----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

**TONGA      CAPITAL CORPORATION**

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| Colorado                                       | 84-1069035                         |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |

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| Check                whether the issuer (1) filed all reports required to be filed by                Section                13 or 15(d) of the Exchange Act during the past 12 months (or for                such                shorter period that the registrant was required to file such reports),                and                (2) has been subject to such filing requirements for the past                days. | Yes                [X] No [   ] |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|

| Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Exchange Act). | Yes                [   ] No [X] |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|

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|                                                                                                         | **Page                No.** |
|--------------------------------------------------------------------------------------------------------------|-----------------------------|
| **PART                I - FINANCIAL INFORMATION**                                                            |                        |
|                                                                                                         |                        |
| Item                1. Financial Statements (Unaudited)                                                      | 3                           |
|                                                                                                         |                        |
| Item                2. Management’s Discussion and Analysis                                            | 12                          |
|                                                                                                         |                        |
| Item                3. Controls and Procedures                                                               | 16                          |
|                                                                                                         |                        |
| Item                3A (T). Controls and Procedures                                                          | 17                          |
|                                                                                                         |                        |
|                                                                                                         |                        |
| **PART                II - OTHER INFORMATION**                                                               |                        |
|                                                                                                         |                        |
|                                                                                                         |                        |
| Item                1. Legal Proceedings -*Not Applicable*                                                   | 17                          |
|                                                                                                         |                        |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds            | 17                          |
|                                                                                                         |                        |
| Item                3. Defaults Upon Senior Securities - *Not                Applicable*                     | 18                          |
|                                                                                                         |                        |
| Item                4. Submission of Matters to a Vote of Security Holders - *Not                Applicable* | 18                          |
|                                                                                                         |                        |
| Item                5. Other Information - *Not Applicable*                                                  | 18                          |
|                                                                                                         |                        |
| Item                6. Exhibits                                                                              | 18                          |
|                                                                                                         |                        |
| Signatures                                                                                                   |                        |

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**PART        I -- FINANCIAL INFORMATION**

Item        1.  Financial Statements

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| **TONGA                  CAPITAL CORPORATION**     |
|----------------------------------------------------|
| **(A                  DEVELOPMENT STAGE COMPANY)** |
| **Consolidated                  Balance Sheets**   |
| **(Unaudited)**                                    |

|                                                                                                         |   | **June                  30, 2007** |       |   | **December                  31, 2006** |   |
|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|--------|----------------------------------------|--------|
| **ASSETS**                                                                                                   |   |                               |       |   |                                   |   |   |   |
| **Current                  assets**                                                                          |   |                               |       |   |                                   |   |   |   |
| Cash                                                                                                         |   | $                                  | 34,401     |   |                                   | $      | 19,477 |   |
| Accounts                  Receivable                                                                         |   |                               | 20,837     |   |                                   |   | - |   |
| Inventories                                                                                                  |   |                               | 54,741     |   |                                   |   | - |   |
| Prepaid                  expenses                                                                            |   |                               | 36,671     |   |                                   |   | 39,297 |   |
| Total                  current assets                                                                        |   |                               | 146,650    |   |                                   |   | 58,774 |   |
| Property                  & equipment, net of accumulated depreciation and                  amortization |   |                               | 3,521,003  |   |                                   |   | 59,301 |   |
| Asset                  being developed for our own use                                                       |   |                               | 0          |   |                                   |   | 2,517,331 |   |
| Security                  deposits                                                                           |   |                               | 26,278     |   |                                   |   | 26,278 |   |
| **TOTAL                  ASSETS**                                                                            |   | $                                  | 3,693,931  |   |                                   | $      | 2,661,684 |   |
|                                                                                                         |   |                               |       |   |                                   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY:**                                                   |   |                               |       |   |                                   |   |   |   |
|                                                                                                         |   |                               |       |   |                                   |   |   |   |
| **Current                  Liabilities**                                                                     |   |                               |       |   |                                   |   |   |   |
| Accounts                  payable                                                                            |   | $                                  | 416,713    |   |                                   | $      | 487,299 |   |
| Accrued                  expense – related party                                                       |   |                               | 111,148    |   |                                   |   | 30,348 |   |
| Accrued                  expenses - Other                                                                    |   |                               | 200,853    |   |                                   |   | 100,756 |   |
| Notes                  payable                                                                               |   |                               | -          |   |                                   |   | 165,000 |   |
| Notes                  payable - related parties                                                             |   |                               | 636,942    |   |                                   |   | 510,129 |   |
| Convertible                  notes payable                                                                   |   |                               | -          |   |                                   |   | 500,000 |   |
| Total                  Current Liabilities                                                                   |   |                               | 1,365,656  |   |                                   |   | 1,793,532 |   |
|                                                                                                         |   |                               |       |   |                                   |   |   |   |
| **Stockholders'                  Equity**                                                                    |   |                               |       |   |                                   |   |   |   |
| Common                  stock, $0.01 par value; 500,000,000 shares                                           |   |                               |       |   |                                   |   |   |   |
| authorized,                  51,522,256 and 49,166,514 shares issued and                                     |   |                               |       |   |                                   |   |   |   |
| outstanding                  on June 30, 2007 and December 31, 2006, respectively                            |   |                               | 515,222    |   |                                   |   | 491,665 |   |
| Additional                  paid-in capital                                                                  |   |                               | 7,797,236  |   |                                   |   | 1,655,106 |   |
| Deficit                  accumulated during the development stage                                            |   |                               | (5,984,183 | )      |                                   |   | (1,278,619 | ) |
|                                                                                                         |   |                               |       |   |                                   |   |   |   |
| Total                  Stockholders' Equity                                                                  |   |                               | 2,328,275  |   |                                   |   | 868,152 |   |
|                                                                                                         |   |                               |       |   |                                   |   |   |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                                              |   | $                                  | 3,693,931  |   |                                   | $      | 2,661,684 |   |

**See        the accompanying notes to the consolidated financial        statements**

----

**TONGA        CAPITAL CORPORATION**

**(A        DEVELOPMENT STAGE COMPANY)**

**Consolidated        Statements of Income & Expenses**

**(Unaudited)**

|                                                                  |   | **Three                  Months****Ended****June                  30, 2007** |       |   | **Six                  Months****Ended****June                  30, 2007** |   |       | **Inception****(May                  8, 2006)****to****June                  30, 2006** |   |   | **Inception****(May                  8, 2006)****to****June                  30, 2007** |   |
|-----------------------------------------------------------------------|--------|------------------------------------------------------------------------------|------------|--------|----------------------------------------------------------------------------|--------|------------|-----------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|
|                                                                  |   |                                                                         |       |   |                                                                       |   |       |                                                                                    |   |   |                                                                                    |   |
| **Revenue**                                                           |   | $                                                                            | 137,760    |   |                                                                       | $      | 137,760    |                                                                                    |   | $      | -0-                                                                                     |   |   | $ | 137,760 |   |
|                                                                  |   |                                                                         |       |   |                                                                       |   |       |                                                                                    |   |   |                                                                                    |   |   |   |   |   |
| **Operational                  Expenses**                             |   |                                                                         |       |   |                                                                       |   |       |                                                                                    |   |   |                                                                                    |   |   |   |   |   |
| Cost                  of goods sold                                   |   |                                                                         | 167,192    |   |                                                                       |   | 167,192    |                                                                                    |   |   | 0                                                                                       |   |   |   | 167,192 |   |
| Pre-operating                  plant operating expenses               |   |                                                                         | 54,541     |   |                                                                       |   | 105,861    |                                                                                    |   |   | 7,250                                                                                   |   |   |   | 225,237 |   |
| General                  and administrative                           |   |                                                                         | 4,189,541  |   |                                                                       |   | 4,554,845  |                                                                                    |   |   | 123,519                                                                                 |   |   |   | 5,237,628 |   |
| Recapitalization                  expense                             |   |                                                                         | -0-        |   |                                                                       |   | -0-        |                                                                                    |   |   | 400,000                                                                                 |   |   |   | 400,000 |   |
| **Total                  Operational Expense**                        |   |                                                                         | 4,411,274  |   |                                                                       |   | 4,827,898  |                                                                                    |   |   | 530,769                                                                                 |   |   |   | 6,030,057 |   |
|                                                                  |   |                                                                         |       |   |                                                                       |   |       |                                                                                    |   |   |                                                                                    |   |   |   |   |   |
| **Other                  Income (Expense)**                           |   |                                                                         |       |   |                                                                       |   |       |                                                                                    |   |   |                                                                                    |   |   |   |   |   |
| Interest                  income                                      |   |                                                                         | 853        |   |                                                                       |   | 2,042      |                                                                                    |   |   | 283                                                                                     |   |   |   | 3,880 |   |
| Interest                  expense                                     |   |                                                                         | 9,551      |   |                                                                       |   | 17,468     |                                                                                    |   |   | 12,317                                                                                  |   |   |   | 95,766 |   |
| **Net                  Other Income (Expense)**                       |   |                                                                         | (8,698     | )      |                                                                       |   | (15,426    | )                                                                                       |   |   | (12,034                                                                                 | )      |   |   | (91,886 | ) |
| **Net                  Loss**                                         |   | $                                                                            | (4,282,212 | )      |                                                                       | $      | (4,705,564 | )                                                                                       |   | $      | (542,803                                                                                | )      |   | $ | (5,984,183 | ) |
|                                                                  |   |                                                                         |       |   |                                                                       |   |       |                                                                                    |   |   |                                                                                    |   |   |   |   |   |
| **Per                  Share Information**                            |   |                                                                         |       |   |                                                                       |   |       |                                                                                    |   |   |                                                                                    |   |   |   |   |   |
| Weighted                  average number of common shares outstanding |   |                                                                         | 51,253,770 |   |                                                                       |   | 50,568,071 |                                                                                    |   |   | 39,420,417                                                                              |   |   |   | 47,865,828 |   |
|                                                                  |   |                                                                         |       |   |                                                                       |   |       |                                                                                    |   |   |                                                                                    |   |   |   |   |   |
| **Net                  Loss per Share**                               |   | $                                                                            | (0.08      | )      |                                                                       | $      | (0.09      | )                                                                                       |   | $      | (0.01                                                                                   | )      |   | $ | (0.13 | ) |

**See        the accompanying notes to the consolidated financial        statements**

----

| **TONGA                  CAPITAL CORPORATION**                                                           |   |
|---------------------------------------------------------------------------------------------------------------|--------|
| **(A                  DEVELOPMENT STAGE COMPANY)**                                                       |   |
| **Consolidated                  Statement of Stockholders' Equity**                                      |   |
| **For                  the Period from Inception (May 8, 2006) through June 30,                  2007**  |   |
| **(Unaudited)**                                                                                          |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   | **Deficit** |   |   |   |   |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   | **accumulated** |   |   |   |   |   |
|                                                                                                          |   |   |   |   |   |   |   | **Additional** |   |   | **during                  the** |   |   |   |   |   |
|                                                                                                          |   | **Common                  Stock** |   |   | **Paid-In** |   |   | **development** |   |   |   |   |   |
|                                                                                                          |   | **Shares** |   |   | **Amount** |   |   | **Capital** |   |   | **stage** |   |   |   | **Totals** |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  issued at formation                                                                    |   |   | 39,275,000 |   |   | $ | 392,750 |   |   | $ | (386,272 | ) |   |   |   |   |   | $ | 6,478 |   |
| Reverse                  acquisition recapitalization                                                         |   |   | 7,852,539 |   |   |   | 78,525 |   |   |   | (78,525 | ) |   |   |   |   |   |   | - |   |
| Shares                  issued in private placement                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                  cash                                                                                     |   |   | 2,038,975 |   |   |   | 20,390 |   |   |   | 1,911,627 |   |   |   |   |   |   |   | 1,932,017 |   |
| Issuance                  of warrants                                                                         |   |   |   |   |   |   |   |   |   |   | 196,440 |   |   |   |   |   |   |   | 196,440 |   |
| Imputed                  interest on loan from                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| shareholder                                                                                                   |   |   |   |   |   |   |   |   |   |   | 11,836 |   |   |   |   |   |   |   | 11,836 |   |
| Net                  loss for 2006                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,278,619 | ) |   |   |   | (1,278,619 | ) |
| Balance                  - December 31, 2006                                                                  |   |   | 49,166,514 |   |   |   | 491,665 |   |   |   | 1,655,106 |   |   |   | (1,278,619 | ) |   |   |   | 868,152 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                  issued in private placement for cash                                                  |   |   | 1,820,000 |   |   |   | 18,200 |   |   |   | 1,728,094 |   |   |   |   |   |   |   |   | 1,746,294 |   |
| Note                  Conversion                                                                              |   |   | 535,742 |   |   |   | 5,357 |   |   |   | 530,385 |   |   |   |   |   |   |   |   | 535,742 |   |
| Issuance                  of warrants                                                                         |   |   |   |   |   |   |  |   |   |   | 18,895 |   |   |   |   |   |   |   |   | 18,895 |   |
| Employee                  Stock Options                                                                       |   |   |   |   |   |   |  |   |   |   |   3,864,756 |   |   |   |   |   |   |   |   |  3,864,756 |   |
| Net                  loss                                                                                     |   |   |                    |   |   |   |                    |   |   |   |    |   |   |   |   (4,705,564 | )  |   |   |    |   (4,705,564 | ) |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  - June 30, 2007                                                                      |   |   |                  51,522,256 |   |   | $ |                  515,222 |   |   | $ |                  7,797,236 |   |   | $ |  (5,984,183 | ) |   |   |  $ |                  2,328,276 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

**See          the accompanying notes to the consolidated financial          statements**

----

|                                                                 |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |
|----------------------------------------------------------------------|--------|---------------------------------|------------|--------|---------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------------------|
|                                                                 |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |
| **TONGA                  CAPITAL CORPORATION**                       |
| **(A                  DEVELOPMENT STAGE COMPANY)**                   |
| **Consolidated                  Statements of Cash Flows**           |
| **(Unaudited)**                                                      |
|                                                                 |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |    |
|                                                                 |   | **Six                  Months** |       |   |  **Inception**                         | **Inception**                                                                                                                                                                                            |
|                                                                 |   | **Ended**                       |       |   |  **(May                  8, 2006) to** | **(May                  8, 2006) to**                                                                                                                                                                    |
|                                                                 |   | **June                  30,**   |       |   |  **June                  30,**         | **June                  30,**                                                                                                                                                                            |
|                                                                 |   |                            | **2007**   |   |                                        | **        2,006**                                                                                                                                                |   |         | **2007**                |
| **Cash                  Flows from Operating Activities**            |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |
| Net                  Loss                                            |   | $                               | (4,705,564 | )      | $                                      |                                 (542,803 | )      | $            | (5,984,183)   |
| Adjustments                  to reconcile net loss to cash used in   |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |   |   |
| operating                  activities                                |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |   |   |
| Non-cash                  interest expense from issuance of warrants |   |                            |       |   |                                        |      10,750                                                                                                                                                                     |   |         |                    |   |   |
| Depreciation                  and amortization                       |   |                            | 18,020     |   |                                        |                                                                                                                                                                                                     |   |         | 20,198        |
| Interest                  expense - amortization of debt discount    |   |                            | -          |   |                                        |                                                                                                                                                                                                     |   |         | 53,751        |
| Imputed                  interest on related-party note              |   |                            | -          |   |                                        |                                                                                                                                                                                                     |   |         | 3,906         |
| Recapitalization                  expense                            |   |                            | -          |   |                                        |                                                                                                                                                                                                     |   |         | 400,000       |
| Non-cash                  stock option costs                         |   |                            | 3,864,756  |   |                                        |                                                                                                                                                                                                     |   |         | 3,864,756     |
| Changes                  in Assets and Liabilities:                  |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         | -        |
| Increase                  in accounts receivable                     |   |                            | (20,837)   |   |                                        |                                                                                                                                                                                                     |   |         | (20,837)      |
| Increase                  in inventory                               |   |                            | (54,741)   |   |                                        |                                                                                                                                                                                                     |   |         | (54,741)      |
| Increase                  in prepaid expenses                        |   |                            | 2,626      |   |                                        |                                                                                                                                                                                                     |   |         | (36,671)      |
| (Decrease)                  Increase in accounts payable             |   |                            | (64,591)   |   |                                        |      17,641                                                                                                                                                                     |   |         | 416,713       |
| Increase                  in accrued expenses                        |   |                            | 201,102    |   |                                        |         1,568                                                                                                                                                    |   |         | 312,001       |
| Security                  deposit                                    |   |                            |       |   |                                        |      (17,858                                                                                                                                                                    | )      |         |                    |   |   |
| Prepaid                  expense                                     |   |                            |       |   |                                        |        (7,250                                                                                                                                                         | )      |         |                    |   |   |
| Net                  Cash Used in Operating Activities               |   |                            | (759,229   | )      |                                        |   (537,952                                                                                                                                                                                     | )      |         | (1,025,107)   |
|                                                                 |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |   |   |
| **Cash                  Flows from Investing Activities**            |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |   |   |
| Acquisition                  of fixed assets                         |   |                            | (941,160   | )      |                                        |     (79,757                                                                                                                                                                          | )      |         | (3,324,256)   |
| Increase                  in security deposits                       |   |                            | -          |   |                                        |                                                                                                                                                                                                     |   |         | (26,278)      |
| Net                  Cash Used in Investing Activities               |   |                            | (941,160   | )      |                                        |     (79,757                                                                                                                                                                          | )      |         | (3,350,534)   |
|                                                                 |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |   |   |
| **Cash                  Flows from Financing Activities**            |   |                            |       |   |                                        |                                                                                                                                                                                                     |   |         |                    |   |
| Payment                  of note payable                             |   |                            | (165,000   | )      |                                        |                                                                                                                                                                                                     |   |         | -             |
| Proceeds                  from Notes Payable                         |   |                            |       |   |                                        |    650,000                                                                                                                                                                                |   |         |                    |   |   |
| Proceeds                  from convertible notes payable             |   |                            |       |   |                                        |    250,000                                                                                                                                                                                |   |         |                    |   |   |

----

| Loans                  from shareholders                               |   |   | 126,813   |   |   |                                                                                                    |   |   | 236,942     |
|------------------------------------------------------------------------|--------|--------|-----------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|--------|-----------------------|
| Stock                  issued for cash                                 |   |   | 1,820,000 |   |   |                                                                                                    |   |   | 4,358,975   |
| Offering                  costs                                        |   |   | (66,500   | )      |   |                                                                                                    |   |   | (192,353)   |
| Cost                  contributed by principal owner                   |   |   | -         |   |   |         6,478                                                   |   |   | 6,478       |
| Net                  Cash Provided by Financing Activities             |   |   | 1,715,313 |   |   |    906,478                                                                               |   |   | 4,410,042   |
|                                                                   |   |   |      |   |   |                                                                                                    |   |   |                  |   |   |
| **Net                  Increase in Cash**                              |   |   | 14,924    |   |   |    288,769                                                                               |   |   | 34,401      |
|                                                                   |   |   |      |   |   |                                                                                                    |   |   |                  |   |   |
| **Cash                  and cash equivalents - Beginning of period**   |   |   | 19,477    |   |   |                  - |   |   | -           |
|                                                                   |   |   |      |   |   |                                                                                                    |   |   |                  |   |   |
| **Cash                  and cash equivalents - End of period**         |   | $      | 34,401    |   |   |    288,769                                                                               |   | $      | 34,401      |
| **Supplemental                  Disclosure of Cash Flow Information:** |   |   |      |   |   |                                                                                                    |   |   |                  |   |   |
|                                                                   |   |   |      |   |   |                                                                                                    |   |   |                  |   |   |
| **Cash                  Paid During the period for:**                  |   |   |      |   |   |                                                                                               |   |   |                  |   |
| Interest                                                               |   | $      | 30,472    |   |   |                                                                                                    |   | $      | 43,913      |
| Income                  Taxes                                          |   | $      | -         |   |   |                                                                                                    |   | $      | -           |
|                                                                   |   |   |      |   |   |                                                                                                    |   |   |                  |   |   |
| **Non-Cash                  Transactions**                             |   |   |      |   |   |                                                                                                    |   |   |                  |   |
| Investing                  activities:                                 |   |   |      |   |   |
| Capitalized                  interest during construction period       |   | $      | 36,953    |   |   |                                                                                                    |   | $      | 181,243     |
|                                                                   |   |   |      |   |   |                                                                                                    |   |   |                  |   |   |
| Financing                  activities                                  |   |   |      |   |   |                                                                                                    |   |   |                  |   |   |
| Note                  payable issued for recapitalization              |   | $      | -         |   |   |                                                                                                    |   | $      | 400,000     |
| Note                  payable converted to stock                       |   | $      | 500,000   |   |   |                                                                                                    |   | $      | -           |

**See        the accompanying notes to the consolidated financial        statements**

----

**Note        1—Basis of Presentation**

**Note        2—Summary of Significant Accounting Policies**

**Share-Based        Compensation**

**Inventories**

| Finished                  Goods | $14,334            |
|---------------------------------|--------------------|
| Work-In-Process                 |   16,126 |
| Raw                  Materials  |   24,281 |
|                            |               |
| Total                           | $54,741            |

----

**Accounts        Receivable**

**Note        3 - Going Concern**

**Note        4 – Property Plant and Equipment**

**Note        5 - Stockholders’ Equity**

**Note        6 –Related Party Transactions**

----

**Note        7 – Convertible Notes Payable**

**Note        8 – Executive Compensation**

**Note        9 – Executive Stock Options**

|                                                                                                                |   | Shares |      |   | Weighted                    Average Exercise Price |   |   | Weighted                    Average Remaining Contractual Term |   |   | Aggregate                    Intrinsic Value |   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|----------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|
| Outstanding                    at March 31, 2007                                                                    |   |   | -         |   |                                               | $      | -      |                                                           |   |   | -                                            |   |   |   |   |   |
| Granted                                                                                                             |   |   | 9,000,000 |   |                                               |   |   |                                                           |   |   |                                         |   |   |   |   |   |
| Exercised                                                                                                           |   |   | -         |   |                                               |   |   |                                                           |   |   |                                         |   |   |   |   |   |
| Forfeited                                                                                                           |   |   | -         |   |                                               |   |   |                                                           |   |   |                                         |   |   |   |   |   |
| Expired                                                                                                             |   |   | -         |   |                                               |   | -      |                                                           |   |   | -                                            |   |   |   |   |   |
|                                                                                                                |   |   |      |   |                                               |   |   |                                                           |   |   |                                         |   |   |   |   |   |
| Outstanding                    at June 30, 2007                                                                     |   |   | 9,000,000 |   |                                               | $      | 1.00   |                                                           |   |   | 4.81                                         |   |   | $ | - |   |   |
|                                                                                                                |   |   |      |   |                                               |   |   |                                                           |   |   |                                         |   |   |   |   |   |   |
| Exercisable                                                                                                         |   |   | 1,750,000 |   |                                               | $      | 1.00   |                                                           |   |   | 4.81                                         |   |   | $ | - |   |   |
|                                                                                                                |   |   |      |   |                                               |   |   |                                                           |   |   |                                         |   |   |   |   |   |   |
| Weighted-average                    grant-date fair value of options granted during the                    period:  |   |   |      |   |                                               |   |   |                                                           |   |   |                                         |   |   | $ | 15,787,938 |   |   |
| Compensation                    costs recognized during the period                                                  |   |   |      |   |                                               |   |   |                                                           |   |   |                                         |   |   | $ | 3,864,756 |   |   |
| Unrecognized                    compensation cost related to non-vested share based                    compensation |   |   |      |   |                                               |   |   |                                                           |   |   |                                         |   |   | $ | 11,923,182 |   |   |
| Weighted-average                    recognition period of unrecognized compensation cost                            |   |   |      |   |                                               |   |   |                                                           |   |   |                                         |   |   |   | 3.75 |   | years |
| Total                    grant date fair value of shares vested during period                                       |   |   |      |   |                                               |   |   |                                                           |   |   |                                         |   |   | $ | 3,069,877 |   |   |

**Note          10 - Subsequent Events**

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**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

***FORWARD-LOOKING      STATEMENTS CAUTIONARY***

**ORGANIZATION      AND BUSINESS**

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**RESULTS      OF OPERATIONS**

**LIQUIDITY      AND CAPITAL RESOURCES**

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**PLAN      OF OPERATIONS**

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES**

|   | · | revenue                recognition; |
|--------|--------|-------------------------------------|

|   | · | value                of long-lived assets; |
|--------|--------|--------------------------------------------|

|   | · | inventories |
|--------|--------|-------------|

|   | · | assets                being developed for our own use;                and |
|--------|--------|---------------------------------------------------------------------------|

|   | · | income                taxes. |
|--------|--------|------------------------------|

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

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**ITEM      3. CONTROLS AND PROCEDURES**

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**ITEM      3A(T). CONTROLS AND PROCEDURES**

**PART      II--OTHER INFORMATION**

| **DATE                OF SALE**         |   | **TITLE                OF SECURITIES**  |   | **NO.                OF SHARES** |   |  **CONSIDERATION**                                 |   |  **CLASS                OF PURCHASER**                          |
|-----------------------------------------|--------|-----------------------------------------|--------|----------------------------------|--------|---------------------------------------------------------|--------|----------------------------------------------------------------------|
|                                    |   |                                    |   |                             |   |                                                    |   |                                                                 |
| 01/03/07-01/26/07                       |   | Common                Stock             |   | 850,000                          |   | $1.00                per share                          |   | Accredited                Investor(s) - Private Placement Memorandum |
| 01/31/07                                |   | Warrant                for common stock |   | 10,000                           |   | Penalty                for failure to register warrants |   | Business                Associate                                    |
| 02/1/07                                 |   | Warrant                for common stock |   | 2,000                            |   | Investment                banking fees                  |   | Business                Associate                                    |
| 04/16/07                –06/30/07 |   | Common                Stock             |   | 970,000                          |   | $1.00                per share                          |   | Accredited                Investor(s) - Private Placement Memorandum |
| 04/20/08                                |   | Options                for common Stock |   | 9,000,000                        |   | $1.00                exercise price                     |   | Company                Executive                                     |

**Exemption      from Registration Claimed**

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| 31.1 | Certification                by the Chief Executive Officer pursuant to Section 302 of the                Sarbanes-Oxley Act. |
|------|-------------------------------------------------------------------------------------------------------------------------------|
| 31.2 | Certification                by the Chief Financial Officer pursuant to Section 302 of the                Sarbanes-Oxley Act. |
| 32.1 | Certification                by the Chief Executive Officer pursuant to Section 906 of the                Sarbanes-Oxley Act. |
| 32.2 | Certification                by the Chief Financial Officer pursuant to Section 906 of the                Sarbanes-Oxley Act. |

**SIGNATURES**

|                                 | **TONGA                CAPITAL CORPORATION**                                                                                                                                                                            |
|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |                                                                                                                                                                                                                    |
| Date:                August 20, 2007 | By:                /s/ Barent W.                Cater                                           |
|                                 | Barent                W. Cater, President                                                                                                                                                                               |
|                                 | and                Chief Executive Officer                                                                                                                                                                              |
|                                 |                                                                                                                                                                                                                    |
|                                 |                                                                                                                                                                                                                    |
| Date:August                20, 2007  | By:                /s/ Stuart C.                Cater                            |
|                                 | Stuart                C. Cater,                                                                                                                                                                                         |
|                                 | Chief                Financial Officer                                                                                                                                                                                  |

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