|   |
|--------|

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM 10-Q**

| **ý** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE ACT OF 1934** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended June 30, 2006**

**or**

| **o** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE ACT OF 1934** |
|-------|--------------------------------------------------------------------------------------------------------------------------------------|

**Commission      file number: 000-51456**

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**AD.VENTURE      PARTNERS, INC.**

| **Delaware**                                                                                  |   | **20-2650200**                                      |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization)   |   | (I.R.S.                Employer Identification No.) |
|                                                                                          |   |                                                |
| **360                Madison Avenue, 21****st****Floor****New                York, New York** |   | **10017**                                           |
| (Address                of principal executiveoffices)                                        |   | (Zip                Code)                           |

**(212)      703-7241**

|   |
|--------|

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**AD.VENTURE      PARTNERS, INC.**

**Table      of Contents**

| **PART I                - FINANCIAL INFORMATION**                                                                                |      |
|---------------------------------------------------------------------------------------------------------------------------------------|-----------|
| **Item                1. Financial Statements**                                                                                       | 3         |
| Balance                Sheets                                                                                                         |  3   |
| Statements                of Operations                                                                                               |  4   |
| Statement                of Cash Flows                                                                                                | 5         |
| Notes                to Consolidated Financial Statements                                                                             | 6-10      |
| **Item                2. Management’s Discussion and Analysis of Financial Condition and Results                of Operations** | 11        |
| **Item                3. Quantitative and Qualitative Disclosures about Market                Risk**                                  | 12        |
| **Item                4. Controls and Procedures**                                                                                    | 13        |
|                                                                                                                                  |      |
| **PART II                - OTHER INFORMATION**                                                                                   |      |
|                                                                                                                                  |      |
| **Item                1. Legal Proceedings**                                                                                          |  14  |
| **Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds**                                 |  14  |
| **Item                3. Defaults Upon Senior Securities**                                                                            | 14        |
| **Item                4. Submission of Matters to a Vote of Security                Holders**                                         |   14 |
| **Item                5. Other Information**                                                                                          |   14 |
| **Item                6. Exhibits**                                                                                                   |  14  |
| **SIGNATURES**                                                                                                                        |  15  |

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**PART I      - FINANCIAL INFORMATION**

**Item      1.** **Financial      Statements.**

**AD.VENTURE      PARTNERS, INC.**

**BALANCE      SHEETS**

**(UNAUDITED)**

|                                                                                                                                                                                                                        |   | **June                30, 2006** |       | **March                31, 2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|------------|-----------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                  |   |                             |       | **(Restated)**                    |   |
| Current                Assets:                                                                                                                                                                                              |   |                             |       |                              |   |
| Cash                and cash equivalents                                                                                                                                                                                    |   | $                                | 352,189    |                              | $      | 579,029 |   |
| Prepaid                expenses                                                                                                                                                                                             |   |                             | 52,873     |                              |   | 72,488 |   |
| Total                current assets                                                                                                                                                                                         |   | $                                | 405,062    |                              | $      | 651,517 |   |
|                                                                                                                                                                                                                        |   |                             |       |                              |   |   |   |
| Investments                held in Trust Account                                                                                                                                                                            |   |                             | 51,496,984 |                              |   | 51,108,343 |   |
| Fixed                assets, net of accumulated depreciation                                                                                                                                                                |   |                             | 3,808      |                              |   | 4,062 |   |
|                                                                                                                                                                                                                        |   |                             |       |                              |   |   |   |
| Total                assets                                                                                                                                                                                                 |   | $                                | 51,905,854 |                              | $      | 51,763,922 |   |
|                                                                                                                                                                                                                        |   |                             |       |                              |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                               |   |                             |       |                              |   |   |   |
| Current                liabilities                                                                                                                                                                                          |   |                             |       |                              |   |   |   |
| Accrued                expenses                                                                                                                                                                                             |   | $                                | 57,268     |                              | $      | 90,310 |   |
| Taxes                payable                                                                                                                                                                                                |   |                             | 64,000     |                              |   | 116,000 |   |
| Derivative                liabilities                                                                                                                                                                                       |   |                             | 7,221,032  |                              |   | 11,878,143 |   |
| Total                current liabilities                                                                                                                                                                                    |   | $                                | 7,342,300  |                              | $      | 12,084,453 |   |
|                                                                                                                                                                                                                        |   |                             |       |                              |   |   |   |
| Common                stock, and changes in Trust Account value attributable to shares                subject                to possible redemption, 1,799,100 shares at $5.60 per                share                     |   |                             | 10,298,245 |                              |   | 10,193,318 |   |
|                                                                                                                                                                                                                        |   |                             |       |                              |   |   |   |
| **STOCKHOLDERS’                EQUITY**                                                                                                                                                                               |   |                             |       |                              |   |   |   |
| Preferred                stock — $.0001 par value, 1,000,000 shares authorized; 0 shares issued and                outstanding                                                                                        |   |                             | —    |                              |   | — |   |
| Common                stock — $.0001 par value, 50,000,000 shares authorized; 11,249,997 shares                issued and outstanding (which includes 1,799,100 shares subject to                possible redemption) |   |                             | 1,125      |                              |   | 1,125 |   |
| Additional                paid-in capital                                                                                                                                                                                   |   |                             | 33,947,234 |                              |   | 33,947,234 |   |
| Retained                earnings, net income                                                                                                                                                                                |   |                             | 316,950    |                              |   | (4,462,208 | ) |
| Total                stockholders’ equity                                                                                                                                                                             |   |                             | 34,265,309 |                              |   | 29,486,151 |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                             |   | $                                | 51,905,854 |                              | $      | 51,763,922 |   |

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**AD.VENTURE      PARTNERS, INC.**

**STATEMENTS      OF OPERATIONS**

**(UNAUDITED)**

|                                                                                                                                                 |   | **Three                Months****Ended****June                30, 2006** |       | **April                7, 2005****(Date                of****Inception)****Through****June                30, 2005** |   | **April                7, 2005****(Date                of****Inception)****Through****June                30, 2006****(Restated)** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                 |   |                                                                     |       |                                                                                                                 |   |                                                                                                                               |   |
| Operating                costs                                                                                                                       |   | $                                                                        | (101,567   | )                                                                                                                    | $      | (1,119                                                                                                                             | )      | $ | (317,660 | ) |
| Loss                from operations                                                                                                                  |   |                                                                     | (101,567   | )                                                                                                                    |   | (1,119                                                                                                                             | )      |   | (317,660 | ) |
| Gain                (loss) from derivative liabilities                                                                                               |   |                                                                     | 4,657,111  |                                                                                                                 |   | —                                                                                                                            |   |   | (94,748 | ) |
| Other                income—interest                                                                                                           |   |                                                                     | 392,541    |                                                                                                                 |   | 310                                                                                                                                |   |   | 1,132,643 |   |
| Income                before provision for income taxes                                                                                              |   |                                                                     | 4,948,085  |                                                                                                                 |   | (809                                                                                                                               | )      |   | 720,235 |   |
| Provision                for income taxes                                                                                                            |   |                                                                     | (64,000    | )                                                                                                                    |   | —                                                                                                                            |   |   | (180,000 | ) |
| Net                income                                                                                                                            |   | $                                                                        | 4,884,085  |                                                                                                                 | $      | (809                                                                                                                               | )      | $ | 540,235 |   |
| Weighted                average number of shares outstanding—basic                                                                             |   |                                                                     | 11,249,997 |                                                                                                                 |   | —                                                                                                                            |   |   | — |   |
| Net                income per share—basic                                                                                                      |   | $                                                                        | 0.43       |                                                                                                                 |   | —                                                                                                                            |   |   | — |   |
| Weighted                average number of shares outstanding—diluted                                                                           |   |                                                                     | 12,945,649 |                                                                                                                 |   | —                                                                                                                            |   |   | — |   |
| Net                income per share—diluted                                                                                                    |   | $                                                                        | 0.03       |                                                                                                                 |   | —                                                                                                                            |   |   | — |   |
|                                                                                                                                                 |   |                                                                     |       |                                                                                                                 |   | —                                                                                                                            |   |   |   |   |
| Pro                Forma Adjustment:                                                                                                                 |   |                                                                     |       |                                                                                                                 |   | —                                                                                                                            |   |   |   |   |
| Interest                income attributable to common stock subject to possible redemption                (net of                taxes of $0)        |   | $                                                                        | (104,927   | )                                                                                                                    |   | —                                                                                                                            |   | $ | (223,285 | ) |
| Pro                forma net income attributable to common stockholders not subject                to                possible redemption             |   | $                                                                        | 4,779,158  |                                                                                                                 |   | —                                                                                                                            |   | $ | 316,950 |   |
| Pro                forma weighted average number of shares outstanding, excluding shares                subject to possible redemption—basic   |   |                                                                     | 9,450,897  |                                                                                                                 |   | —                                                                                                                            |   |   | — |   |
| Pro                forma net income per share, excluding shares subject to possible                redemption—basic                            |   | $                                                                        | 0.51       |                                                                                                                 |   | —                                                                                                                            |   |   | — |   |
| Pro                forma weighted average number of shares outstanding, excluding shares                subject to possible redemption—diluted |   |                                                                     | 11,146,549 |                                                                                                                 |   | —                                                                                                                            |   |   | — |   |
| Pro                forma net income per share, excluding shares subject to possible                redemption—diluted                          |   | $                                                                        | 0.03       |                                                                                                                 |   | —                                                                                                                            |   |   | — |   |

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**AD.VENTURE      PARTNERS, INC.**

**STATEMENT      OF CASH FLOWS**

**(UNAUDITED)**

|                                                                                             |   | **Three                Months****Ended****June                30, 2006** |                                                                                                                              | **April                7, 2005****(Date                of****Inception)****Through****June                30, 2005** |   | **April                7, 2005****(Date                of****Inception)****Inception****Through****June                30, 2006****(Restated)** |   |
|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                flows from operating activities:**                                         |   |                                                                     |                                                                                                                              |                                                                                                                 |   |                                                                                                                                            |   |
| Net                income                                                                        |   | $                                                                        | 4,884,085                                                                                                                         |                                                                                                                 | $      | (809                                                                                                                                            | )      | $ | 540,235 |   |
| Adjustments                to reconcile net income to net cash provided by operating activities: |   |                                                                     |                                                                                                                              |                                                                                                                 |   |                                                                                                                                            |   |   |   |   |
| Depreciation                                                                                     |   |                                                                     | 254                                                                                                                               |                                                                                                                 |   | —                                                                                                                                         |   |   | 1,269 |   |
| Derivative                liabilities                                                            |   |                                                                     | (4,657,111                                                                                                                        | )                                                                                                                    |   | —                                                                                                                                         |   |   | 94,748 |   |
| Changes                in operating assets and liabilities                                       |   |                                                                     |                                                                                                                              |                                                                                                                 |   | —                                                                                                                                         |   |   |   |   |
| Prepaid                expenses                                                                  |   |                                                                     | 19,615                                                                                                                            |                                                                                                                 |   | 70,000                                                                                                                                          |   |   | (52,873 | ) |
| Accrued                expenses                                                                  |   |                                                                     | (33,042                                                                                                                           | )                                                                                                                    |   |                                                                                                                                            |   |   | 57,268 |   |
| Accrued                interest payable                                                          |   |                                                                     |                                                                                                                              |                                                                                                                 |   | (70,000                                                                                                                                         | )      |   |   |   |
| Taxes                payable                                                                     |   |                                                                     | (52,000                                                                                                                           | )                                                                                                                    |   |                                                                                                                                            |   |   | 64,000 |   |
| Notes                payable to stockholder                                                      |   |                                                                |                                                                                                          |                                                                                                                 |   | 87,018                                                                                                                                          |   |   |    |   |
| Net                cash provided by operating activities                                         |   |                                                                     | 161,801                                                                                                                           |                                                                                                                 |   | 86,209                                                                                                                                          |   |   | 704,647 |   |
| **Cash                flows from investing activities:**                                         |   |                                                                     |                                                                                                                              |                                                                                                                 |   |                                                                                                                                            |   |   |   |   |
| Investments held                in Trust Account                                            |   |                                                                     | (388,641                                                                                                                          | )                                                                                                                    |   | —                                                                                                                                         |   |   | (51,496,984 | ) |
| Purchase                of property and equipment                                                |   |                                                           |                                    |                                                                                                                 |   |  —                                                                                                                                   |   |   | (5,077 | ) |
| Net                cash used in investing activities                                             |   |                                                                     | (388,641                                                                                                                          | )                                                                                                                    |   | —                                                                                                                                         |   |   | (51,502,061 | ) |
| **Cash                flows from financing activities:**                                         |   |                                                                     |                                                                                                                              |                                                                                                                 |   |                                                                                                                                            |   |   |   |   |
| Issuance                of stock                                                                 |   |                                                                     | —                                                                                                                           |                                                                                                                 |   | —                                                                                                                                         |   |   | 51,148,503 |   |
| Proceeds                from notes payable to stockholder                                        |   |                                                                     | —                                                                                                                           |                                                                                                                 |   | —                                                                                                                                         |   |   | 150,000 |   |
| Repayment                of note payable to stockholder                                          |   |                                                                     | —                                                                                                                           |                                                                                                                 |   | —                                                                                                                                         |   |   | (150,000 | ) |
| Proceeds                from sale of common stock to founders                                    |   |                                                                     | —                                                                                                                           |                                                                                                                 |   | (9,375                                                                                                                                          | )      |   | 1,000 |   |
| Proceeds                from issuance of representative’s option                           |   |                                                                     | —                                                                                                                           |                                                                                                                 |   | —                                                                                                                                         |   |   | 100 |   |
| Net                cash provided by financing activities                                         |   |                                                                     | —                                                                                                                           |                                                                                                                 |   | (9,375                                                                                                                                          | )      |   | 51,149,603 |   |
| Net                increase in cash and cash equivalents                                         |   |                                                                     | (226,840                                                                                                                          | )                                                                                                                    |   | 76,834                                                                                                                                          |   |   | 352,189 |   |
| Cash                and cash equivalents—beginning of period                               |   |                                                                     | 579,029                                                                                                                           |                                                                                                                 |   | —                                                                                                                                         |   |   | — |   |
| Cash                and cash equivalents—end of period                                     |   | $                                                                        | 352,189                                                                                                                           |                                                                                                                 | $      | 76,834                                                                                                                                          |   | $ | 352,189 |   |

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**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note      A—Organization And Business Operations**

**Note      B—Summary Of Significant Accounting Policies**

| **[1]** | **Cash                and cash equivalents:** The                Company considers all highly liquid                investments with original maturities of three months or less to be                cash                equivalents. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **[2]** | **Investments                held in Trust Account:** At                June 30, 2006, the investments held in the                Trust Account consist of tax-exempt municipal money market funds,                and are                treated as trading securities and recorded at their market value.                The                excess of market over cost is included in interest income in the                accompanying statement of                operations. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **[3]** | **Accounting                for Warrants and Derivative Instruments** Emerging                  Issues Task Force issued EITF 00-19, “Accounting for Derivative Financial                  Instruments Indexed to, and Potentially Settled in, a Company's                  Own                  Stock,” (“EITF 00-19”) requires freestanding contracts that are settled in                  a company's own stock, including common stock warrants, to be designated                  as an equity instrument, asset or a liability. In accordance with                  EITF                  00-19, the Company determined that the warrants issued in connection                  with                  the Offering should be classified as a derivative liability due                  to the                  absence in the warrant agreement of provisions addressing the exercise                  of                  the warrants in the absence of an effective registration statement.                  Under                  interpretations of applicable federal securities laws, the issuance                  of                  shares upon exercise of the warrants in the absence of an effective                  registration statement could be deemed a violation of Section 5                  of the                  Securities Act of 1933, as amended. To address this issue, the                  warrant                  agreement requires that the Company file, and use best efforts                  to cause to                  be declared and keep effective, a registration statement covering                  the                  issuance of the shares underlying the warrants. However, the warrant                  agreement fails to specify the remedies, if any, that would be                  available                  to warrantholders in the event there is no effective registration                  statement covering the issuance of shares underlying the warrants.                  Under                  EITF 00-19, the registration of the common stock underlying the                  warrants                  is not within the Company's control. In addition, under EITF 00-19,                  in the                  absence of explicit provisions to the contrary in the warrant agreement,                  the Company must assume that it could be required to settle the                  warrants                  on a net-cash basis, thereby necessitating the treatment of the                  potential                  settlement obligation as a liability. Under                  the provisions of EITF 00-19, a contract designated as an asset                  or a                  liability must be carried at fair value on a company’s balance sheet, with                  any changes in fair value recorded in the company’s results of operations.                  The fair value of these warrants is shown on the Company’s balance sheet                  and the unrealized changes in the values of these derivatives are                  shown in                  the Company’s consolidated statement of operations as “Gain (loss) from                  derivative liabilities.” The price for the warrants is quoted on the Over                  the Counter Bulletin Board, consequently, the fair value of these                  warrants                  is estimated as the market price of a warrant at the end of each                  period.                  To the extent that the market price increases or decreases, the                  Company’s                  derivative liability will also increase or decrease, impacting                  the                  Company’s consolidated statement of operations. As                  described in Note C below, in connection with the Offering, the                  Company                  sold to the underwriters an option to purchase 450,000 units, each                  of                  which consists of one share of common stock and two warrants that                  are                  identical to the Company’s public warrants except for the exercise price.                  The Company has determined that this option is a derivative that                  also                  contains an embedded derivative, the 900,000 warrants included                  in the                  units issuable upon exercise of the option. The Company considers                  this                  option to be an equity instrument, as the underlying units do not                  need to                  be registered prior to delivery. However, the shares issued upon                  exercise                  of the warrants included in the underlying units do require registration.                   Statement                  of Financial Accounting Standard (“SFAS”) No. 133, “Accounting for                  Derivative Instruments and Hedging Activities,” as amended, requires all                  derivatives to be recorded on the balance sheet at fair value.                  Furthermore, paragraph 11(a) of SFAS No. 133 precludes contracts                  issued or                  held by a reporting entity that are both (1) indexed to its own                  stock and                  (2) classified as stockholders’ equity in its statement of financial                  position from being treated as derivative instruments. Hence, the                  option                  to purchase 450,000 units and the warrants to purchase an additional                  900,000 shares, the latter being the embedded derivative, are separately                  valued and accounted for on the Company’s balance sheet. As such, the                  option to purchase 450,000 units is considered an equity instrument,                  as                  the underlying shares do not need to be registered, and all other                  criteria                  in EITF 00-19 required for the instrument to be accounted for as                  an equity                  instrument have been fulfilled. While the warrants are indexed                  to the                  Company’s common stock, the fact that the shares underlying the warrants                  require future registration in accordance with the warrant agreement                  requires the Company to classify these instruments as a liability                  in                  accordance with EITF 00-19, paragraph 14.  The                  Company performed a valuation of the option to purchase 450,000                  units, and                  then allocated its fair value to its two components, the underlying                  450,000 units and the embedded warrant to purchase an additional                  900,000                  shares. The fair value of the unit purchase option at August 31,                  2005 was                  calculated, using the Black Scholes pricing model, at $1,873,367,                  or $4.16                  per unit, using an expected, life of five years, volatility of                  92.5% and a                  risk free interest rate of 3.87%. Because the Company has not consummated                  the Business Combination, management derived the volatility estimate                  based                  on the average five-year historical stock prices for a representative                  sample of 20 technology, media and telecommunications companies                  with                  market capitalizations below $500 million, which management believes                  is a                  reasonable benchmark to use in estimating the expected volatility                  of the                  units after the consummation of a Business Combination. Although                  an                  expected life of five years was used in this calculation, if the                  Company                  does not consummate a Business Combination within the prescribed                  time                  period and the Company liquidates, the option will become                  worthless. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | As                    of June 30, 2006, the Company allocated $1,422,784 to the purchase                    option                    of 450,000 shares and $201,032 to the embedded warrants. The                    Company has determined the fair values of the option and the                    embedded                    warrants subsequent to the initial valuation thereof using the                    Black                    Scholes pricing model. Valuations derived from this model are                    subject to                    ongoing internal and external verification and review. The model                    uses                    market-sourced inputs such as interest rates, market prices and                    volatilities. Selection of these inputs involves management’s judgment and                    may impact net income. The Company continues to base its volatility                    assumption on the five-year average historical stock prices of                    the same                    representative sample of 20 technology, media and telecommunications                    companies as used in its initial valuation. The volatility factor                    used in                    Black Scholes has a significant effect on the resulting valuation                    of the                    derivative liabilities on the Company’s balance sheet. As of June 30,                    2006, the volatility for the calculation of the embedded derivatives                    was                    approximated at 76.5%, and this volatility rate will likely change                    in the                    future. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **[4]** | **Earnings                per common share:** Earnings                per share is computed by dividing net income attributable to common                stockholders by the weighted average number of common shares outstanding                for the period. Diluted net income per share is computed using the                weighted average number of shares outstanding adjusted per the incremental                shares attributed to outstanding options to purchase common                stock. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **[5]** | **Use                  of estimates:** The                    preparation of financial statements in conformity with accounting                    principles generally accepted in the United States of America                    requires                    management to make estimates and assumptions that affect the                    reported                    amounts of assets and liabilities and disclosure of contingent                    assets and                    liabilities at the date of the financial statements and the reported                    amounts of revenues and expenses during the reporting period.                    Actual                    results could differ from those                    estimates. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **[6]** | **Income                    taxes:** Deferred                      income taxes are provided for the differences between the bases                      of assets                      and liabilities for financial reporting and income tax purposes.                      A                      valuation allowance is established when necessary to reduce                      deferred tax                      assets to the amount expected to be realized. The                      Company recorded a deferred income tax asset for the tax effect                      of                      start-up costs and temporary differences, aggregating approximately                      $135,000. In recognition of the uncertainty regarding the ultimate                      amount                      of income tax benefits to be derived, the Company has recorded                      a full                      valuation allowance at June 30,                      2006. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Note      C—Public Offering**

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**Note      D—Notes Payable to Stockholder**

**Note      E—Related Party Transaction**

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**Note      F—Common Stock Reserved for Issuance**

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**Item      2.** **Management’s      Discussion and Analysis of Financial Condition and Results of      Operations.**

*Net      Income*

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*Off-Balance      Sheet Arrangements *

*Contractual      Obligations *

**Item      3.**
**Quantitative      and Qualitative Disclosures About Market Risk.**

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**Item      4.** **Controls      and Procedures.**

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**PART II      - OTHER INFORMATION**

**Item      1.** **Legal      Proceedings.**

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

**Item      3.**
**Defaults      Upon Senior Securities.**

**Item      4.**
**Submission      of Matters to a Vote of Security Holders.**

**Item      5.**
**Other      information.**

**Item      6.** **Exhibits.**

| 31.1 | Section 302                Certification of Chief Executive Officer |
|------|--------------------------------------------------------------------------|
| 31.2 | Section 302                Certification of Chief Financial Officer |
| 32.1 | Section 906                Certification                            |

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**SIGNATURES**

|                                      |                                                                                                                               |                                                |
|-------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                      | **AD.VENTURE                PARTNERS, INC.**                                                                                       |
|                                 |                                                                                                                          |                                           |
| Date:                August 21, 2006 | By:                                                                                                                      | /s/ Howard              S.              Balter |
|                                      | Howard                S. Balter*Chairman                and Chief Executive**Officer                (Principal Executive Officer)* |
|                                      |                                                                                                                               |
|         |                                                                                                                              |                                              |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
|    |                                                                                                                         |                                         |
|         | By:                                                                                                                     | /s/ Ilan              M.              Slasky |
|         | Ilan                M. Slasky*President                and Secretary (Principal Financial and Accounting                Officer)* |
|         |                                                                                                                              |

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