**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

|   |   |                                                                                                                |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|
| þ |   | **QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934** |
|   |   |                                                                                                                |

**For      the quarterly period ended September 30, 2007**

|    |   |                                                                                                    |
|---------|--------|---------------------------------------------------------------------------------------------------------|
|  o |   |  **TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE                ACT** |

**For      the Transition Period from **
**     **
**      to **
**     **

**Commission      file number **

**000-52470**

**KNIGHT      ENERGY CORP.**

|                                                                                                |   |                                                                        |
|-----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
| Maryland(State                or other jurisdiction ofincorporation                or organization) |   | 87-0583192(I.R.S.                EmployerIdentification                No.) |

----

**KNIGHT      ENERGY CORP.**

**FORM      10-QSB**

**TABLE      OF CONTENTS**

|                                                                                                   |   |
|--------------------------------------------------------------------------------------------------------|--------|
|                                                                                                   | Page   |
|                                                                                                   |   |
| PART                I - FINANCIAL INFORMATION                                                          | 1      |
|                                                                                                   |   |
| Item                1. Consolidated Financial Statements                                               | 2      |
|                                                                                                   |   |
| Item                2. Management’s Discussion and Analysis or Plan of                Operation. | 11     |
|                                                                                                   |   |
| Item                3. Controls and Procedures.                                                        | 15     |
|                                                                                                   |   |
| PART                II - OTHER INFORMATION                                                             | 15     |
|                                                                                                   |   |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds      | 15     |
|                                                                                                   |   |
| Item                6. Exhibits                                                                        | 16     |
|                                                                                                   |   |
| SIGNATURES                                                                                             | 17     |

----

**PART      I - FINANCIAL INFORMATION**

----

| **Knight                Energy Corp. and Subsidiaries****Consolidated                Balance Sheets**                                                          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                           |   |   |   |   |   |
| **ASSETS**                                                                                                                                                     |   |   |   |   |   |
|                                                                                                                                                           |   | **September                30,** |   | **December                31,** |   |
|                                                                                                                                                           |   | **2007** |   | **2006** |   |
|                                                                                                                                                           |   | **(Unaudited)** |   | **(Audited)** |   |
| **Current                assets:**                                                                                                                             |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                       |   | $ | 323,861 |   | $ | 15,544 |   |
| Trade                receivables                                                                                                                               |   |   | 94,775 |   |   | 27,609 |   |
| Prepaid                consulting, related party                                                                                                               |   |   | 58,000 |   |   | 2,040 |   |
| Other                current assets                                                                                                                            |   |   | 11,116 |   |   | 48,478 |   |
| **Total                current assets**                                                                                                                        |   |   | 487,752 |   |   | 93,671 |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |
| **Property                and equipment:**                                                                                                                     |   |   |   |   |   |   |   |
| Oil                and gas properties, successful efforts method                                                                                               |   |   | 3,227,496 |   |   | 1,105,398 |   |
| Other                property and equipment                                                                                                                    |   |   | 2,598,990 |   |   | 2,140,442 |   |
| Accumulated                depreciation and depletion                                                                                                          |   |   | (427,089 | ) |   | (108,631 | ) |
| **Property                and equipment, net**                                                                                                                 |   |   | 5,399,397 |   |   | 3,137,209 |   |
| **Total                assets**                                                                                                                                |   | $ | 5,887,149 |   | $ | 3,230,880 |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |
| **LIABILITIES**                                                                                                                                                |   |   |   |   |   |   |   |
| **Current                liabilities:**                                                                                                                        |   |   |   |   |   |   |   |
| Accounts                payable                                                                                                                                |   | $ | 299,980 |   | $ | 115,734 |   |
| Accrued                expenses                                                                                                                                |   |   | 350,804 |   |   | 288,212 |   |
| Note                payable - related party                                                                                                                    |   |   | - |   |   | 100,000 |   |
| **Total                current liabilities**                                                                                                                   |   |   | 650,784 |   |   | 503,946 |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |
| **Asset                retirement obligations**                                                                                                                |   |   | 161,095 |   |   | 80,279 |   |
| **Total                liabilities**                                                                                                                           |   |   | 811,879 |   |   | 584,225 |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |
| **Commitments                and contingencies**                                                                                                               |   |   | - |   |   | - |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |
| **STOCKHOLDERS’                EQUITY**                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |
| Preferred                stock, $0.0001 par value, 50,000,000 shares authorized                                                                                |   |   |   |   |   |   |   |
| Zero                shares issued and outstanding                                                                                                              |   |   | - |   |   | - |   |
| Common                stock, $0.0001 par value, 500,000,000 shares authorized                                                                                  |   |   |   |   |   |   |   |
| 25,497,855                and 18,522,505 shares issued and outstanding at September 30, 2007                and                December 31, 2006, respectively |   |   | 2,550 |   |   | 1,852 |   |
| Common                stock issuable, $0.0001 par value                                                                                                        |   |   |   |   |   |   |   |
| 4,106,505                and 6,235,550 at September 30, 2007 and December 31, 2006,                respectively                                                |   |   | 411 |   |   | 624 |   |
| Additional                paid in capital                                                                                                                      |   |   | 8,344,342 |   |   | 4,568,422 |   |
| Accumulated                deficit                                                                                                                             |   |   | (3,270,783 | ) |   | (1,922,993 | ) |
| Less:                Stock subscription receivable                                                                                                             |   |   | (1,250 | ) |   | (1,250 | ) |
| **Total                stockholders’ equity**                                                                                                            |   |   | 5,075,270 |   |   | 2,646,655 |   |
| **Total                liabilities and stockholders’ equity**                                                                                            |   | $ | 5,887,149 |   | $ | 3,230,880 |   |

----

| **Knight                Energy Corp. and Subsidiaries**  |
|----------------------------------------------------------|
| **Consolidated                Statements of Operations** |
|                                                     |

|                                                           |   |  **Three                Months Ended** |           |  **Nine                Months Ended** |   | **From                Inception Date****of                March 2, 2006 to** |   |
|----------------------------------------------------------------|--------|---------------------------------------------|----------------|--------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                                           |   | **September                30,**            |           | **September                30,**           |   | **September                30,**                                             |   |
|                                                           |   | **2007**                                    |           | **2006**                                   |   | **2007**                                                                     |   | **2006** |   |
|                                                           |   | **(Unaudited)**                             |           | **(Unaudited)**                            |   | **(Unaudited)**                                                              |   |
|                                                           |   |                                        |           |                                       |   |                                                                         |   |
| Revenues,                net                                   |   | $                                           | 275,312        |                                       | $      | 11,613                                                                       |   | $ | 779,793 |   | $ | 12,539 |   |
|                                                           |   |                                        |           |                                       |   |                                                                         |   |   |   |   |   |   |   |
| **Operating                expenses:**                         |   |                                        |           |                                       |   |                                                                         |   |   |   |   |   |   |   |
| Lease                operating costs                           |   |                                        | 63,193         |                                       |   | 62,454                                                                       |   |   | 179,203 |   |   | 94,999 |   |
| Exploration                                                    |   |                                        | 9,050          |                                       |   | -                                                                            |   |   | 9,050 |   |   | - |   |
| Repairs                and maintenance                         |   |                                        | 48,602         |                                       |   | -                                                                            |   |   | 159,304 |   |   | - |   |
| General                and administrative                      |   |                                        | 356,892        |                                       |   | 74,367                                                                       |   |   | 982,336 |   |   | 95,610 |   |
| Rent                                                           |   |                                        | 3,668          |                                       |   | 1,747                                                                        |   |   | 7,420 |   |   | 4,555 |   |
| Consulting                                                     |   |                                        | 86,734         |                                       |   | 81,200                                                                       |   |   | 209,531 |   |   | 792,869 |   |
| Professional                                                   |   |                                        | 66,142         |                                       |   | 112,519                                                                      |   |   | 221,501 |   |   | 146,875 |   |
| Depreciation,                depletion, and accretion          |   |                                        | 38,867         |                                       |   | 30,528                                                                       |   |   | 321,161 |   |   | 40,414 |   |
| **Total                operating expenses**                    |   |                                        | 673,148        |                                       |   | 362,815                                                                      |   |   | 2,089,506 |   |   | 1,175,322 |   |
|                                                           |   |                                        |           |                                       |   |                                                                         |   |   |   |   |   |   |   |
| **Operating                loss**                              |   |                                        | (397,836       | )                                          |   | (351,202                                                                     | )      |   | (1,309,713 | ) |   | (1,162,783 | ) |
|                                                           |   |                                        |           |                                       |   |                                                                         |   |   |   |   |   |   |   |
| Forgiveness                of debt                             |   |                                        | -              |                                       |   | 10,000                                                                       |   |   | - |   |   | 10,000 |   |
| Interest                income                                 |   |                                        | 353            |                                       |   | -                                                                            |   |   | 469 |   |   | - |   |
| Interest                expense                                |   |                                        | (17,500        | )                                          |   | -                                                                            |   |   | (38,546 | ) |   | (7,373 | ) |
|                                                           |   |                                        |           |                                       |   |                                                                         |   |   |   |   |   |   |   |
| **Net                loss**                                    |   | **$**                                       | **(414,983**   | **)**                                      | **$**  | **(341,202**                                                                 | **)**  | **$** | **(1,347,790** | **)** | **$** | **(1,160,156** | **)** |
|                                                           |   |                                        |           |                                       |   |                                                                         |   |   |   |   |   |   |   |
| **Net                loss per share - basic and diluted**      |   | **$**                                       | **(0.01**      | **)**                                      | **$**  | **(0.02**                                                                    | **)**  | **$** | **(0.05** | **)** | **$** | **(0.06** | **)** |
|                                                           |   |                                        |           |                                       |   |                                                                         |   |   |   |   |   |   |   |
| **Weighted                average shares - basic and diluted** |   |                                        | **28,643,452** |                                       |   | **22,184,657**                                                               |   |   | **26,952,180** |   |   | **18,864,089** |   |
|                                                           |   |                                        |           |                                       |   |                                                                         |   |   |   |   |   |   |   |

----

| **Knight                Energy Corp. and Subsidiaries****Consolidated                Statements of Cash Flows**  |
|-----------------------------------------------------------------------------------------------------------------------|

|                                                                                                    |   | **Nine                Months Ended** |       | **From                Inception Date of****March                2, 2006** |   |
|---------------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|---------------------------------------------------------------------------|--------|
|                                                                                                    |   | **September                30,**     |       | **To                September 30,**                                       |   |
|                                                                                                    |   | **2007**                             |       | **2006**                                                                  |   |
|                                                                                                    |   | **(Unaudited)**                      |       | **(Unaudited)**                                                           |   |
| **Cash                Flows From Operating Activities:**                                                |   |                                 |       |                                                                      |   |   |   |
| Net                loss                                                                                 |   | $                                    | (1,347,790 | )                                                                         | $      | (1,160,156 | ) |
| Adjustments                to reconcile net loss to net cash used in operations:                        |   |                                 |       |                                                                      |   |   |   |
| Depreciation                and depletion expense                                                       |   |                                 | 318,458    |                                                                      |   | 40,414 |   |
| Accretion                expense                                                                        |   |                                 | 2,703      |                                                                      |   | - |   |
| Forgiveness                of debt                                                                      |   |                                 | -          |                                                                      |   | (10,000 | ) |
| Stock                issued for consulting                                                              |   |                                 | -          |                                                                      |   | 67,500 |   |
| Stock                issued for employee bonus                                                          |   |                                 | 20,000     |                                                                      |   | - |   |
| Warrant                issued for consulting                                                            |   |                                 | -          |                                                                      |   | 574,000 |   |
| Imputed                interest on shareholder note                                                     |   |                                 | -          |                                                                      |   | 7,373 |   |
| Trade                receivables                                                                        |   |                                 | (67,166    | )                                                                         |   | (13,960 | ) |
| Prepaid                consulting, related party                                                        |   |                                 | (55,960    | )                                                                         |   | - |   |
| Other                current assets                                                                     |   |                                 | 37,362     |                                                                      |   | (6,709 | ) |
| Accounts                payable                                                                         |   |                                 | (47,318    | )                                                                         |   | 74,304 |   |
| Accrued                expenses                                                                         |   |                                 | 62,592     |                                                                      |   | 127,611 |   |
| **Net                Cash Used In Operating Activities**                                                |   |                                 | (1,077,119 | )                                                                         |   | (299,623 | ) |
|                                                                                                    |   |                                 |       |                                                                      |   |   |   |
| **Cash                Flows From Investing Activities:**                                                |   |                                 |       |                                                                      |   |   |   |
| Cash                for acquisition of Charles Hill Drilling, Inc., net of cash                acquired |   |                                 | -          |                                                                      |   | (349,989 | ) |
| Investment                in oil and gas properties                                                     |   |                                 | (1,864,404 | )                                                                         |   | - |   |
| Purchase                of property and equipment                                                       |   |                                 | (406,565   | )                                                                         |   | (977,801 | ) |
| **Net                Cash Used In Investing Activities**                                                |   |                                 | (2,270,969 | )                                                                         |   | (1,327,790 | ) |
|                                                                                                    |   |                                 |       |                                                                      |   |   |   |
| **Cash                Flows From Financing Activities:**                                                |   |                                 |       |                                                                      |   |   |   |
| Repayment                of note payable, related party                                                 |   |                                 | (150,000   | )                                                                         |   | (669,000 | ) |
| Proceeds                from issuance of note payable, related party                                    |   |                                 | 50,000     |                                                                      |   | 170,000 |   |
| Proceeds                from issuance of note payable                                                   |   |                                 | 335,000    |                                                                      |   | - |   |
| Repayment                of note payable                                                                |   |                                 | (335,000   | )                                                                         |   | - |   |
| Proceeds                from sale of common stock                                                       |   |                                 | 3,756,405  |                                                                      |   | 2,150,825 |   |
| Proceeds                from sale of founders’ common stock                                       |   |                                 | -          |                                                                      |   | 13,750 |   |
| **Net                Cash Provided By Financing Activities**                                            |   |                                 | 3,656,405  |                                                                      |   | 1,665,575 |   |
|                                                                                                    |   |                                 |       |                                                                      |   |   |   |
| **Net                Increase in Cash**                                                                 |   |                                 | 308,317    |                                                                      |   | 38,162 |   |
| Cash                at Beginning of Period                                                              |   |                                 | 15,544     |                                                                      |   | - |   |
| **Cash                at End of Period**                                                                |   | $                                    | 323,861    |                                                                      | $      | 38,162 |   |

----

| **Knight                Energy Corp. and Subsidiaries**                   |
|---------------------------------------------------------------------------|
| **Consolidated                Statements of Cash Flows*****(Continued)*** |
|                                                                      |

|                                                                                                                    |   | **Nine                    Months Ended****September                    30,****2007** |       | **From                    Inception Date****of                    March 2, 2006****To                    September 30,****2006** |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                    |   | **(Unaudited)**                                                                      |       | **(Unaudited)**                                                                                                                  |   |
| **Supplemental                    Disclosure of Cash Flow Information****:**                                            |   |                                                                                 |       |                                                                                                                             |   |   |   |
| Cash                    paid during the period for:                                                                     |   |                                                                                 |       |                                                                                                                             |   |   |   |
| Interest                                                                                                                |   | **$**                                                                                | **38,547** |                                                                                                                             | **$**  | **-** |   |
| Taxes                                                                                                                   |   | $                                                                                    | -          |                                                                                                                             | $      | - |   |
|                                                                                                                    |   |                                                                                 |       |                                                                                                                             |   |   |   |
| **Supplemental                    Disclosure of Non-Cash Investing and Financing                    Transactions****:** |   |                                                                                 |       |                                                                                                                             |   |   |   |
| Acquisition                    of Charles Hill Drilling, Inc.:                                                          |   |                                                                                 |       |                                                                                                                             |   |   |   |
| Net                    assets acquired from acquisition, net of cash acquired                                           |   |                                                                                 | -          |                                                                                                                             |   | 1,767,000 |   |
| Common                    stock issued for acquisition                                                                  |   |                                                                                 | -          |                                                                                                                             |   | 750,000 |   |
| Note                    payable issued for acquisition                                                                  |   |                                                                                 | -          |                                                                                                                             |   | 667,000 |   |
| Note                    payable assumed from recapitalization                                                           |   |                                                                                 | -          |                                                                                                                             |   | 10,000 |   |
| Accrued                    and unpaid property additions                                                                |   |                                                                                 | 231,564    |                                                                                                                             |   | - |   |
| Prepayment                    of note payable in property and equipment                                                 |   |                                                                                 | -          |                                                                                                                             |   | 18,000 |   |
| Capitalized                    asset retirement obligation                                                              |   |                                                                                 | 78,113     |                                                                                                                             |   | 76,831 |   |
| Common                    stock issued for prepaid consulting services                                                  |   |                                                                                 | -          |                                                                                                                             |   | 37,500 |   |

----

**Knight      Energy Corp.**

**Notes      to Consolidated Financial Statements**

**September      30, 2007**

**(Unaudited)**

**1.**
**BASIS      OF PRESENTATION**

**2.      **
**HISTORY      AND NATURE OF BUSINESS**

**3.          **
**SUMMARY          OF SIGNIFICANT ACCOUNTING POLICIES**

*Going      Concern *

----

**Knight      Energy Corp.**

**Notes      to Consolidated Financial Statements**

**September      30, 2007**

**(Unaudited)**

*Impact      of Recently Issued Accounting Standards*

*Accounting      for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109      Accounting for Income Taxes*

*Net      Income (Loss) per Common Share*

**4.      **
**NOTES      PAYABLE **

----

**Knight      Energy Corp.**

**Notes      to Consolidated Financial Statements**

**September      30, 2007**

**(Unaudited)**

**5.      **
**NOTES      PAYABLE , RELATED PARTY**

**6.      **
**STOCKHOLDERS’      EQUITY**

*Capital      Structure*

----

**Knight      Energy Corp.**

**Notes      to Consolidated Financial Statements**

**September      30, 2007**

**(Unaudited)**

*Common      Stock Issuable*

**7.      **
**RELATED      PARTY TRANSACTIONS**

----

**Knight      Energy Corp.**

**Notes      to Consolidated Financial Statements**

**September      30, 2007**

**(Unaudited)**

**8.      **
**SUBSEQUENT      EVENTS**

----

**Knight      Energy Corp.**

**Notes      to Consolidated Financial Statements**

**September      30, 2007**

**(Unaudited)**

**Item      2. **
**Management’s      Discussion and Analysis or Plan of Operation.**

**SPECIAL      NOTE REGARDING FORWARD-LOOKING STATEMENTS **

**GENERAL**

**RECENT      DEVELOPMENTS**

----

**Knight      Energy Corp.**

**Notes      to Consolidated Financial Statements**

**September      30, 2007**

**(Unaudited)**

**RESULTS      OF OPERATIONS **

***Three      and nine months ended September 30, 2007 compared to the three months ended      September 30, 2006 and the period from March 2, 2006 (Inception Date) to      September 30, 2006***
** **

|                                                  |   | **(Unaudited)****Three                Months Ended****September                30,** |         | **(Unaudited)****Nine                Months Ended****September                30,** |   | **(Unaudited)****From                Inception Date**** ****of March 2, 2006                to****September                30,** |   |
|-------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------------|-------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                  |   | **2007**                                                                             |         | **2006**                                                                            |   | **2007**                                                                                                                              |   | **2006** |   |
|                                                  |   |                                                                                 |         |                                                                                |   |                                                                                                                                  |   |   |   |
| Revenues,                net                          |   | $                                                                                    | 275,312      |                                                                                | $      | 11,613                                                                                                                                |   | $ | 779,793 |   | $ | 12,539 |   |
|                                                  |   |                                                                                 |         |                                                                                |   |                                                                                                                                  |   |   |   |   |   |   |   |
| **Operating                expenses:**                |   |                                                                                 |         |                                                                                |   |                                                                                                                                  |   |   |   |   |   |   |   |
|                                                  |   |                                                                                 |         |                                                                                |   |                                                                                                                                  |   |   |   |   |   |   |   |
| Lease                operating costs                  |   |                                                                                 | 63,193       |                                                                                |   | 62,454                                                                                                                                |   |   | 179,203 |   |   | 94,999 |   |
| Exploration                                           |   |                                                                                 | 9,050        |                                                                                |   | -                                                                                                                                     |   |   | 9,050 |   |   | - |   |
| Repairs                and maintenance                |   |                                                                                 | 48,602       |                                                                                |   | -                                                                                                                                     |   |   | 159,304 |   |   | - |   |
| General                and administrative             |   |                                                                                 | 356,892      |                                                                                |   | 74,367                                                                                                                                |   |   | 982,336 |   |   | 95,610 |   |
| Rent                                                  |   |                                                                                 | 3,668        |                                                                                |   | 1,747                                                                                                                                 |   |   | 7,420 |   |   | 4,555 |   |
| Consulting                                            |   |                                                                                 | 86,734       |                                                                                |   | 81,200                                                                                                                                |   |   | 209,531 |   |   | 792,869 |   |
| Professional                                          |   |                                                                                 | 66,142       |                                                                                |   | 112,519                                                                                                                               |   |   | 221,501 |   |   | 146,875 |   |
| Depreciation,                depletion, and accretion |   |                                                                                 | 38,867       |                                                                                |   | 30,528                                                                                                                                |   |   | 321,161 |   |   | 40,414 |   |
| **Total                operating expenses**           |   |                                                                                 | 673,148      |                                                                                |   | 362,815                                                                                                                               |   |   | 2,089,506 |   |   | 1,175,322 |   |
|                                                  |   |                                                                                 |         |                                                                                |   |                                                                                                                                  |   |   |   |   |   |   |   |
| **Operating                loss**                     |   |                                                                                 | (397,836     | )                                                                                   |   | (351,202                                                                                                                              | )      |   | (1,309,713 | ) |   | (1,162,783 | ) |
|                                                  |   |                                                                                 |         |                                                                                |   |                                                                                                                                  |   |   |   |   |   |   |   |
| Forgiveness                of debt                    |   |                                                                                 | -            |                                                                                |   | 10,000                                                                                                                                |   |   | - |   |   | 10,000 |   |
| Interest                income                        |   |                                                                                 | 353          |                                                                                |   | -                                                                                                                                     |   |   | 469 |   |   | - |   |
| Interest                expense                       |   |                                                                                 | (17,500      | )                                                                                   |   | -                                                                                                                                     |   |   | (38,546 | ) |   | (7,373 | ) |
|                                                  |   |                                                                                 |         |                                                                                |   |                                                                                                                                  |   |   |   |   |   |   |   |
| **Net                loss**                           |   | **$**                                                                                | **(414,983** | **)**                                                                               | **$**  | **(341,202**                                                                                                                          | **)**  | **$** | **(1,347,790** | **)** | **$** | **(1,160,156** | **)** |

----

**Three      Months Ended September 30, 2007 Compared To the Three Months Ended September      30,      2006**

*Revenues*
*:*

*Operating      Expenses*
*:*

*Other      Expense*
*:*

**Nine      Months Ended September 30, 2007 Compared To the Period from March 2, 2006      (Inception Date) to**
**September**
**      30, 2006**

*Revenues*
*:*

*Operating      Expenses*
*:*

*Other      Expense*
*:*

----

**Liquidity      and Capital Resources **

**Notes      payable **

**Notes      payable, Related Party **

----

**Liquidity**

**Off-Balance      Sheet Arrangements**

**2007      OUTLOOK**

**Item      3. **
**Controls      and Procedures.**
** **

**PART      II - OTHER INFORMATION**

**Item      2. **
** **
**Unregistered      Sales of Equity Securities and Use of Proceeds**

----

**Item      6. **
**Exhibits**
** **

| Exhibit | Title                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------|
|    |                                                                                                      |
| 31.1    | Certification                by Principal Executive Officer                                               |
|    |                                                                                                      |
| 31.2    | Certification                of Principal Financial Officer                                               |
|    |                                                                                                      |
| 32      | Certifications                of Principal Executive and Financial Officer Pursuant to                906 |
|    |                                                                                                      |

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**SIGNATURES**

| NAME                AND SIGNATURE                                                          |   | TITLE                                       |   | DATE                             |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|----------------------------------|
|                                                                                       |   |                                             |   |                             |
| /s/                William J. Bosso    William                J. Bosso |   | Principal                Executive Officer  |   | November                14, 2007 |
|                                                                                       |   |                                             |   |                             |
| /s/                Bruce A. Hall Bruce                A. Hall                         |   | Principal                Financial Officer       |   | November                14, 2007 |

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