwise transfer consideration under a registration payment arrangement,
      whether issued as a separate agreement or included as a provision of a financial
      instrument or other agreement, should be separately recognized and measured
      in
      accordance with SFAS No. 5, *“Accounting
      for Contingencies.”* The
      Company believes that its current accounting is consistent with the FSP.





In
      February 2007, the FASB issued SFAS No. 159, *“The
      Fair Value Option for Financial Assets and Financial Liabilities, Including
      an
      Amendment of FASB Statement No. 115,”* under
      which entities will now be permitted to measure many financial instruments
      and
      certain other assets and liabilities at fair value on an
      instrument-by-instrument basis. This Statement is effective as of the beginning
      of an entity’s first fiscal year that begins after November 15, 2007. Early
      adoption is permitted as of the beginning of a fiscal year that begins on or
      before November 15, 2007, provided the entity also elects to apply the
      provisions of SFAS 157. The Company is currently assessing the impact, if
      any, the adoption of SFAS 159 will have on its financial statements.





In
      May
      2007, the FASB issued FASB Staff Position No. FIN 48-1, *Definition of Settlement in FASB Interpretation No. 48* (the
“FSP”). The FSP provides guidance about how an enterprise should determine
      whether a tax position is effectively settled for the purpose of recognizing
      previously unrecognized tax benefits. Under the FSP, a tax position could be
      effectively settled on completion of examination by a taxing authority if the
      entity does not intend to appeal or litigate the result and it is remote that
      the taxing authority would examine or re-examine the tax position. The Company
      does not expect that this interpretation will have a material impact on its
      financial position, results of operations, or cash flows.





In
      December 2007, the FASB issued SFAS No. 141(R), *“Business
      Combinations,”* which
      replaces SFAS No. 141, *“Business
      Combinations,”* which,
      among other things, establishes principles and requirements for how an acquirer
      entity recognizes and measures in its financial statements the identifiable
      assets acquired, the liabilities assumed (including intangibles) and any
      noncontrolling interests in the acquired entity. SFAS No. 141(R) applies
      prospectively to business combinations for which the acquisition date is on
      or
      after the beginning of the first annual reporting period beginning on or after
      December 15, 2008. We are currently evaluating what impact our adoption of
      SFAS No. 141(R) will have on our financial statements.




6




In
      December 2007, the FASB issued SFAS No. 160, “ *Noncontrolling
      Interests in Combined Financial Statements, an amendment of ARB
      No. 51.”* SFAS
      No. 160 amends ARB 51 to establish accounting and reporting standards for
      the noncontrolling interest in a subsidiary and for the deconsolidation of
      a
      subsidiary. It also amends certain of ARB 51’s consolidation procedures for
      consistency with the requirements of SFAS No. 141(R). SFAS No. 160 is
      effective for fiscal years, and interim periods within those fiscal years,
      beginning on or after December 15, 2008. We are currently evaluating what
      impact our adoption of SFAS No. 160 will have on our financial
      statements.





Other
      accounting standards that have been issued or proposed by the FASB or other
      standards-setting bodies that do not require adoption until a future date are
      not expected to have a material impact on the financial statements upon
      adoption.





**ITEM
      3. CONTROLS AND PROCEDURES**





We
      carried out an evaluation, under the supervision and with the participation
      of
      our management, including our principal executive officer and our principal
      financial officer, of the effectiveness of the design and operation of our
      disclosure controls and procedures as of the end of the period covered by this
      report. Based upon the evaluation, our Chief Executive Officer and Chief
      Financial Officer concluded that our disclosure controls and procedures are
      effective at the reasonable assurance level for timely gathering, analyzing
      and
      disclosing the information we are required to disclose in our reports filed
      under the Securities Exchange Act of 1934. Our management, which includes our
      Chief Executive Officer and Chief Financial Officer, concluded that our
      disclosure controls and procedures are effective to (i) give reasonable
      assurance that the information required to be disclosed by us in reports that
      we
      file under the Securities Exchange Act of 1934 is recorded, processed,
      summarized and reported within the time periods specified in the Securities
      and
      Exchange Commission's rules and forms, and (ii) ensure that information required
      to be disclosed in the reports that we file or submit under the Securities
      Exchange Act of 1934 is accumulated and communicated to our management,
      including our CEO and CFO, to allow timely decisions regarding required
      disclosure.





There
      have been no changes in our internal control over financial reporting during
      our
      last fiscal quarter that has materially affected, or is reasonably likely to
      materially affect, our internal control over financial reporting.




7




**Part
      II - OTHER INFORMATION**





**ITEM
      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
      PROCEEDS**





In
      connection with his employment agreement, effective February 15, 2008, we
      granted to Mr. Jorge Vargas a five-year incentive stock option to purchase
      up to
      350,000 shares of our common stock at an exercise price of $1.00. This option
      vested and became exercisable as to 50,000 shares on the date of grant. The
      remainder of this option vests and becomes exercisable as to (i) 100,000 shares
      on February 15, 2009, (ii) 100,000 shares on February 15, 2010, and (iii) the
      remaining 100,000 shares on February 15, 2011, assuming that Mr. Vargas is
      employed by us as of such dates. We also granted Mr. Vargas a 10-year
      nonqualified stock option to purchase up to 400,000 shares of our common stock
      at an exercise price of $1.00. This option vests and becomes exercisable as
      to
      (i) 133,333 shares on February 15, 2009, (ii) 133,333 shares on February 15,
      2010, and (iii) the remaining 133,334 shares on February 15, 2011, assuming
      that
      Mr. Vargas is employed by us as of such dates.





The
      grants were made in reliance on Rule 506 under Regulation D promulgated by
      the
      SEC. We believe that exemption was available because (i) no advertising or
      general solicitation was employed in offering the securities, (ii) the grants
      were made to one person, who was an accredited investor, and (iii) transfer
      of
      the options was restricted in accordance with the requirements of the Securities
      Act of 1933 (including legending the option agreement).





**ITEM
      6. EXHIBITS**





Exhibit
                No.
            
            Description2.1*
            
            Agreement
                and Plan of Exchange by and among Milk Bottle Cards, Inc., and certain
                members of ForgeHouse, LLC, dated January 31, 20082.2*
            
            Capital
                Interest Purchase Agreement, by and among the Company and Paul
                Grootendorst, Bryan Irving, Brooks Mileson, and Ian Morl, dated January
                31, 20082.3*
            
            Repurchase
                Agreement, by and between the Company and Nicole Milkovich, dated
                January
                31, 20083.1*
            
            Amended
                and Restated Articles of Incorporation, as filed with the Secretary
                of
                State of the State of Nevada, effective January 31,
                20083.2
            
            Bylaws,
                incorporated by reference to Exhibit 3(ii) of the Company’s Registration
                Statement on Form SB-2, filed on April 15, 20053.3*
            
            Certificate
                of Designation of Series A Convertible Preferred Stock, as filed
                with the
                Secretary of State of the State of Nevada, effective January 31,
                20083.4*
            
            Articles
                of Exchange, as filed with the Secretary of State of the State of
                Nevada,
                effective January 31, 200810.1
            
            2008
                Incentive Plan, incorporated by reference to Exhibit B of the Company’s
                definitive Information Statement on Schedule 14-C, filed January
                2,
                200810.2*
            
            Form
                on Incentive Stock Option Award Agreement under the 2008 Incentive
                Plan10.3*
            
            Form
                of Nonqualified Stock Option Award Agreement under the 2008 Incentive
                Plan10.4*
            
            Employment
                Agreement with John Britchford-Steel, dated as of January 31,
                200810.5*
            
            Employment
                Agreement with Jose Alonso, dated as of January 31,
                2008




8




10.6*
            
            Mutual
                Release, by and among the Company, ForgeHouse, LLC, and Paul Grootendorst,
                Bryan Irving, Brooks Mileson, and Ian Morl, dated as of January 31,
                200810.7*
            
            Form
                of Lock-Up Agreement, dated as of January 31, 2008, by and between
                the
                Company and each of certain beneficial stockholders.10.8*
            
            Form
                of Subscription Agreement, dated as of January 31, 2008, by and between
                the Company and each of certain preferred stockholders.10.9*
            
            Form
                of Common Stock Purchase Warrant, dated as of January 31, 2008, by
                and
                between the Company and each of certain preferred
                stockholders.10.10*
            
            Promissory
                Note, in favor of Arngrove Group Holdings Ltd., dated as of January
                31,
                200810.11*
            
            Promissory
                Note, in favor of After All Limited, dates as of January 31,
                200810.12*
            
            Subordination
                and Inter-creditor Agreement, by and among the Company, ForgeHouse,
                LLC,
                and Paul Grootendorst, Bryan Irving, Brooks Mileson, and Ian Morl,
                dated
                as of January 31, 200810.13**
            
            Employment
                Agreement with Jorge Vargas, dated as of February 15,
                200810.14**/***
            
            Service
                and Software License Agreement, dated April 15, 2007, by and between
                the
                Company and Securitas Security Services USA, Inc.10.15**
            
            Office
                Lease Agreement, by and between the Company and Wolff Atlanta Portfolio,
                LLC.31.1**
            
            Certification
                pursuant to Section 302 of the Sarbanes-Oxley Act.31.2**
            
            Certification
                pursuant to Section 302 of the Sarbanes-Oxley Act.32.1**
            
            Certification
                pursuant to Section 906 of the Sarbanes-Oxley
                Act.





*
      Incorporated by reference to the same Exhibit No. of the Current Report on
      Form
      8-K filed by the Company with the Securities and Exchange Commission on February
      7, 2008.


**
      Filed
      herewith.


***
      Portions omitted pursuant to a request for confidential
      treatment


9


SIGNATURES





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




**FORGEHOUSE,
                INC.**


By:*/s/
                John Britchford-Steel*May
                20, 2008
            John
                Britchford-SteelChief
                Executive Officer




10