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**SECURITIES      AND EXCHANGE COMMISSION **

**WASHINGTON,      D.C. 20549 **

**FORM        10-Q/A**

**Amendment        NO.1**

| ý | **Quarterly                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934****For                the quarterly period ended September 30,                2005.** |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o  | **Report                Pursuant to Section 13 or 15(d) of the Securities Exchange Act of                1934**F**or                the transition period from to                .** |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Commission      File Number: **
**000-51444**

**Stone      Arcade Acquisition Corporation**

| **Delaware**                                                                                |   | **20-2699372**                                                    |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| (State                or Other Jurisdiction ofIncorporation                or Organization) |   | (I.R.S.                EmployerIdentification                No.) |

**/o      Stone-Kaplan Investments, LLC, One Northfield Plaza, Suite      480**

**Northfield,      IL 60093**

**(847)      441-0929**

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**EXPLANATORY          NOTE **

**Stone        Arcade Acquisition Corporation Index to Form 10-Q /A**

| **Part                  I.**  | **Financial                  Information**                |  1 |
|-------------------------------|-----------------------------------------------------------|---------|
|                          |                                                      |    |
|                          | Item                  1. Financial Statements (unaudited) |  1 |
|                          |                                                      |    |
| **Part                  II.** | **Other                  Information**                    |  9 |
|                          |                                                      |    |
|                          | Item                  6. Exhibits                         |  9 |
|                          |                                                      |    |
| SIGNATURES                    |  10                                                  |

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**PART      I - FINANCIAL INFORMATION**

**FINANCIAL      STATEMENTS (UNAUDITED)**

**Stone      Arcade Acquisition Corporation**

**Balance      Sheet**

|                                                                                                                                                                                                                                                 |   |                                  |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-------------|
|                                                                                                                                                                                                                                                 |   | **September                30, 2005** |        |
| **ASSETS**                                                                                                                                                                                                                                           |   |                                  |        |
| **Current                assets:**                                                                                                                                                                                                                   |   |                                  |        |
| Cash                                                                                                                                                                                                                                                 |   | $                                     | 2,263,930   |   |
| Cash                and cash equivalents, held in trust                                                                                                                                                                                              |   |                                  | 111,276,341 |   |
| Prepaid                insurance                                                                                                                                                                                                                     |   |                                  | 171,500     |   |
| Other                prepaid expenses                                                                                                                                                                                                                |   |                                  | 8,925       |   |
| **Total                assets**                                                                                                                                                                                                                      |   | $                                     | 113,720,696 |   |
|                                                                                                                                                                                                                                                 |   |                                  |        |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                        |   |                                  |        |   |
|                                                                                                                                                                                                                                                 |   |                                  |        |   |
| **Current                liabilities:**                                                                                                                                                                                                              |   |                                  |        |   |
| Accrued                expenses                                                                                                                                                                                                                      |   | $                                     | 61,154      |   |
| Accrued                income taxes                                                                                                                                                                                                                  |   |                                  |        |   |
| Current                                                                                                                                                                                                                                              |   |                                  | 71,725      |   |
| Deferred                                                                                                                                                                                                                                             |   |                                  | 61,345      |   |
|                                                                                                                                                                                                                                                 |   |                                  | 133,070     |   |
| **Total                current liabilities**                                                                                                                                                                                                         |   |                                  | 194,224     |   |
|                                                                                                                                                                                                                                                 |   |                                  |        |   |
| **Commitments                and Contingencies:**                                                                                                                                                                                                    |   |                                  |        |   |
| Common                stock, subject to possible redemption - 3,998,000 shares                                                                                                                                                                       |   |                                  | 22,159,715  |   |
| Deferred                interest attributable to common stock subject to possible redemption                (net                of taxes of $28,705)                                                                                                 |   |                                  | 55,721      |   |
| **Total                Commitments and Contingencies**                                                                                                                                                                                               |   |                                  | 22,215,436  |   |
|                                                                                                                                                                                                                                                 |   |                                  |        |   |
| **Total                Liabilities**                                                                                                                                                                                                                 |   |                                  | 22,409,660  |   |
|                                                                                                                                                                                                                                                 |   |                                  |        |   |
| **Stockholders’                Equity:**                                                                                                                                                                                                       |   |                                  |        |   |
| Preferred                stock — $.0001 par value; 1,000,000 shares authorized; 0 shares issued and                outstanding                                                                                                                 |   |                                  |        |   |
| Common                stock—$.0001 par value, 175,000,000 shares authorized; 25,000,000 shares                issued and outstanding (including 3,998,000 shares of common stock                subject                to possible redemption) |   |                                  | 2,500       |   |
| Additional                paid-in capital                                                                                                                                                                                                            |   |                                  | 91,105,946  |   |
| Income                accumulated during the development stage                                                                                                                                                                                       |   |                                  | 202,590     |   |
|                                                                                                                                                                                                                                                 |   |                                  |        |   |
| **Total                stockholders’ equity**                                                                                                                                                                                                  |   |                                  | 91,311,036  |   |
|                                                                                                                                                                                                                                                 |   |                                  |        |   |
| **Total                liabilities and stockholders’ equity**                                                                                                                                                                                  |   | $                                     | 113,720,696 |   |

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**Stone      Arcade Acquisition Corporation**

**Unaudited      Statements of Operations**

|                                                                                                                                                                        |   |                                                     |       | **April                  15, 2005**     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|------------|-----------------------------------------|--------|
|                                                                                                                                                                        |   | **July                  1, 2005**                        |       | *(Date                  of Inception)*  |   |
|                                                                                                                                                                        |   | **Through**                                              |       | **Through**                             |   |
|                                                                                                                                                                        |   | **September                  30,                  2005** |       | **September                  30, 2005** |   |
| Cost                  and expenses                                                                                                                                          |   |                                                     |       |                                    |   |
| Operating                  expenses                                                                                                                                         |   | $                                                        | 37,799     |                                    | $      | 38,799 |   |
|                                                                                                                                                                        |   |                                                     |       |                                    |   |   |   |
| Other                  income                                                                                                                                               |   |                                                     |       |                                    |   |   |   |
| Bank                  interest                                                                                                                                              |   |                                                     | 7,839      |                                    |   | 7,839 |   |
| Interest                  on cash and cash equivalents held in trust                                                                                                        |   |                                                     | 422,341    |                                    |   | 422,341 |   |
| Total                  other income                                                                                                                                         |   |                                                     | 430,180    |                                    |   | 430,180 |   |
|                                                                                                                                                                        |   |                                                     |            |                                    |   |  |   |
| **Income                  before provision for income taxes**                                                                                                               |   |                                                     | 392,381    |                                    |   | 391,381 |   |
| Provision                  for income taxes                                                                                                                                 |   |                                                     |       |                                    |   |   |   |
| Current                                                                                                                                                                     |   |                                                     | 71,725     |                                    |   | 71,725 |   |
| Deferred                                                                                                                                                                    |   |                                                     | 61,345     |                                    |   | 61,345 |   |
| Total                  provision for income taxes                                                                                                                           |   |                                                     | 133,070    |                                    |   | 133,070 |   |
| **Net                  income**                                                                                                                                             |   |                                                     | 259,311    |                                    |   | 258,311 |   |
|                                                                                                                                                                        |   |                                                     |       |                                    |   |   |   |
| Deferred                  interest, net of taxes, attributable to common stock subject to                  possible                  redemption                             |   |                                                     | (55,721    | )                                       |   | (55,721 | ) |
|                                                                                                                                                                        |   |                                                     |       |                                    |   |   |   |
| **Net                  income allocable to holders of non-redeemable common                  stock**                                                                        |   | $                                                        | 203,590    |                                    | $      | 202,590 |   |
|                                                                                                                                                                        |   |                                                     |       |                                    |   |   |   |
| **Earnings                  per share -basic and diluted**                                                                                                                  |   | $                                                        | .02        |                                    | $      | .02 |   |
| **Weighted                  average number of shares outstanding exclusive of shares subject                  to                  possible redemption-- basic and diluted** |   |                                                     | 12,305,261 |                                    |   | 9,030,262 |   |

See      notes      to unaudited financial statements 

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**Stone      Arcade Acquisition Corporation**

**Unaudited      Statements of Stockholders’ Equity** 

|                                                                                                                                                                                                                        |   |                            |       |        |   |            |   |  **Income**              |        |      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|-------------|--------|-----------------|--------|-------------------------------|-------------|-----------|--------|
|                                                                                                                                                                                                                        |   |                            |       |        |   |            |   | **(Loss)**                    |        |      |   |
|                                                                                                                                                                                                                        |   |                            |       |        |   |            |   | **Accumulated**               |        |      |   |
|                                                                                                                                                                                                                        |   |                            |       |        |   | **Additional**  |   | **During                the** |        |      |   |
|                                                                                                                                                                                                                        |   | **Common                Stock** |       | **Paid-In** |   | **Development** |   |                          |        |
|                                                                                                                                                                                                                        |   | **Shares**                      |       | **Amount**  |   | **Capital**     |   | **Stage**                     |        | **Total** |   |
| **Balance                — April 15, 2005**                                                                                                                                                                      |   |                            | -          |        |   | -               |   |                          | -           |      |   | - |   |   | - |   |
| **(date                of inception**)                                                                                                                                                                                      |   |                            |       |        |   |            |   |                          |        |      |   |   |   |   |   |   |
| Initial                capital from founding stockholders                                                                                                                                                                   |   |                            | 5,000,000  |        | $      | 500             |   | $                             | 24,500      |      |   |   |   | $$ | 25,000 |   |
| Net                loss for the period                                                                                                                                                                                      |   |                            |       |        |   |            |   |                          |        |      |   | (1,000 | ) |   | (1,000 | ) |
| **Balance-June                30, 2005**                                                                                                                                                                                    |   |                            | 5,000,000  |        |   | 500             |   |                          | 24,500      |      |   | (1,000 | ) |   | 24,000 |   |
| Sale                of 20,000,000 units (including 3,998,000 shares of common stock subject                to                possible redemption), net of underwriters’ discount and offering                expenses |   |                            | 20,000,000 |        |   | 2,000           |   |                          | 113,241,161 |      |   |   |   |   | 113,243,161 |   |
| Reclassification                as a result of 3,998,000 shares of common stock being subject to                possible                redemption                                                                          |   |                            |       |        |   |            |   |                          | (22,159,715 | )         |   |   |   |   | (22,159,715 | ) |
| Net                income for the period                                                                                                                                                                                    |   |                            |       |        |   |            |   |                          |        |      |   | 203,590 |   |   | 203,590 |   |
| **Balance—September                30, 2005**                                                                                                                                                                         |   |                            | 25,000,000 |        | $      | 2,500           |   | $                             | 91,105,946  |      | $      | 202,590 |   | $ | 91,311,036 |   |

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**Stone      Arcade Acquisition Corporation**

**Unaudited      Statement of Cash Flows** 

|                                                                           |   |                                   |         |
|--------------------------------------------------------------------------------|--------|----------------------------------------|--------------|
|                                                                           |   | **April                15, 2005**      |         |
|                                                                           |   | **(Date                of Inception)** |         |
|                                                                           |   | **through**                            |         |
|                                                                           |   | **September                30, 2005**  |         |
| **Cash                flows from operating activities:**                       |   |                                   |         |
| Net                income                                                      |   | $                                      | 258,311      |   |
| Deferred                income taxes                                           |   |                                   | 61,345       |   |
| Changes                in:                                                     |   |                                   |         |   |
| Prepaid                insurance                                               |   |                                   | (171,500     | ) |
| Other                prepaid expenses                                          |   |                                   | (8,925       | ) |
| Accrued                expenses                                                |   |                                   | 61,154       |   |
| Accrued                income taxes                                            |   |                                   | 71,725       |   |
| Net                cash provided by operating activities                       |   |                                   | 272,110      |   |
|                                                                           |   |                                   |         |   |
| **Cash                flows from investing activities:**                       |   |                                   |         |   |
| ** **Cash                and cash equivalents held in trust               |   |                                   | (111,276,341 | ) |
| ** **Net                cash used in investing activities                 |   |                                   | (111,276,341 | ) |
| **Cash                flows from financing activities:**                       |   |                                   |         |   |
| Proceeds                from public offering, net of expenses of $6,756,839    |   |                                   | 113,243,161  |   |
| Proceeds                from sale of common stock to founding stockholders     |   |                                   | 25,000       |   |
| Proceeds                from notes payable to stockholders                     |   |                                   | 200,000      |   |
| Repayment                of notes to stockholders                              |   |                                   | (200,000     | ) |
| Net                cash provided by financing activities                       |   |                                   | 113,268,161  |   |
| **Net                increase in cash**                                        |   |                                   | 2,263,930    |   |
| Cash                — beginning of period                                |   |                                   | 0            |   |
| **Cash                — end of period**                                  |   | $                                      | 2,263,930    |   |
|                                                                           |   |                                   |         |   |
| **Supplemental                disclosure of non-cash activities:**             |   |                                   |         |   |
| Reclassification                of common stock subject to possible redemption |   | $                                      | 22,159,715   |   |

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**Stone      Arcade Acquisition Corporation**

**Notes      to Unaudited Financial Statements**

**September      30, 2005**

**NOTE      A — ORGANIZATION, BUSINESS OPERATIONS**
**AND      SUBSEQUENT EVENTS**

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**Stone      Arcade Acquisition Corporation**

**Notes      to Unaudited Financial Statements — (Continued)**

**NOTE      B —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Cash      and cash equivalents**

**Earnings      Per Common Share**

**Use      of Estimates**

**Income      taxes**

**NOTE      C — INITIAL PUBLIC OFFERING**

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**Stone      Arcade Acquisition Corporation**

**Notes      to Unaudited Financial Statements — (Continued)**

**NOTE      C — INITIAL PUBLIC OFFERING**
***Continued***

**NOTE      D — NOTES PAYABLE TO STOCKHOLDERS**

**NOTE      E —RELATED PARTY TRANSACTIONS**

**NOTE      F—COMMITMENTS**

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**Stone      Arcade Acquisition Corporation**

**Notes      to Unaudited Financial Statements — (Continued)**

**NOTE      G—FOUNDING STOCKHOLDERS**

**NOTE      H—COMMON STOCK RESERVED FOR ISSUANCE**

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**PART      II - OTHER INFORMATION**

**EXHIBITS**

| (b) | Exhibits |
|-----|----------|

|  | 31 | Rule                13a-14(a) Certification of Principal Executive Officer and Principal                Financial Officer. |
|--|----|----------------------------------------------------------------------------------------------------------------------------|

|  | 32 | 18                U.S.C Section 1350 Certification. |
|--|----|-----------------------------------------------------|

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**SIGNATURES**

|                               |                                                               |                                |
|------------------------------------|--------------------------------------------------------------------|-------------------------------------|
|                               | STONE                  ARCADE ACQUISITION CORPORATION              |
|                          |                                                          |                           |
| December                  12, 2006 | By:                                                      | /s/ Roger                Stone |
|                               | Roger                  Stone                                       |
|                               | Chairman                  of the Board and Chief Executive Officer |

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