**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10-KSB**




*(Mark
      One)*


x
            Annual
                report under Section 13 or 15(d) of the Securities Exchange Act of
                1934
                for the fiscal year ended**December
                31, 2007**.o
            Transition
                report under Section 13 or 15(d) of the Securities Exchange Act of
                1934 for the transition period fromto.




Commission
      file number:**000-28311**




**SIBLNG
      ENTERTAINMENT GROUP HOLDINGS, INC.**


(Exact
      name of small business issuer as specified in its charter)




**Texas**
            
            **76-027334**(State
                or other jurisdiction of incorporation
              or
                organization)
            
            (IRS
                Employer Identification Number)




**333
      Hudson Street, Suite 901, New York, NY 10013**


(Address
      of Principal Executive Office) (Postal Code)




**(212)
      414-9600**


(Issuer’s
      telephone number, Including Area Code)




Securities
      registered under Section 12(g) of the Exchange Act:




**Title
                of Each Class**Common
                Stock ($0.0001 Par Value)




Check
      whether the registrant: (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 90 days.




Yesx
            Noo




Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B contained in this form, and no disclosure will be contained,
      to
      the best of registrant's knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB or any
      amendment to this Form 10-KSB þ .




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).




Yesx
            Noo




The
      registrant's total revenues for the year ended December 31, 2007 were $
      0.




The
      aggregate market value of the registrant's common stock, (the only class of
      voting stock), held by non-affiliates was approximately $1,816,485 based on
      the
      average closing bid and asked prices for the common stock on May 14, 2008.
      Shares of common stock held by an executive officer or director of the issuer
      and any person who beneficially owns 10% or more of the outstanding common
      stock
      have been excluded from this computation because such persons may be deemed
      to
      be affiliates. This determination of affiliate status is not a conclusive
      determination for other purposes.




On
      May
      12, 2008, the number of shares outstanding of the registrant's common
      stock, $0.0001 par value (the only class of voting stock), was 13,074,066 .










**SIBLNG
      ENTERTAINMENT GROUP HOLDINGS, INC.**




TABLE
      of
      CONTENTS




**Page****PART
                I.**Item
            1.
            Description
                of Business
            3Item
            2.
            Description
                of Property
            8Item
            3.
            Legal
                Proceedings
            8Item
            4.
            Submission
                of Matters to a Vote of Security Holders
            8**PART
                II.**Item
            5.
            Market
                for Common Equity and Related Stockholder Matters
            9Item
            6.
            Management’s
                Plan of Operation
            9Item
            7.
            Financial
                Statements
            16Item
            8.
            Changes
                in and Disagreements with Accountants on Accounting and Financial
                Disclosure
            34Item
            8A.
            Controls
                and Procedures
            34Item
            8B.
            Other
                Information
            35**PART
                III.**Item
            9.
            Directors,
                Executive Officers, Promoters and Control Persons and Corporate
                Governance; Compliance with Section 16(a)of the Exchange
                Act
            36Item
            10.
            Executive
                Compensation
            38Item
            11.
            Security
                Ownership of Certain Beneficial Owners and Management and Related
                Stockholder Matters
            39Item
            12.
            Certain
                Relationships and Related Transactions and Director
                Independence
            39Item
            13.
            Exhibits
            40Item
            14.
            Principal
                Accountant Fees and Services
            42Signatures
            42







**PART
      I**




**ITEM
      1.           DESCRIPTION OF
      BUSINESS**




**General.** ****




As
      used
      herein the terms “Company,” “we,” “our”, and “us” refer to Sibling Entertainment
      Group Holdings, Inc., formerly Sona Development Corporation, a Texas corporation
      and its subsidiaries and predecessors. **** The
      Company was incorporated under the laws of the State of Texas on December 28,
      1988, as “Houston Produce Corporation” and we recently changed our name on May
      14, 2007 to “Sibling Entertainment Group Holdings, Inc.” We have entered
      into an Agreement of Acquisition and Plan of Reorganization with Sibling
      Entertainment Group, Inc. (“Sibling”), an unrelated party of Sibling’s four
      wholly owned subsidiaries: Sibling Theatricals, Inc., Sibling Pictures, Inc.,
      Sibling Music Corp., and Sibling Properties, Inc. and their subsidiaries
      including Dick Foster Productions, Inc., Adrenaline MMA, Inc., Hats Holdings,
      Inc. amongst others. 
 The
        closing of the transaction is contingent upon the filing, and effectiveness,
        of
        a Form S-4 registration statement with the SEC. The
        Form
        S-4 was filed on August 14, 2007 by Sibling Holdings, and is currently under
        review by the SEC. Upon the close of the transaction, our
        business will be that of Sibling, including the financing, producing and
        managing live-stage theatrical operations, mixed martial arts events, music,
        independent feature films, and theatrical real estate.





**Historical
      Background.**





The
      Houston Produce Corporation was formed for the purpose of importing fruit and
      vegetables from Latin America for sale in the United States. The Company’s plan
      to import fruit and vegetables was subsequently abandoned. On June 24, 1997,
      the
      Company changed its name to “Net Masters Consultants, Inc.” as part of a plan to
      become a global Internet service provider. Plans to create an Internet business
      were discarded in October of 1999. On November 27, 2002, the Company changed
      its
      name to “Sona Development Corp.” as part of a corporate restructuring designed
      to make the Company more attractive to prospective business opportunities.
      Management has since been searching for a suitable business opportunity to
      become part of the Company by acquisition or combination.




On
      May
      20, 2004, and subsequently amended through November 14, 2005, we entered
      into a non-binding letter of intent, as amended, with Idea One, Inc., (“Idea
      One”), a privately owned company involved in the development of alternative
      energy products through its 83% owned subsidiary, Advanced Technology Upgrading,
      Ltd. (“ATU”). ATU, which is located in Israel, has developed, tested and
      patented a rechargeable magnesium battery in conjunction with Bar Ilan Research
      and Development Company, Ltd., (“Birad”), based on technology acquired from Bar
      Ilan University. Idea One believes that the ATU magnesium battery exhibits
      many
      characteristics that are superior to existing battery systems, including a
      longer cycle, extended shelf life and higher energy density. The ATU battery
      is
      also environmentally friendly.




The
      letter of intent, as amended, anticipated that Idea One would be acquired by
      us
      in a reverse merger transaction pursuant to which the shareholders of Idea
      One
      will control the combined entity. The closing date for the reverse merger
      transaction, as contemplated in the letter of intent, as amended, was April
      30,
      2006.




Idea
      One
      was unable to satisfy certain conditions of the Letter of Intent which caused
      us
      to abandon our efforts to acquire Idea One on April 28, 2006. We reported our
      abandonment of the Letter of Intent in a Form 8-K filed with the Securities
      and
      Exchange Commission on May 1, 2006.





On
      June
      28, 2006 we entered into Agreement of Acquisition and Plan of Reorganization
      (the “Agreement”) with Sibling Entertainment Group, Inc. (“Sibling”), an
      unrelated party. The Agreement provides for the acquisition of Sibling’s
      subsidiaries. Sibling is an entertainment development and production company
      based in New York City.




Under
      the
      reorganization, we will acquire each of Sibling’s four wholly owned
      subsidiaries: Sibling Theatricals, Inc., Sibling Pictures, Inc., Sibling Music
      Corp., and Sibling Properties, Inc. These subsidiaries own and/or control each
      of Sibling’s respective divisions and operations of live-stage theatrical
      operations, music, independent feature films, and theatrical real estate.










Pursuant
      to the Agreement, the respective companies will effect a share exchange by
      which
      we will issue shares of common stock and purchase warrants to Sibling in
      exchange for all of the issued and outstanding shares of Sibling’s subsidiaries
      on the closing date.




The
      Agreement was amended on December 15, 2006. The amended Agreement increased
      the
      shares issued and warrants granted by us to 36,190,085 shares and 22,865,324
      purchase warrants, the warrants have terms ranging from 3 to 5 years at exercise
      prices ranging from $0.275 per share to $1.00 per share. The share and warrant
      increases are related to a debt placement, employment agreements, the
      prospective acquisition of an entertainment production company, a shareholder
      relations agreement, a corporate services agreement, and broker agreements.




The
      closing date of the Agreement was initially extended to February 9, 2007,
      subject to each party obtaining shareholder approval.




On
      February 9, 2007, we held a special meeting of shareholders to approve an
      Agreement of Acquisition and Plan of Reorganization, as amended, to acquire
      the
      four wholly owned subsidiaries from Sibling Entertainment Group, Inc., to amend
      our articles of incorporation to effect a name change to “Sibling Entertainment
      Group Holdings, Inc.” and to elect four directors to join the our current board
      of directors. On May 14, 2007, we changed our name to “Sibling Entertainment
      Group Holdings, Inc.”




The
      shareholders approved the Agreement of Acquisition and Plan of Reorganization,
      approved the name change to Sibling Entertainment Group, Inc. and elected
      Mitchell Maxwell, Victoria Maxwell, James Cardwell and Richard Bernstein to
      our
      board of directors.




Subsequent
      to our February 9, 2007 shareholders meeting, the SEC has advised us that we
      are
      required to file a Form S-4 registration statement with the SEC and have such
      S-4 registration statement declared effective by the SEC to close our
      transaction with Sibling Entertainment Group, Inc. The form S-4 was filed
      on August 14, 2007 by Sibling Holdings, and is still under review
      by the SEC.




**Selection
      of a Business**




Since
      we
      have no current business, and, in the event the anticipated merger with Sibling
      Entertainment Group, Inc. is not consummated, our plan of operation will be
      to
      seek one or more suitable business combinations or acquisitions to create value
      for our shareholders. Management has adopted a conservative policy of seeking
      opportunities that it considers to be of exceptional quality. Therefore, we
      may
      have to wait some time before consummating a suitable transaction. Management
      recognizes that the higher the standards it imposes upon us, the greater may
      be
      its competitive disadvantage when vying with other acquiring interests or
      entities.




The
      Company does not intend to restrict its consideration to any particular business
      or industry segment. Due to our lack of financial resources, the scope and
      number of suitable business ventures is limited. We are therefore most likely
      to
      participate in a single business venture. Accordingly, the Company will not
      be
      able to diversify and will be limited to one merger or acquisition. The lack
      of
      diversification will prevent us from offsetting losses from one business
      opportunity against profits from another.




The
      decision to participate in a specific business opportunity will be made upon
      management’s analysis of the quality of the opportunity’s management and
      personnel, the anticipated acceptability of products or marketing concepts,
      the
      merit of technological changes and numerous other factors which are difficult,
      if not impossible, to analyze through the application of any objective criteria.
      Further, it is anticipated that the historical operations of a specific venture
      may not necessarily be indicative of the potential for the future because of
      the
      necessity to substantially shift a marketing approach, expand operations, change
      product emphasis, change or substantially augment management, or make other
      changes. The Company will be partially dependent upon the management of any
      given business opportunity to identify such problems and to implement, or be
      primarily responsible for the implementation of required changes.










Since
      we
      may participate in a business opportunity with a newly organized business or
      with a business which is entering a new phase of growth, it should be emphasized
      that the Company may incur risk due to the failure of the target’s management to
      have proven its abilities or effectiveness, or the failure to establish a market
      for the target’s products or services, or the failure to realize profits.




The
      Company will not acquire or merge with any company for which audited financial
      statements cannot be obtained. Management anticipates that any opportunity
      in
      which we participate will present certain risks. Many of these risks cannot
      be
      adequately identified prior to selection of a specific opportunity. Our
      shareholders must therefore depend on the ability of management to identify
      and
      evaluate such risks. Further, in the case of some of the opportunities available
      to us, it may be anticipated that some of these opportunities are yet to develop
      as going concerns or that some of these opportunities are in the development
      stage in that some have not generated significant revenues from principal
      business activities prior to our participation.




**Acquisition
      of Business**




Implementation
      of a structure for any particular business acquisition may involve a merger,
      consolidation, reorganization, joint venture, franchise or licensing agreement
      with another corporation or entity. The Company may also purchase stock or
      assets of an existing business. On the completion of a transaction, it is
      possible that present management and shareholders of the Company would not
      remain in control of the Company. Further, our sole officer and director may,
      as
      part of the terms of any transaction, resign, to be replaced by new officers
      and
      directors without a vote of our shareholders.




We
      anticipate that any securities issued in any such reorganization would be issued
      in reliance on exemptions from registration under applicable federal and state
      securities laws. However, in certain circumstances, as a negotiated element
      of
      any transaction, the Company may agree to register securities either at the
      time
      a transaction is consummated, under certain conditions, or at a specified time
      thereafter. The issuance of substantial additional securities and their
      potential sale into any trading market may have a depressive effect on such
      market.




While
      the
      actual terms of a transaction to which the Company may be a party cannot be
      predicted, it may be expected that the parties to a business transaction will
      find it desirable to avoid the creation of a taxable event and thereby structure
      the acquisition in a so called “tax-free” reorganization under Section 368(a)(1)
      of the Internal Revenue Code of 1986, as amended (the “Code”). In order to
      obtain tax-free treatment under the Code, it may be necessary for the owners
      of
      the acquired business to own 80% or more of the voting stock of the surviving
      entity. In such event, our shareholders would retain less than 20% of the issued
      and outstanding shares of the surviving entity, which could result in
      significant dilution in the equity of such shareholders.




Our
      due
      diligence process will require that management meet personally with the
      personnel involved in any given transaction, visit and inspect material
      facilities, obtain independent analysis or verification of the information
      provided, check references for management and key persons, and take other
      reasonable investigative measures, to the extent of our limited financial
      resources and management expertise.




The
      manner in which we participate in an opportunity will depend on the nature
      of
      the opportunity, the respective needs and desires of the Company and other
      parties, the management of the opportunity, and our relative negotiating
      strengths. Negotiations that involve mergers or acquisitions will focus on
      the
      percentage of the Company that the target company shareholders would acquire
      in
      exchange for their shareholdings in the target company. Depending upon, among
      other things, the target company’s assets and liabilities, our shareholders will
      in all likelihood hold a lesser percentage ownership interest in the Company
      following any merger or acquisition. The percentage ownership may be subject
      to
      significant reduction in the event the Company acquires a target company with
      substantial assets. Any merger or acquisition effected by the Company can be
      expected to have a significant dilutive effect on the percentage of shares
      held
      by our current shareholders.




**Operation
      of Business After Acquisition**




The
      Company’s operation following its merger or acquisition of a business will be
      dependent on the nature of the business and the interest acquired. We are unable
      to determine at this time whether the Company will be in control of the business
      or whether present management will be in control of the Company following the
      acquisition. We may expect that any future business will present various
      challenges that cannot be predicted at the present time.










**Government
      Regulation**




The
      Company cannot anticipate the government regulations, if any, to which we may
      be
      subject until we have acquired an interest in a business. The use of assets
      to
      conduct a business that we may acquire could subject us to environmental, public
      health and safety, land use, trade, or other governmental regulations and state
      or local taxation. Our selection of a business in which to acquire an interest
      will include an effort to ascertain, to the extent of the limited resources
      of
      the Company, the effects of any government regulation on the prospective
      business of the Company. However, in certain circumstances, such as the
      acquisition of an interest in a new or start-up business activity, it may not
      be
      possible to predict with any degree of accuracy the impact of government
      regulation.




**Competition**




We
      will
      be involved in intense competition with other business entities, many of which
      will have a competitive edge over us by virtue of their stronger financial
      resources and prior experience in business. The Company can provide no assurance
      that we will be successful in obtaining a suitable business opportunity.




**Marketability**




As
      we
      currently are not involved in selling products or services, there can be no
      assurance that we will be successful in marketing any such products or services
      or whether a market will develop.




**Patents,
      Trademarks, Licenses, Franchises, Concessions, Royalty Agreements and Labor
      Contracts**




We
      currently have no patents, trademarks, licenses, franchises, concessions,
      royalty agreements or labor contracts.




**Research
      and Development**




We
      spent
      no amounts on research and development activities during each of the last two
      fiscal years.




**Employees** ****




The
      Company currently has no employees. Our executive officers devotes as much
      time
      to the affairs of the Company as they deems appropriate. Our management
      expects to use consultants, attorneys, and accountants as necessary, and does
      not anticipate a need to engage any full-time employees as long as business
      needs are being identified and evaluated. The need for employees and their
      availability will be addressed in connection with a decision concerning whether
      or not to acquire or participate in a specific business venture.




**Risks
      Related to Our Business******




Our
      future operating results are highly uncertain. Before deciding to invest in
      us
      or to maintain or increase your investment, you should carefully consider the
      risks described below, in addition to the other information contained in this
      annual report. If any of these risks actually occur, our business, financial
      condition or results of operations could be seriously harmed. In that event,
      the
      market price for our common stock could decline and you may lose all or part
      of
      your investment.




*We
      have a history of significant operating losses and such losses may continue
      in
      the future.*




Since
      our
      inception in 1988, our operations have resulted in a continuation of losses
      and
      an accumulated deficit which reached $3,945,668 at December 31, 2007. During
      fiscal 2007, we recorded a net loss of $850,439. The Company has never realized
      revenue from operations. We will continue to incur operating losses as we
      maintain our search for a suitable business opportunity and satisfy our ongoing
      disclosure requirements with the Securities and Exchange Commission
      (“Commission”). Our only expectation of future profitability is dependent upon
      our ability to acquire a revenue producing business opportunity, which
      acquisition can in no way be assured. Therefore, we may never be able to achieve
      profitability.










*There
      can be no assurance that Company will acquire Sibling Entertainment Group,
      Inc.*




We
      signed
      a letter of intent to merge with Sibling Entertainment Group, Inc. on June
      28,
      2006. Although the shareholders approved the Agreement of Acquisition and Plan
      of Reorganization, approved the name change to Sibling Entertainment Group
      Holdings, Inc. and elected Maxwell Mitchell, Victoria Mitchell, James Cardwell
      and Richard Bernstein to the Company’s board of directors, the closing of the
      Agreement of Acquisition and Plan of Reorganization remains subject to the
      applicable registration requirements of the Securities Exchange Act of 1934,
      as
      amended, specifically, the filing and effectiveness of an S-4 registration
      statement. As a result, although we intend to close the acquisition of the
      Sibling Entertainment Group Holdings, Inc. subsidiaries as soon as is
      practicable, the acquisition may not occur or may take a significant period
      of
      time.




*Sibling
      Entertainment Group Holdings, Inc. will not likely be profitable in the next
      twelve months and may never be profitable* .




Sibling
      Entertainment Group Holdings, Inc. remains in the research and development
      stage
      with no significant revenues and will not likely be profitable within the next
      twelve months. Sibling Entertainment Group, Inc. results of operations will
      largely depend on them having adequate access to literary rights, plays,
      musicals, film scripts that are capable of being produced or acquired and
      successfully marketed. Such accessibility is dependent upon numerous factors,
      including its reputation and credibility in the creative community, the
      relationships they have in the entertainment industry and their financial and
      other resources. There can be no assurance that they will have adequate access
      to sources of programs or that their efforts in developing or acquiring new
      programs will be successful. If they are unable to successfully market new
      programs where we have funded development costs, they will be subject to
      realizing a loss on such projects. Therefore, the possibility of future profits
      by Sibling Entertainment Group Holdings, Inc. is purely speculative.




*Our
      limited financial resources cast doubt on our ability to acquire a profitable
      business opportunity.*




Our
      future operation is dependent upon the acquisition of a profitable business
      opportunity. If we do not merge with Sibling Entertainment Group Holdings,
      Inc.,
      the prospect of another acquisition is doubtful due to the Company’s limited
      financial resources. Since we have no current profitable business opportunity,
      the Company is not in a position to improve this financial condition through
      debt or equity offerings. Therefore, this limitation may act as a deterrent
      in
      future negotiations with prospective acquisition candidates. Should we be unable
      to acquire a profitable business opportunity the Company will, in all
      likelihood, be forced to cease operations.




*The
      market for our stock is limited and our stock price may be
      volatile* .




The
      market for our common stock has been limited due to low trading volume and
      the
      small number of brokerage firms acting as market makers. Because of the
      limitations of our market and volatility of the market price of our stock,
      investors may face difficulties in selling shares at attractive prices when
      they
      want to. The average daily trading volume for our stock has varied significantly
      from week to week and from month to month, and the trading volume often varies
      widely from day to day.




*We
      may incur significant expenses as a result of being quoted on the Over the
      Counter Bulletin Board, which may negatively impact our financial
      performance* .




We
      may
      incur significant legal, accounting and other expenses as a result of being
      listed on the Over the Counter Bulletin Board. The Sarbanes-Oxley Act of 2002,
      as well as related rules implemented by the Commission, have required changes
      in
      corporate governance practices of public companies. We expect that compliance
      with these laws, rules and regulations, including compliance with Section 404
      of
      the Sarbanes-Oxley Act of 2002 as discussed in the following risk factor, may
      substantially increase our expenses, including our legal and accounting costs,
      and make some activities more time-consuming and costly. As a result, there
      may
      be a substantial increase in legal, accounting and certain other expenses in
      the
      future, which would negatively impact our financial performance and could have
      a
      material adverse effect on our results of operations and financial condition.










*Our
      internal controls over financial reporting may not be considered effective,
      which could result in a loss of investor confidence in our financial reports
      and
      in turn have an adverse effect on our stock price.*




Pursuant
      to Section 404 of the Sarbanes-Oxley Act of 2002, beginning with our annual
      report for the year ending December 31, 2007, we are required to furnish a
      report by our management on our internal controls over financial reporting.
      Such
      report will contain, among other matters, an assessment of the effectiveness
      of
      our internal controls over financial reporting as of the end of the year,
      including a statement as to whether or not our internal controls over financial
      reporting are effective. This assessment must include disclosure of any material
      weaknesses in our internal controls over financial reporting identified by
      management. If we are unable to assert that our internal controls are effective
      as of December 31, 2007, investors could lose confidence in the accuracy and
      completeness of our financial reports, which in turn could cause our stock
      price
      to decline.




**Reports
      to Security Holders**




The
      Company is not required to deliver an annual report to security holders and
      will
      not voluntarily deliver a copy of the annual report to the security holders.
      Should we choose to create an annual report, it will contain audited financial
      statements. The Company files all of its required information with the
      Commission.





The
      public may read and copy any materials that we file with the Security and
      Exchange Commission (SEC) at the SEC’s Public Reference Room at 450 Fifth
      Street, N.W., Washington, D.C. 20549. The public may obtain information on
      the
      operation of the Public Reference Room by calling 1-800-SEC-0330. The statements
      and forms we file with the Commission have been filed electronically and are
      available for viewing or copy on the Commission maintained Internet site that
      contains reports, proxy, and information statements, and other information
      regarding issuers that file electronically with the Commission. The Internet
      address for this site can be found at: www.sec.gov.




**ITEM
      2.           DESCRIPTION OF
      PROPERTY**




The
      Company does not own any real or personal property. We do not believe that
      we
      will need to obtain additional office space until such time as we have acquired
      certain subsidiaries of Sibling Entertainment Group, Inc. or some other business
      opportunity.




**ITEM
      3.           LEGAL
      PROCEEDINGS**




The
      Company is currently not a party to any legal proceedings.




**ITEM
      4.           SUBMISSION OF
      MATTERS TO A VOTE OF SECURITY HOLDERS**




No
      matters were submitted to a vote of security holders during the fourth quarter
      of the period covered by this report.







**PART
      II**




**ITEM
      5.           MARKET FOR COMMON
      EQUITY AND RELATED STOCKHOLDER MATTERS**




The
      Company’s common stock is quoted on the Over the Counter Bulletin Board, a
      service maintained by the National Association of Securities Dealer, Inc.,
      under
      the symbol, “SIBE”. Trading in the common stock in the over-the-counter market
      has been limited and sporadic and the quotations set forth below are not
      necessarily indicative of actual market conditions. Further, these prices
      reflect inter-dealer prices without retail mark-up, mark-down, or commission,
      and may not necessarily reflect actual transactions.





**YEAR**
              
              **QUARTER
                  ENDING**
              
              **HIGH**
              
              **LOW****2008**
              
              
              **March
                  31**
              
              **$**
              **0.52**
              
              **$**
              **0.14****2007**
              
              
              **December
                  31**
              
              **$**
              **1.85**
              
              **$**
              **0.56****September
                  30**
              
              **$**
              **0.55**
              
              **$**
              **0.28****June
                  30**
              
              **$**
              **0.82**
              
              **$**
              **0.38****March
                  31**
              
              **$**
              **0.90**
              
              **$**
              **0.31****2006**
              
              
              **December
                  31**
              
              **$**
              **0.45**
              
              **$**
              **0.20****September
                  30**
              
              **$**
              **0.65**
              
              **$**
              **0.30****June
                  30**
              
              **$**
              **0.65**
              
              **$**
              **0.17****March
                  31**
              
              **$**
              **0.55**
              
              **$**
              **0.17**





**Record
      Holders**




As
      of
      December 31, 2007, there were 53 shareholders of record (based on our transfer
      agent list) holding a total of 13,074,066 shares of common stock. The holders
      of
      the common stock are entitled to one vote for each share held of record on
      all
      matters submitted to a vote of stockholders. Holders of the common stock have
      no
      preemptive rights and no right to convert their common stock into any other
      securities. There are no redemption or sinking fund provisions applicable to
      the
      common stock.




**Dividends**




The
      Company has not declared any cash dividends since inception and does not
      anticipate paying any dividends in the foreseeable future. The payment of
      dividends is within the discretion of the board of directors and will depend
      on
      the Company’s earnings, capital requirements, financial condition, and other
      relevant factors. There are no restrictions that currently limit the Company’s
      ability to pay dividends on its common stock other than those generally imposed
      by applicable state law.




**Recent
      Sales of Unregistered Securities**




During
      the 4 th quarter
      of 2007, there were no sales of unregistered securities.




**ITEM
      6.           MANAGEMENT'S PLAN
      OF OPERATION**




This
      Management’s Plan of Operation and Results of Operations and other parts of this
      report contain forward-looking statements that involve risks and uncertainties.
      Forward-looking statements can also be identified by words such as
“anticipates,” “expects,” “believes,” “plans,” “predicts,” and similar terms.
      Forward-looking statements are not guarantees of future performance and our
      actual results may differ significantly from the results discussed in the
      forward-looking statements. Factors that might cause such differences include,
      but are not limited to, those discussed in the subsections entitled
“Forward-Looking Statements and Factors That May Affect Future Results and
      Financial Condition” below and the subsection entitled “Risk Factors” above. The
      following discussion should be read in conjunction with our financial statements
      and notes thereto included in this report. All information presented herein
      is
      based on our fiscal year ended December 31, 2007.







**Plan
      of Operation**




The
      Company’s plan of operation for the coming year, as discussed above, is to close
      the definitive agreement with Sibling Entertainment Group, Inc., or, in the
      event that a definitive agreement is not closed, to identify and acquire an
      alternative business opportunity. The Company does not plan to limit its options
      to any particular industry, but will evaluate each alternative opportunity
      on
      its merits.





On
      February 9, 2007, we held a special meeting of shareholders to approve an
      Agreement of Acquisition and Plan of Reorganization, as amended, to acquire
      the
      following subsidiaries of Sibling:




·
            Sibling
                Theatricals Inc.


o
            Dick
                Foster Productions, Inc. (80%
                owned)


§
            Creative
                Productions, Inc.


o
            Hats
                Holdings, Inc. (including three
                subsidiaries)


·
            Sibling
                Pictures, Inc. (including three
                subsidiaries)


·
            Sibling
                Music Corp.


·
            Sibling
                Properties, Inc.





In
      addition, the articles of incorporation were to be amended to change the name
      of
      the Company to “Sibling Entertainment Group Holdings, Inc.” and to elect four
      directors to join the current Board of Directors.





The
      shareholders approved the Agreement of Acquisition and Plan of Reorganization,
      approved the name change to Sibling Entertainment Group Holdings, Inc. and
      elected Mitchell Maxwell, Victoria Maxwell, James Cardwell and Richard Bernstein
      to our board of directors.




The
      closing of the Agreement of Acquisition and Plan of Reorganization remains
      subject to the applicable registration requirements of the Securities Exchange
      Act of 1934, as amended.




Subsequent
      to our February 9, 2007 shareholders meeting, the SEC has advised us that we
      are
      required to file a Form S-4 registration statement with the SEC and have such
      S-4 registration statement declared effective by the SEC to close our
      transaction with Sibling Entertainment Group, Inc. We filed the Form S-4
      registration statement on August 13, 2007. The Form S-4 is still under review
      by
      the SEC. Based on the requirement to file an S-4 registration statement, we
      may
      change the structure of the transaction with Sibling Entertainment Group,
      Inc.





On
      May
      14, 2007, the Company changed its name to Sibling Entertainment Group Holdings,
      Inc.





Specifically,
      upon the closing of the Agreement, we plan to continue Sibling’s business as
      follows:




·
            Purchase
                and exploitation of literary rights as well as investments in the
                production of both film and live-stage events including the
                following:




·
            The
                management of Adrenaline MMA Inc. (“Adrenaline”) for the production and
                promotion of Mixed Martial Arts (“MMA”) Events. Adrenaline Global headed
                by Monte Cox intends to produce several fighting events over the
                next
                several years.




·
            HATS!
                - A Musical for the Rest of Your Life” (“HATS!”) is based upon the women
                and spirit of Red Hat Society, Inc. (“RHS”). The musical premiered in
                Denver, Colorado at the New Denver Civic Theatre on October 7, 2006
                and
                ran through December 31, 2006 and subsequently had two productions.:
                Harrah’s New Orleans Hotel & Casino (New Orleans) from January 25,
                2007 to April 21, 2007; and the Royal George Theatre in Chicago,
                Illinois
                from April 20, 2007 to July 29, 2007.










·
            A
                license with Tampa Bay Performing Arts Center for the rights to produce
                HATS! throughout the State of Florida beginning January 1, 2008 for
                two
                years with an option to renew for an additional two years with the
                first
                production completed in the Jaeb Theatre January 24 - May 11, 2008




·
            A
                license with Harrah’s Entertainment (Las Vegas) through Dick Foster
                Productions (a subsidiary of Sibling Theatricals, Inc.) to produce
                HATS!
                in Las Vegas scheduled for an open-ended run beginning January 12,
                2008
                and potentially other Harrah’s controlled
                venues.




·
            License
                and production of additional companies of HATS! under Sibling Theatricals,
                Inc. wholly owned subsidiary Hats Holdings, Inc. through an exclusive
                licensing agreement with the RHS to develop and produce HATS! including
                sequels and future home video, pay-per-view events and DVD
                recordings.




·
            Optimize
                revenue by licensing the HATS! trademarks and by selling HATS! Cast
                Album
                through Sibling Music, Inc.




·
            Development
                of a new musical, subject to negotiations, with the world-renowned
                comedian and entertainer Jerry Lewis, based upon his book “DEAN & ME,”
                a story of his life with Dean
                Martin.




·
            The
                continued distribution and selling of the HATS! cast album through
                retail,
                theatrical venue and internet outlets and the production of additional
                cast albums of other future
                productions.




·
            Negotiations
                with Bernstein Corporations Entertainment, Inc. to acquire the
                intellectual properties, label imprint (Finer Arts Records and TransWorld
                Records, M Bernstein Music Publishing ASCAP, Bernstein Artists Management)
                and related artist recording contracts and record/music CD inventory
                to be
                made part of SMC, a wholly owned subsidiary of the Company which
                Richard
                Bernstein is an officer.




·
            Evaluating
                our option to produce the screenplay REEL LOVE as an independent
                feature
                film.




·
            Negotiations
                with URL Productions, Inc. to co-produce “Once Around the Sun” as a
                feature film previously produced Off-
                Broadway.




·
            Strategic
                investments in third party theatrical
                productions.




·
            Development
                of an independent film production business by leveraging the acquisition
                of SPI and its subsidiaries Sibling Pictures Fund, LLC; Reel Love
                on Film
                LLC and Reel Love Productions, Inc.




·
            Growing
                our management and consulting business with regional not-for-profit
                and
                professional theatre companies




·
            Ongoing
                management of the Denver Civic Theatre, Inc.  (a not-for-profit
                organization, "DCT") for which our officers and directors serve as
                members
                of its board of directors.




·
            Formation
                of alliances with companies that possess rights or agreements desired
                by
                us including:




·
            an
                alliance with Mechanic Street Productions, Inc. to finance and produce
                one
                or more independent feature films including the finance and co-production
                of independent films financed by the Sibling Pictures Fund, LLC and/or
                other similarly organized film
                funds.










·
            an
                ongoing relationship with Sibling Entertainment,
                Inc.




Our
      plan
      to coordinate the efforts between film, theatre, real estate, management and
      music publishing follow the natural synergies that exist between the various
      industries and their components. It is sometimes more difficult to develop
      a new
      theatrical project without securing the venue, and owning sufficient theatres
      provides the ability for a production company combined with a theatre owner
      to
      assure a production access needed to advance a commercial project. It is planned
      that when we do have our own theatrical production to present in our own
      theaters, the production will be able to rent our venues creating a source
      of
      sustaining income.




As
      both a
      theatre owner/manager and presenter of original works, the long-term income
      derived from the licensing of literary rights may benefit us in two ways. Many
      literary works developed for the stage may also have potential as a feature
      film.  Access and acquisition cost barriers may be reduced with a common
      producer of both film and theatre. As we continue to develop a management
      company for both real estate and theatrical productions, we will be able to
      secure additional revenue sources common to the industry.





Another
      natural synergy between the theatre and movie industries includes music
      publishing originated or released in association with a musical or a movie.
      We
      continue to seek partners and potential companies for acquisition within the
      recording and music publishing industry.


Our
        plan
        of operations is based on the assumptions that the Form S-4 will be declared
        effective by the SEC and that the Agreement of Acquisition and Plan of
        Reorganization with Sibling Entertainment Group, Inc. will close. There can
        be
        no guarantee that these events will actually occur.
 **Results
        of Operations**




We
      do not
      expect to generate any significant revenues within the next twelve months of
      operation as we cannot anticipate when the Form S-4 will be declared effective
      and the Agreement will close with Sibling Entertainment Group, Inc.
      Further, in the event we do not acquire Sibling Entertainment Group, Inc.,
      we
      will resume the process of identifying a favorable business opportunity, which
      opportunity if acquired, may or may not produce revenue. Therefore, due to
      these
      uncertainties, we do not expect any revenues until such time as a revenue
      producing acquisition is accomplished.





The
      Company’s net loss increased from the prior year by approximately $320 Thousand.
      The increase was primarily the result of the $2.5 million borrowing under
      debentures which resulted in interest expense of  approximately $770,000
      which included approximately $590,000 amortization of debt discount. Offsetting
      this increase was interest income from a related party of approximately $166,000
      and a reduction of general and administrative costs by approximately $40,000,
      the most significant reduction in costs being related to the resignation of
      the CFO.




**Capital
      Expenditures**





The
      Company expended no amounts on capital expenditures for the period from December
      28, 1988 (inception) to December 31, 2007.




**Capital
      Resources and Liquidity**





The
      Company is in the development stage and, since inception, has experienced
      significant changes in liquidity, capital resources and shareholders’ equity.
      The Company had current assets of $1,604 and total assets of $2,595,775 as
      of
      December 31, 2007. These assets consist primarily of a note receivable and
      the
      related accrued interest from a related party of $2,594,170. Stockholders
      deficit in the Company was $38,463 at December 31, 2007.





Over
      the
      term of a letter of intent regarding a possible acquisition the Company loaned
      Idea One, a private company involved in the development of battery cell
      technology, a total of $550,000 through a series of convertible promissory
      notes. These notes were written down to $1 as of December 31, 2005 as management
      determined they were not collectible and further, if the Idea One shares were
      received, it was not possible to determine their value. The definitive agreement
      anticipates a share exchange pursuant to which the Company will issue up to
      36,190,085 shares of common stock for all the issued and outstanding shares
      of
      the Sibling subsidiaries on the closing date. The Company will further grant
      22,865,324 share purchase warrants with terms ranging from 3 to 5 years at
      exercise prices ranging from $0.275 a share to $1.00 per share








As
      of
      April 30, 2006, the Company agreed to convert the outstanding balance, including
      accrued interest, of $595,642, at $0.40 per share, to 1,489,106 common shares
      of
      Idea One in full satisfaction of the loan receivable. The Idea One shares were
      received in the second quarter of 2006. As of December 31, 2007 and 2006, these
      shares are recorded at $1.





Our
      plan
      is to coordinate the efforts between film theatre, real estate, management
      and
      publishing following the natural synergies that exist between the various
      industries and their components. It is sometimes more difficult to develop
      a new
      theatrical project without securing the venue and owning sufficient theaters
      provide the ability for a production company, combined with a theatre owner,
      to
      assure a production the access needed to advance a commercial project. When
      we
      have our own theatrical production to present in our theatres, the production
      will be able to rent our venues creating a source of sustaining
      income.





Should
      the anticipated acquisition of Sibling Entertainment Group, Inc. be abandoned,
      the Company will most likely have to obtain loans from shareholders or pursue
      alternative private equity placements in order to maintain its continuous
      disclosure requirements until such time as an alternative acquisition or merger
      candidate is identified.




The
      Company’s current assets are insufficient to conduct its plan of operation over
      the next twelve (12) months whether or not the acquisition of Sibling
      Entertainment Group, Inc. is completed. No assurances can be given that funding
      is available or would be available to the Company on acceptable terms. Our
      inability to obtain funding would have a material adverse affect on our plan
      of
      operation.




The
      Company has no current plans for the purchase or sale of any plant or equipment.




The
      Company has no current plans to make any changes in the number of employees.




**Forward
      Looking Statements and Factors That May Affect Future Results and Financial
      Condition**




The
      statements contained in sections titled “Plan of Operation” and “Description of
      Business”, with the exception of historical facts are forward looking statements
      within the meaning of the Private Securities Litigation Reform Act of 1995,
      which reflect our current expectations and beliefs regarding our future results
      of operations, performance, and achievements. These statements are subject
      to
      risks and uncertainties and are based upon assumptions and beliefs that may
      or
      may not materialize. These forward looking statements include, but are not
      limited to, statements concerning:




-
      our
      anticipated financial performance and business plan;




-
      the
      sufficiency of existing capital resources;




- our
      ability to raise additional capital to fund cash requirements for future
      operations;




- uncertainties
      related to the Company’s future business prospects with Idea One;




- the
      ability of the Company to generate revenues to fund future
      operations;




-
      the
      volatility of the stock market and;




- general
      economic conditions.




We
      wish
      to caution readers that the Company’s operating results are subject to various
      risks and uncertainties that could cause our actual results to differ materially
      from those discussed or anticipated; including the factors set forth in the
      section entitled “Risk Factors” included elsewhere in this report. We also wish
      to advise readers not to place any undue reliance on the forward looking
      statements contained in this report, which reflect our beliefs and expectations
      only as of the date of this report. We assume no obligation to update or revise
      these forward looking statements to reflect new events or circumstances or
      any
      changes in our beliefs or expectations, other that is required by law.










**Critical
      Accounting Policies**




a) Use
      of
      Estimates





The
      preparation of financial statements in conformity with United States generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosure of contingent assets and liabilities at the date of the financial
      statements and the reported amounts of revenue and expenses during the reporting
      period. Actual results could differ from those estimates.





(b) Income
      Taxes





The
      Company follows the liability method of accounting for income taxes. Under
      this
      method, deferred income tax assets and liabilities are recognized for the
      estimated tax consequences attributable to differences between the financial
      statement carrying values and their respective income tax basis (temporary
      differences). The effect on deferred income tax assets and liabilities of a
      change in tax rates is recognized in income in the period that includes the
      enactment date.





(c) Financial
      Instruments





In
      accordance with the requirements of SFAS No. 107, “Disclosures about Fair Value
      of Financial Instruments,” the Company has determined the estimated fair value
      of financial instruments using available market information and appropriate
      valuation methodologies. The carrying values of cash, promissory notes, accounts
      payable and amounts due to related parties approximate fair values due to the
      short-term maturity of the instruments.




**Recent
      Accounting Pronouncements**




In
      September 2006, the FASB issued SFAS No. 157, “Fair Value Measures”.
      This Statement defines fair value, establishes a framework for measuring fair
      value in generally accepted accounting principles (GAAP), expands disclosures
      about fair value measurements, and applies under other accounting pronouncements
      that require or permit fair value measurements. SFAS No. 157 does not
      require any new fair value measurements. However, the FASB anticipates that
      for
      some entities, the application of SFAS No. 157 will change current
      practice. SFAS No. 157 is effective for financial statements issued for fiscal
      years beginning after November 15, 2007, which for the Company would be the
      fiscal year beginning January 31, 2008. The Company is currently evaluating
      the
      impact of SFAS No. 157 but does not expect that it will have a
      material impact on its financial statements.








In
      September 2006, the SEC issued Staff Accounting Bulletin
      (“SAB”) No. 108, “Considering the Effects of Prior Year Misstatements
      when Quantifying Misstatements in Current Year Financial Statements.” SAB
      No. 108 addresses how the effects of prior year uncorrected misstatements
      should be considered when quantifying misstatements in current year financial
      statements. SAB No. 108 requires companies to quantify misstatements using
      a balance sheet and income statement approach and to evaluate whether either
      approach results in quantifying an error that is material in light of relevant
      quantitative and qualitative factors. SAB No. 108 is effective for periods
      ending after November 15, 2006. The Company is currently evaluating the
      impact of adopting SAB No. 108 but does not expect that it will have a
      material effect on its financial statements.





In
      February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
      Financial Assets and Financial Liabilities”. This Statement permits entities to
      choose to measure many financial assets and financial liabilities at fair value.
      Unrealized gains and losses on items for which the fair value option has been
      elected are reported in earnings. SFAS No. 159 is effective for fiscal years
      beginning after November 15, 2007. The Company is currently assessing the
      impact of SFAS No. 159 on its financial position and results of
      operations.





**Going
      Concern**




The
      financial statements have been prepared on the basis of a going concern which
      contemplates the realization of assets and the satisfaction of liabilities
      in
      the normal course of business. The Company has not generated any revenues or
      completed development of any commercially acceptable products or services to
      date, has a working capital deficiency of $2,555,708 at December 31, 2007 and
      has incurred losses of $3,945,668 since inception, and further significant
      losses are expected to be incurred in the Company’s development stage. The
      Company will depend almost exclusively on outside capital through the issuance
      of common shares, and advances from related parties to finance ongoing operating
      losses. The ability of the Company to continue as a going concern is dependent
      on raising additional capital and ultimately on generating future profitable
      operations. There can be no assurance that the Company will be able to raise
      the
      necessary funds when needed to finance its ongoing costs. These factors raise
      substantial doubt about the ability of the Company to continue as a going
      concern. The accompanying financial statements do not include any adjustments
      relative to the recoverability and classification of asset carrying amounts
      or
      the amount and classification of liabilities that might result from the outcome
      of this uncertainty.




**ITEM
        7.           FINANCIAL
        STATEMENTS**





**Sibling
        Entertainment Group Holdings Inc**
 **(FKA
        SONA Development Corp.)**


**(A
      Development Stage Company)**





**FINANCIAL
      STATEMENTS**





**DECEMBER
      31, 2007**




**REPORT(S)
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM(S)**




·
            For
                the Period Ending December 31, 2006




·
            For
                the Period Ending December 31, 2007




**BALANCE
      SHEETS**





**STATEMENTS
      OF OPERATIONS**





**STATEMENT
      OF STOCKHOLDERS’ DEFICIT**




**STATEMENTS
      OF CASH FLOWS**





**NOTES
      TO FINANCIAL STATEMENTS**





**Report
        of Independent Registered Public Accounting Firm**
  To
        the
        Board of Directors and Stockholders of
 Sibling
        Entertainment Group Holdings, Inc. (f/k/a Sona Development
        Corporation)
 
 We
        have
        audited the accompanying consolidated balance sheet of Sibling Entertainment
        Group Holdings, Inc. (“the Company”, f/k/a Sona Development Corporation) (a
        Development Stage Company) as of December 31, 2007 and the related statements
        of
        operations, stockholders’ equity (deficit), and cash flows for the year ended
        December 31, 2007 and for the period from inception (December 28, 1988) to
        December 31, 2007. These financial statements are the responsibility of the
        Company’s management. Our responsibility is to express an opinion on these
        financial statements based on our audit. We did not audit the financial
        statements of Sibling Entertainment Group Holdings, Inc. for the period from
        inception to December 31, 2006. Those statements were audited by other auditors
        whose report has been furnished to us and in our opinion, insofar as it relates
        to amounts for the period from inception to December 31, 2006, included in
        the
        cumulative totals, is based solely upon the report of the other
        auditors.
 
 We
        conducted our audit in accordance with the standards of the Public Company
        Accounting Oversight Board (United States). Those standards require that
        we plan
        and perform the audit to obtain reasonable assurance about whether the financial
        statements are free of material misstatement. The company is not required
        to
        have, nor were we engaged to perform, an audit of its internal control over
        financial reporting. Our audit included consideration of internal control
        over
        financial reporting as a basis for designing audit procedures that are
        appropriate in the circumstances, but not for the purpose of expressing an
        opinion on the effectiveness of the company’s internal control over financial
        reporting. Accordingly, we express no such opinion. An audit also includes
        examining, on a test basis, evidence supporting the amounts and disclosures
        in
        the financial statements, assessing the accounting principles used and
        significant estimates made by management, as well as evaluating the overall
        financial statement presentation. We believe that our audit provide a reasonable
        basis for our opinion.
 
 In
        our
        opinion, the financial statements referred to above present fairly, in all
        material respects, the consolidated financial position of Sibling Entertainment
        Group Holdings, Inc. as of December 31, 2007 and the consolidated results
        of
        their operations and their cash flows for the year ended December 31, 2007,
        in
        conformity with U.S. generally accepted accounting principles.
 
 The
        accompanying financial statements have been prepared assuming that the Company
        will continue as a going concern. As discussed in the notes to the financial
        statements, the Company’s significant operating losses and significant working
        capital deficiency raise substantial doubt about its ability to continue
        as a
        going concern. The financial statements do not include any adjustments that
        might result from the outcome of this uncertainty.
  /S/
                  Rosenberg Rich Baker Berman &
Company
  Bridgewater,
        New Jersey
 May
        15,
        2008


**REPORT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
 
 **DALE
        MATHESON CARR-HILTON LABONTE LLC**
 
 **REPORT
                  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
  To
        the
        Stockholders and Board of Directors of Sibling Entertainment Group Holdings,
        Inc. (fka Sona Development Corp).:
 
 We
        have
        audited the accompanying balance sheets of Sibling Entertainment Group Holdings,
        Inc. (fka Sona Development Corp). (the “Company”) (a development stage company)
        as at December 31, 2006 and 2005 and the statements of operations, stockholders’
deficit, and cash flows for the years then ended and the cumulative period
        from
        December 28, 1988 (inception) to December 31, 2006. These financial statements
        are the responsibility of the Company's management. Our responsibility is
        to
        express an opinion on these financial statements based on our audits. The
        financial statements for the period from December 28, 1998 (inception) to
        December 31, 2002 were reported on by other auditors and reflect a total
        net
        loss of $1,607,837 of the related cumulative totals. The other auditors’ reports
        have been furnished to us, and our opinion, insofar as it relates to amounts
        included for such prior periods, is based solely on the reports of such other
        auditors.
 
 We
        conducted our audits in accordance with the standards of the Public Company
        Accounting Oversight Board (United States). Those standards require that
        we plan
        and perform an audit to obtain reasonable assurance whether the financial
        statements are free of material misstatement. The Company is not required
        to
        have, nor were we engaged to perform, an audit of its internal control over
        financial reporting. Our audits included consideration of internal control
        over
        financial reporting as a basis for designing audit procedures that are
        appropriate in the circumstances, but not for the purpose of expressing an
        opinion on the effectiveness of the Company’s internal control over financial
        reporting. Accordingly, we express no such opinion. An audit also includes
        examining, on a test basis, evidence supporting the amounts and disclosures
        in
        the financial statements. An audit also includes assessing the accounting
        principles used and significant estimates made by management, as well as
        evaluating the overall financial statement presentation. We believe that
        our
        audits provide a reasonable basis for our opinion.
 
 In
        our
        opinion, these   financial statements present fairly, in all material
        respects, the financial position of the Company as at December 31, 2006 and
        2005
        and the results of its operations and its cash flows and the changes in
        stockholders’ deficit for the years then ended and for the period from December
        28, 1998 (inception) to December 31, 2006 , in conformity with accounting
        principles generally accepted in the United States of America.
 
 The
        accompanying financial statements have been prepared assuming that the Company
        will continue as a going concern. As discussed in Note 1 to the financial
        statements, the Company has no revenue or cash flow from operations and its
        liabilities exceed its assets. Since the Company’s incorporation it has incurred
        an accumulated deficit of $3,095,229 as of December 31, 2006. The Company
        also
        had a working capital deficiency of $233,128 as of December 31, 2006. These
        conditions raise substantial doubt about its ability to continue as a going
        concern. Management’s plans regarding those matters are described in Note 1. The
        financial statements do not include any adjustments that might result from
        the
        outcome of this uncertainty.
 
 *“DMCL”*
 
 **DALE
        MATHESON CARR-HILTON LABONTE LLP**
 **CHARTERED
        ACCOUNTANTS**
 March
        22,
        2007
 Vancouver,
        Canada




Sibling
      Entertainment Group Holdings, Inc.


(FKA
        SONA
        Development Corp.)


(A
      Development Stage Company)


BALANCE
      SHEETS





2007
            
            2006ASSETSCURRENT
                ASSETSCash
            
            $
            -
            
            $
            345Escrow
                with attorney
            
            
            1,000Deposits
            
            
            604Total
                current assets
            
            
            1,604
            
            
            345Receivable
                from related party
            
            
            2,594,170Investments
            
            
            1
            
            
            1TOTAL
                ASSETS
            
            $
            2,595,775
            
            $
            346LIABILITIES
                AND STOCKHOLDERS' EQUITY(DEFICIT)CURRENT
                LIABILITIESAccounts
                payable and accrued liabilities
            
            $
            105,889
            
            $
            17,901Amounts
                due related parties
            
            
            194,233
            
            
            215,572Short-term
                Loans Payable, net of discount
            
            
            2,257,190Total
                current liabilities
            
            $
            2,557,312
            
            $
            233,473STOCKHOLDERS'
                EQUITY (DEFICIT)Capital
                Stock , $0.0001 par value; 100,000 shares authorized; 13,074,066
                (2007) and 11,976,705 (2006) issued and outstanding
            
            $
            1,307
            
            $
            1,197Additional
                paid-in capital
            
            
            3,982,824
            
            
            2,860,905Deficit
                accumulated during the development stage
            
            
            (3,945,668
            )
            
            (3,095,229
            )Total
                stockholders’ equity (deficit)
            
            $
            38,463
            
            $
            (233,127
            )TOTAL
                LIABILITIES AND STOCKHOLDERS EQUITY
            
            $
            2,595,775
            
            $
            346





The
      accompanying notes are an integral part of these financial
      statements.









SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)


(A
      Development Stage Company)


STATEMENTS
      OF OPERATIONS




December
                  31,
              
              Cumulative
                Amounts From
                December
                28,1988
                (inception
                to December 31,2007
              
              2006
              
              2007General
                  and administrative costs
              
              $
              245,463
              
              $
              482,610
              
              $
              2,843,693Recovery
                  of consulting fees
              
              
              -
              
              
              -
              
              
              (45,000
              )Gain
                  (Loss) from operations
              
              $
              (245,463
              )
              $
              (482,610
              )
              $
              (2,798,693
              )Non-operating
                  income (expense)Interest
                  income
              
              $
              166,297
              
              $
              -
              
              $
              168,343Interest
                  expense
              
              
              (771,272
              )
              
              -
              
              
              (771,272
              )Gain
                  on forgiveness of debt
              
              
              -
              
              
              -
              
              
              8,000Write
                  down of promissory notes
              
              
              -
              
              
              (50,000
              )
              
              (552,046
              )Net
                  loss
              
              $
              (850,438
              )
              $
              (532,610
              )
              $
              (3,945,668
              )Loss
                  per common share - basic and diluted
              
              $
              (.07
              )
              $
              (0.05
              )Weighted
                  average common shares - basic and diluted
              
              
              12,977,859
              
              
              11,619,576




The
      accompanying notes are an integral part of these financial
      statements.





SIBLNG
      ENTERTAINMENT GORUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)




(A
      Development Stage Company)


STATEMENTS
      OF CASH FLOWS


December
      28, 1988 ( Inception) to December 31, 200 7


December 31,
                
                Cumulative
                  Amounts From
                  December 28,
                  1988
                  (inception) to
                  December 31,2007
                
                2006
                
                12/31/2007$
                
                $
                
                $OPERATING
                    ACTIVITIESNet
                    loss
                
                
                (850,438
                )
                
                (532,610
                )
                
                (3,945,668
                )Adjustments
                    to reconcile net loss to net cash (used in) operating activities:
                
                
                -
                
                
                
                
                
                -Common
                    stock issued for consulting fees
                
                
                -
                
                
                106,400
                
                
                853,400Common
                    stock issued for services
                
                
                -
                
                
                -
                
                
                70,830Common
                    stock issued for finance costs
                
                
                -
                
                
                187,500
                
                
                187,500Beneficial
                    conversion feature on convertible debt
                
                
                208,157
                
                
                
                
                
                208,157Amortization
                    of debt discount
                
                
                380,590
                
                
                
                
                
                380,590Common
                    stock issued for organization costs
                
                
                -
                
                
                -
                
                
                33Interest
                  accrection on related party notes
                
                
                (166,297
                )
                
                -
                
                
                (166,297
                )Common
                    stock issued for other services
                
                
                -
                
                
                -
                
                
                79,903Gain
                    on forgiveness of debt
                
                
                -
                
                
                -
                
                
                (8,000
                )Write
                    down of promissory notes
                
                
                -
                
                
                50,000
                
                
                552,047Changes
                    in non-cash working capital items
                
                
                -
                
                
                
                
                
                -Accounts
                    payable and accrued liabilities
                
                
                103,039
                
                
                11,529
                
                
                553,034Advances
                    and deposits
                
                
                (604
                )
                
                
                
                
                (604
                )Accrued
                    and unpaid amounts due to related parties
                
                
                108,683
                
                
                51,882
                
                
                160,565Net
                    cash used in operating activities
                
                
                (216,870
                )
                
                (125,299
                )
                
                (1,074,510
                )Net
                    cash used investing activities:
                
                
                -
                
                
                
                
                
                -Promissory
                    notes
                
                
                -
                
                
                (50,000
                )
                
                (550,000
                )Proceeds
                    from repayment of related party interest
                
                
                127,075
                
                
                -
                
                
                127,075Advances
                    to related party
                
                
                (2,555,000
                )
                
                
                
                
                (2,555,000
                )Loan
                    to Smart Card Technologies Co. Ltd.
                
                
                -
                
                
                -
                
                
                (600,000
                )Net
                      cash used in investing activities
                
                
                (2,427,925
                )
                
                (50,000
                )
                
                (3,577,925
                )





SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)


(A
      Development Stage Company)


STATEMENTS
      OF CASH FLOWS (continued)


December
      28, 1988 ( Inception) to December 31, 2007





December
                31,
            
            Cumulative
              Amounts From
                December 28,
              1988
              (inception) to
              December 31,2007
            
            2006
            
            12/31/2007Net
                cash provided by financing activitiesAdvances
                from related parties
            
            
            89,450
            
            
            147,000
            
            
            656,568Proceeds
                from loan/short term debt
            
            
            2,555,000
            
            
            -
            
            
            3,235,000Escrow
                Account
            
            
            -
            
            
            
            
            
            -Common
                stock issued for cash
            
            
            -
            
            
            -
            
            
            760,867Net
                cash provided by financing activities
            
            
            2,644,450
            
            
            147,000
            
            
            4,652,435NET
                INCREASE (DECREASE) IN CASH
            
            
            (345
            )
            
            (28,299
            )
            
            -CASH,
                BEGINNING OF PERIOD
            
            
            345
            
            
            28,644
            
            
            --
            
            
            
            
            
            -CASH,
                END OF PERIOD
            
            
            (0
            )
            
            345
            
            
            -




The
      accompanying notes are an integral part of these financial
      statements.







SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)


(A
      Developmental Stage Company)




STATEMENT
      OF STOCKHOLDERS' EQUITY


December
      28, 1988 ( Inception) to December 31, 2007





DeficitAccumulatedAdditional
            
            
            
            During
                theCommon
                Stock
            
            Paid-in
            
            Stock
            
            DevelopmentShares
            
            Amount
            
            Capital
            
            Subscriptions
            
            Stage
            
            Total$
            
            $
            
            $
            
            $
            
            $Balance
                at December 28, 1998(date
                of inception)
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -Stock
                issued for organization costs
            
            
            33,000
            
            
            33,000
            
            
            (32,967
            )
            
            -
            
            
            -
            
            
            33Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (33
            )
            
            (33
            )Balances
                at December 31, 1988 toDecember
                31, 1996
            
            
            33,000
            
            
            33,000
            
            
            (32,967
            )
            
            -
            
            
            (33
            )
            
            -1,000
                for 1 stock split
            
            
            32,967,000
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -Cancelled
                30,000,000 shares
            
            
            (30,000,000
            )
            
            (32,700
            )
            
            32,700
            
            
            -
            
            
            -
            
            
            -Stock
                issued for cash at $5.00 per share
            
            
            20,000
            
            
            2
            
            
            99,998
            
            
            -
            
            
            -
            
            
            100,000Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (80,025
            )
            
            (80,025
            )Balance
                at December 31, 1997
            
            
            3,020,000
            
            
            302
            
            
            99,731
            
            
            -
            
            
            (80,058
            )
            
            19,975Stock
                issued for services at $0.10 per share
            
            
            95,000
            
            
            10
            
            
            9,490
            
            
            -
            
            
            -
            
            
            9,500Stock
                issued for cash at $0.14 per share
            
            
            52,800
            
            
            5
            
            
            7,795
            
            
            (2,722
            )
            
            -
            
            
            5,078Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (33,798
            )
            
            (33,798
            )Balance
                at December 31, 1998
            
            
            3,167,800
            
            
            317
            
            
            117,016
            
            
            (2,722
            )
            
            (113,856
            )
            
            755Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (66,662
            )
            
            (66,662
            )Balance
                at December 31, 1999
            
            
            3,167,800
            
            
            317
            
            
            117,016
            
            
            (2,722
            )
            
            (180,518
            )
            
            (65,907
            )2
                for 1 stock split
            
            
            3,167,800
            
            
            317
            
            
            (317
            )
            
            -
            
            
            -
            
            
            -Stock
                issued for consulting feesat
                $2.00 per share
            
            
            320,000
            
            
            32
            
            
            639,968
            
            
            -
            
            
            -
            
            
            640,000Stock
                issued to settle trade payablesat
                $2.00 per share
            
            
            20,540
            
            
            2
            
            
            41,078
            
            
            -
            
            
            -
            
            
            41,080Stock
                issued for services at$2.00
                per share
            
            
            11,960
            
            
            2
            
            
            23,918
            
            
            -
            
            
            -
            
            
            23,920Stock
                issued per preemptive rights
            
            
            192
            
            
            -
            
            
            17
            
            
            -
            
            
            -
            
            
            17Stock
                subscriptions received
            
            
            -
            
            
            -
            
            
            -
            
            
            2,722
            
            
            -
            
            
            2,722Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (1,018,914
            )
            
            (1,018,914
            )Balance
                at December 31, 2000
            
            
            6,688,292
            
            
            670
            
            
            821,680
            
            
            -
            
            
            (1,199,432
            )
            
            (377,082
            )





SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)


(A
      Development Stage Company)


STATEMENT
      OF STOCKHOLDERS' EQUITY (continued)


December
      28, 1988 ( Inception) to December 31, 2007




DeficitAccumulatedAdditional
            
            
            
            During
                theCommon
                Stock
            
            Paid-in
            
            Stock
            
            DevelopmentShares
            
            Amount
            
            Capital
            
            Subscriptions
            
            Stage
            
            Total$
            
            $
            
            $
            
            $
            
            $Stock
                issued for consulting feesand
                payables at $0.08 per share
            
            
            687,500
            
            
            68
            
            
            54,932
            
            
            -
            
            
            -
            
            
            55,000Stock
                issued at $0.08 per sharefor
                rent payable
            
            
            535,000
            
            
            54
            
            
            42,746
            
            
            -
            
            
            -
            
            
            42,800Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (227,672
            )
            
            (227,672
            )Balance
                at December 31, 2001
            
            
            7,910,792
            
            
            792
            
            
            919,358
            
            
            -
            
            
            (1,427,104
            )
            
            (506,954
            )1
                for 10 reverse stock split
            
            
            (7,119,708
            )
            
            (713
            )
            
            713
            
            
            -
            
            
            -
            
            
            -Stock
                subscribed for converted debts
            
            
            -
            
            
            -
            
            
            -
            
            
            641,953
            
            
            -
            
            
            641,953Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (180,733
            )
            
            (180,733
            )Balance
                at December 31, 2002
            
            
            791,084
            
            
            79
            
            
            920,071
            
            
            641,953
            
            
            (1,607,837
            )
            
            (45,734
            )Stock
                issued for cash at $0.10 per share
            
            
            280,000
            
            
            28
            
            
            27,972
            
            
            -
            
            
            -
            
            
            28,000Stock
                issued for converted debts
            
            
            5,598,947
            
            
            560
            
            
            641,393
            
            
            (641,953
            )
            
            -
            
            
            -Stock
                issued for debt settlementat
                $0.20 per share
            
            
            280,538
            
            
            28
            
            
            56,080
            
            
            -
            
            
            -
            
            
            56,108Stock
                issued for debt settlementat
                $0.20 per share
            
            
            52,500
            
            
            5
            
            
            10,495
            
            
            -
            
            
            -
            
            
            10,500Stock
                issued for debt settlementat
                $0.10 per share
            
            
            50,000
            
            
            5
            
            
            4,995
            
            
            -
            
            
            -
            
            
            5,000Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (100,115
            )
            
            (100,115
            )Balance
                at December 31, 2003
            
            
            7,053,069
            
            
            705
            
            
            1,661,006
            
            
            -
            
            
            (1,707,952
            )
            
            (46,241
            )Stock
                issued for debt settlementat
                $0.10 per share
            
            
            735,782
            
            
            73
            
            
            73,505
            
            
            -
            
            
            -
            
            
            73,578Stock
                issued for debt settlementat
                $0.10 per share
            
            
            50,000
            
            
            5
            
            
            4,995
            
            
            -
            
            
            -
            
            
            5,000Stock
                issued for services at$0.15
                per share
            
            
            65,000
            
            
            6
            
            
            9,744
            
            
            -
            
            
            -
            
            
            9,750Stock
                issued for debt settlementat
                $0.10 per share
            
            
            86,000
            
            
            9
            
            
            8,591
            
            
            -
            
            
            -
            
            
            8,600Stock
                issued for debt settlementat
                $0.16 per share
            
            
            277,314
            
            
            28
            
            
            44,717
            
            
            -
            
            
            -
            
            
            44,745Stock
                issued for cash at $0.35 per share
            
            
            871,572
            
            
            87
            
            
            304,963
            
            
            -
            
            
            -
            
            
            305,050Subscriptions
                receivable
            
            
            -
            
            
            -
            
            
            -
            
            
            (35,000
            )
            
            -
            
            
            (35,000
            )Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (447,411
            )
            
            (447,411
            )Balance
                at December 31, 2004
            
            
            9,138,737
            
            
            913
            
            
            2,107,521
            
            
            (35,000
            )
            
            (2,155,363
            )
            
            (81,929
            )





SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)


(A
      Development Stage Company)


STATEMENT
      OF STOCKHOLDERS' EQUITY (continued)


December
      28, 1988 ( Inception) to December 31, 2007


DeficitAccumulatedAdditional
            
            
            
            During
                theCommon
                Stock
            
            Paid-in
            
            Stock
            
            DevelopmentShares
            
            Amount
            
            Capital
            
            Subscriptions
            
            Stage
            
            Total$
            
            $
            
            $
            
            $
            
            $Stock
                issued for cash at $0.35 per share
            
            
            914,288
            
            
            91
            
            
            319,909
            
            
            -
            
            
            -
            
            
            320,000Stock
                issued for debt settlementat
                $0.10 per share
            
            
            1,147,680
            
            
            115
            
            
            114,653
            
            
            -
            
            
            -
            
            
            114,768Stock
                issued for debt settlementat
                $0.50 per share
            
            
            50,000
            
            
            5
            
            
            24,995
            
            
            -
            
            
            -
            
            
            25,000Subscriptions
                received
            
            
            -
            
            
            -
            
            
            -
            
            
            35,000
            
            
            -
            
            
            35,000Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (407,256
            )
            
            (407,256
            )Balance
                at December 31, 2005
            
            
            11,250,705
            
            
            1,124
            
            
            2,567,078
            
            
            -
            
            
            (2,562,619
            )
            
            5,583Stock
                issued for financecosts
                at $0.35 per share (Note 7)
            
            
            150,000
            
            
            15
            
            
            52,485
            
            
            -
            
            
            -
            
            
            52,500Stock
                issued for consulting feesat
                $0.36 per share
            
            
            100,000
            
            
            10
            
            
            35,990
            
            
            -
            
            
            -
            
            
            36,000Stock
                issued for consulting feesat
                $0.40 per share
            
            
            176,000
            
            
            18
            
            
            70,382
            
            
            -
            
            
            -
            
            
            70,400Stock
                issued for financecosts
                at $0.45 per share (Note 7)
            
            
            300,000
            
            
            30
            
            
            134,970
            
            
            -
            
            
            -
            
            
            135,000Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (532,610
            )
            
            (532,610
            )11,976,705
            
            
            1,197
            
            
            2,860,905
            
            
            -
            
            
            (3,095,229
            )
            
            (233,127
            )Beneficial
                conversion feature on convertible debt
            
            
            
            
            
            
            
            
            208,157
            
            
            
            
            
            
            
            
            208,157Stock
                issued for conversion of debt
            
            
            1,097,361
            
            
            110
            
            
            219,362
            
            
            
            
            
            
            
            
            219,472Debt
                forgiveness - related party debt
            
            
            
            
            
            
            
            
            16,000
            
            
            
            
            
            
            
            
            16,000Warrants
                Issued with Loans Payable
            
            
            
            
            
            
            
            
            678,400
            
            
            
            
            
            
            
            
            678,400Net
                Loss
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (850,438
            )
            
            (850,438
            )Balance
                at December 31. 2007
            
            
            13,074,066
            
            
            1,307
            
            
            3,982,824
            
            
            
            
            
            (3,945,668
            )
            
            (38,463
            )




The
      accompanying notes are an integral part of these financial
      statements.







SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)


(A
      Development Stage Company)


NOTES
      TO
      THE FINANCIAL STATEMENTS


DECEMBER
      31, 2007 AND 2006





Note
      1
      - Nature of Operations and Basis of Presentation





(a) Organization





Sibling
      Entertainment Group Holdings, Inc., formerly Sona Development Corp. (the
“Company”) was incorporated as Houston Produce Corporation under the laws of the
      State of Texas on December 28, 1988. The Company was organized primarily for
      the
      purpose of importing fruits and vegetables from Latin America On December 28,
      2002, the Company changed its name to Sona Development Corp. The Company is
      currently pursuing a potential merger with Sibling Entertainment Group, Inc.
      ("Sibling"), an entertainment development and production company based in New
      York City, as described in Note 9. The Company is considered a development
      stage
      company in accordance with Statement of Financial Accounting Standards (SFAS)
      No. 7.





(b) Going
      Concern





The
      financial statements have been prepared on the basis of a going concern which
      contemplates the realization of assets and the satisfaction of liabilities
      in
      the normal course of business. The Company has not generated any revenues or
      completed development of any commercially acceptable products or services to
      date and has incurred losses of $3,945,668 since inception, and further
      significant losses are expected to be incurred in the Company’s development
      stage. The Company will depend almost exclusively on outside capital through
      the
      issuance of common shares, and advances from related parties to finance ongoing
      operating losses. The ability of the Company to continue as a going concern
      is
      dependent on raising additional capital and ultimately on generating future
      profitable operations. There can be no assurance that the Company will be able
      to raise the necessary funds when needed to finance its ongoing costs. These
      factors raise substantial doubt about the ability of the Company to continue
      as
      a going concern. The accompanying financial statements do not include any
      adjustments relative to the recoverability and classification of asset carrying
      amounts or the amount and classification of liabilities that might result from
      the outcome of this uncertainty.





Note
      2
      - Summary of Significant Accounting Policies





(a) Use
      of
      Estimates





The
      preparation of financial statements in conformity with United States generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosure of contingent assets and liabilities at the date of the financial
      statements and the reported amounts of revenue and expenses during the reporting
      period. Actual results could differ from those estimates.





(b) Income
      Taxes





The
      Company utilizes SFAS No. 109, “Accounting for Income Taxes” which requires the
      recognition of deferred tax assets and liabilities for the expected future
      tax
      consequences of events that have been included in the financial statements
      or
      tax returns. Under this method, deferred income taxes are recognized for the
      estimated tax consequences in future years of differences between the tax bases
      of assets and liabilities and their financial reporting amounts at each period
      end based on enacted tax laws and statutory tax rates applicable to the period
      in which the differences are expected to affect taxable income.







SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)


(A
      Development Stage Company)


NOTES
      TO
      THE FINANCIAL STATEMENTS


DECEMBER
      31, 2007 AND 2006




Note
      2
      - Summary of Significant Accounting Policies (continued)





(d) Financial
      Instruments





In
      accordance with the requirements of SFAS No. 107, “Disclosures about Fair Value
      of Financial Instruments,” the Company has determined the estimated fair value
      of financial instruments using available market information and appropriate
      valuation methodologies. The carrying values of cash, accounts payable and
      amounts due to related parties approximate fair values due to the short-term
      maturity of the instruments.





(e) Stock-Based
      Compensation





On
      January 1, 2006, the Company adopted SFAS No. 123 (revised 2004) (SFAS
      No. 123R), Share-Based Payment, which addresses the accounting for
      stock-based payment transactions in which an enterprise receives employee
      services in exchange for (a) equity instruments of the enterprise or
      (b) liabilities that are based on the fair value of the enterprise’s equity
      instruments or that may be settled by the issuance of such equity
      instruments. In January 2005, the Securities and Exchange Commission (SEC)
      issued Staff Accounting Bulletin (SAB) No. 107, which provides
      supplemental implementation guidance for SFAS No. 123R. SFAS No. 123R
      eliminates the ability to account for stock-based compensation transactions
      using the intrinsic value method under Accounting Principles Board (APB) Opinion
      No. 25, Accounting for Stock Issued to Employees, and instead generally
      requires that such transactions be accounted for using a fair-value-based
      method. The Company uses the Black-Scholes-Merton (“BSM”) option-pricing model
      to determine the fair-value of stock-based awards under SFAS No. 123R,
      consistent with that used for pro forma disclosures under SFAS No. 123,
“ *Accounting
      for Stock-Based Compensation* ”.
      The
      Company has elected the modified prospective transition method as permitted
      by
      SFAS No. 123R and accordingly prior periods have not been restated to
      reflect the impact of SFAS No. 123R. The modified prospective transition
      method requires that stock-based compensation expense be recorded for all new
      and unvested stock options, restricted stock, restricted stock units, and
      employee stock purchase plan shares that are ultimately expected to vest as
      the
      requisite service is rendered beginning on January 1, 2006 the first day of
      the
      Company’s fiscal year 2006. Stock-based compensation expense for awards granted
      prior to January 1, 2006 is based on the grant date fair-value as determined
      under the pro forma provisions of SFAS No. 123. As the Company did not
      grant any stock options in 2005, no pro forma information is
      provided.





Prior
      to
      the adoption of SFAS No. 123R, the Company measured compensation expense
      for its employee stock-based compensation plans using the intrinsic value method
      prescribed by APB Opinion No. 25. The Company applied the disclosure
      provisions of SFAS No. 123 as amended by SFAS No. 148, “ *Accounting
      for Stock-Based Compensation - Transition and Disclosure* ”,
      as if
      the fair-value-based method had been applied in measuring compensation expense.
      Under APB Opinion No. 25, when the exercise price of the Company’s employee
      stock options was equal to the market price of the underlying stock on the
      date
      of the grant, no compensation expense was recognized.





The
      Company accounts for equity instruments issued in exchange for the receipt
      of
      goods or services from other than employees in accordance with SFAS No. 123
      and
      the conclusions reached by the Emerging Issues Task Force (“EITF”) in Issue No.
      96-18. Costs are measured at the estimated fair market value of the
      consideration received or the estimated fair value of the equity instruments
      issued, whichever is more reliably measurable. The value of equity instruments
      issued for consideration other than employee services is determined on the
      earliest of a performance commitment or completion of performance by the
      provider of goods or services as defined by EITF 96-18.





SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp.)


(A
      Development Stage Company)


NOTES
      TO
      THE FINANCIAL STATEMENTS


DECEMBER
      31, 2007 AND 2006





Note
      2
      - Summary of Significant Accounting Policies (continued)





(f) Loss
      per Share





The
      Company computes loss per share in accordance with SFAS No. 128, “ *Earnings
      per Share* ”
which
      requires presentation of both basic and diluted earnings per share on the face
      of the statement of operations. Basic loss per share is computed by dividing
      net
      loss available to common shareholders by the weighted average number of
      outstanding common shares during the period. Diluted loss per share gives effect
      to all dilutive potential common shares outstanding during the period including
      stock options and warrants, using the treasury method, and preferred stock,
      using the if-converted method. Dilutive loss per share excludes all potential
      common shares if their effect is anti-dilutive.





(g) Recent
      Accounting Pronouncements





In
      September 2006, the FASB issued SFAS No. 157, “ *Fair
      Value Measures* ”.
      This
      Statement defines fair value, establishes a framework for measuring fair value
      in generally accepted accounting principles (GAAP), expands disclosures about
      fair value measurements, and applies under other accounting pronouncements
      that
      require or permit fair value measurements. SFAS No. 157 does not
      require any new fair value measurements. However, the FASB anticipates that
      for
      some entities, the application of SFAS No. 157 will change current
      practice. SFAS No. 157 is effective for financial statements issued for fiscal
      years beginning after November 15, 2007, which for the Company would be the
      fiscal year beginning January 1, 2008. The Company is currently evaluating
      the
      impact of SFAS No. 157 but does not expect that it will have a
      material impact on its financial statements.





In
      September 2006, the SEC issued Staff Accounting Bulletin
      (“SAB”) No. 108, “ *Considering
      the Effects of Prior Year Misstatements when Quantifying Misstatements in
      Current Year Financial Statements* .”
SAB
      No. 108 addresses how the effects of prior year uncorrected misstatements
      should be considered when quantifying misstatements in current year financial
      statements. SAB No. 108 requires companies to quantify misstatements using
      a balance sheet and income statement approach and to evaluate whether either
      approach results in quantifying an error that is material in light of relevant
      quantitative and qualitative factors. SAB No. 108 is effective for periods
      ending after November 15, 2006. The Company adopted SAB No.108 in the
      fourth quarter of 2006 with no impact on its consolidated financial statements.





In
      February 2007, the FASB issued SFAS No. 159, “ *The
      Fair Value Option for Financial Assets and Financial
      Liabilities* ”.
      This
      Statement permits entities to choose to measure many financial assets and
      financial liabilities at fair value. Unrealized gains and losses on items for
      which the fair value option has been elected are reported in earnings. SFAS
      No.
      159 is effective for fiscal years beginning after November 15, 2007. The
      Company is currently assessing the impact of SFAS No. 159 on its financial
      position and results of operations.








Note
      3
      - Due to Related Parties





Related
      party payables consist of the following:


December
                31,2007
            
            2006Due
                to a significant shareholder (a)
            
            $
            74,833
            
            $
            199,572Unsecured
                payable to a shareholder with no specificterms
                and due on demand (b)
            
            
            -
            
            
            16,000Due
                to a company with a director in common (d)
            
            
            119,400
            
            
            -$
            194,233
            
            $
            215,572




The
      following represents related party transactions paid or accrued during the
      years
      ended December 31, 2007 and 2006.




2007
            
            2006Consulting
                fees paid or accrued to a director (c)
            
            $
            37,900
            
            $
            110,500Consulting
                fees paid or accrued to a significant shareholder (a)
            
            
            42,000
            
            
            60,900Rent
                paid or accrued to (forgiven by) a shareholder (b)
            
            
            (16,000)
            
            
            12,000$
            63,900
            
            $
            183,400





The
      above
      transactions are in the normal course of operation .





(a)  The
      amounts due to related parties at December 31, 2007 of  $74,833 (2006 -
      $199,572) are due to a significant shareholder for cash loans, consulting fees
      and reimbursable expenses. The Company is indebted to this significant
      shareholder for cash loans of $21,600 which bear interest at a rate of 10%
      per
      annum and is due from the proceeds of the next financing arranged by the
      Company. At December 31, 2007, the Company had accrued $2,534 of interest on
      the
      loans. The loans are unsecured and due on demand. Overdue payments will bear
      interest at 12% per annum until paid. In February 2007, the Company issued
      1,097,361 shares of common stock in settlement of an obligation of $219,472
      for
      consulting fees, loans and expenses due to this significant
      shareholder.




At
      December 31, 2007, the Company was also indebted $50,699 to this significant
      shareholder for consulting fees and reimbursable expenses. This additional
      debt
      bears no interest and has no set term of repayment.









(b)  In
      May of
      2005, the Company entered into an agreement with a shareholder for office rent
      and expenses at $1,000 per month. During the year ended December 31, 2007,
      the
      balance due of $16,000 to this shareholder was forgiven and recorded as
      additional paid-in capital.





(c)  On
      December 1, 1999, the Company entered into a consulting agreement with the
      Company’s sole officer and director. The agreement has an automatic renewal
      provision unless terminated by either party. In fiscal 2007, the Company
      incurred $37,900 (2006 - $110,500) in consulting fees to this
      director.





(d) The
      amounts are due to Sibling Theatricals, Inc. (“STI”), a company with directors
      in common, at December 31, 2007 of $119,400 due for cash loans, interest and
      expenses paid on behalf of the Company. The Company is indebted for cash loans
      of $51,450 which bear interest at a rate of 10% per annum. At December 31,
      2007,
      the Company had accrued $2,174 of interest on the loans. The loans are unsecured
      and due on demand.  At
        December 31, 2007, the Company was also indebted $55,050 to STI for expenses
        paid on its behalf. This additional debt bears no interest and has no set
        term
        of repayment.


Related
        Party Receivable
  In
        conjunction with the short-term financing under Series AA debentures, the
        amounts received were lent to
        a
        related party, Sibling Theatrical Inc. at an annual interest rate of 13%.
        The
        notes were receivable 6 months
        after each borrowing. As of December 31, 2007, a total of $2,594,170 was
        due
        from Sibling Theatrical
        Inc. representing notes
        of
        $2,555,000 and accrued interest of $39,170 (net of interest payments received
        of
        $127,075.


Note
      4-
      Short-Term Notes Payable





During
      the period of May through August of 2007, the Company borrowed $2,555,000 from
      various individuals payable in six months from the date of borrowing at an
      annual interest rate of 13%. In conjunction with this financing, the lenders
      received for each unit equals to $10,000, 10,000 stock purchase warrants to
      purchase 10,000 shares of common stock at $1 per share and 10,000 stock purchase
      warrants to purchase 10,000 shares of common stock at $2.50 per share. The
      warrants expire within five years of the loan. The value of these warrants
      using
      the, Black-Scholes method, was $678,400 and was recorded as a discount to the
      debt and is amortized over the life of the debt. Amortization of the debt
      discount of $380,590 was charged to interest expense during the period ended
      December 31, 2007. The fair value of the warrants was estimated using the
      following assumptions:





Expected
                volatility
            
            
            61
            %Expected
                dividends
            
            
            0Expected
                term
            
            
            5
                yearsRisk-free
                rate
            
            
            5.25
            %





If
      the
      Company undertakes an underwritten public offering of securities for a total
      subscription of $6,000,000 prior to the maturity date, in lieu of repayment
      of
      principal and interest on the Notes, at the Note holder’s option, the Note
      holder may acquire securities in the Qualified Offering in the amount of such
      principal and interest.





Note
      5- Income Taxes





The
      Company accounts for its income taxes in accordance with FASB No. 109,
“Accounting for Income Taxes.” As of December 31, 2007, the Company had net
      operating loss carry forwards that may be available to reduce future years’
taxable income and will expire commencing in 2015. Availability of loss usage
      is
      subject to change of ownership limitations under Internal Revenue Code 382.
      Future tax benefits which may arise as a result of these losses have not been
      recognized in these financial statements, as their realization is determined
      not
      likely to occur and accordingly, the Company has recorded a valuation allowance
      for the deferred tax asset relating to these tax loss
      carry-forwards.







SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp)


(A
      Development Stage Company)


NOTES
      TO
      THE FINANCIAL STATEMENTS


DECEMBER
      31, 2007 AND 2006





Note
      6
      - Capital Stock





(a) Stock
      options





The
      Company has not issued any options on its common stock to date and has not
      recorded any stock-based compensation with respect to stock
      options.





(b) Stock
      issuances





For
      the
      period April 1, 2007 though December 31, 2007, the Company did not issue any
      new
      shares of common stock.





In
      February 2007, the company issued 1,097,361 shares at $0.20 per share to a
      significant shareholder in settlement of an outstanding balance of $219,472
      for
      cash loans, accrued interest, reimbursable expense and consulting fees. The
      settlement resulted in a charge to interest expense of $208,157 as a result
      of a
      beneficial conversion feature.





On
      September 15, 2006, the Company issued 300,000 shares of common stock with
      a
      fair value of $135,000 to a shareholder as partial consideration for bridge
      financing.





On
      May
      30, 2006, the Company issued 126,000 shares of common stock with a fair
      value of $31,500 to a shareholder for consulting fees.




On
      May
      30, 2006, the Company issued 50,000 shares of common stock with a fair value
      of
      $20,000 to a director for consulting fees.





On
      May 8,
      2006, the Company issued 100,000 shares of common stock with a fair value of
      $36,000 to a director for consulting fees.





(b) Stock
      issuances (continued)





On
      February 17, 2006, the Company issued 150,000 shares of common stock with a
      fair
      value of $52,500 to a shareholder as partial consideration for $50,000 in bridge
      financing from the shareholder.





Note 7
      - Supplemental Cash Flow Information





Actual
      amounts paid for interest and income taxes for 2007 and 2006 are as follows:




2007
            
            2006Interest
            
            $
            127,075
            
            $
            -Income
                taxes
            
            
            -
            
            
            -







SIBLING
      ENTERTAINMENT GROUP HOLDINGS, INC.


(FKA
      SONA
      Development Corp)


(A
      Development Stage Company)


NOTES
      TO
      THE FINANCIAL STATEMENTS


DECEMBER
      31, 2007 AND 2006





Note 7
      - Supplemental Cash Flow Information (continued)





During
      the years ended December 31, 2007 and 2006, the Company issued:





a)
            1,097,361
                shares at $0.20 per share to a significant shareholder in settlement
                of an
                outstanding balance of $219,472 for loans, accrued interest, reimbursable
                expenses and consulting fees.b)
            126,000
                shares of common stock with a fair value of $31,500 to a shareholder
                for
                consulting fees.c)
            150,000
                shares of common stock with a fair value of $56,000 to a director
                for
                consulting fees.d)
            450,000
                shares of common stock with a fair value of $187,500 to a shareholder
                as
                partial consideration for bridge
                financing.




During
        the year ended December 31, 2007, warrants issued with a value of $678,400
        were
        recorded as a discount to the
        related debt for the same amount.
  During
        the year ended December 31, 2007, the Company recorded a discount on debt
        for a
        beneficial conversion feature
        in the amount of $208,157.
  During
        the year ended December 31, 2007, debt from a related party in the amount
        of
        $16,000 was forgiven and recorded
        as additional paid-in capital.
  Note
        8 - Investment





The
      company entered into a letter of intent on May 20, 2004 (and amended through
      November 2005) with Idea One, Inc., a private company involved in the
      development of battery cell technology. The letter of intent did not culminate
      in a definitive agreement.





Over
      the
      term of the letter of intent the Company loaned Idea One a total of $550,000
      through a series of convertible promissory notes.  The notes were
      written down to $1 as of December 31, 2005 as management determined they
      were not collectible and further, if the Idea One shares were received, it
      was
      not possible to determine their value. .





As
      of
      April 30, 2006, the Company agreed to convert the outstanding balance, including
      accrued interest, of $595,642, at $0.40 per share, to 1,489,106 common shares
      of
      Idea One, in full satisfaction of the loan receivable. The Idea One shares
      were
      received in the second quarter of 2006. As of December 31, 2007, these shares
      are recorded at $1.





Note
      9 - Proposed Merger with Sibling





On
      February 9, 2007, the share holders of the Company approved an Agreement of
      Acquisition and Plan of Reorganization, as amended, to acquire the following
      four subsidiaries from Sibling Entertainment Group, Inc. (an entertainment
      development and production company based in New York City): Sibling Theatricals,
      Inc., Sibling Pictures, Inc., Sibling Music Corp., and Sibling Properties,
      Inc.
      Under the reorganization, the Company will acquire these subsidiaries, as well
      as the subsidiaries of Sibling Pictures, Inc., which represent Sibling’s
      respective divisions and operations of live-stage theatrical operations, music,
      independent feature films and theatrical real estate. The definitive agreement
      anticipates a share exchange pursuant to which the Company will issue up to
      37,208,900 shares of common stock for all the issued and outstanding shares
      of
      the Sibling subsidiaries on the closing date and will issue up to 571,340
      additional shares reserved for convertible debentures and consulting
      agreements... The Company will further deliver 26,079,424 purchase warrants
      with
      terms ranging from 3 to 5 years at exercise prices ranging from $0.275 a share
      to $1.00 per share.





The
      closing of the Agreement of Acquisition and Plan of Reorganization remains
      subject to the applicable registration requirements of the Securities Exchanges
      Act of 1934, as amended, specifically the filing and effectiveness of an S-4
      registration statement to be filed with the SEC. Based upon the requirement
      to
      file an S-4 registration statement, the Company may change the structure of
      the
      transaction with Sibling. The Company intends to close the acquisition of the
      Sibling Entertainment Group, Inc. subsidiaries as soon as is
      practicable.







**ITEM
      8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
      FINANCIAL DISCLOSURE**




On
      May 3,
      2007, the Company dismissed Dale Matheson Carr-Hilton Labonte LLP (Dale
      Matheson), as its independent registered public accounting firm. The Company
      hired Rosenberg Rich Baker Berman & Co. (Rosenberg) as its new independent
      registered public accounting firm. During the two most recent fiscal years
      and
      the subsequent interim period through May 3, 2007, the Company and Dale Matheson
      did not have any disagreements with regard to any matter of accounting
      principles or practices, financial statement disclosure, or auditing scope
      or
      procedure.





The
      Company did not have any disagreements with Rosenberg regarding accounting
      or
      financial disclosure.





**ITEM
      8A.           CONTROLS AND
      PROCEDURES**


**Management’s
          Report on Internal Control over Financial Reporting**
  Management
          of the Company is responsible for establishing and maintaining adequate
          internal
          control over financial reporting, as such term is defined in Rules 13a-15(f)
          and
          15d-15(f) under the Exchange Act. The Company’s internal control over financial
          reporting is a process designed to provide reasonable assurance regarding
          the
          reliability of financial reporting and the preparation of financial statements
          for external reporting purposes in accordance with accounting principles
          generally accepted in the United States of America. Internal control over
          financial reporting includes those policies and procedures that (i) pertain
          to
          the maintenance of records that, in reasonable detail, accurately and fairly
          reflect the transactions and dispositions of the assets of the Company;
          (ii)
          provide reasonable assurance that transactions are recorded as necessary
          to
          permit preparation of financial statements in accordance with generally
          accepted
          accounting principles, and that receipts and expenditures of the Company
          are
          being made only in accordance with authorizations of management and directors
          of
          the Company; and (iii) provide reasonable assurance regarding prevention
          or
          timely detection of unauthorized acquisition, use, or disposition of the
          Company’s assets that could have a material effect on the interim or annual
          financial statements.
  Because
          of its inherent limitations, internal control over financial reporting
          may not
          prevent or detect misstatements. Also, projections of any evaluation of
          effectiveness to future periods are subject to the risk that controls may
          become
          inadequate because of changes in conditions, or that the degree of compliance
          with policies or procedures may deteriorate.
  The
          Company’s management did not assess the effectiveness of the Company’s internal
          control over financial reporting as of December 31, 2007 in accordance
          with a
          recognized framework, due to its lack of resources. However, we have identified
          what we believe to be material weaknesses.
  A
          material weakness is a deficiency, or a combination of deficiencies, in
          internal
          control over financial reporting, such that there is a reasonable possibility
          that a material misstatement of the Company’s annual or interim financial
          statements will not be prevented or detected on a timely basis.
  The
          material weaknesses identified were (i) lack of segregation of duties,
          (ii) lack
          of sufficient resources with SEC, generally accepted accounting principals
          (GAAP) and tax accounting expertise; and (iii) inadequate security over
          information technology. These control deficiencies resulted in audit adjustments
          to the Company’s 2007 annual financial statements. Accordingly, management has
          determined that these control deficiencies constitute material weaknesses.
  Because
          of these material weaknesses, management concluded that the Company did
          not
          maintain effective internal control over financial reporting as of December
          31,
          2007, This report does not include an attestation report of our registered
          public accounting firm regarding our internal controls over financial reporting.
          The disclosure contained under this Item 8A was not subject to attestation
          by
          our registered public accounting firm pursuant to temporary rules of the
          SEC
          that permit us to provide only the disclosure under this Item 8A in this
          annual
          report.
  Changes
          in Internal Control over Financial Reporting
  The
          Company is in the process of correcting the internal control deficiencies
          through ongoing remediation efforts. However, these efforts individually
          and in
          the aggregate may not be sufficient to fully eliminate the weakness that
          have
          materially affected, or were reasonably likely to materially affect, our
          internal control over financial reporting.







**ITEM
      8B.           OTHER
      INFORMATION**




None.







**PART
      III**




**ITEM
      9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
      WITH
      SECTION 16(a) OF THE EXCHANGE ACT**





**Name**
            
            **Age******
            
            ******Position(s)
                and Office(s)**Mitchell
                Maxwell
            
            54
            
            Chairman
                of the Board of DirectorsVictoria
                Maxwell
            
            43
            
            DirectorJames
                Cardwell
            
            46
            
            DirectorRichard
                Bernstein
            
            53
            
            DirectorNora
                Coccaro (*)
            
            50
            
            Former
                Chief Executive Officer, ChiefFinancial
                Officer, PrincipalAccounting
                Officer and Director




(*)  Nora
      Coccaro  resigned
      as President, Chief Executive Officer, Principal Accounting Officer and Director
      effective June 28, 2007. Ms. Coccaro did not resign as a result of any
      disagreement with the Company on any matter related to the Company’s operations,
      policies or practices.





**Mitchell
      Maxwell** was
      appointed Chairman of the Board of Directors on February 9, 2007. Mr. Maxwell
      has been involved in the entertainment business for over twenty five year and
      has produced seven Broadway shows, twenty seven Off-Broadway shows, four
      national tours, three West End shows and five independent films. He is currently
      President of Sibling Entertainment, Inc. and Chairman of the Denver Civic
      Theatre.





Mr.
      Maxwell is a graduate of Tufts University where he is currently an adjunct
      professor.





**Victoria
      Maxwell** was
      appointed a Director on February 9, 2007. Ms. Maxwell has over twenty years
      in
      the entertainment business. Ms. Maxwell has produced numerous theatre and film
      projects and con-founded three entertainment companies. She has collaborated
      on
      many projects with her brother, Mitchell Maxwell, and is co-founder and Vice
      President of Sibling Entertainment, Inc. Ms. Maxwell is on the Advisor Board
      of
      the WET Theatre company, is the Creative Consultant for the Stamford Center
      for
      the Arts and a member of the Board of Directors of the Denver Civic
      Theatre.





**James
      “Jay” Cardwell** has been
      the Chief Financial Officer of Sibling Entertainment, Inc since 2002. He is
      also
      the Executive director and Board Member of the Denver Civic Theatre, Inc. Before
      joining Sibling Entertainment, Inc. Cardwell was the Deputy Director (1999-2001)
      of the National Jazz Museum in Harlem. Previously, Mr. Cardwell was a consultant
      to Denstu, Inc. which provided consulting services to the theatrical industry.
      Mr. Cardwell started his career as a CPA with Arthur Andersen in St. Louis,
      MO.





**Richard
      Bernstein** is
      a
      veteran of the entertainment industry with over 20 years experience as a artist
      manager, booking agent, record producer, and a theatrical stage producer. Mr.
      Bernstein is President of Bernstein Entertainment Corporations and the Denver
      Civic theatre and is a member of the American Society of Composer, Authors
      and
      Publishers. Mr. Bernstein has been a Director of Sibling Entertainment Group
      Inc. since 2006.





**Compensation
      of Directors**




The
      Company’s director is not currently compensated for her service as a director of
      the Company. Directors currently are not reimbursed for out-of-pocket costs
      incurred in attending meetings.










**Board
      of Directors Committees**




The
      board
      of directors has not yet established an audit committee or a compensation
      committee. An audit committee typically reviews, acts on and reports to the
      board of directors with respect to various auditing and accounting matters,
      including the recommendations and performance of independent auditors, the
      scope
      of the annual audits, fees to be paid to the independent auditors, and internal
      accounting and financial control policies and procedures. Certain stock
      exchanges currently require companies to adopt a formal written charter that
      establishes an audit committee that specifies the scope of an audit committee’s
      responsibilities and the means by which it carries out those responsibilities.
      In order to be listed on any of these exchanges, the Company will be required
      to
      establish an audit committee.




**Code
      of Ethics**




The
      Company has adopted a Code of Ethics within the meaning of Item 406(b) of
      Regulation S-B of the Securities Exchange Act of 1934. The Code of Ethics
      applies to directors and senior officers, such as the principal executive
      officer, principal financial officer, controller, and persons performing similar
      functions. The Company has incorporated its Code of Ethics as Exhibit 14 to
      this
      Form 10-KSB. Further, the Company’s Code of Ethics is available in print, at no
      charge, to any security holder who requests such information by contacting
      the
      Company.




**Compliance
      with Section 16(a) of the Exchange Act**




Based
      solely upon a review of Forms 3, 4 and 5 furnished to the Company, the Company
      is unaware of an individuals or entities who during the period ended December
      31, 2007, were directors, officers, or beneficial owners of more than ten
      percent of the common stock of the Company, and who failed to file, on a timely
      basis, reports required by Section 16(a) of the Securities Exchange Act of
      1934
      except the following:




-
            Previously
                Nora Coccaro failed to file a Form 4 and Form 5 in a timely manner
                despite
                being an officer and director of the Company. Ms. Coccaro's filings
                are
                now current.-
            Michael
                Baybak failed to file a Form 4 and Form 5 in a timely manner despite
                being
                the beneficial owner of more than ten percent of the common stock
                of the
                Company. Mr. Baybak’s filings are now current.







**ITEM
      10.           EXECUTIVE
      COMPENSATION**




**Executive
      Compensation**




Except
      as
      set forth below, no compensation in excess of $100,000 was awarded to, earned
      by, or paid to any executive officer of the Company during the years 2007,
      2006,
      and 2005. The following table and the accompanying notes provide summary
      information for each of the last three fiscal years concerning cash and non-cash
      compensation paid or accrued by the Company’s current and past officers over the
      past three years.





Summary
                Compensation TableLong
                Term Compensation
            
            Annual
                CompensationAwards
            
            PayoutsName
                and
              Principal
              Positions
            
            Year
            
            Salary
            
            Bonus
            
            Other
                Annual
              Compensation
            
            Restricted
              Stock
              Award(s)
            
            Securities
              Underlying
              Options
            
            LTIP
              payouts
            
            All
                Other
              Compensation($)
            
            ($)
            
            ($)
            
            ($)
            
            SARs(#)
            
            ($)
            
            ($)Nora
                Coccaro,
            
            
            2006
            
            $
            54,500
            
            
            -
            
            
            -
            
            $
            56,000
            
            
            -
            
            
            -
            
            
            -chief
                executive
            
            
            2005
            
            
            47,949
            
            
            -
            
            
            -
            
            
            5,000
            
            
            -
            
            
            -
            
            
            -and
                financial
            
            
            2004
            
            
            35,755
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -officer,
                andDirector







**ITEM
      11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
      MANAGEMENT**




The
      following table sets forth certain information concerning the ownership of
      the
      Company’s common stock as of December 31, 2007, with respect to: (i) each person
      known to the Company to be the beneficial owner of more than five percent of
      the
      Company’s common stock; (ii) all directors; and (iii) directors and executive
      officers of the Company as a group. The notes accompanying the information
      in
      the table below are necessary for a complete understanding of the figures
      provided below. As of December 31, 2007, there were 13,074,066 shares of common
      stock issued and outstanding.




Title
                of Class
            
            Name
                and Address
            
            Number
                of Shares
            
            %
                of ClassCommon
            
            
            Nora
                Coccaro
            
            
            19,250
            
            
            0.15
            %Chief
                Executive and Financial Officer, and Director1066-2610
                West Hastings Street, Vancouver, BritishColumbia
                Canada V6E 2K3Common
            
            
            Michael
                Baybak
            
            
            3,494,371
            
            
            26.73
            %305-4515
                Ocean View BoulevardLa
                Canada, California 91011All
                executive officers and directors as a group(1)
            
            19,250
            
            
            0.15
            %




**ITEM
      12.           CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS**


Amounts
        at December 31, 2007 of $74,833 (2006 - $199,572) are due to a significant
        shareholder for cash loans, consulting fees and reimbursable expenses. The
        Company is indebted to this significant shareholder for cash loans of $21,600
        which bear interest at a rate of 10% per annum and is due from the proceeds
        of
        the next financing arranged by the Company. At December 31, 2007, the Company
        had accrued $2,534 of interest on the loans. The loans are unsecured and
        due on
        demand. Overdue payments will bear interest at 12% per annum until paid.
        In
        February 2007, the Company issued 1,097,361 shares of common stock in settlement
        of an obligation of $219,472 for consulting fees, loans and expenses due
        to this
        significant shareholder. At December 31, 2007, the Company was also indebted
        $50,699 to this significant shareholder for consulting fees and reimbursable
        expenses. This additional debt bears no interest and has no set term of
        repayment.
 
 In
        May of
        2005, the Company entered into an agreement with a shareholder for office
        rent
        and expenses at $1,000 per month. During the year ended December 31, 2007,
        the
        balance due of $16,000 to this shareholder was forgiven and recorded as
        additional paid-in capital.
 
 On
        December 1, 1999, the Company entered into a consulting agreement with the
        Company’s sole officer and director. The agreement has an automatic renewal
        provision unless terminated by either party. In fiscal 2007, the Company
        incurred $37,900 (2005 - $110,500) in consulting fees to this
        director.
 
 Amounts
        are due to Sibling Theatricals, Inc. (“STI”), a company with directors in
        common, at December 31, 2007 of $119,400 due for cash loans, interest and
        expenses paid on behalf of the Company. The Company is indebted for cash
        loans
        of $51,450 which bear interest at a rate of 10% per annum. At December 31,
        2007,
        the Company had accrued $2,174 of interest on the loans. The loans are unsecured
        and due on demand. At December 31, 2007, the Company was also indebted $55,050
        to STI for expenses paid on its behalf. This additional debt bears no interest
        and has no set term of repayment.
 
 In
        conjunction with the short-term financing under Series AA debentures, the
        amounts received were lent to a related party, Sibling Theatrical Inc. at
        an
        annual interest rate of 13%. The notes were receivable 6 months after each
        borrowing. As of December 31, 2007, a total of $2,594,170 was due from Sibling
        Theatrical Inc. representing notes of $2,555,000 and accrued interest
        of $39,170 (net of interest payments received of $127,075).


**ITEM
      13.          
EXHIBITS**




Exhibits
      required by Item 601 of Regulation S-B are listed in the Index to Exhibits
      beginning on Page 44 of this Form 10-KSB, which is incorporated herein by
      reference.




**ITEM
      14.           PRINCIPAL
      ACCOUNTANT FEES AND SERVICES**




Audit
      Fees




Rosenberg,
      Rich, Baker, Berman & Company provided audit services to the Company in
      connection with its annual report for the fiscal year ended December 31, 2007.
      The aggregate fees billed by Rosenberg, Rich, Baker, Berman & Company for
      the audit of the Company’s annual financial statement and a review of the
      Company’s quarterly financial statements was approximately $16,200.




Dale
      Matheson Carr-Hilton LaBonte, LLP provided audit services to the Company in
      connection with its annual report for the fiscal year ended December 31, 2006.
      The aggregate fees billed by Dale Matheson Carr-Hilton LaBonte, LLP for the
      audit of the Company’s annual financial statement and a review of the Company’s
      quarterly financial statements was approximately $39,900.




Audit
      Related Fees




Rosenberg,
      Rich, Baker, Berman & Company billed to the Company no fees in 2007 for
      professional services that are reasonably related to the audit or review of
      the
      Company’s financial statements that are not disclosed in “Audit Fees” above; and





Dale
      Matheson Carr-Hilton LaBonte, LLP billed to the Company no fees in 2006 for
      professional services that are reasonably related to the audit or review of
      the
      Company’s financial statements that are not disclosed in “Audit Fees” above.




Tax
      Fees




Rosenberg,
      Rich, Baker, Berman & Company billed to the Company no fees in 2007 for
      professional tax services rendered; and





Dale
      Matheson Carr-Hilton LaBonte, LLP billed to the Company no fees in 2006 for
      professional tax services rendered.




All
      Other Fees




Rosenberg,
      Rich, Baker, Berman & Company billed to the Company no fees in 2007 for
      other professional services rendered or any other services not disclosed above;
      and




Dale
      Matheson Carr-Hilton LaBonte, LLP billed to the Company no fees in 2006 for
      other professional services rendered or any other services not disclosed above.




Audit
      Committee Pre-Approval




The
      Company does not have a standing audit committee. Therefore, all services
      provided to the Company by Rosenberg, Rich, Baker, Berman & Company and Dale
      Matheson Carr-Hilton LaBonte, LLP as detailed above were pre-approved by the
      Company’s board of directors. The Company’s independent auditors, Rosenberg,
      Rich, Baker, Berman & Company and Dale Matheson Carr-Hilton LaBonte, LLP,
      performed all work using only their own full time permanent employees.







**SIGNATURES**




In
      accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
      this report to be signed on its behalf by the undersigned, thereunto duly
      authorized, this 15th day of February, 2008.




**Sibling
                Entertainment Group Holdings, Inc.**/s/
                Mitchell Maxwell, President





In
      accordance with the Exchange Act, this report has been signed below by the
      following persons on behalf of the registrant and in the capacities and on
      the
      dates indicated.





**Signature**
            
            **Title**
            
            **Date**/s/ Mitchell
                  Maxwell
            
            Director
            
            May
                15, 2008Mitchell
                Maxwell/s/
                James Cardwell
            
            Director
            
            May
                  15, 2008James
                  Cardwell/s/
                Richard Bernstein
            
            Director
            
            May
                  15, 2008Richard
                  Bernstein







**INDEX
      TO EXHIBITS**




Exhibit No.
            
            Page No.
            
            Description3(i)
            
            *
            
            Articles
                of Incorporation of the Company3(i)(b)
            
            *
            
            Amended
                Articles of Incorporation of the Company3(i)(c)
            
            **
            
            Amended
                Articles of Incorporation of the Company filed with the State of
                Texas on
                November 27, 2002.3(iii)
            
            *
            
            Bylaws
                of the Company14
            
            ***
            
            Code
                of Ethics dated March 1, 2004.31.1
            
            Attached
            
            Certification
                of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350,
                as
                adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
                2002.31.2
            
            Attached
            
            Certification
                of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350,
                as
                adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
                2002.32.1
            
            Attached
            
            Certification
                of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350
                as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002.32.2
            
            Attached
            
            Certification
                of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350
                as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002.




*
            Incorporated
                by reference from the Form 10SB/A filed with the Commission on April
                18,
                2000.




**
            Incorporated
                by reference from the Form 10KSB filed with the Commission on April
                3,
                2003.




***
            Incorporated
                by reference from the Form 10KSB filed with the Commission on March
                30,
                2004.