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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Commission file number: 0-27729
 ZAP.COM CORPORATION
 (Exact name of Registrant as specified in its charter)
 Nevada(State or other jurisdiction of incorporation or organization)
    
    74-0571159(I.R.S. Employer Identification No.)100 Meridian Centre, Suite 350
Rochester, NY(Address of principal executive offices)
    
    14618(Zip Code)
 REGISTRANTS TELEPHONE NUMBER, INCLUDING AREA CODE
 (585) 242-2000
 FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST
 REPORT: Not applicable
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  o o þ
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ZAP.COM CORPORATION
TABLE OF CONTENTS
  
 PART I.
    
    UNAUDITED FINANCIAL INFORMATIONItem 1.
    
    Unaudited Financial StatementsUnaudited Condensed Balance Sheets as of September 30, 2007 and December 31, 2006
    
    3Unaudited Condensed Statements of Operations for the Three Months and Nine Months
Ended September 30, 2007 and 2006
    
    4Unaudited Condensed Statements of Cash Flows for the Nine Months Ended
September 30, 2007 and 2006
    
    5Notes to Unaudited Condensed Financial Statements
    
    6Item 2.
    
    Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    9Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    12Item 4.
    
    Controls and Procedures
    
    12Item 4T.
    
    Controls and Procedures
    
    12PART II.
    
    OTHER INFORMATIONItem 1.
    
    Legal Proceedings
    
    12Item 1A.
    
    Risk Factors
    
    13Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    13Item 3.
    
    Defaults Upon Senior Securities
    
    13Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    13Item 5.
    
    Other Information
    
    13Item 6.
    
    Exhibits
    
    13Signatures
    
    
    
    14Exhibits
    
    
    
    15EX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATIONEX-32.2: CERTIFICATION
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PART I  UNDAUDTED FINANCIAL INFORMATION
 
 Item 1. Unaudited Financial Statements and Notes
 ZAP.COM CORPORATION
 
 UNAUDITED CONDENSED BALANCE SHEETS
 September 30,
    
    
    December 31,2007
    
    
    2006ASSETS:Current assets:Cash and cash equivalents
    
    $
    46,598
    
    
    $
    1,724,351Short-term investments
    
    
    1,636,507
    
    
    
    Other receivables
    
    
    4,225
    
    
    
    3,151Prepaid assets
    
    
    
    
    
    
    848Total current assets
    
    $
    1,687,330
    
    
    $
    1,728,350LIABILITIES AND STOCKHOLDERS EQUITY:Current liabilities:Accounts payable
    
    $
    8,554
    
    
    $
    10,018Accrued liabilities
    
    
    42,625
    
    
    
    42,600Total current liabilities
    
    
    51,179
    
    
    
    52,618Commitments and ContingenciesStockholders Equity:Preferred stock, $0.01 par value, 150,000,000 shares authorized, 0 shares
issued and outstanding
    
    
    
    
    
    
    Common stock, $.001 par value, 1,500,000,000 shares authorized; 50,004,474
shares issued and outstanding
    
    
    50,004
    
    
    
    50,004Additional paid in capital
    
    
    10,892,460
    
    
    
    10,872,515Accumulated deficit
    
    
    (9,306,313
    )
    
    
    (9,246,787
    )Total stockholders equity
    
    
    1,636,151
    
    
    
    1,675,732Total liabilities and stockholders equity
    
    $
    1,687,330
    
    
    $
    1,728,350
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ZAP.COM CORPORATION
 
 UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
 For the
    
    
    For theThree Months Ended
    
    
    Three Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006Revenues
    
    $
    
    
    
    $
    Cost of revenues
    
    
    
    
    
    
    Gross profit
    
    
    
    
    
    
    Operating expenses:General and administrative
    
    
    47,623
    
    
    
    38,106Total operating expenses
    
    
    47,623
    
    
    
    38,106Loss from operations
    
    
    (47,623
    )
    
    
    (38,106
    )Interest income
    
    
    21,564
    
    
    
    22,218Loss before income taxes
    
    
    (26,059
    )
    
    
    (15,888
    )Income taxes
    
    
    
    
    
    
    Net loss
    
    $
    (26,059
    )
    
    $
    (15,888
    )Per share data (basic and diluted):Net loss per share
    
    $
    0.00
    
    
    $
    0.00Weighted average number of common shares
    
    
    50,004,474
    
    
    
    50,004,474
 For the
    
    
    For theNine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006Revenues
    
    $
    
    
    
    $
    Cost of revenues
    
    
    
    
    
    
    Gross profit
    
    
    
    
    
    
    Operating expenses:General and administrative
    
    
    124,957
    
    
    
    111,924Total operating expenses
    
    
    124,957
    
    
    
    111,924Loss from operations
    
    
    (124,957
    )
    
    
    (111,924
    )Interest income
    
    
    65,431
    
    
    
    61,787Loss before income taxes
    
    
    (59,526
    )
    
    
    (50,137
    )Income taxes
    
    
    
    
    
    
    Net loss
    
    $
    (59,526
    )
    
    $
    (50,137
    )Per share data (basic and diluted):Net loss per share
    
    $
    0.00
    
    
    $
    0.00Weighted average number of common shares
    
    
    50,004,474
    
    
    
    50,004,474
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ZAP.COM CORPORATION
 
 UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
 For the
    
    
    For theNine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006Cash flows from operating activities:Net loss
    
    $
    (59,526
    )
    
    $
    (50,137
    )Adjustments to reconcile net loss to
net cash used in operating activities:Depreciation and amortization
    
    
    
    
    
    
    302Contributed capital from Zapata for unreimbursed
management services and rent
    
    
    9,925
    
    
    
    9,724Stock-based compensation
    
    
    10,020
    
    
    
    10,122Changes in assets and liabilities:Other receivables
    
    
    (1,074
    )
    
    
    1,115Prepaid assets
    
    
    848
    
    
    
    1,638Accounts payable
    
    
    (1,464
    )
    
    
    (21
    )Accrued liabilities
    
    
    25
    
    
    
    (16,838
    )Net cash used in operating activities
    
    
    (41,246
    )
    
    
    (44,095
    )Cash flows from investing activities:Purchases of short-term investments
    
    
    (3,330,568
    )
    
    
    Proceeds from short-term investments
    
    
    1,694,061
    
    
    
    Net cash used in investing activities
    
    
    (1,636,507
    )
    
    
    Net change in cash and cash equivalents
    
    
    (1,677,753
    )
    
    
    (44,095
    )Cash and cash equivalents at beginning of period
    
    
    1,724,351
    
    
    
    1,758,501Cash and cash equivalents at end of period
    
    $
    46,598
    
    
    $
    1,714,406
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ZAP.COM CORPORATION
 
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 Note 1. Summary of Operations and Basis of Presentation
  Business Description
    Note 2. Significant Accounting Policies
 Short-term Investments
  Share-Based Payments
 Share-Based Payment
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Note 3. Short-Term Investments
  September 30, 2007Amortized
    
    
    Fair Market
    
    
    UnrealizedCost
    
    
    Value
    
    
    GainFederal Home Loan Bank
Discount Note  less than
one year
    
    $
    1,640,732
    
    
    $
    1,678,508
    
    
    $
    37,776
  Note 4. Related Party Transactions
  Note 5. Commitments and Contingencies
 Guarantors Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others
  Note 6. Stock-Based Compensation
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WeightedWeighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateExercise
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    Price
    
    
    Term
    
    
    ValueOutstanding at January 1, 2007
    
    
    511,300
    
    
    $
    0.08Granted
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    Forfeited or expired
    
    
    
    
    
    
    Outstanding at September 30,
2007
    
    
    511,300
    
    
    $
    0.08
    
    
    2.1 years
    
    $
    51,000Exercisable at September 30,
2007
    
    
    340,864
    
    
    $
    0.08
    
    
    2.1 years
    
    $
    34,000
  Weighted-AverageGrant-DateNonvested Shares
    
    Shares
    
    Fair ValueNonvested at January 1, 2007
    
    
    170,436
    
    
    $
    0.08Granted
    
    
    
    
    
    
    Vested
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    Nonvested at September 30, 2007
    
    
    170,436
    
    
    $
    0.08
 Note 7. Recently Issued Accounting Pronouncements
 Fair
Value Measurements.
 The Fair Value Option for Financial Assets and
Liabilities.
 Note 8. Income Taxes
 Accounting
for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
 Information Concerning Forward-Looking Statements
  General
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Results of Operations
  Revenues and Cost of revenues.
 General and administrative expenses.
 Interest Income.
 Liquidity and Capital Resources
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Cash Flows
    Recent Accounting Pronouncements
 Fair Value Measurements.
 The Fair Value Option for Financial Assets and
Liabilities.
 Critical Accounting Policies
  Off-Balance Sheet Arrangements
  11




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Item 3. Quantitative and Qualitative Disclosures about Market Risk
  
 Item 4. Controls and Procedures
      
 Item 4T. Controls and Procedures
  
 Part
II  OTHER INFORMATION
 
 Item 1. Legal Proceedings
  12




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Item 1A. Risk Factors
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5. Other Information
  
 Item 6. Exhibits
  31.1
    
    Certification of CEO as required by Rule 13a-14 or 15d-14 of
the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Certification of CFO as required by Rule 13a-14 or 15d-14 of
the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification of CEO Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Certification of CFO Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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SIGNATURES
  ZAP.COM CORPORATION
(Registrant)October 30, 2007
    By:
    /s/ LEONARD DISALVOVice President andChief Financial Officer

     (on behalf of the Registrant and as


     Principal Financial Officer) 14