**United States****Securities and ExchangeCommission****Washington, D.C. 20549**
**Form 10-QSB**
|X| QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACTOF 1934
For the quarterly period ended December 31, 2005
|_| TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THEEXCHANGEACT
For the transition period from ______________ to________________
Commission File Number: 0-13910
**The Furia Organization, Inc.**(Exact name ofsmall business issuer as specified in its charter)
Delaware(State or other jurisdiction of incorporation ororganization)
95-3931129(I.R.S. Employer Identification No.)
2233 Ridge Road, Suite 102, Rockwall, TX 75087(Address of principalexecutive offices)
(972) 722-9999(Issuer's telephone number)
N/A(Former name, former address and former fiscal year,if changed sincelast report)
Check whether the issuer (1) filed all reports required to be filed by Section13 or 15(d) of the Exchange Act during the past 12 months (or for such shorterperiod that the registrant was required to file such report(s), and (2) has beensubject to such filing requirements for the past 90 days.  Yes     No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to befiled by Section 12, 13 or 15(d) of the Exchange Act after the distribution ofsecurities under a plan confirmed by a court. Yes |_| No |_|
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of commonequity, as of the latest practicable date: 67,157,721 shares of common stock asof February 6, 2006.
Transitional Small Business Disclosure Format (check one): Yes |_| No|X|****   

THE FURIA ORGANIZATION, INC.
INDEX

PART I.  FINANCIAL INFORMATION
  
Item 1. 

Financial Statements:
  
       

Condensed Consolidated Balance Sheet as of December 31, 2005 (unaudited).....

4
  
       

Condensed Consolidated Statements of Operations for the three months and
 
       

six months ended December 31, 2005 and 2004(unaudited)...............................

5
  
       

Condensed Consolidated Statements of Cash Flows for the 
 
       

six months ended December 31, 2005 and 2004(unaudited)..............................

6
  
       

Notes to Condensed Consolidated Financial Statements........................

7
  
Item 2. 

Management's Discussion and Analysis or Plan ofOperations.......................... 

12
  
Item 3. 

Controls andProcedures............................................................

17
    
PART II

OTHER INFORMATION
  
Item 1. 

LegalProceedings..................................................................

19
  
Item 2. 

Unregistered Sales of Equity Securities and Use ofProceeds........................

19
  
Item 3. 

Defaults upon SeniorSecurities....................................................

20
  
Item 4.

Submission of Matters to a Vote of SecurityHolders.................................

20
  
Item 5.

OtherInformation...................................................................

20
  
Item 6. 

Exhibits.....................................................

21
   
Signatures.........................................................................

22

****   

PART I. FINANCIAL INFORMATION
Item 1.  Financial Statements.(Unaudited)
THE FURIA ORGANIZATION, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCESHEETDecember 31, 2005(Unaudited)
Assets 
CURRENT ASSETS:

Cash and equivalents

$ 782,547        
Accounts receivable-trade

44,799         
Prepaid expenses

21,160            
    
       

  Total current assets

848,506     
  
PROPERTY, PLANT, AND EQUIPMENT, net of depreciation

 222,432     
  
OTHER ASSETS:

Software-proprietary

 311,580     
 
       

       
  
       

       

   $ 1,382,518     
  
LIABILITIES AND STOCKHOLDERS' (DEFICIT) 
CURRENT LIABILITIES:

Accounts payable-trade                                                      

$    4,925       
Accrued penalty on convertible notes payable

528,288 
Accrued liabilities

30,212      
Line of credit

30,000      
Loans payable

129,955      
Current portion of long-term debt

6,189      
Current portion of obligations under capital leases

 9,420     
  
Callable convertible notes payable

1,750,000 
       
   
       

  Total current liabilities

2,488,989     
  
LONG-TERM DEBT:

Long term leases, net of current portion shown above

44,075      
Long-term debt, net of current portion shown above

  10,830     
    
  Total long-term debt

54,905
  
STOCKHOLDERS' (DEFICIT):

       

Preferred stock; par value of $0.0001, 50,000,000 shares authorized and 500,000shares outstanding

50     
       
  
Common stock - 0.001 par value; 200,000,000 authorized;
 
       

67,157,721 issued and outstanding, 50,000,000 share       
 
reserved for preferred stock conversion                                     

62,158      
Additional paid-in capital                                                

5,254,768      
Accumulated deficit                                                        

(6,102,333) 
Treasury stock, 1,962,000 shares                                            

 (376,019)  
 
       
   
       

Total stockholders' deficit                                             

(1,161,376)
 
       
   
       
 
$ 1,382,518     
 

See accompanying notes to condensed consolidated financialstatements.**4**   
THE FURIA ORGANIZATION, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATEDSTATEMENTS OF OPERATIONSFOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2005AND 2004(UNAUDITED)
       

       

       

Three Months
Six Months
       

       

       

ended December 31,
ended December 31,
       

       

2005
2004
2005
2004  
Sales revenues                   

$ 128,491   
$  6,220     
$ 208,405  
$ 7,220         
Cost of sales                        

86,269    

-      

172,800     

-       

       
     
Gross Profit (loss)                  

42,222   

6,220       

35,605     

7,220         
 
       
      
Operating expenses:

Selling, general and administrative    

721,536    
268,849     
3,385,622   
429,659  
Depreciation                            

12,514      

-          

25,028       

       -           
 
       
     
Total expenses                           

734,050     

268,849       

3,410,650   

429,659       
 
       
     
Income (loss) from operations          

(691,828) 
(262,629) 
(3,375,045)   
(422,439)       
Other (income) expense

Interest and finance costs       

2,129,934

-     

2,130,677

-          
 
       
     
Income (loss) before income taxes      

(2,821,762)
(262,629)  
(5,505,722)
(422,439)            
Provision for income taxes                 

-      

-        

-       

-
 
       
     
       Net (loss)                        

$ (2,821,762)

 $ (262,629)  

$ (5,505,722)

$(422,439)    
 
       
       
Basic and diluted net (loss) per common share                     

$  (0.045)   
$  (0.01)    
$ (0.10)   
$  (0.02)         
Weighted average basic and diluted shares outstanding                

61,872,069
28,742,842
57,542,830
28,742,842 

See accompanying notes to condensed consolidated financialstatements.**5**   

THE FURIA ORGANIZATION, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATEDSTATEMENTS OF CASH FLOWSFOR THE SIX MONTHS ENDED DECEMBER 31, 2005 AND2004(UNAUDITED)

       

2005
2004 
       
    
Cash flows from operating activities:

Net (loss)                                                         

$ (5,505,722)
$ (  422,439) 
Adjustments to reconcile net (loss) to net cash

  provided by (used in) operating activities:

  Net income for Fronthaul                                

-              
7,856 
  Depreciation and amortization

25,028          
-  
  Common stock issued for services

2,661,675        
- 
  Interest expense on convertible notes payable

1,590,935         
- 
Changes in operating assets and liabilities:

  Accounts receivable

(12,407)          
-   
  Prepaid expense

(21,160)         
- 
  Accounts payable

(18,664)         
-   
  Accrued penalty on convertible notes payable

528,288  
  Accrued expenses

(6,788)    
- 
  Operating leases

(6,597)       
- 
  Deposits

1,863          

- 
 
       
   
Net cash provided by (used in) operating activities                       

 (763,549)     

 (414,583)
 
       
   
Cash flows from investing activities:

  Capital expenditures

(  983)      
(91,316) 
  Purchase securities

(376,019)      
(64,049) 
  Goodwill

-       

 (19,950)
 
       
   
Net cash (used in) investing activities                              

       (377,002)  

       (175,316)
 
       
   
Cash flows from financing activities:

Proceeds from common stock sales

-          
336,515
Proceeds from convertible loans                                      

1,750,000      
-  
Proceeds from notes payable                                              

65,373       
363,866 
Payments on notes payable                                              

 (10,054)   

 (117,300)
 
       
   
Net cash provided by financing activities                            

1,805,319    

583,081
 
       
    
Net increase (decrease) in cash                                          

664,768   
(6,818)  
Cash at beginning of period                                           

117,779     

- 
 
       
   
Cash at end of period                                          

$ 782,547        

$(6,818)
  
Supplemental disclosures of cash flow information: 

  Interest paid

$    1,531      
$    - 
  Income taxes paid                                               

$       -       
$    -  
Supplemental disclosures of non-cash investing and financing activities:

  Common stock issued for services                              

$2,661,675  
$    - 
  

See accompanying notes to condensed consolidated financialstatements.**6**   

THE FURIA ORGANIZATION, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSDECEMBER 31, 2005(UNAUDITED)
**NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
**Organization and Basis of Presentation**
The Furia Organization, Inc. ("the Company", "Furia", we, us or our) providestruck brokerage, logistics, and intermodal transportation services throughoutthe southwestern part of the United States.  The accompanying unauditedcondensed consolidated financial statements have been prepared in accordancewith accounting standards generally accepted in the United States ("GAAP") andrules and regulations of the Securities and Exchange Commission for interimfinancial information.  The financial statements do not include all informationand notes required by GAAP for complete financial statements.  In our opinion,all adjustments considered necessary for a fair presentation have been included.Results of the interim periods presented are not necessarily indicative ofresults which might be expected for the entire fiscal year.
These interim financial statements should be read in conjunction with theaudited consolidated financial statements and notes thereto included in theCompany's annual report on Form 10KSB/A for the fiscal year ended June 30,2005.
**NOTE 2 - GOING CONCERN AND MANAGEMENT'S PLANS**
The accompanying consolidated financial statements were prepared using generallyaccepted accounting principles applicable to a going concern which contemplatesthe realization of assets and liquidation of liabilities in the normal course ofbusiness. However, the Company has incurred losses totaling $(6,102,333) sinceits reorganization and has a $(1,161,876) negative net worth at December 31,2005. These factors raise substantial doubts about the Company's ability tocontinue as a going concern. Management anticipates raising additional funds andexpects to achieve a profitable level of operations in the near future. Theaccompanying financial statements do not include any adjustments that might benecessary if the Company is unable to continue as a going concern.
**NOTE 3 - PROPERTY AND EQUIPMENT**
Property and equipment as of December 31, 2005 consisted of the following:

       

       

December 31, 
       

       

2005  
Telephone equipment                               

$  60,334            
Office furniture and equipment                         

118,235            
Security equipment                                     

30,875             
Vehicles                                                  

63,549          
 
       

       

272,993                    
Less depreciation                                         

( 50,561)         
  
Net property and equipment                            

$ 222,432       
 

**NOTE 4 - FRONTHAUL, INC. RECAPITALIZATION**
On August 26, 2004, the Company entered into a stock purchase agreement with theformer shareholders of Fronthaul, Inc. ("Fronthaul").  Terms of this agreementcall for the Company to acquire 100% of the outstanding stock in Fronthaul for20,000,000 shares of the Company's common stock and 500,000 shares of theCompany's Series A Convertible Preferred stock.  
The Preferred Shares shall have the following rights, privileges andpreferences:

       

(a)  
The Preferred Shares shall have no voting rights;
  
       

(b)   
The Preferred Shares shall have a non-cumulative dividend of $.001 pershares;
  
       

(c)  
In the event of liquidation or dissolution of the Purchaser, the PreferredShares, to the extent of $.001 per share shall have priority over thePurchaser's Common Shares with respect to distribution.
 
**7**   

THE FURIA ORGANIZATION, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSDECEMBER 31, 2005(UNAUDITED)
**NOTE 4 - FRONTHAUL, INC. RECAPITALIZATION -continued**

       

(d)  
The Preferred Shares shall be convertible, at the option of the Holder, intoCommon Shares of the Purchaser, at the rate of 100 shares of Common Stock foreach share of Preferred Stock, which right of conversion shall be based upon thefollowing formula:
  
       

(i)  
Upon the Purchaser achieving revenues of $250,000 within twelve (12) months fromthe date of this Agreement, an aggregate of 25% of the Preferred Shares may beconverted;
  
       

       

(ii)   
Upon the Purchaser achieving revenues of $500,000 within twelve (12) months fromthe date of this Agreement, an aggregate of 50% of the Preferred Shares may beconverted; and
  
       

       

(iii)  
Upon the Purchaser achieving revenues of $750,000 within twelve (12) months fromthe date of this Agreement, an aggregate of 100% of the Preferred Shares may beconverted.
  
       

(e)   
On the one year anniversary of this Agreement ("Anniversary Date"), should thePurchaser fail to achieve any or all of the revenue thresholds, the Purchasershall redeem the unconverted Preferred Shares at a price of $.50 per share.Should the Purchaser fail to redeem any or all of the unconverted PreferredShares within 30 days from the Anniversary Date, then the Shareholder, withoutregards to the revenue requirements set forth above may, at any time thereafter,convert the Preferred Shares to common stock as hereinbefore set forth.
 

At the time of the acquisition, Fronthaul acquired control of the company andthe acquisition was treated as a recapitalization of Fronthaul for financialreporting purposes.
On August 26, 2005, the anniversary date of this recapitalization, the Companyelected not to buy back the preferred shares resulting in the preferredshareholders being granted the right to convert this preferred stock into anaggregate amount of 50,000,000 common shares.
**NOTE 5 - CONVERTIBLE NOTES**
 
The Company entered into a Securities Purchase Agreement with four accreditedinvestors on November 18, 2005 and amended on December 14, 2005 for the sale of(i) $2,500,000 in secured convertible notes, and (ii) warrants to purchase5,000,000 shares of our common stock. The four accredited investors subscribedfor 11.9%, 32.6%, 54% and 1.5%, respectively, of the total offering. Eachaccredited investor purchased, or will purchase, such percentage of each closingunder the Securities Purchase Agreement.
A prospectus relates to the resale of the common stock underlying these securedconvertible notes and warrants. The investors are obligated to provide us withan aggregate of $2,500,000 as follows:

.

$1,000,000 was disbursed on November 18, 2005;

.

$750,000 was disbursed on December 23, 2005; and

.

$750,000 will be disbursed within five days of the effectiveness of thisregistration statement.

 Accordingly, we have received a total of $1,750,000 pursuant to theSecurities Purchase Agreement, as amended. Pursuant to the Securities PurchaseAgreement, as amended, we have issued 3,500,000 warrants to purchase shares ofcommon stock and we are obligated to issue 1,500,000 additional warrantstogether with $750,000 in secured convertible notes.  The Warrant may beexercised by the holder hereof, in whole or in part, by the surrender of theWarrants to the Company, and upon (i) payment to the Company the Exercise Pricefor the Warrant Shares or (ii) if the resale of the Warrant Shares by the holderis not then registered pursuant to an effective registration statement under theSecurities Act of 1933, as amended (the "Securities Act"), delivery to theCompany of a written notice of an election to effect a "Cashless Exercise" (asdefined in the Warrant Agreement for the Warrant Shares beingexercised.**8**   
THE FURIA ORGANIZATION, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSDECEMBER 31, 2005(UNAUDITED)
**NOTE 5 - CONVERTIBLE NOTES -continued**
As required by Emerging Issues Task Force Issue 98-05 "Accounting forConvertible Securities with Beneficial Conversion Features", the Company valuedthe beneficial conversion featue related to the $1,750,000 in outstanding det at$1,431,818 which was treated as a loan discount and immediately amortized tointerest expense.
Additionally, the 3,500,000 in warrants issued in connection with the $1,750,000in outstanding debt was valued at $159,117 which was also treated as a loandiscount and immediately amortized to interest expense.
The notes bear interest at 8%, mature three years from the date of issuance, andare convertible into our common stock, at the investors' option, at 55% of theaverage of the three lowest intraday trading prices for the common stock on aprincipal market for the 20 trading days before but not including the conversiondate.
We have a call option under the terms of the secured convertible notes. The calloption provides us with the right to prepay all of the outstanding securedconvertible notes at any time, provided we are not in default and our stock istrading at or below $.20 per share. Prepayment of the notes is to be made incash equal to either (i) 125% of the outstanding principal and accrued interestfor prepayments occurring within 30 days following the issue date of the securedconvertible notes; (ii) 135% of the outstanding principal and accrued interestfor prepayments occurring between 31 and 60 days following the issue date of thesecured convertible notes; and (iii) 145% of the outstanding principal andaccrued interest for prepayments occurring after the 60th dayfollowing the issue date of the secured convertible notes.
Our right to repay the notes is exercisable on not less than ten trading daysprior written notice to the holders of the secured convertible notes.Notwithstanding the notice of prepayment, the holders of the secured convertiblenotes have the right at all times to convert all or any portion of the securedconvertible notes prior to payment of the prepayment amount.
We also have a partial call option under the terms of the secured convertiblenotes in any month in which the current price of our common stock is below$0.20. Under the terms of the partial call option, we have the right to pay theoutstanding principal amount of the secured convertible notes plus one-month'sinterest for that month, which will stay any conversions of the securedconvertible notes by the holders for that month. The principal amount of thesecured convertible notes to be repaid is determined by dividing the thenoutstanding principal amount of the notes by the maturity of the notes inmonths, or 36, multiplied by 104%.
 
The full principal amounts of the secured convertible notes plus a 30% penaltyare due upon default under the terms of secured convertible notes.  In addition,we have granted the investors a security interest in substantially all of ourassets and intellectual property and registration rights.
In connection with the Securities Purchase Agreement dated November 18, 2005, wegranted the investors registration rights. Pursuant to the registration rightsagreement, if we did not file the registration statement by December 18, 2005,or if we did not have the registration statement declared effective on or beforeMarch 16, 2006, we are obligated to pay liquidated damages in the amount of 2.0%per month of the face amount of the issued and outstanding secured convertiblenotes, which equals $35,000, until the registration statement is declaredeffective. At our option, these liquidated damages can be paid in cash orrestricted shares of our common stock. If we decide to pay the liquidateddamages in cash, we would be required to use our limited working capital andpotentially raise additional funds. If we decide to pay the liquidated damagesin shares of common stock, the number of shares issued would depend on our stockprice at the time that payment is due. Assuming that we are decided to payliquidated damages for one month on April 17, 2006, the $35,000 (2.0% of the$1,750,000 of secured convertible notes outstanding on March 16, 2006), wouldresult in the issuance of approximately 318,182 shares of common stock. As ofthe date hereof, the investors have not demanded payment of the liquidateddamages and we have not determined if we will make such liquidated damagespayments in cash, stock or a combination of both.
The Callable Secured Convertible Note agreement prohibits the Company, withoutprior written consent, from redeeming, repurchasing or otherwise acquiring anyshares of its capital stock.  As of December 31, 2005, the Company had opened abrokerage account in which it had acquired 1,962,000 shares of its common stockfor a total consideration of $376,019.
The breach of this loan covenant triggers the default provisions of the loanagreement which make the loan immediately due plus a default penalty equal to30% of the then outstanding loan plus any accrued and unpaid interest on theloan.
Due to this breach of the loan agreement, the loans are reclassified as currentand a default penalty of $ 528,288 was accrued.**9**   
THE FURIA ORGANIZATION, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSDECEMBER 31, 2005(UNAUDITED)
**NOTE 6 - NET LOSS PER SHARE**
SFAS 128 requires a reconciliation of the numerator and denominator of the basicand diluted earnings per share (EPS) computations.  The following securitieswere not included in the calculation of diluted earnings per share because theireffect was antidilutive.   
•     For the three and six months ended December31, 2005 and 2004, dilutive shares do not include the assumed conversion of theoutstanding preferred stock (convertible into 50,000,000 common shares) becausethe effects were antidilutive. 
•     For the three and six months ended December31, 2005 and 2004, dilutive shares do not include the assumed conversion ofconvertible note (convertible into 14,685,314 shares) because the effects wereantidilutive. 
The following reconciles the components of the EPS computation:
 
Income
Shares
Per Share  
(Numerator)
(Denominator)
Amount 
**For the three months ended December 31, 2005**:
 
Basic EPS loss available to common shareholders  

$
(2,821,762)
61,872,069
$
 (0.05)  
Effect of dilutive securities:
  
None

--  
--    
Diluted EPS loss available to common shareholders

$
(2,821,762)
61,872,069
$
(0.05)  
**For the three months ended December 31, 2004**:
 
Basic EPS loss available to common shareholders  

$
(262,629)
28,742,842
$
    (0.01)  
Effect of dilutive securities:
  
None

--  
--    
Diluted EPS loss available to common shareholders

$
(262,629)
28,742,842
$
    (0.01)  
**For the six months ended December 31, 2005**:
 
Basic EPS loss available to common shareholders  

$
(5,505,722)
57,542,830
$
 (0.10)  
Effect of dilutive securities:
  
None

--  
--  
Diluted EPS loss available to common shareholders

$
(5,505,722)
57,542,830
$
(0.10)  
**For the six months ended December 31, 2004**:
 
Basic EPS loss available to common shareholders  

$
(422,439)
28,742,842
$
 (0.02)  
Effect of dilutive securities:
  
None

--  
--  
Diluted EPS loss available to common shareholders

$
(422,439)
28,742,842
$
(0.02) 

**NOTE 7 - RELATED PARTY TRANSACTIONS**
The Company's majority shareholder, Chairman and Chief Executive Office MichaelAlexander acquired his position in the Company as the result of the acquisitionof Fronthaul, Inc. as described in Note 14 below.   On August 26, 2004, Furiaacquired 100% of the issued and outstanding stock, from Michael D. Alexander,the current director and Chief Executive Officer of Furia. As consideration forthis acquisition, Furia issued 20,000,000 shares of its Common Stock and 500,000shares of its convertible Preferred Stock.
During March 2005, Furia issued 5,154,780 restricted shares of its Common Stockto Michael D. Alexander, the director and Chief Executive Officer of Furia,consistent with the terms of his employment agreement with Furia which providesthat his stock ownership of Furia will not be less than 60% of the total issuedand outstanding Common Stock of Furia.**10**   
THE FURIA ORGANIZATION, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSDECEMBER 31, 2005(UNAUDITED)
**NOTE 7 - RELATED PARTY TRANSACTIONS - continued**
During December 2005, the Company reaquired 1,962,000 shares of its common stockfor a total consideration of $376,019.  
**NOTE 7 - CAPITAL STOCK**
The Company has authorized 200,000,000 common shares with a par value of $0.001per share. Each common share entitles the holder to one vote, in person orproxy, on any matter on which action of the stockholders of the corporation issought.
On August 26, 2004, Furia completed the acquisition of Fronthaul, Inc., aprivately held Nevada corporation ("Fronthaul"). Furia entered into a definitiveacquisition agreement with Fronthaul and its principal shareholders to acquireall of the capital stock of Fronthaul in exchange for the issuance of common andpreferred stock of Furia. As a result of the transaction, Fronthaul became awholly-owned subsidiary of Furia. Fronthaul was incorporated on June 9, 2004.Fronthaul is an Internet-based, business-to-business 
information exchange, which provides a centralized database of freight loadinformation accessible by any enabled wireless device or through the Internet.Its objective is to integrate the existing freight industry players withwireless and Internet technologies, creating a dynamic real-time communicationexchange for the transportation industry. At the closing, an aggregate of20,000,000 shares of Furia's Common Stock and 500,000 shares of its PreferredStock were authorized for issuance to the shareholders of Fronthaul. The CommonStock issued to the shareholders of Fronthaul represented 69.6% of the28,742,842 shares of its then outstanding post-closing Common Stock.
For the year ended June 30, 2005, additional 17,479,879 shares of common stockwere issued resulting in additional paid-in capital of $1,434,040. This resultedin a total of 46,222,721 shares outstanding with a par value of $ 46,223.
For the six months ended December 31, 2005, an additional 15,935,000 shares ofcommon stock were issued for consulting services, which the Company valued at$2,681,675.
In connection with a Securities Purchase Agreement dated November 18, 2005 andthe Amendment to the Securities Purchase Agreement dated December 14, 2005, wehave issued 2,000,000 warrants to purchase shares of common stock and areobligated to issue 3,000,000 additional warrants. Pursuant to the SecuritiesPurchase Agreement, as amended, we are required to issue an additional 1,500,000warrants together with $750,000 in secured convertible notes within five daysfrom the effective date of the registration statement. The warrants areexercisable until five years from the date of issuance exercisable at a purchaseprice of $0.25 per share. We will not receive any compensation for the issuanceof the warrants, however, we will receive the sale price of any common stock wesell to the selling stockholders upon exercise of the warrants. However, thenoteholders will be entitled to exercise up to 5,000,000 warrants on a cashlessbasis if the shares of common stock underlying the warrants are not thenregistered for resale pursuant to an effective registration statement.
**NOTE 8 - STOCK BONUS PLAN**  
Stock Bonus Plan Effective August 16, 2005, Furia adopted and approved its 2005Incentive Stock Plan (the "Plan"), which reserved 10,000,000 shares of itsCommon Stock for issuance under the Plan. The Plan allows us to issue awards ofincentive and non-qualified stock options, stock appreciation rights, and stockbonuses to consultants of Furia, which may be subject torestrictions.**11**   

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS**
This  Form  10-QSB  contains   statements   that   constitute   "forward-lookingstatements."  These  forward-looking  statements can be identified by the use ofpredictive,  future-tense or  forward-looking  terminology,  such as "believes,""anticipates," "expects," "estimates," "plans," "may," "will," or similar terms.These  statements  appear  in a number  of places  in this  report  and  includestatements regarding the intent,  belief or current expectations of the Company,its directors or its officers  with respect to, among other  things:  (i) trendsaffecting the  Company's  financial  condition or results of operations  for itslimited history;  (ii) the Company's business and growth  strategies;  (iii) theInternet  and  Internet  commerce;  and,  (iv) the  Company's  financing  plans.Investors  are  cautioned  that  any  such  forward-looking  statements  are notguarantees   of  future   performance   and   involve   significant   risks  anduncertainties,  and  that  actual  results  may  differ  materially  from  thoseprojected in the forward-  looking  statements  as a result of various  factors.Factors that could  adversely  affect actual  results and  performance  include,among  others,  the  Company's  limited  operating  history,  dependence  on keymanagement, financing requirements,  government regulation, technological changeand competition.  Consequently,  all of the  forward-looking  statements made inthis Form 10-QSB are qualified by these  cautionary  statements and there can beno assurance that the actual results or developments  anticipated by the Companywill be realized  or, even if  substantially  realized,  that they will have theexpected consequence to or effects on the Company or its business or operations.The  Company   assumes  no  obligations  to  update  any  such   forward-lookingstatements.
Readers are urged to carefully review and consider the various  disclosures madeby us in this Quarterly Report on Form 10-QSB and our Form 10-KSB/A for theperiod ended  June 30, 2005 and our other  filings with the U.S.  Securitiesand Exchange  Commission.  These  reports and filings  attempt to adviseinterested parties  of the  risks and  factors  that may  affect  our  business,financial condition  and  results  of  operations  and  prospects.   Theforward-looking statements  made in this Form  10-QSB  speak  only as of thedate  hereof and we disclaim any  obligation  to provide  updates,  revisions oramendments  to any forward-looking  statements  to reflect  changes in ourexpectations  or future events.
Background
The Furia Organization, Inc. (the "Company) was incorporated in the State ofDelaware on June 26, 1984, with the corporate name of "Furia, OringerProductions, Inc.", for the purpose of writing and producing television programsand motion pictures. The Company changed its corporate name to The FuriaOrganization, Inc. on December 12, 1986. In 1989, the Company transferred andassigned its entertainment assets and became inactive.
In 1993, Madison Fashions, Inc. was merged into a wholly owned subsidiary of theCompany, and the Company engaged in the apparel business until April 1994 whenit ceased operations and began to seek a merger or other reorganizationopportunity.
On August 26, 2004, the Company merged with Fronthaul, Inc., a Nevadacorporation ("Fronthaul"). The Company entered into a definitive acquisitionagreement with Fronthaul and its sole shareholder to acquire all of the capitalstock of Fronthaul in exchange for the issuance of common and preferred stock ofthe Company. Fronthaul was incorporated on June 9, 2004. Fronthaul is anInternet-based, business-to-business information exchange which provides acentralized database of freight load information accessible by any enabledwireless device or through the Internet. Its objective is to integrate theexisting freight industry business with wireless and internet technologies,creating a dynamic, real time communication exchange for the transportationindustry. As a result of the transaction, Fronthaul became a wholly-ownedsubsidiary of the Company. At the closing, an aggregate of 20,000,000post-split
shares of the Company's Common Stock and 500,000 shares of the Company's SeriesA Convertible Preferred Stock were authorized for issuance to the shareholder ofFronthaul. For financial reporting purposes, this transaction was treated as arecapitalization of Fronthaul, Inc.
On September 1, 2004, Fronthaul acquired 100% of the outstanding stock ofLoadsource, Inc., a Tennessee corporation, for $311,580 from its unaffiliatedshareholders. As a result, Loadsource, Inc. has become a wholly-owned subsidiaryof the Company. Loadsource, Inc.'s sole asset was certain proprietarysoftware.**12**   

**Results of Operations for Three Months Ended December 31, 2004 and2005**
       The following table sets forth certainoperating information (unaudited) regarding the Company for the three monthperiods ended December 31, 2005 and 2004

 

Three Months Ended
 

December 31
 

2005
 

2004
 

(unaudited)
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . .

$
128,491
$
6,220
Cost of operations

$
86,269
$
-0-
Gross Profit

$
42,222
$ 
6,220
General and administrative expenses . . . . .

$
721,536
$
268,849
Depreciation                   

$
12,514
$
-0-
Net income (loss) . . . . . . . . . . . . . . . . . . . .

$
(2,821,762)
$
(262,629)
Net income (loss) per share. . . . . . . . . . . . .

$
(0.05)
$
(0.01)

 **Revenues.** The Company had $128,491 in revenues during the threemonths ended December 31, 2005 primarily from loads hauled.  The increase inrevenues from period to period is due to the Company beginning operations in2005, however the Company is still in the early operational stage and revenuesfrom period to period in the future are expected to be subject to significantfluctuations.
 **General and Administrative Expenses.** General and administrativeexpenses increased approximately 168% to $721,536 in the three month periodended December 31, 2005, from $ 268,849 in 2004.  This increase is dueprincipally to stock grants for consulting fees valued at $213,274 andincreased audit fees; legal fees; and additional SEC filing expenses andincrease in employee salaries and directors fees.  The Company did not issue anystock for consulting fees in the three months ended December 31, 2004.  Theconsulting fees in 2005 were for corporate development and securing financingfor the Company.
Results of Operations for the Six Months Ended December 31, 2004 and2005.
       The net loss of the Company increasedto $(5,505,722) during the six month period ended December 31, 2005, as comparedwith a loss of $(422,439) during the same period of 2004, and was due primarilyto the increase in stock compensation of $2,661,675, an accrued penalty onconvertible notes payable of $528,288,.and other general administrative expensesby $294,288 attributable to increases in audit fees; legal fees; and additionalSEC filing expenses and increase in employee salaries.
       The following table sets forth certainoperating information (unaudited) regarding the Company for the six monthperiods ended December 31, 2005 and 2004:

 

Six Months Ended
 

December 31
  

       2005
 

2004
 

(unaudited)
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . .

$
208,405
$
7,220
Cost of operations

$
172,800
$
-
General and administrative expenses . . . . .

$
3,385,622
$
429,659
Depreciation . . . . . . .

$
25,028
$
-
Net income (loss) . . . . . . . . . . . . . . . . . . . .

$
(5,505,722)
$
(422,439)
Net income (loss) per share. . . . . . . . . . . . .

$
(0.10)
$
(0.02)

Six months ended December 31, 2005 compared with six months ended December31, 2004
       **Revenues.** The Company had$208,405 in revenues during the first six months of 2005, and had revenues of$7,220 during the six months ended December 31, 2004.  The increase isattributable to the Company beginning to haul loads in 2005, however the Companyis still in the early operational stage  and revenues from period to period inthe future are subject to significant fluctuations.
       **General and AdministrativeExpenses.** General and administrative expenses increased approximately 688%to $3,385,622 in the six month period ended December 31, 2005, from $429,657 in2004. This increase is principally attributable to stock grants for consultingfees of valued at $2,661,675, accrued penalty on convertible notes payable of$528,288, and increased audit fees; legal fees and additional SEC filingExpenses and increase in employee salaries.  The Company did not issue any stockfor consulting fees in the six months ended December 31, 2004.  The consultingfees in 2005 were for corporate development and securing financing for theCompany.**13**   
 **Capital Expenditures, Capital Resources and Liquidity**
       The following summary table(unaudited) presents comparative cash flows of the Company for the periodsindicated.

 

Six Months Ended
 

December 31,
 

2005
 

2004
 

(unaudited)
 

 

Net cash used in operating activities . . . . . . . . . .

$

(763,549) 

$

(414,584)
Net cash used in investing activities . . . . . . . . . . .

$

(377,002)

$

(175,315)
Net cash provided by financing activities . . . . . . .

$

1,805,319

$

603,081

**Contractual Obligations**
Future  payments  due  on  the  Company's  contractual  obligations  as ofDecember 31, 2005 are as follows:
  
Total
2006
2007-2008
2009-20010
thereafter  
Operating lease    

$ 120,000   
$ 40,000  
$ 80,000      
--         
-- 
Capital lease           

17,019   
17,019       
--         
--          
--     
Notes payable           

129,955  
129,955     
--     
--           
--     
Line of credit              

30,000     
30,000       
--  
--          
-- 
Convertible notes       

1,750,000       

1,750,000

--    

--

--        
 
Contractual obligations

850,000

210,000

540,000

100,000

--
 
Total                   

$ 2,896,974   

$2,176,974

$620000

$100,000

--
 

Employment Agreements
Mr. Mike Alexander is employed pursuant to a five-year employment agreement thatcommenced on August 28, 2004. The agreement provides for a base annual a salaryof $150,000 per year and a bonus of 20% to 50% per year as determined by theBoard of Directors based upon the performance of Furia, and the use of avehicle. The agreement also provides that the number of shares of Common Stockof Furia shall never be less than sixty percent (60%) of the total issued andoutstanding Common Stock at any time. The agreement also provides for hisindemnification against any and all claims and demands, including court costsand reasonable attorneys' fees that may arise out of his services to Furia. Theagreement is cancelable by Furia upon 60 days written notice.  
On December 12, 2005, The Furia Organization, Inc. ( The "Company") enteredinto a three year employment agreement with Randy Moseley who agreed to becomeExecutive Vice President and Chief Financial Officer of the Company, effectiveimmediately. Mr. Moseley will receive an annual base salary of $60,000,$120,000 and $120,000, respectively, over the three term of the agreement and beeligible for a discretionary bonuses as determined by the Company's board ofdirectors based on both individual and Company performance
       **Liquidity and CapitalResources.** The Company's capital resources have historically been providedby a combination of sales of its Common Stock, loans from shareholders,short-term loans and proceeds from convertible notes and revenues generated fromoperations.
       The Company intends to raiseadditional capital through an offering of its Common Stock or other securitiesto provide additional working capital to fund future operations.
       At December 31, 2005, the Company hadcurrent assets of $848,506, and current liabilities of $2,488,989, resulting ina working capital deficit of $1,640,483.
       Net cash used in operating activitiesincreased approximately, 84% to $(763,549) for the six months ended December 31,2005, from $(414,584) for the six months ended December 31, 2004. The increasein net cash used in operating activities was due primarily to increased year endaudit fees; legal fees; additional SEC filing expenses; and other general andadministrative expenses. The Company also incurred financing fees associatedwith its notes.
       As discussed below, the Company'sability to continue its growth will require additional funds from varioussources.  If adequate funds are not available on acceptable terms, our business,results of operations and financial condition could be materially adverselyaffected.  In a worse case scenario, we would have to scale back or ceaseoperations, and we might not be able to remain a  viable entity.   During thequarter ended December 31, 2005, the Company negotiated convertible notes in theamount of $1,750,000.  See Note 5 to the financial statements for a detaildiscussion. **14**   
RISK FACTORS
  We are  subject to a high degree of risk as we are  considered  to be inunsound financial  condition.  The  following  risks,  if any one or moreoccurs,  could materially  harm  our  business,   financial  condition  orfuture  results  of operations, and the trading price of our common stock coulddecline. These risks factors include, but are not limited to, our limitedoperating history,  history of operating losses, the inability to obtain foradditional capital, the failure to  successfully  expand  our  operations,  thecompetition  in the  transportation industry from competitors with substantiallygreater  resources,  the legal and regulatory requirements and uncertaintiesrelated to our industry, the loss of key personnel,  adverse economicconditions,  the control of our common stock by our management, theclassification of our common stock as "penny stock," the absence  of any rightto  dividends,  the costs  associated  with the issuance of and the rightsgranted to additional securities,  the unpredictability of the trading of ourcommon stock.
  For a more  detailed  discussion  as to the risks  related  to The FuriaOrganization, Inc.,  our industry and our common stock, please see the sectionentitled,  "Management's  Discussion  and  Analysis or Plan of  Operation - RiskFactors," in our Annual Report on Form 10-KSB/A,  as filed with the Securitiesand Exchange Commission on January 19, 2006.
       Financing activities for the threemonths ended December 31, 2005 include:
 
1)  
In December 2005, the Company received $1,750,000 from the issuance of callableconvertible notes.  See Note 45 to the financial statements for detaildiscussion of the provisions of the notes payable.
 
2)  
During the three months ended December 31, 2005, the Company  issued 1,555,000shares of its common stock valued at $228,625 for consulting fees.

       In addition common stock may also beissued for conversion or settlement of debt and/or  payables for equity,  futureobligations  which may be satisfied by the issuance of common shares,  and othertransactions  and agreements which may in
the future result in the issuance of additional common shares. The common sharesthat the Company may issue in the future could significantly increase the numberof shares outstanding and could be extremely dilutive.
Impact of Inflation
       Management  does not believe thatgeneral  inflation has had or will have a material effect on operations.
Critical Accounting Policies
       The discussion and analysis of thefinancial condition and results of operations are based on the financialstatements, which have been prepared in accordance with generally acceptedaccounting principles. Note 1 of the Notes to the Financial Statements includedin the Company's 10-KSB/A describes the significant accounting  policiesessential to the  financial  statements.  The preparation of these financialstatements requires management to make estimates and assumptions that affect theamounts reported in the financial statements and accompanying notes. Actualresults could differ materially from those estimates.
       We believe the following to becritical accounting policies and estimates.  That is, they are both important tothe portrayal of the  Company's  financial condition and results, and theyrequire significant management  judgment and estimates about matters that areinherently uncertain.  As a result of inherent uncertainty, there is alikelihood that materially different amounts would be reported under differentconditions or using different assumptions.  Although we believe that ourjudgments and estimates are reasonable,  appropriate  and correct, actual futureresults may differ materially from our estimates.
Cash Equivalents
The Company considers deposits that can be redeemed on demand and investmentsthat have original maturities of less than three months, when purchased, to becash equivalents.  As of December 31, 2005, the Company's cash and cashequivalents were deposited primarily in one financial institution.
Estimates Inherent in the Financial Statements
Preparing the Company's financial statements in conformity with accountingprinciples generally accepted in the United States of America ("GAAP") requiresmanagement to make estimates and assumptions that affect reported amounts ofassets and liabilities and disclosure of contingent assets and liabilities atthe date of the financial statements and the reported amounts of revenues andexpenses during the reporting period.  Actual results could differ from thoseestimates.**15**   

Company's Successful Operations Are Dependent on Those of Its Parent
The Company's subsidiaries have historically relied on its parent company tomeet its cash flow requirements. The parent has cash available in the amount ofapproximately $782,547 as of December 31, 2005, and a working capital deficit of$1,640,483. The Convertible Notes in the amount of $1,750,000 have beenreclassified because the Company may have failed to make proper notification ofits intent to repurchase its own shares and does not currently have sufficientfunds to repay the notes plus a 30% penalty if called by the noteholders. TheCompany is currently trying to determine what, if any, measures are required toremedy this situation.  The Company and its subsidiaries will need additionalfunds to meet the development obligations until sufficient cash flows aregenerated from anticipated operations to sustain operations and to fund futuredevelopment obligations.
The Company plans to generate the additional cash needed through the completionof additional equity, debt, or joint venture transactions. There is noassurance, however, that the Company will be able to complete other transactionsin the future at commercially reasonable terms, if at all, or that the Companywill be able to meet its future contractual obligations
Property and Equipment
Property and equipment are recorded at cost. Expenditures for major additionsand improvements are capitalized, and minor replacements, maintenance, andrepairs are charged to expense as incurred. When property and equipment areretired or otherwise disposed of, the cost and accumulated depreciation areremoved from the accounts and any resulting gain or loss is included in theresults of operations for the respective period. Depreciation is provided overthe estimated useful lives of the related assets using the straight-line methodfor financial statement purposes. The Company uses other depreciation methods(generally accelerated) for tax purposes where appropriate. The estimated usefullives for significant property and equipment categories are as follows:

Vehicles

3 to 10 years
 
Machinery and equipment

3 to 20 years
 

Review of Carrying Value of Property and Equipment for Impairment
The Company reviews the carrying value of property, plant, and equipment forimpairment whenever events and circumstances indicate that the carrying value ofan asset may not be recoverable from the estimated future cash flows expected toresult from its use and eventual disposition. In cases where undiscountedexpected future cash flows are less than the carrying value, an impairment lossis recognized equal to an amount by which the carrying value exceeds the fairvalue of assets. The factors considered by management in performing thisassessment include current operating results, trends and prospects, the mannerin which the property is used, and the effects of obsolescence, demand,competition, and other economic factors. Based on this assessment there was noimpairment at December 31, 2005.
Revenue Is Recognized Only When Specified Criteria Are MetThe Companyrecognizes revenue only when all of the following criteria have been met:
•     Persuasive evidence of an arrangementexists;
•     Delivery has occurred or services have beenrendered;
•     The fee for the arrangement is fixed ordeterminable; and
•     Collectibility is reasonably assured.
Persuasive Evidence of an Arrangement-The Company documents all terms of anarrangement in a written contract signed by the customer prior to recognizingrevenue.
Delivery Has Occurred or Services Have Been Performed-The Company performs allservices or delivers all products prior to recognizing revenue. 
The Fee for the Arrangement is Fixed or Determinable-Prior to recognizingrevenue, a customer's fee is either fixed or determinable under the terms of thewritten contract. Fees for most transportation services are fixed under theterms of the written contract. The customer's fee is negotiated at the outset ofthe arrangement and is not subject to refund or adjustment during the initialterm of the arrangement.**16**   

Collectibility is Reasonably Assured-The Company determines that collectibilityis reasonably assured prior to recognizing revenue. Collectibility is assessedon a customer by customer basis based on criteria outlined by management. Newcustomers are subject to a credit review process, which evaluates the customer'sfinancial position and ultimately its ability to pay. The Company does not enterinto arrangements unless collectibility is reasonably assured at the outset.Existing customers are subject to ongoing credit evaluations based on paymenthistory and other factors. If it is determined during the arrangement thatcollectibility is not reasonably assured, revenue is recognized on a cashbasis
Stock Based Compensation
The Company accounts for equity  instruments  issued to employees  for servicesbased on the fair value of the equity instruments issued and accounts for equityinstruments  issued  to other  than  employees  based  on the fair  value of theconsideration received or the fair value of the equity instruments, whichever ismore reliably  measurable.  The determined value is recognized as an expense inthe accompanying consolidated statements of operations.
Contingencies
In the normal course of business, the Company is subject to certain claims andlegal proceedings.  The Company records an accrued  liability for these matterswhen an adverse outcome is probable and the amount of the potential liability isreasonably estimable.  The Company does not believe that the resolution of thesematters will have a material effect upon its financial condition, results ofoperations, or cash flows for an interim or annual period.
Recently Issued Accounting Pronouncements
Recently issued accounting pronouncements and their effect on us are discussedin the notes to the financial statements in our June 30, 2005 audited financialstatements.
ITEM 3. CONTROLS AND PROCEDURES
 (a)   Evaluation of Disclosure Controls and Procedures.
Within the 90 days prior to the date of this Quarterly Report for the quarterended December 31, 2005, we carried out an evaluation, under the supervision andwith the participation of our management, including the Company's Chairman andChief Executive Officer and the Chief Financial Officer, of the effectiveness ofthe design and operation of our disclosure controls and procedures pursuant toRule 13a-4 of the Securities Exchange Act of 1934 (the "Exchange Act"), whichdisclosure controls and procedures are designed to insure that  informationrequired to be  disclosed  by a company in the  reports  that it files under theExchange Act is recorded,  processed,  summarized and reported  within  requiredtime periods specified by the SEC's rules and forms.
Limitations on the Effectiveness of Controls
Our management does not expect that our disclosure controls and procedures orour internal  controls over  financial  reporting will prevent all error and allfraud. A control system, no matter how well conceived and operated, can provideonly reasonable, but not absolute, assurance that the objectives of a controlsystem are met. Further, any control system reflects  limitations on resources,and the benefits of a control  system must be considered  relative to its costs.Because of the inherent limitations in all control  systems, no evaluation ofcontrols can provide absolute assurance that all control issues and instances offraud,  if any,  have been  detected.  These inherent limitations include therealities that judgments in decision-making can be faulty and that  breakdownscan occur  because of simple  error or mistake.  Additionally, controls can becircumvented by the individual acts of some persons, by collusion of two or morepeople, or by management override of a control.  The design of a control systemis also based upon certain assumptions about the likelihood of future events,there can be no assurance  that any design will succeed in achieving  its statedgoals under all  potential future conditions; over time, controls may becomeinadequate  because of changes in conditions,  or the degree of compliance withthe policies or procedures may deteriorate.  Although unlikely, due to theinherent limitations in a cost-effective control system, misstatements due toerror or fraud may occur and may not be detected.**17**   

Conclusions
Based  on this  evaluation,  our  chief  executive  officer  and  our  presidentconcluded that,  subject to the limitations noted above and as of the evaluationdate,  our  disclosure  controls and procedures are effective to ensure that theinformation  we are required to disclose in reports that we file or submit underthe  Exchange  Act is  recorded,  processed,  summarized,  and  reported in suchreports  within  the time  periods  specified  in the  Securities  and  ExchangeCommission's rules and forms.
(b) Changes in Internal Control.
Subsequent  to the date of such  evaluation  as  described in  subparagraph  (a)above,  there were no  significant  changes in our  internal  controls  or otherfactors that could significantly affect these controls, including any correctiveaction with regard to significant deficiencies and materialweaknesses.**18**   
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
       N/A
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS
       On October 7, 2005, the Company issued37,500 shares of its restricted common stock for consulting services to JarrodTurner, which the Company valued at $3,375.  The shares were issued  in relianceupon Section 4(2) under the Securities Act of 1933.
       During November , 2005, the Companyissued 30,000 shares of its restricted common stock for consulting services toKent Morris (10,000 shares), Alicia Williams (10,000 shares) and Silva Nilsen(10,000 shares), which the Company valued at $1,500.  The shares were issued inreliance upon Section 4(2) under the Securities Act of 1933.
       On December 15, 2005, the Companyissued 500,000 shares of its restricted common stock for consulting services toBenchmark Consulting, which the Company valued at $50,000.   The shares wereissued in reliance upon Section 4(2) under the Securities Act of 1933.
       In November and December 2005, theCompany received $1,750,000 from the issuance of callable convertible notes.See Note 4 to the financial statements for detail discussion of the provisionsof the notes payable.
 
       Pursuant to the Securities PurchaseAgreement, as amended, we have issued 3,500,000 warrants and $1,750,000 insecured convertible notes and we are obligated to issue 1,500,000 additionalwarrants together with $750,000 in secured convertible notes within five days ofa SB-2 registration becoming effective.
 
       The secured convertible notes areconvertible into our common stock, at the selling stockholders' option, at 55%of the average of the three lowest intraday trading prices for the common stockon a principal market for the 20 trading days before but not including theconversion date. Accordingly, there is in fact no limit on the number of sharesinto which the notes may be converted. As of December 15, 2005, the average ofthe three lowest intraday trading price for our common stock as reported on theOver-The-Counter Bulletin Board was $.10 and, therefore, the conversion pricefor the secured convertible notes was $0.055. Based on this conversion price,the $2,500,000 secured convertible notes (assuming the remaining $750,000 isfunded upon the SB-2 registration becoming effective), excluding interest, wereconvertible into 45,454,546 shares of our common stock.
Our obligation to issue shares upon conversion of our secured convertible notesis essentially limitless. The following is an example of the amount of shares ofour common stock that are issuable, upon conversion of our secured convertiblenotes (excluding accrued interest), based on market prices 25%, 50% and 75%below the market price, as of December 15, 2005 of $0.20.
 
**% Below**
**Market**
**Price Per Share**
**With Discount**
** at 55%**
**Number of**
**Shares Issuable**
**% of**
**Outstanding Stock**
 

 

 

 

 

25%
$.15
  .0825
30,303,030
31.18%
50%
$.10
..055
45,454,546
40.46%
75% 
$.05
  .0275
90,909,091
57.61%
 
As illustrated, the number of shares of common stock issuable upon conversion ofour secured convertible notes will increase if the market price of our stockdeclines, which will cause dilution to our existing stockholders.
       **19**   

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS (Continued)
The following table summarizes the Company's repurchases of its common stockduring the three month period ending December 31, 2005;    
(c) Total    
Number of
(d) Maximum 
(a) Total
(b)
Shares (or
Number (or 
Number of
Average
Units)
Approximate Dollars
Period
Shares (or
Price Paid
Purchased as
Value) of Shares (or 
Units)
Per Share
Part of Publicly
Units) that May yet be 
Purchased
(or Unit)
Anounced Plans
Purchased Under the   
Or 
Plans   
Programs
Or Programs     
October 1, 2005 to October 31, 2005

-0-
-0-
-0-
-0-
November 1, 2005 to November 30, 2005

-0-
-0-
-0-
-0-
December 1, 2005 to December 31, 2005

1,962,000
$0.192
-0-
-0-

The 1,962,000 shares repurchased by the Company in December 2005 were purchasedin open-market transactions.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
The Callable Secured Convertible Note agreement prohibits the Company, withoutprior written consent, from redeeming, repurchasing or otherwise acquiring anyshares of its capital stock.  As of December 31, 2005, the Company had opened abrokerage account in which it had acquired 1,962,000 shares of its common stockfor a total consideration of $376,019.
The breach of this loan covenant triggers the default provisions of the loanagreement which make the loan immediately due plus a default penalty equal to30% of the then outstanding loan plus any accrued and unpaid interest on theloan.
Due to this breach of the loan agreement, the loans are reclassified as currentand a default penalty of $528,288 was accrued.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS
       N/A
ITEMS 5. OTHER INFORMATION
On December 12, 2005, The Furia Organization, Inc. ( The "Company") enteredinto a three year employment agreement with Randy Moseley who agreed to becomeExecutive Vice President and Chief Financial Officer of the Company, effectiveimmediately. Mr. Moseley will receive an annual base salary of $60,000,$120,000 and $120,000, respectively, over the three term of the agreement and beeligible for a discretionary bonuses as determined by the Company's board ofdirectors based on both individual and Company performance. On December 12,2005 Mr. Moseley was granted 300,000 shares of the Company's restrictedcommon stock. The shares will vest in three equal installments on the first,second and third anniversaries of the date of employment agreement. Theemployment agreement is attached as Exhibit 10.1 and is incorporated herein byreference.
 Mr. Moseley 58, is also currently Executive VicePresident and Chief Financial Officer of Urban Television Network Corporation,which position he has held since 2001 when he co-founded the network. Prior to2001, Mr. Moseley served as Executive Vice President and Chief Financial Officerof Tensor Information Systems, Inc., a custom software development company basedin Fort Worth, Texas from November 1999 - June 2001. Prior to joining Tensor,Mr. Moseley served as Executive Vice President and Chief Financial Officer forAmerican Independent Network, Inc. ("AIN"), a network for independent Broadcasttelevision stations and cable operators. AIN merged with Hispanic TelevisionNetwork, Inc. in November 1999 and its name changed to Hispanic TelevisionNetwork, Inc. Previously, Mr. Moseley held positions with Jerry Lancaster &Associates Inc. and Ernst & Young. Mr. Moseley received a bachelor's degreein business administration from Southern Methodist University and is a certifiedpublic accountant. Mr. Moseley has affiliations with the Texas Society of CPAsand the American Institute of CPAs.**20**   

ITEM 6. EXHIBITS 

(a) 

Exhibits.
  
3.1  

The Certificate of Incorporation of the Company is incorporated herein byreference to Exhibit 3(A) to the Form 10 registration statement of the Companyeffective May 14, 1985 (File No. 2-94266).
   
3.2   

A Certificate of Amendment to the Certificate of Incorporation is incorporatedherein by reference to Exhibit 3.2 to the Form 10-KSB annual report of theCompany for its fiscal year ended June 30, 1997.
   
3.3   

A Certificate of Amendment to the Articles of Incorporation dated August 19,2004, is incorporated herein by reference to Exhibit 3.3 to the Company's Form10-QSB/A quarterly report for the period ended September 30, 2004, filed onApril 14, 2005.
   
3.4   

Bylaws are incorporated herein by reference to Exhibit 3(b) to the Form 10registration statement of the Company effective May 14, 1985  (File No.2-94266).
   
10.1  

2005 Stock Option, SAR and Stock Bonus Consultant Plan dated August 16, 2005 isincorporated herein by reference to Exhibit 10.1 to the Form S-8 registrationstatement of the Company filed on August 23, 2005 (File No. 333-127789).
   
10.2  

Convertible Notes agreements are incorporated herein by  references to Exhibits10.1, 10.2, 10.3, 10.4, 10.5, 10.6, 10.7 to the Form 8-K of the Company filedDecember 9, 2005. 
   
10.3  

Employment agreement with Randy Moseley dated December 14, 2005 is  Incorporatedherein by reference to Exhibit 10.1 to the Form 8-K of the Company filedDecember 14, 2005.
   
31.1  

Certification  by Chief  Executive  Officer,  pursuant  to 18 USC Section   1350as  adopted   pursuant  to  Section  302  of  the Sarbanes-Oxley Act of 2002
   
31.2  

Certification  by Chief  Financial  Officer,  pursuant  to 18 USC Section   1350as  adopted   pursuant  to  Section  302  of  the Sarbanes-Oxley Act of2002.
   
32.2  

Certification  by Chief  Financial  Officer,  pursuant  to 18 USC Section   1350as  adopted   pursuant  to  Section  906  of  the Sarbanes-Oxley Act of2002.
 
**21**   

(b)   Reports on Form 8-K

   On December 9, 2005, the Companyfiled a Form 8-K current report  (Item 1.01) concerning a sale of callablesecured convertible notes and stock purchase warrants.

   On December 14, 2005, the Companyfiled a Form 8-K current report  (Items 1.01, 3.02 and 5.02) regarding theappointment of Randy Moseley as Executive Vice President and Chief FinancialOfficer.

SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant causedthis report to be signed on its behalf by the undersigned, thereunto dulyauthorized.

       

The Furia Organization, Inc.
   
Date: February 15, 2006         

By: /s/ Michael D. Alexander
 
       

--------------------------------
 
       

Michael D. Alexander
 
       

Chief Executive Officer
 
**22**   
Exhibit 31.1
Chief Executive Officer Certification (Section 302)
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
             I,Michael D. Alexander certifies that:
(1)  
I  have  reviewed  this  quarterly  report  on  Form  10-QSB  of  The   FuriaOrganization, Inc., ("Registrant").
 
(2)  
Based on my  knowledge,  this  quarterly  report  does not  contain any untruestatement of a material fact or omit to state a material fact  necessary to makethe  statements  made,  in light of the  circumstances  under which suchstatements  were made, not misleading with respect to the period covered by thisquarterly report;
 
(3)