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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 |

|        |                                              |
|--------|----------------------------------------------|
|   | Forthe quarterly period ended March  31,2006 |

|        |                                                                |
|--------|----------------------------------------------------------------|
|   | Transition report under Section13 or 15(d) of the Exchange Act |

|        |                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | For the transitionperiod from                                to                             |

CommissionFile Number 001-32549

Courtside AcquisitionCorp.(Exact Name of Small Business Issuer as Specified in ItsCharter)

|                                                                      |  |                                               |  |  |  |  |
|----------------------------------------------------------------------|--|-----------------------------------------------|--|--|--|--|
| Delaware(Stateor other Jurisdiction of Incorporation orOrganization) |  | 20-2521288(I.R.S. EmployerIdentification No.) |
|                                                                      |

1700 Broadway,17th Floor, New York, New York 10019(Address ofPrincipal Executive Office)

(212) 641-5000(Issuer’s Telephone Number, Including Area Code)

Checkwhether the issuer (1) filed all reports required to be filed bySection 13 or 15(d) of the Exchange Act during the past 12 months (orfor such shorter period that the registrant was required to file suchreports), and (2) has been subject to such filing requirements for thepast 90 days.Yes       No   

Indicate by check markwhether the registrant is a shell company (as defined in Rule 12b-2 ofthe ExchangeAct).    Yes       No   

As ofMay  12,  2006, 16,800,000 shares of common stock, parvalue $.0001 per share, were issued and outstanding.

TransitionalSmall Business Disclosure Format (checkone):            Yes       No   

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|------------------------------------------------------------------------------|--|--------|--|--|--|--|
|                                                                         |  | Page   |
| Part I:    FinancialInformation:                         |  |   |
| Item 1 —Financial Statements (Unaudited):                              |  |   |
| Report ofIndependent Registered Public AccountingFirm                        |  | 3      |
| Condensed BalanceSheet                                                       |  | 4      |
| Condensed Statements ofOperations                                            |  | 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 |  | 11     |
| Item 3 — Controlsand Procedures                                        |  | 12     |
| PartII.    Other Information                             |  |   |
| Item 2 —Unregistered Sales of Equity Securities and Use ofProceeds     |  | 13     |
| Item 6 —Exhibits                                                       |  | 13     |
| Signatures                                                                   |  | 14     |
|                                                                              |

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REPORT OFINDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Tothe Board of DirectorsCourtside Acquisition Corp.

Wehave reviewed the accompanying condensed balance sheet of CourtsideAcquisition Corp. (a corporation in the development stage) as ofMarch  31,  2006, the related condensed statements ofoperations and cash flows for the three-month period ended March31,  2006, the period from March  18,  2005(inception) to March  31,  2005 and the cumulative amountsfor the period from March  18,  2005 (inception) toMarch  31,  2006 and the condensed statement ofstockholders’ equity for the period from March  18,2005 (inception) to March  31,  2006. These financialstatements are the responsibility of the company'smanagement.

We conducted our reviews in accordance withthe standards of the Public Company Accounting Oversight Board (UnitedStates). A review of interim financial information consists principallyof applying analytical procedures and making inquiries of personsresponsible for financial and accounting matters. It is substantiallyless in scope than an audit conducted in accordance with the standardsof the Public Company Accounting Oversight Board, the objective ofwhich is the expression of an opinion regarding the condensed financialstatements taken as a whole. Accordingly, we do not express such anopinion.

Based on our reviews, we are not aware of anymaterial modifications that should be made to the condensed financialstatements referred to above for them to be in conformity with UnitedStates generally accepted accounting principles.

We havepreviously audited, in accordance with the standards of the PublicCompany Accounting Oversight Board, the condensed balance sheet ofCourtside Acquisition Corp. as of December  31,  2005 andthe related condensed statements of operations, stockholders’equity and cash flows for the period from March  18,  2005(inception) to December  31,  2005 (not presented herein);and in our report dated February  16,  2006, we expressedan unqualified opinion on those financial statements. In our opinion,the information set forth in the accompanying condensed balance sheetas of December  31,  2005 is fairly stated, in all materialrespects, in relation to the balance sheet from which it has beenderived.

The accompanying financial statements have beenprepared assuming that Courtside Acquisition Corp. will continue as agoing concern. As discussed in Note 1 to the financial statements,Courtside Acquisition Corp. may face a mandatory liquidation byJanuary  7,  2007 if a business combination is notconsummated, which raises substantial doubt about its ability tocontinue as a going concern. The financial statements do not includeany adjustments that might result from the outcome of thisuncertainty.

/s/ Goldstein Golub KesslerLLPGOLDSTEIN GOLUB KESSLER LLPNew York, NewYork

May  8,2006

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Courtside AcquisitionCorp.(a corporation in the development stage)CondensedBalanceSheet

|                                                                                                                                                             |  |              |            |                 |  |        |            |        |  |  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--------------|------------|-----------------|--|--------|------------|--------|--|--|
|                                                                                                                                                        |  | March31,2006 |            | December31,2005 |
|                                                                                                                                                        |  | (unaudited)  |            |            |
| Assets                                                                                                                                                      |  |         |       |            |  |   |       |   |
| Currentassets:                                                                                                                                              |  |         |       |            |  |   |       |   |
| Cash and cashequivalents (Note1)                                                                                                                            |  | $            | 1,529,382  |            |  | $      | 1,692,748  |   |
| Cashequivalents held in Trust Fund (Note1)                                                                                                                  |  |         | 75,137,337 |            |  |   | 74,618,620 |   |
| DeferredFederal Income Tax (Note1)                                                                                                                          |  |         | —    |            |  |   | —    |   |
| Prepaidexpenses                                                                                                                                             |  |         | 119,307    |            |  |   | 78,133     |   |
| Totalcurrentassets                                                                                                                                          |  | $            | 76,786,026 |            |  | $      | 76,389,501 |   |
| Liabilitiesand Stockholders’Equity                                                                                                                    |  |         |       |            |  |   |       |   |
| Currentliabilities:                                                                                                                                         |  |         |       |            |  |   |       |   |
| Accountspayable and accruedexpenses                                                                                                                         |  | $            | 53,049     |            |  | $      | 12,643     |   |
| Deferreddividends                                                                                                                                           |  |         | 274,530    |            |  |   | 170,839    |   |
| Taxespayable (Note1)                                                                                                                                        |  |         | 87,706     |            |  |   | 78,725     |   |
| Totalcurrentliabilities                                                                                                                                     |  |         | 415,285    |            |  |   | 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                                                                                   |  |         |       |            |  |   |       |   |
| Common stock, $.0001par value Authorized 50,000,000 shares Issued and outstanding16,800,000 shares (which includes 2,758,620 subject to possibleconversion) |  |         | 1,680      |            |  |   | 1,680      |   |
| Additionalpaid-incapital                                                                                                                                    |  |         | 60,969,078 |            |  |   | 60,969,078 |   |
| Earningsaccumulated in the developmentstage                                                                                                                 |  |         | 654,559    |            |  |   | 411,112    |   |
| Totalstockholders’equity                                                                                                                              |  |         | 61,625,317 |            |  |   | 61,381,870 |   |
| Totalliabilities and stockholders’equity                                                                                                              |  | $            | 76,786,026 |            |  | $      | 76,389,501 |   |
|                                                                                                                                                             |

Seeaccompanying notes to unaudited condensed financialstatements.

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Courtside Acquisition Corp.(acorporation in the development stage)Unaudited CondensedStatements ofOperations

|                                      |  |                                |            |                                                      |  |                                                                           |           |         |  |        |            |        |  |  |
|--------------------------------------|--|--------------------------------|------------|------------------------------------------------------|--|---------------------------------------------------------------------------|-----------|---------|--|--------|------------|--------|--|--|
|                                 |  | ThreeMonthsEndedMarch 31, 2006 |            | Period fromMarch 18,2005(inception) toMarch 31, 2005 |  | Cumulative amountsforPeriod fromMarch 18, 2005(inception) toMarch 31,2006 |
| Revenues:                            |  |                           |       |                                                 |  |                                                                      |      |    |  |   |       |   |
| Interestand dividendincome           |  | $                              | 430,675    |                                                 |  | $                                                                         | —   |    |  | $      | 1,141,348  |   |
| Expenses:                            |  |                           |       |                                                 |  |                                                                      |      |    |  |   |       |   |
| Formationand operatingcosts          |  |                           | 73,728     |                                                 |  |                                                                      | 750       |    |  |   | 202,564    |   |
| Stateand local capitaltaxes          |  |                           | 22,500     |                                                 |  |                                                                      | 42        |    |  |   | 68,625     |   |
|                                 |  |                           | 96,228     |                                                 |  |                                                                      | (792      | )  |  |   | 271,189    |   |
| Income(loss) for theperiod           |  |                           | 334,447    |                                                 |  |                                                                      | (792      | )  |  |   | 870,159    |   |
| Incometaxes (Note1)                  |  |                           | 91,000     |                                                 |  |                                                                      | —   |    |  |   | 215,600    |   |
| Netincome for theperiod              |  | $                              | 243,447    |                                                 |  |                                                                      | ($792     | )  |  | $      | 654,559    |   |
| Netincome per share basic anddiluted |  | $                              | .01        |                                                 |  |                                                                      | ($.00     | )  |  | $      | .05        |   |
| Weightedaverage sharesoutstanding    |  |                           | 16,800,000 |                                                 |  |                                                                      | 3,000,000 |    |  |   | 12,739,314 |   |
|                                      |

Seeaccompanying notes to unaudited condensed financialstatements.

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Courtside Acquisition Corp.(acorporation in the development stage)Condensed Statement ofStockholders’Equity

|                                                                                                                                                              |  |             |            |                          |  |                                             |         |        |  |        |             |         |  |        |         |        |  |        |             |         |  |  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--|-------------|------------|--------------------------|--|---------------------------------------------|---------|--------|--|--------|-------------|---------|--|--------|---------|--------|--|--------|-------------|---------|--|--|
|                                                                                                                                                         |  | CommonStock |            | AdditionalPaid-InCapital |  | EarningsAccumulatedin thedevelopmentalstage |         | Total  |
|                                                                                                                                                         |  | Shares      |            | Amount                   |
| Saleof 3,000,000 shares of common stock at $.0083 per share to initialstockholders 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 three months ended March  31,2006                                                                                                          |  |        | —    |                     |  |                                        | — |   |  |   | —     |    |  |   | 243,447 |   |  |   | 243,447     |    |
| Balance,March  31,2006                                                                                                                                       |  |        | 16,800,000 |                     |  | $                                           | 1,680   |   |  | $      | 60,969,078  |    |  | $      | 654,559 |   |  | $      | 61,625,317  |    |
|                                                                                                                                                              |

Seeaccompanying notes to unaudited condensed financialstatements.

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Courtside Acquisition Corp.(acorporation in the development stage)Unaudited Condensed Statementof CashFlows

|                                                                        |  |                                |           |                                           |  |                                                                           |         |         |  |        |             |         |  |  |
|------------------------------------------------------------------------|--|--------------------------------|-----------|-------------------------------------------|--|---------------------------------------------------------------------------|---------|---------|--|--------|-------------|---------|--|--|
|                                                                   |  | ThreeMonthsEndedMarch 31, 2006 |           | March 18,2005(inception) toMarch 31, 2005 |  | CumulativeamountsFor Period fromMarch 18, 2005(inception)toMarch 31, 2006 |
| Cash Flows fromOperatingActivities                                     |  |                           |      |                                      |  |                                                                      |    |    |  |   |        |    |
| Netincome                                                              |  | $                              | 243,447   |                                      |  |                                                                      | ($792   | )  |  | $      | 654,559     |    |
| Adjustmentsto reconcile net income (loss) used in operatingactivities: |  |                           |      |                                      |  |                                                                      |    |    |  |   |        |    |
| Increase in value of TrustFund                                         |  |                           | (518,717  | )                                    |  |                                                                      | — |    |  |   | (1,373,337  | )  |
| Increasein prepaidexpenses                                             |  |                           | (41,174   | )                                    |  |                                                                      | (24,250 | )  |  |   | (119,307    | )  |
| Increasein accounts payable and accruedexpenses                        |  |                           | 40,406    |                                      |  |                                                                      | — |    |  |   | 53,049      |    |
| Increasein taxespayable                                                |  |                           | 8,981     |                                      |  |                                                                      | 42      |    |  |   | 87,706      |    |
| Increasein deferreddividends                                           |  |                           | 103,691   |                                      |  |                                                                      | — |    |  |   | 274,530     |    |
| Netcash (used) in operatingactivities                                  |  |                           | (163,366  | )                                    |  |                                                                      | (25,000 | )  |  |   | (422,800    | )  |
| CashFlows from Investing Activities                                    |  |                           |      |                                      |  |                                                                      |    |    |  |   |        |    |
| Cashdeposited in TrustFund                                             |  |                           | —   |                                      |  |                                                                      | — |    |  |   | (73,764,000 | )  |
| CashFlows from Financing Activities                                    |  |                           |      |                                      |  |                                                                      |    |    |  |   |        |    |
| Grossproceeds of publicoffering                                        |  |                           | —   |                                      |  |                                                                      | — |    |  |   | 82,800,000  |    |
| Proceedsfrom sale of shares of commonstock                             |  |                           | —   |                                      |  |                                                                      | 17,000  |    |  |   | 25,000      |    |
| Proceedsfrom issuance ofoption                                         |  |                           | —   |                                      |  |                                                                      | — |    |  |   | 100         |    |
| Proceedsfrom notes payable,stockholder                                 |  |                           | —   |                                      |  |                                                                      | 25,000  |    |  |   | 100,000     |    |
| Paymentof notes payable,stockholder                                    |  |                           | —   |                                      |  |                                                                      | — |    |  |   | (100,000    | )  |
| Paymentof offeringcosts                                                |  |                           | —   |                                      |  |                                                                      | — |    |  |   | (7,108,918  | )  |
| Netcash provided by financingactivities                                |  |                           | —   |                                      |  |                                                                      | 42,000  |    |  |   | 75,716,182  |    |
| Netincrease (decrease) in cash and cashequivalents                     |  |                           | (163,366  | )                                    |  |                                                                      | 17,000  |    |  |   | 1,529,382   |    |
| Cashand cash equivalents at beginning of theperiod                     |  |                           | 1,692,748 |                                      |  |                                                                      | — |    |  |   | —     |    |
| Cashand cash equivalents at end of theperiod                           |  | $                              | 1,529,382 |                                      |  | $                                                                         | 17,000  |    |  | $      | 1,529,382   |    |
|                                                                        |

Seeaccompanying notes to unaudited condensed financialstatements

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

|                                                                                      |  |                                                                                                                                                                                                 |
|--------------------------------------------------------------------------------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.Organization And    Business    Operations |  | CourtsideAcquisition Corp. (the ‘‘Company’’) wasincorporated in Delaware on March  18, 2005 as a blank checkcompany whose objective is to acquire an operatingbusiness. |
|                                                                                      |  |                                                                                                                                                                                                 |

|                                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------------------------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |  | The financialinformation in this report has not been audited, but in the opinion ofmanagement, all adjustments (consisting only of normal recurringadjustments) considered necessary to present fairly such informationhave been included. See the Company’s Annual Report on Form10-KSB for the year ended December  31, 2005 for additionaldisclosure relating to the Company’s condensed financialstatements. |
|                                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                              |

|  |  |                                                                                                                                                                                                                                                                                                                                                                                       |
|--|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | All activity from March  18, 2005(inception) through July  7, 2005 relates to the Company’sformation and initial public offering described below. Subsequent toJuly  7, 2005, the Company has been seeking a businesscombination with an operating business (‘‘BusinessCombination’’). The Company has selectedDecember 31 as its fiscal year-end. |
|  |  |                                                                                                                                                                                                                                                                                                                                                                                       |

|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | The registrationstatement 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 July  11, 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. At March31, 2006, the value of the Trust Account amounted to $75,137,337. Theplacing of funds in the Trust Account may not protect those funds fromthird party claims against the Company. Although the Company will seekto have all vendors, prospective target businesses or other entities itengages, execute agreements with the Company waiving any right, title,interest or claim of any kind in or to any monies held in the TrustAccount, there is no guarantee that they will execute such agreements.Two of the Company's officers have severally agreed that theywill be personally liable to ensure that the proceeds in the TrustAccount are not reduced by the claims of target businesses or vendorsor other entities that are owed money by the Company for servicesrendered or contracted for or products sold to the Company. However,there can be no assurance that these officers will be able to satisfythose obligations. The remaining net proceeds (not held in the TrustAccount) |
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CourtsideAcquisition Corp.(a corporation in the developmentstage)Notes to Unaudited Condensed FinancialStatements

|  |  |                                                                                                                                                             |
|--|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | may be used for tax payments and business,legal and accounting due diligence on prospective acquisitions andcontinuing general and administrative expenses. |
|  |  |                                                                                                                                                             |

|  |  |                                                                                                                                                                                                                                                                                                                                                                                 |
|--|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | 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 be consummated. |
|  |  |                                                                                                                                                                                                                                                                                                                                                                                 |

|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | All of the Company’sstockholders prior to the Offering, including all of the officers anddirectors of the Company (‘‘InitialStockholders’’), have agreed to vote their 3,000,000founding shares of common stock in accordance with the vote of themajority in interest of all other stockholders of the Company(‘‘Public Stockholders’’) with respect toany Business Combination. After consummation of a Business Combination,these voting safeguards will no longer beapplicable. |
|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | With respect to a Business Combinationwhich is approved and consummated, any Public Stockholder who votedagainst the Business Combination may demand that the Company converthis or her shares. The per share conversion price will equal the amountin the Trust Account, calculated as of two business days prior to theconsummation of the proposed Business Combination, divided by thenumber of shares of common stock held by Public Stockholders at theconsummation of the Offering. Accordingly, Public Stockholders holding19.99% of the aggregate number of shares owned by all PublicStockholders may seek conversion of their shares in the event of aBusiness Combination. Such Public Stockholders are entitled to receivetheir per share interest in the Trust Account computed without regardto the shares held by Initial Stockholders. In this respect,$14,745,424 (19.99% of the original amount placed in the TrustAccount) has been classified as common stock subject to possibleconversion at March  31, 2006 and $274,530 (19.99% of thedividend income held in the Trust Account) has been classified asdeferred dividends at March  31, 2006. |
|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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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 this uncertainty. |
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CourtsideAcquisition Corp.(a corporation in the developmentstage)Notes to Unaudited Condensed FinancialStatements

|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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|  |  | In December  2004, the FinancialAccounting Standards Board issued Statement of Financial AccountingStandards No. 123 (revised 2004) (‘‘SFAS123(R)’’), ‘‘Share BasedPayment’’. SFAS 123(R) requires all share-based paymentsto employees, including grants of employee stock options, to berecognized in the financial statements based on their fair values. TheCompany adopted SFAS 123(R) effective January  1, 2006. Theadoption of SFAS No. 123(R) did not have any impact on its financialcondition or results of operations. |
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|  |  | Management does notbelieve that any other recently issued, but not yet effective,accounting standards if currently adopted would have a material effecton the accompanying financial statements. |
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| 2. InitialPublic Offering |  | On July  7, 2005, the Company sold12,000,000 units (‘‘Units’’) in theOffering. On July  11, 2005, the Company sold an additional1,800,000 Units pursuant to the Representative’s over-allotmentoption. Each Unit consists of one share of the Company’s commonstock, $.0001 par value, and two Redeemable Common Stock PurchaseWarrants (‘‘Warrants’’). Each Warrantentitles the holder to purchase from the Company one share of commonstock at an exercise price of $5.00 commencing the later of thecompletion of a Business Combination or one year from the effectivedate of the Offering and expiring four years from the effective date ofthe Offering. 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 is given. |
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|  |  | In connection with theOffering, the Company paid the underwriters an underwriting discount of7% of the gross proceeds of the Offering and a non-accountableexpense allowance of 1% of the gross proceeds of the Offering.In connection with the Offering, the Company also issued an option, for$100, to the Representative to purchase 600,000 Units at an exerciseprice of $7.50 per Unit. The Units issuable upon exercise of thispurchase option are identical to the Units sold in the Offering exceptthat the Warrants included in the option have an exercise price of$6.65 per share. The Company estimated that the fair value of thisoption was approximately $1,224,000 ($2.04 per Unit underlying suchoption) using a Black-Scholes option-pricing model. The fair value ofthe option was estimated as of the date of grant using the followingassumptions: (1) expected volatility of 40.995%, (2) risk-freeinterest rate of 3.72% and (3) expected life of 5 years. Thesale of the option was accounted for as a cost attributable to theOffering. Accordingly, there was no net impact on the Company’sfinancial position or results of operations, except for the recordingof the $100 proceeds from the sale. The option may be exercised forcash or on a ‘‘cashless’’ basis, at theholder's option, such that the holder may use the appreciatedvalue of the option (the difference between the exercise prices of theoption and the underlying Warrants and the market price of the Unitsand underlying securities) to exercise the option without the paymentof any cash. |
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CourtsideAcquisition Corp.(a corporation in the developmentstage)Notes to Unaudited Condensed FinancialStatements

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.

ForwardLooking Statements

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 formed onMarch  18,  2005, to serve as a vehicle to effect a merger,capital stock exchange, asset acquisition or other similar businesscombination with an operating business. We intend to utilize cashderived from the proceeds of our recently completed public offering,our capital stock, debt or a combination of cash, capital stock anddebt, in effecting a business combination.

For the three monthsended March  31,  2006, we had net income of $243,447consisting of interest and dividend income less operating expenses andstate and local income and capital taxes. Our interest and dividendincome includes dividend income of $415,026 and $1,125,648 for thethree months ended March  31,  2006 and the period fromMarch  18,  2005 (inception) through March31,  2006, respectively, and our deferred dividends of $170,389and $274,530 at March  31,  2006 and December31,  2005, respectively, were derived from money market fundswhich are exempt from federal income taxes. For the quarter endedMarch  31,  2006, our expenses consisted of operating costsand expenses of searching for a business combination, which were$73,728, state and local capital taxes in the quarter of $22,500, andstate and local income taxes of $91,000.

For the periods fromMarch  18,  2005 (inception) through March31,  2005 and from March  18,  2005 (inception)through March  31,  2006, we had net income (loss) of$(792) and $654,559 respectively, attributable to dividend and interestincome less formation and operating expenses and state and local incomeand capital taxes respectively.

We consummated our initialpublic offering on July  7,  2005. On July11,  2005, we consummated the closing of an additional 1,800,000units that were subject to the over-allotment option. Gross proceedsfrom our initial public offering (including the over-allotment option)were $82,800,000. We paid a total of $6,516,000 in underwritingdiscounts and commissions, and approximately $593,000 was paid forcosts and expenses related to the offering. After deducting theunderwriting discounts and commissions and the offering expenses, thetotal net proceeds to us from the offering were approximately$75,691,000, of which $73,764,000 was deposited into the trust account(or approximately $5.35 per share sold in the offering). As ofMarch  31,  2006, approximately $75,137,337 (orapproximately $5.44 per share sold in the offering) is being held inthe trust account. The remaining proceeds are available to be used byus to provide for business, legal and accounting due diligence onprospective acquisitions, tax payments and continuing general andadministrative expenses. We intend to use substantially all of the netproceeds of this offering to acquire a target business, includingidentifying and evaluating prospective acquisition candidates,selecting the target business, and structuring, negotiating andconsummating the business combination. To the extent that our capitalstock is used in whole or in part as consideration to effect a businesscombination, the proceeds held in the trust fund as well as any othernet proceeds not expended will be used to finance the operations of thetarget business. We believe we will have sufficient available fundsoutside of the trust fund to operate through July  7,2007, assuming that a business combination is not consummated duringthat time. From July  7,  2005 through July7,  2007, we anticipate approximately $300,000 of expenses forlegal, accounting and other expenses attendant to the due diligenceinvestigations, structuring and negotiating of a business combination,$300,000 for expenses for the due diligence and 

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

investigation of a target business, $180,000for the administrative fee payable to Alpine Capital LLC ($7,500 permonth for two years), $40,000 of expenses in legal and accounting feesrelating to our SEC reporting obligations and $1,107,000 for generalworking capital that will be used for tax payments, miscellaneousexpenses and reserves, including approximately $110,000 (throughJanuary  1,  2007) for director and officer liabilityinsurance premiums. We do not believe we will need to raise additionalfunds following this offering in order to meet the expendituresrequired for operating our business. However, we may need to raiseadditional 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,  2005 and endingupon the acquisition of a target business, we began incurring a feefrom Alpine Capital LLC, an affiliate of Richard D. Goldstein, ourchairman of the board and chief executive officer, Bruce M.Greenwald, our president and a member of our board of directors, GreggH. Mayer, our vice president and controller, and Oded Aboodi, ourspecial advisor, of $7,500 per month for providing us with office spaceand certain general and administrative services. In addition, in Apriland May  2005, Richard D. Goldstein advanced an aggregate of$100,000 to us for payment on our behalf of offering expenses.Theseloans were repaid following our initial public offering from theproceeds of the offering.

ITEM 3 — CONTROLS ANDPROCEDURES.

Disclosure controls and procedures are controls andother procedures that are designed to ensure that information requiredto be disclosed in company reports filed or submitted under theSecurities Exchange Act of 1934 (the ‘‘ExchangeAct’’) is recorded, processed, summarized and reported,within the time periods specified in the Securities and ExchangeCommission’s rules and forms. Disclosure controls and proceduresinclude, without limitation, controls and procedures designed to ensurethat information required to be disclosed in company reports filed orsubmitted under the Exchange Act is accumulated and communicated tomanagement, including our chief executive officer and treasurer, asappropriate to allow timely decisions regarding requireddisclosure.

As required by Rules 13a-15 and 15d-15 underthe Exchange Act, our chief executive officer and chief financialofficer carried out an evaluation of the effectiveness of the designand operation of our disclosure controls and procedures as ofMarch  31,  2006. Based upon their evaluation, theyconcluded that our disclosure controls and procedures wereeffective.

Our internal control over financial reporting is aprocess designed by, or under the supervision of, our chief executiveofficer and chief financial officer and effected by our board ofdirectors, management and other personnel, to provide reasonableassurance regarding the reliability of our financial reporting and thepreparation of our financial statements for external purposes inaccordance with generally accepted accounting principles. Internalcontrol over financial reporting includes policies and procedures thatpertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of ourassets; provide reasonable assurance that transactions are recorded asnecessary to permit preparation of our financial statements inaccordance with generally accepted accounting principles, and that ourreceipts and expenditures are being made only in accordance with theauthorization of our board of directors and management; and providereasonable assurance regarding prevention or timely detection ofunauthorized acquisition, use or disposition of our assets that couldhave a material effect on our financial statements.

During themost recently completed fiscal quarter, there has been no change in ourinternal control over financial reporting that has materially affected,or is reasonably likely to materially affect, our internal control overfinancial reporting.

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PART II.

OTHER INFORMATION

ITEM 2:    UNREGISTERED SALES OF EQUITYSECURITIES AND USE OF PROCEEDS

On July  7,  2005,we consummated our initial public offering of 12,000,000 Units, witheach unit consisting of one share of our common stock and two warrants,each to purchase one share of our common stock at an exercise price of$5.00 per share. On July  11,  2005, we closed on anadditional 1,800,000 units that were subject to the over-allotmentoption. 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 sold in the offering wereregistered under the Securities Act of 1933 on a registration statementon Form S-1 (No. 333-124380). The Securities and Exchange Commissiondeclared the registration statement effective on June  30,2005.

We paid a total of $6,516,000 in underwriting discounts andcommissions, and approximately $593,000has been or will be paid forcosts and expenses related to the offering.

After deducting theunderwriting discounts and commissions and the offering expenses, thetotal net proceeds to us from the offering were approximately$75,691,000, of which $73,764,000 was deposited into the trust account(or approximately $5.35 per share sold in the offering) and theremaining proceeds are available to be used to provide for business,legal and accounting due diligence on prospective business combinationsand continuing general and administrative expenses.

For adescription of the use of the proceeds generated in our initial publicoffering, see Part I, Item 2 of 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

In accordancewith the requirements of the Exchange Act, the registrant caused thisreport to be signed on its behalf by the undersigned, thereunto dulyauthorized.

|  | COURTSIDE ACQUISITION CORP. |
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Dated: May  12,2006

|  | /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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