TABLE OF CONTENTS



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|PART I.   |                                                                                                        |  |  |     
|          | Item       1.     Description of Business                                                              |  |  | 3    | 
|          | Item       2.     Description of Property                                                              |  |  | 7    | 
|          | Item       3.     Legal Proceedings                                                                    |  |  | 7    | 
|          | Item       4.     Submission of Matters to a Vote of Security Holders                                  |  |  | 7    | 
|PART II.  |                                                                                                        |  |  |     
|          | Item       5.     Market for Common Equity and Related Stockholder Matters                             |  |  | 7    | 
|          | Item       6.     Managements's Plan of Operation                                                      |  |  | 8    | 
|          | Item       7.     Financial Statements                                                                 |  |  | 12   | 
|          | Item       8.     Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |  |  | 14   | 
|          | Item       8A.     Controls and Procedures                                                             |  |  | 14   | 
|PART III. |                                                                                                        |  |  |     
|          | Item       9.     Directors and Executive Officer                                                      |  |  | 14   | 
|          | Item     10.     Executive Compensation                                                                |  |  | 16   | 
|          | Item     11.     Security Ownership of Certain Beneficial Owners and Management                        |  |  | 16   | 
|          | Item     12.     Certain Relationships and Related Transactions                                        |  |  | 17   | 
|          | Item     13.     Exhibits                                                                              |  |  | 18   | 
|          | Item     14.     Principal Accountant Fees and Services                                                |  |  | 18   | 
|          | Signatures                                                                                             |  |  | 20   | 
|          | Index to Exhibits                                                                                      |  |  | 21   | 
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SONA DEVELOPMENT CORP.

(A DEVELOPMENT STAGE COMPANY)

December 31, 2004

INDEX

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|Report of Independent Registered Public Accounting Firm | 
|                                                        | 
|Balance Sheets                                          | 
|                                                        | 
|Statements of Operations                                | 
|                                                        | 
|Statements of Stockholders'Deficit                      | 
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|Statements of Cash Flows                                | 
|                                                        | 
|Notes to Financial Statements                           | 

### INDEX TO EXHIBITS

|Exhibit No. | Page No. | Description                                                                                                                                                                                                                    
|----------- | -------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3(i)        | *        | Articles of Incorporation of the Company                                                                                                                                                                                       
|3(i)(b)     | *        | Amended Articles of Incorporation of the Company                                                                                                                                                                               
|3(i)(c)     | **       | Amended Articles of Incorporation of the Company filed with the State of Texas on November 27, 2002.                                                                                                                           
|3(iii)      | *        | Bylaws of the Company                                                                                                                                                                                                          
|10(i)       | **       | Debt Settlement Agreement with Pensbreigh Holdings, Ltd. dated December 19, 2002.                                                                                                                                              
|10(ii)      | **       | Debt Settlement Agreement with Value Invest, Ltd. dated December 19, 2002.                                                                                                                                                     
|10(iii)     | **       | Debt Settlement Agreement with Zmax Capital Corp. dated December 19, 2002.                                                                                                                                                     
|10(iv)      | **       | Debt Settlement Agreement with Shafiq Nazerali dated December 19, 2002.                                                                                                                                                        
|10(v)       | **       | Debt Settlement Agreement with Zmax Capital Corp. dated December 19, 2002.                                                                                                                                                     
|10(vi)      | **       | Debt Settlement Agreement with Shafiq Nazerali dated December 19, 2002.                                                                                                                                                        
|10(vii)     | **       | Debt Settlement Agreement with Valor Invest Ltd. dated December 19, 2002.                                                                                                                                                      
|10(viii)    | **       | Debt Settlement Agreement with Carmin Bua, dated December 19, 2002.                                                                                                                                                            
|10(ix)      | **       | Debt Settlement Agreement with Portfolio Management Ltd. dated December 19, 2002.                                                                                                                                              
|10(x)       | **       | Debt Settlement Agreement with Shafiq Nazerali dated December 19, 2002.                                                                                                                                                        
|10(xi)      | **       | Debt Settlement Agreement with Elysio Capital Corp. dated December 19, 2002.                                                                                                                                                   
|14          | ***      | Code of Ethics dated March 1, 2004                                                                                                                                                                                             
|31          | Attached | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14 of the
 Securities and Exchange Act of 1934 as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley
 Act of 2002.
|32          | Attached | Certification of the Chief Executive Officer and 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.