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UNITEDSTATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C.20549

FORM 10-QSB

(MarkOne)

|        |                                                                                  |
|--------|----------------------------------------------------------------------------------|
|   | Quarterly report under Section 13 or15(d) of the Securities Exchange Act of 1934 |

For the quarterlyperiod ended September  30,2006

|        |                                                                |
|--------|----------------------------------------------------------------|
|   | Transition report underSection 13 or 15(d) of the Exchange Act |

For the transition periodfrom                                to                             

Commission File Number001-32549

CourtsideAcquisition Corp.

(Exact Name ofSmall Business Issuer as Specified in ItsCharter)

|                                                              |  |  |                                    |
|--------------------------------------------------------------|--|--|------------------------------------|
| Delaware                                                     |  |  | 20-2521288                         |
| (Stateor other Jurisdiction of Incorporation orOrganization) |  |  | (I.R.S.Employer IdentificationNo.) |
|                                                              |

1700 Broadway,17th Floor, New York, New York10019

(Address of Principal ExecutiveOffice)

(212) 641-5000

(Issuer’s Telephone Number, Including AreaCode)

Check whether the issuer (1) filed all reportsrequired to be filed by Section 13 or 15(d) of the Exchange Act duringthe past 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject to such filingrequirements for the past 90 days.Yes     No

Indicate by check mark whether the registrant isa shell company (as defined in Rule 12b-2 of the ExchangeAct).    Yes     No 

As of November6, 2006, 16,800,000 shares of common stock, par value $.0001 per share,were issued and outstanding.

Transitional Small BusinessDisclosure Format (check one):    Yes     No

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|                                                                              |  |  |      |  |        |  |
|------------------------------------------------------------------------------|--|--|------|--|--------|--|
|                                                                         |  |  | Page |
| PartI    FinancialInformation:                           |  |  |      |  |   |  |
| Item 1— Financial Statements(Unaudited):                               |  |  |      |  |   |  |
| Reportof Independent Registered Public AccountingFirm                        |  |  |      |  | 3      |  |
| Condensed Balance Sheet                                                      |  |  |      |  | 4      |  |
| Condensed Statements of Operations                                           |  |  |      |  | 5      |  |
| Condensed Statement ofStockholders’Equity                              |  |  |      |  | 6      |  |
| Condensed Statement of CashFlows                                             |  |  |      |  | 7      |  |
| Notes to Condensed FinancialStatements                                       |  |  |      |  | 8      |  |
| Item 2 —Management’s Discussion and Analysis or Plan ofOperation |  |  |      |  | 12     |  |
| Item 3 — Controlsand Procedures                                        |  |  |      |  | 13     |  |
| PartII    OtherInformation                               |  |  |      |  |   |  |
| Item2 — Unregistered Sales of Equity Securities and Use ofProceeds     |  |  |      |  | 14     |  |
| Item 6 —Exhibits                                                       |  |  |      |  | 14     |  |
| Signatures                                                                   |  |  |      |  | 15     |  |
|                                                                              |

2

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Table of Contents

REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of DirectorsCourtside AcquisitionCorp.

We have reviewed the accompanying condensed balancesheet of Courtside Acquisition Corp. (a corporation in thedevelopment stage) as of September  30,  2006, the relatedcondensed statements of operations for the three-month periods endedSeptember  30,  2006 and September  30,  2005,the nine-month period ended September  30,  2006, theperiod from March  18,  2005 (inception) toSeptember  30,  2005, and the cumulative period fromMarch  18,  2005 (inception) to September  30,2006, the related condensed statements of stockholders’ equityfor the nine-month period ended September  30,  2006 andthe period from March  18,  2005 (inception) toSeptember  30,  2006, and the related condensed statementsof cash flows for the nine-month period ended September30,  2006, the period from March  18,  2005(inception) to September  30,  2005 and for the period fromMarch  18,  2005 (inception) to September  30,2006. These financial statements are the responsibility of thecompany's management.

We conducted our reviews inaccordance with the standards of the Public Company AccountingOversight Board (United States). A review of interim financialinformation consists principally of applying analytical procedures andmaking inquiries of persons responsible for financial and accountingmatters. It is substantially less in scope than an audit conducted inaccordance with the standards of the Public Company AccountingOversight Board, the objective of which is the expression of an opinionregarding the condensed financial statements taken as a whole.Accordingly, we do not express such an opinion.

Based onour reviews, we are not aware of any material modifications that shouldbe made to the condensed financial statements referred to above forthem to be in conformity with United States generally acceptedaccounting principles.

We have previously audited, inaccordance with the standards of the Public Company AccountingOversight Board, the balance sheet of Courtside Acquisition Corp. as ofDecember  31,  2005 and the related statements ofoperations, stockholders’ equity and cash flows for the periodfrom March  18,  2005 (inception) to December31,  2005 (not presented herein); and in our report datedFebruary  16,  2006, we expressed an unqualified opinion onthose financial statements. In our opinion, the information set forthin the accompanying condensed balance sheet as of December31,  2005 is fairly stated, in all material aspects, in relationto the balance sheet from which it has been derived.

Theaccompanying financial statements have been prepared assuming CourtsideAcquisition Corp. will continue as a going concern. As discussed inNote 1 to the financial statements, Courtside Acquisition Corp. mayface a mandatory liquidation by January  7,  2007 if abusiness combination is not consummated, which raises substantial doubtabout its ability to continue as a going concern. The financialstatements do not include any adjustments that might result from theoutcome of this uncertainty.

/s/ GOLDSTEIN GOLUBKESSLER LLP

GOLDSTEIN GOLUB KESSLERLLP

New York, NewYork

October  25,2006

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Table of Contents

CourtsideAcquisition Corp.(a corporation in the developmentstage)

Condensed BalanceSheet

|                                                                                                 |  |  |                  |   |            |                 |  |  |  |   |            |  |
|-------------------------------------------------------------------------------------------------|--|--|------------------|---|------------|-----------------|--|--|--|---|------------|--|
|                                                                                            |  |  | September30,2006 |   |            | December31,2005 |
|                                                                                            |  |  | (unaudited)      |   |            |            |
| Assets                                                                                          |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Currentassets:                                                                                  |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Cash and cashequivalents                                                                        |  |  |                  | $ | 1,357,383  |                 |  |  |  | $ | 1,692,748  |  |
| Cashequivalents held in Trust Fund                                                              |  |  |                  |   | 76,389,752 |                 |  |  |  |   | 74,618,620 |  |
| DeferredFederal Income Tax                                                                      |  |  |                  |   | —    |                 |  |  |  |   | —    |  |
| Prepaidexpenses                                                                                 |  |  |                  |   | 26,471     |                 |  |  |  |   | 78,133     |  |
| Totalcurrentassets                                                                              |  |  |                  | $ | 77,773,606 |                 |  |  |  | $ | 76,389,501 |  |
| Liabilitiesand Stockholders’Equity                                                        |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Currentliabilities:                                                                             |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Accountspayable and accruedexpenses                                                             |  |  |                  | $ | 28,414     |                 |  |  |  | $ | 12,643     |  |
| Deferreddividends                                                                               |  |  |                  |   | 524,888    |                 |  |  |  |   | 170,839    |  |
| Taxespayable                                                                                    |  |  |                  |   | 193,941    |                 |  |  |  |   | 78,725     |  |
| Totalcurrentliabilities                                                                         |  |  |                  |   | 747,243    |                 |  |  |  |   | 262,207    |  |
| Commonstock, subject to possible conversion, 2,758,620 shares at conversionvalue (Note1)        |  |  |                  |   | 14,745,424 |                 |  |  |  |   | 14,745,424 |  |
| Commitments                                                                                     |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Stockholders’equity (Notes 1 and2)                                                        |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Preferredstock, $.0001 par value, Authorized 1,000,000 shares; noneissued                       |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Commonstock, $.0001 par value, Authorized 50,000,000shares                                      |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Issued andoutstanding 16,800,000 shares (which includes 2,758,620 subject topossibleconversion) |  |  |                  |   | 1,680      |                 |  |  |  |   | 1,680      |  |
| Additionalpaid-incapital                                                                        |  |  |                  |   | 60,969,078 |                 |  |  |  |   | 60,969,078 |  |
| Earningsaccumulated in the developmentstage                                                     |  |  |                  |   | 1,310,181  |                 |  |  |  |   | 411,112    |  |
| Totalstockholders’equity                                                                  |  |  |                  |   | 62,280,939 |                 |  |  |  |   | 61,381,870 |  |
| Totalliabilities and stockholders’equity                                                  |  |  |                  | $ | 77,773,606 |                 |  |  |  | $ | 76,389,501 |  |
|                                                                                                 |

Seeaccompanying notes to unaudited condensed financialstatements.

4

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CourtsideAcquisition Corp.(a corporation in the developmentstage)

Unaudited Condensed Statements ofOperations

|                                      |  |  |                                    |   |            |                                    |  |  |                                   |   |            |                                                        |  |  |                                                        |   |            |  |  |  |  |   |           |  |  |  |  |   |           |  |
|--------------------------------------|--|--|------------------------------------|---|------------|------------------------------------|--|--|-----------------------------------|---|------------|--------------------------------------------------------|--|--|--------------------------------------------------------|---|------------|--|--|--|--|---|-----------|--|--|--|--|---|-----------|--|
|                                 |  |  | ThreeMonthsEnded September 30,2006 |   |            | ThreeMonthsEnded September 30,2005 |  |  | NineMonthsEnded September 30,2006 |   |            | PeriodfromMarch 18, 2005(inception) toSeptember30,2005 |  |  | Period fromMarch 18, 2005(inception)toSeptember30,2006 |
| Revenues:                            |  |  |                                    |   |       |                                    |  |  |                                   |   |       |                                                        |  |  |                                                        |   |       |  |  |  |  |   |      |  |  |  |  |   |      |  |
| Interestand dividendincome           |  |  |                                    | $ | 524,397    |                                    |  |  |                                   | $ | 297,682    |                                                        |  |  |                                                        | $ | 1,464,757  |  |  |  |  | $ | 297,682   |  |  |  |  | $ | 2,175,430 |  |
| Expenses:                            |  |  |                                    |   |       |                                    |  |  |                                   |   |       |                                                        |  |  |                                                        |   |       |  |  |  |  |   |      |  |  |  |  |   |      |  |
| Formationand operatingcosts          |  |  |                                    |   | 72,696     |                                    |  |  |                                   |   | 62,043     |                                                        |  |  |                                                        |   | 217,465    |  |  |  |  |   | 66,043    |  |  |  |  |   | 346,301   |  |
| Stateand local capitaltaxes          |  |  |                                    |   | 15,000     |                                    |  |  |                                   |   | 35,300     |                                                        |  |  |                                                        |   | 45,223     |  |  |  |  |   | 35,300    |  |  |  |  |   | 91,348    |  |
| Totalexpenses                        |  |  |                                    |   | 87,696     |                                    |  |  |                                   |   | 97,343     |                                                        |  |  |                                                        |   | 262,688    |  |  |  |  |   | 101,343   |  |  |  |  |   | 437,649   |  |
| Incomefor theperiod                  |  |  |                                    |   | 436,701    |                                    |  |  |                                   |   | 200,339    |                                                        |  |  |                                                        |   | 1,202,069  |  |  |  |  |   | 196,339   |  |  |  |  |   | 1,737,781 |  |
| Incometaxes                          |  |  |                                    |   | 106,000    |                                    |  |  |                                   |   | 44,200     |                                                        |  |  |                                                        |   | 303,000    |  |  |  |  |   | 44,200    |  |  |  |  |   | 427,600   |  |
| NetIncome for theperiod              |  |  |                                    | $ | 330,701    |                                    |  |  |                                   | $ | 156,139    |                                                        |  |  |                                                        | $ | 899,069    |  |  |  |  | $ | 152,139   |  |  |  |  | $ | 1,310,181 |  |
| Netincome per share basic anddiluted |  |  |                                    | $ | 0.02       |                                    |  |  |                                   | $ | 0.01       |                                                        |  |  |                                                        | $ | 0.05       |  |  |  |  | $ | 0.02      |  |  |  |  |   |      |  |
| Weightedaverage shares outstanding   |  |  |                                    |   | 16,800,000 |                                    |  |  |                                   |   | 15,821,739 |                                                        |  |  |                                                        |   | 16,800,000 |  |  |  |  |   | 8,987,817 |  |  |  |  |   |      |  |
|                                      |

Seeaccompanying notes to unaudited condensed financialstatements.

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CourtsideAcquisition Corp.(a corporation in the developmentstage)

Condensed Statement ofStockholders’Equity

|                                                                                                                                                              |  |  |             |  |            |                          |  |  |                                            |   |         |       |  |  |  |   |             |   |  |  |  |   |           |  |  |  |  |   |             |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|-------------|--|------------|--------------------------|--|--|--------------------------------------------|---|---------|-------|--|--|--|---|-------------|---|--|--|--|---|-----------|--|--|--|--|---|-------------|---|
|                                                                                                                                                         |  |  | CommonStock |  |            | AdditionalPaid-InCapital |  |  | EarningsAccumulated in thedevelopmentstage |   |         | Total |
|                                                                                                                                                         |  |  | Shares      |  |            | Amount                   |
| Sale of 3,000,000 shares of common stock at $.0083 per shareto initial stockholders committed for on March  18,2005                                          |  |  |             |  | 3,000,000  |                          |  |  |                                            | $ | 300     |       |  |  |  | $ | 24,700      |   |  |  |  | $ | —   |  |  |  |  | $ | 25,000      |   |
| Saleof 12,000,000 units, net of underwriters’ discount and offeringexpenses on July  7,  2005 (includes 2,398,800 sharessubject to possibleconversion) |  |  |             |  | 12,000,000 |                          |  |  |                                            |   | 1,200   |       |  |  |  |   | 65,645,882  |   |  |  |  |   | —   |  |  |  |  |   | 65,647,082  |   |
| Proceedssubject to possible conversion of 2,398,800shares                                                                                                    |  |  |             |  | —    |                          |  |  |                                            |   | — |       |  |  |  |   | (12,737,628 | ) |  |  |  |   | —   |  |  |  |  |   | (12,737,628 | ) |
| Proceedsfrom issuance ofoption                                                                                                                               |  |  |             |  | —    |                          |  |  |                                            |   | — |       |  |  |  |   | 100         |   |  |  |  |   | —   |  |  |  |  |   | 100         |   |
| Saleof 1,800,000 units, net of underwriters’ discount on July11,  2005 (includes 359,820 shares subject to possibleconversion)                         |  |  |             |  | 1,800,000  |                          |  |  |                                            |   | 180     |       |  |  |  |   | 10,043,820  |   |  |  |  |   | —   |  |  |  |  |   | 10,044,000  |   |
| Proceedssubject to possible conversion of 359,820shares                                                                                                      |  |  |             |  | —    |                          |  |  |                                            |   | — |       |  |  |  |   | (2,007,796  | ) |  |  |  |   | —   |  |  |  |  |   | (2,007,796  | ) |
| Netincome for theperiod                                                                                                                                      |  |  |             |  | —    |                          |  |  |                                            |   | — |       |  |  |  |   | —     |   |  |  |  |   | 411,112   |  |  |  |  |   | 411,112     |   |
| Balance,December  31,2005                                                                                                                                    |  |  |             |  | 16,800,000 |                          |  |  |                                            | $ | 1,680   |       |  |  |  | $ | 60,969,078  |   |  |  |  | $ | 411,112   |  |  |  |  | $ | 61,381,870  |   |
| Unaudited:                                                                                                                                                   |  |  |             |  |       |                          |  |  |                                            |   |    |       |  |  |  |   |        |   |  |  |  |   |      |  |  |  |  |   |        |   |
| Netincome for the nine months ended September  30,2006                                                                                                       |  |  |             |  | —    |                          |  |  |                                            |   | — |       |  |  |  |   | —     |   |  |  |  |   | 899,069   |  |  |  |  |   | 899,069     |   |
| Balance,September  30,2006                                                                                                                                   |  |  |             |  | 16,800,000 |                          |  |  |                                            | $ | 1,680   |       |  |  |  | $ | 60,969,078  |   |  |  |  | $ | 1,310,181 |  |  |  |  | $ | 62,280,939  |   |
|                                                                                                                                                              |

Seeaccompanying notes to unaudited condensed financialstatements.

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Table of Contents

Courtside Acquisition Corp.(acorporation in the developmental stage)

UnauditedCondensed Statement of CashFlows

|                                                                 |  |  |                                   |   |            |                                                        |  |  |                                                          |   |             |   |  |  |  |   |             |   |
|-----------------------------------------------------------------|--|--|-----------------------------------|---|------------|--------------------------------------------------------|--|--|----------------------------------------------------------|---|-------------|---|--|--|--|---|-------------|---|
|                                                            |  |  | NineMonthsEnded September 30,2006 |   |            | PeriodfromMarch 18, 2005(inception) toSeptember30,2005 |  |  | Period fromMarch 18, 2005 (inception)toSeptember 30,2006 |
| CashFlows from OperatingActivities                              |  |  |                                   |   |       |                                                        |  |  |                                                          |   |        |   |  |  |  |   |        |   |
| Netincome                                                       |  |  |                                   | $ | 899,069    |                                                        |  |  |                                                          | $ | 152,139     |   |  |  |  | $ | 1,310,181   |   |
| Adjustmentsto reconcile net income used in operatingactivities: |  |  |                                   |   |       |                                                        |  |  |                                                          |   |        |   |  |  |  |   |        |   |
| (Increase)in value of TrustFund                                 |  |  |                                   |   | (1,771,132 | )                                                      |  |  |                                                          |   | (356,872    | ) |  |  |  |   | (2,625,752  | ) |
| (Increase)/decreasein prepaidexpenses                           |  |  |                                   |   | 51,662     |                                                        |  |  |                                                          |   | (104,167    | ) |  |  |  |   | (26,471     | ) |
| Increasein accounts payable and accruedexpenses                 |  |  |                                   |   | 15,771     |                                                        |  |  |                                                          |   | 15,203      |   |  |  |  |   | 28,414      |   |
| Increasein taxespayable                                         |  |  |                                   |   | 115,216    |                                                        |  |  |                                                          |   | 79,500      |   |  |  |  |   | 193,941     |   |
| Increasein deferreddividends                                    |  |  |                                   |   | 354,049    |                                                        |  |  |                                                          |   | 71,339      |   |  |  |  |   | 524,888     |   |
| Netcash used in operatingactivities                             |  |  |                                   |   | (335,365   | )                                                      |  |  |                                                          |   | (142,858    | ) |  |  |  |   | (594,799    | ) |
| CashFlows from InvestingActivities                              |  |  |                                   |   |       |                                                        |  |  |                                                          |   |        |   |  |  |  |   |        |   |
| Cashdeposited in TrustFund                                      |  |  |                                   |   | —    |                                                        |  |  |                                                          |   | (73,764,000 | ) |  |  |  |   | (73,764,000 | ) |
| CashFlows from FinancingActivities                              |  |  |                                   |   |       |                                                        |  |  |                                                          |   |        |   |  |  |  |   |        |   |
| Grossproceeds of publicoffering                                 |  |  |                                   |   | —    |                                                        |  |  |                                                          |   | 82,800,000  |   |  |  |  |   | 82,800,000  |   |
| Proceedsfrom sale of shares of commonstock                      |  |  |                                   |   | —    |                                                        |  |  |                                                          |   | 25,000      |   |  |  |  |   | 25,000      |   |
| Proceedsfrom issuance ofoption                                  |  |  |                                   |   | —    |                                                        |  |  |                                                          |   | 100         |   |  |  |  |   | 100         |   |
| Proceedsfrom notes payable,stockholder                          |  |  |                                   |   | —    |                                                        |  |  |                                                          |   | 100,000     |   |  |  |  |   | 100,000     |   |
| Paymentof notes payable,stockholder                             |  |  |                                   |   | —    |                                                        |  |  |                                                          |   | (100,000    | ) |  |  |  |   | (100,000    | ) |
| Paymentof offeringcosts                                         |  |  |                                   |   | —    |                                                        |  |  |                                                          |   | (7,108,918  | ) |  |  |  |   | (7,108,918  | ) |
| Netcash provided by financingactivities                         |  |  |                                   |   | —    |                                                        |  |  |                                                          |   | 75,716,182  |   |  |  |  |   | 75,716,182  |   |
| Netincrease (decrease) in cash and cashequivalents              |  |  |                                   |   | (335,365   | )                                                      |  |  |                                                          |   | 1,809,324   |   |  |  |  |   | 1,357,383   |   |
| Cashand cash equivalents at beginning of theperiod              |  |  |                                   |   | 1,692,748  |                                                        |  |  |                                                          |   | —     |   |  |  |  |   | —     |   |
| Cashand cash equivalents at end of theperiod                    |  |  |                                   | $ | 1,357,383  |                                                        |  |  |                                                          | $ | 1,809,324   |   |  |  |  | $ | 1,357,383   |   |
|                                                                 |

Seeaccompanying notes to unaudited condensed financialstatements

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CourtsideAcquisition Corp.(a corporation in the developmentalstage)Notes to Unaudited Condensed FinancialStatements

|    |                                    |  |                                                                                                                                                                                                  |
|----|------------------------------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1. | Organizationand BusinessOperations |  | CourtsideAcquisition Corp. (the ‘‘Company’’) wasincorporated in Delaware on March  18,  2005 as a blankcheck company whose objective is to acquire an operatingbusiness. |
|    |                                    |  |

|                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |  | Thefinancial statements at September  30,  2006 and for theperiods ended September  30,  2006 and 2005 are unaudited.In the opinion of management, all adjustments (consisting of normaladjustments) have been made that are necessary to present fairly thefinancial position of the Company as of September  30,2006, and the results of its operations and its cash flows for theperiods ended September  30,  2006 and 2005. Operatingresults for the interim period presented are not necessarily indicativeof the results to be expected for a fullyear. |
|                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

|                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |  | Thefinancial statements and related notes have been prepared pursuant tothe rules and regulations of the U.S. Securities and ExchangeCommission (the ‘‘SEC’’). Accordingly,certain information and footnote disclosures normally included infinancial statements prepared in accordance with generally acceptedaccounting principles have been omitted pursuant to such rules andregulations. It is suggested that these financial statements be read inconjunction with the financial statements and related disclosures forthe year ended December  31,  2005 included in theCompany's Annual Report on Form 10-KSB filed with the SEC. TheDecember  31,  2005 balance sheet has been derived from theaudited financialstatements. |
|                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

|                          |  |                                                                                                                                                                                                                                                                                                                       |
|--------------------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |  | Allactivity from March  18,  2005 (inception) throughJuly  7,  2005 relates to the Company’s formationand initial public offering described below. Subsequent to July7,  2005, the Company has been seeking a business combinationwith an operating business (‘‘BusinessCombination’’). |
|                          |  |                                                                                                                                                                                                                                                                                                                       |

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|      |  | Theregistration statement for the Company’s initial public offering(‘‘Offering’’) was declared effectiveJune  30,  2005. The Company consummated the Offering for12,000,000 units on July  7,  2005 and, on July11,  2005, the representative of the underwriters(‘‘Representative’’) exercised itsover-allotment option for 1,800,000 units, with the Company receivingtotal net proceeds of approximately $75,691,000 (Note 2). TheCompany’s management has broad discretion with respect to thespecific application of the net proceeds of this Offering, althoughsubstantially all of the net proceeds of this Offering are intended tobe generally applied toward consummating a Business Combination.Furthermore, there is no assurance that the Company will be able tosuccessfully effect a Business Combination. An amount of $73,764,000 ofthe net proceeds was placed in an interest-bearing trust account(‘‘Trust Account’’) until the earlier of(i) the consummation of a Business Combination or (ii) liquidation ofthe Company. Under the agreement governing the Trust Account, fundswill only be invested in United States ‘‘governmentsecurities’’ within the meaning of Section 2(a)(16) ofthe Investment Company Act of 1940 with a maturity of 180 days or less,or in money market funds meeting certain conditions under Rule 2a-7promulgated under the Investment Company Act of 1940. AtSeptember  30,  2006, the value of the Trust Accountamounted to |
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Table of Contents

CourtsideAcquisition Corp.(a corporation in the developmentalstage)Notes to Unaudited Condensed FinancialStatements

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|  |  | $76,389,752. The placing of funds in the TrustAccount may not protect those funds from third party claims against theCompany. Although the Company will seek to have all vendors,prospective target businesses or other entities it engages, executeagreements with the Company waiving any right, title, interest or claimof any kind in or to any monies held in the Trust Account, there is noguarantee that they will execute such agreements. Two of theCompany's officers have severally agreed that they will bepersonally liable to ensure that the proceeds in the Trust Account arenot reduced by the claims of target businesses or vendors or otherentities that are owed money by the Company for services rendered orcontracted for or products sold to the Company. However, there can beno assurance that these officers will be able to satisfy thoseobligations. The remaining net proceeds (not held in the Trust Account)may be used for tax payments and business, legal and accounting duediligence on prospective acquisitions and continuing general andadministrativeexpenses. |
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|      |  | TheCompany, after signing a definitive agreement for the acquisition of atarget business, will submit such transaction for stockholder approval.In the event that stockholders owning 20% or more of the sharessold in the Offering vote against the Business Combination and exercisetheir conversion rights described below, the Business Combination willnot beconsummated. |
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|      |  | Allof the Company’s stockholders prior to the Offering, includingall of the officers and directors of the Company(‘‘Initial Stockholders’’), have agreed tovote their 3,000,000 founding shares of common stock in accordance withthe vote of the majority in interest of all other stockholders of theCompany (‘‘Public Stockholders’’) withrespect to any Business Combination. After consummation of a BusinessCombination, these voting safeguards will no longer beapplicable. |
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|      |  | Withrespect to a Business Combination which is approved and consummated,any Public Stockholder who voted against the Business Combination maydemand that the Company convert his or her shares. The per shareconversion price will equal the amount in the Trust Account, calculatedas of two business days prior to the consummation of the proposedBusiness Combination, divided by the number of shares of common stockheld by Public Stockholders at the consummation of the Offering.Accordingly, Public Stockholders holding 19.99% of the aggregatenumber of shares owned by all Public Stockholders may seek conversionof their shares in the event of a Business Combination. Such PublicStockholders are entitled to receive their per share interest in theTrust Account computed without regard to the shares held by InitialStockholders. In this respect, $14,745,424 (19.99% of theoriginal amount placed in the Trust Account) has been classified ascommon stock subject to possible conversion at September30,  2006 and $524,888 and $170,839 (19.99% of thedividend income held in the Trust Account) has been classified asdeferred dividends at September  30,  2006 andDecember  31,  2005, respectively. |
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Table of Contents

CourtsideAcquisition Corp.(a corporation in the developmentalstage)Notes to Unaudited Condensed FinancialStatements

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|      |  | TheCompany’s Certificate of Incorporation, as amended, provides formandatory liquidation of the Company in the event that the Company doesnot consummate a Business Combination within 18 months from the date ofthe consummation of the Offering (January 7, 2007), or 24 months fromthe consummation of the Offering if certain extension criteria havebeen satisfied. In the event of liquidation, it is likely that the pershare value of the residual assets remaining available for distribution(including Trust Account assets) will be less than the initial publicoffering price per share in the Offering assuming no value isattributed to the Warrants contained in the Units sold (Note 2).There is no assurance that the Company will be able to successfullyeffect a Business Combination during this period. This factor raisessubstantial doubt about the Company’s ability to continue as agoing concern. The accompanying financial statements are preparedassuming the Company will continue as a going concern. The financialstatements do not include any adjustments that might result from theoutcome of thisuncertainty. |
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|      |  | InJuly  2006, the FASB issued FASB Interpretation No. 48,‘‘Accounting for Uncertainty in IncomeTaxes,’’ an interpretation of FASB Statement No. 109(‘‘FIN 48’’), which provides criteria forthe recognition, measurement, presentation and disclosure of uncertaintax positions. A tax benefit from an uncertain position may berecognized only if it is ‘‘more likely thannot’’ that the position is sustainable based on itstechnical merits. The provisions of FIN 48 are effective for fiscalyears beginning after December  15,  2006. We do not expectFIN 48 will have a material effect on our condensed financial conditionor results ofoperations. |
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|      |  | Managementdoes not believe that any other recently issued, but not yet effective,accounting standards if currently adopted would have a material effecton the accompanying financialstatements. |
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| 2. | InitialPublic Offering |  | On July  7,  2005, theCompany sold 12,000,000 units (‘‘Units’’)in the Offering. On July  11,  2005, the Company sold anadditional 1,800,000 Units pursuant to the Representative’sover-allotment option. Each Unit consists of one share of theCompany’s common stock, $.0001 par value, and two RedeemableCommon Stock Purchase Warrants(‘‘Warrants’’). Each Warrant entitles theholder to purchase from the Company one share of common stock at anexercise price of $5.00 commencing the later of the completion of aBusiness Combination or one year from the effective date of theOffering and expiring four years from the effective date of theOffering. The Warrants will be redeemable at a price of $.01 perWarrant upon 30 days’ notice after the Warrants becomeexercisable, only in the event that the last sale price of the commonstock is at least $8.50 per share for any 20 trading days within a 30trading day period ending on the third day prior to the date on whichnotice of redemption isgiven. |
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|      |  | In connectionwith the Offering, the Company paid the underwriters an underwritingdiscount of 7% of the gross proceeds of the Offering and a |
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CourtsideAcquisition Corp.(a corporation in the developmentalstage)Notes to Unaudited Condensed FinancialStatements

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|  |  | non-accountable expense allowance of1% of the gross proceeds of the Offering. In connection with theOffering, the Company also issued an option, for $100, to theRepresentative to purchase 600,000 Units at an exercise price of $7.50per Unit. The Units issuable upon exercise of this purchase option areidentical to the Units sold in the Offering except that the Warrantsincluded in the option have an exercise price of $6.65 per share. TheCompany estimated that the fair value of this option was approximately$1,224,000 ($2.04 per Unit underlying such option) using aBlack-Scholes option-pricing model. The fair value of the option wasestimated as of the date of grant using the following assumptions: (1)expected volatility of 40.995%, (2) risk-free interest rate of3.72% and (3) expected life of 5 years. The sale of the optionwas accounted for as a cost attributable to the Offering. Accordingly,there was no net impact on the Company’s financial position orresults of operations, except for the recording of the $100 proceedsfrom the sale. The option may be exercised for cash or on a‘‘cashless’’ basis, at the holder'soption, such that the holder may use the appreciated value of theoption (the difference between the exercise prices of the option andthe underlying Warrants and the market price of the Units andunderlying securities) to exercise the option without the payment ofany cash. |
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ITEM 2 —MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OFOPERATION

The following discussion should be read inconjunction with the Company’s Consolidated Financial Statementsand footnotes thereto contained in this report.

Forward LookingStatements

The statements discussed in this Reportinclude forward looking statements that involve risks and uncertaintiesdetailed from time to time in the Company’s reports filed withthe Securities and Exchange Commission.

We were formedon March  18,  2005, to serve as a vehicle to effect amerger, capital stock exchange, asset acquisition or other similarbusiness combination with an operating business. We intend to utilizecash derived from the proceeds of our recently completed publicoffering, our capital stock, debt or a combination of cash, capitalstock and debt, in effecting a business combination.

For the three months ended September  30,2006, we had net income of $330,701 consisting of interest and dividendincome less operating expenses and state and local income and capitaltaxes. Our interest and dividend income includes dividend income of$508,233 and $2,127,705 for the three months ended September30,  2006 and the period from March  18,  2005(inception) through September  30,  2006, respectively, andour deferred dividends of $524,888 and $170,839 at September30,  2006 and December  31,  2005, respectively, werederived from money market funds, which are exempt from federal incometaxes. For the three months ended September  30,  2006, ourexpenses consisted of operating costs and expenses of searching for abusiness combination, which were $72,696, state capital taxes in thequarter of $15,000, and state and local income taxes of$106,000.

For the nine months ended September30,  2006, we had net income of $899,069 consisting of interestand dividend income less operating expenses and state and local incomeand capital taxes. Our interest and dividend income includes dividendincome of $1,417,083 for the nine months ended September30,  2006 and our deferred dividends of $524,888 atSeptember  30,  2006 were derived from money market funds,which are exempt from federal income taxes. For the nine months endedSeptember  30,  2006, our expenses consisted of operatingcosts and expenses of searching for a business combination, which were$217,465, state capital taxes in the period of $45,223, and state andlocal income taxes of $303,000.

For the period fromMarch  18,  2005 (inception) through September30,  2006, we had net income of $1,310,181 attributable todividend and interest income less formation and operating expenses andstate and local income and capital taxes respectively.

We consummated our initial public offering on July7,  2005. On July  11,  2005, we consummated theclosing of an additional 1,800,000 units that were subject to theover-allotment option. Gross proceeds from our initial public offering(including the over-allotment option) were $82,800,000. We paid a totalof $6,516,000 in underwriting discounts and commissions, andapproximately $593,000 was paid for costs and expenses related to theoffering. After deducting the underwriting discounts and commissionsand the offering expenses, the total net proceeds to us from theoffering were approximately $75,691,000, of which $73,764,000 wasdeposited into the trust account (or approximately $5.35 per share soldin the offering). As of September  30,  2006, approximately$76,389,752 (or approximately $5.54 per share sold in the offering) isbeing held in the trust account. The remaining proceeds are availableto be used by us to provide for business, legal and accounting duediligence on prospective acquisitions, tax payments and continuinggeneral and administrative expenses. We intend to use substantially allof the net proceeds of this offering to acquire a target business,including identifying and evaluating prospective acquisitioncandidates, selecting the target business, and structuring, negotiatingand consummating the business combination. To the extent that ourcapital stock is used in whole or in part as consideration to effect abusiness combination, the proceeds held in the trust fund as well asany other net proceeds not expended will be used to finance theoperations of the target business. We believe we will have sufficientavailable funds outside of the trust fund to operate throughJuly  7,  2007, assuming that a business combination is notconsummated during that time. From July  7,  2005 throughJuly  7,  2007, we anticipate approximately $300,000 ofexpenses for legal, accounting and other expenses attendant to the duediligence investigations, structuring and negotiating of a businesscombination, $300,000 for expenses for the due diligence 

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and investigation of a target business,$180,000 for the administrative fee payable to Alpine Capital LLC($7,500 per month for two years), $50,000 of expenses in legal andaccounting fees relating to our SEC reporting obligations and$1,097,000 for general working capital that will be used for taxpayments, miscellaneous expenses and reserves, including approximately$110,000 (through January  1,  2007) for director andofficer liability insurance premiums. We do not believe we will need toraise additional funds following this offering in order to meet theexpenditures required for operating our business. However, we may needto raise additional funds through a private offering of debt or equitysecurities if such funds are required to consummate a businesscombination that is presented to us. We would only consummate such afinancing simultaneously with the consummation of a businesscombination.

Commencing on June  30,  2005and ending upon the acquisition of a target business, we beganincurring a fee from Alpine Capital LLC, an affiliate of Richard D.Goldstein, our chairman of the board and chief executive officer, BruceM.  Greenwald, our president and a member of our board ofdirectors, Gregg H. Mayer, our vice president and controller, and OdedAboodi, our special advisor, of $7,500 per month for providing us withoffice space and certain general and administrative services. Inaddition, in April and May  2005, Richard D. Goldstein advancedan aggregate of $100,000 to us for payment on our behalf of offeringexpenses.These loans were repaid following our initial public offeringfrom the proceeds of the offering.

ITEM 3 — CONTROLS ANDPROCEDURES.

Disclosure controls and procedures arecontrols and other procedures that are designed to ensure thatinformation required to be disclosed in company reports filed orsubmitted under the Securities Exchange Act of 1934 (the‘‘Exchange Act’’) is recorded, processed,summarized and reported, within the time periods specified in theSecurities and Exchange Commission’s rules and forms. Disclosurecontrols and procedures include, without limitation, controls andprocedures designed to ensure that information required to be disclosedin company reports filed or submitted under the Exchange Act isaccumulated and communicated to management, including our chiefexecutive officer and treasurer, as appropriate to allow timelydecisions regarding required disclosure.

As required byRules 13a-15 and 15d-15 under the Exchange Act, our chiefexecutive officer and chief financial officer carried out an evaluationof the effectiveness of the design and operation of our disclosurecontrols and procedures as of September  30,  2006. Basedupon their evaluation, they concluded that our disclosure controls andprocedures were effective.

Our internal control overfinancial reporting is a process designed by, or under the supervisionof, our chief executive officer and chief financial officer andeffected by our board of directors, management and other personnel, toprovide reasonable assurance regarding the reliability of our financialreporting and the preparation of our financial statements for externalpurposes in accordance with generally accepted accounting principles.Internal control over financial reporting includes policies andprocedures that pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions anddispositions of our assets; provide reasonable assurance thattransactions are recorded as necessary to permit preparation of ourfinancial statements in accordance with generally accepted accountingprinciples, and that our receipts and expenditures are being made onlyin accordance with the authorization of our board of directors andmanagement; and provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition, use or disposition of ourassets that could have a material effect on our financialstatements.

During the most recently completed fiscalquarter, there has been no change in our internal control overfinancial reporting that has materially affected, or is reasonablylikely to materially affect, our internal control over financialreporting.

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PARTII.

OTHER INFORMATION

ITEM 2:    UNREGISTERED SALESOF EQUITY SECURITIES AND USE OF PROCEEDS

On July7,  2005, we consummated our initial public offering of12,000,000 Units, with each unit consisting of one share of our commonstock and two warrants, each to purchase one share of our common stockat an exercise price of $5.00 per share. On July  11,2005, we closed on an additional 1,800,000 units that were subject tothe over-allotment option. The units were sold at an offering price of$6.00 per unit, generating total gross proceeds of $82,800,000.EarlyBirdCapital, Inc. acted as lead underwriter. The securities soldin the offering were registered under the Securities Act of 1933 on aregistration statement on Form S-1 (No. 333-124380). The Securities andExchange Commission declared the registration statement effective onJune  30,  2005.

We paid a total of $6,516,000 inunderwriting discounts and commissions, and approximately $593,000 hasbeen or will be paid for costs and expenses related to theoffering.

After deducting the underwriting discounts andcommissions and the offering expenses, the total net proceeds to usfrom the offering were approximately $75,691,000, of which $73,764,000was deposited into the trust account (or approximately $5.35 per sharesold in the offering) and the remaining proceeds are available to beused to provide for business, legal and accounting due diligence onprospective business combinations and continuing general andadministrative expenses.

For a description of the use of theproceeds generated in our initial public offering, see Part I, Item 2of this Form 10-QSB.

ITEM6:    EXHIBITS

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|  | (a)  | Exhibits: |

31.1— Section 302 Certification by CEO

31.2 —Section 302 Certification by CFO

32.1 — Section906 Certification by CEO

32.2 — Section 906Certification by CFO

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SIGNATURES

Inaccordance with the requirements of the Exchange Act, the registrantcaused this report to be signed on its behalf by the undersigned,thereunto duly authorized.

|  | COURTSIDEACQUISITION CORP. |
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Dated: November 6,2006

|  | /s/ Richard D. GoldsteinRichard D.GoldsteinChairman of the Board and Chief ExecutiveOfficer |
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|  | /s/ Carl D. HarnickCarl D.HarnickVice President and Chief FinancialOfficer |
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