UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB  x
        QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period endedMarch 31, 2006 [
        ]
        TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from_________to__________ Commission file number000-49891 THE ELECTRIC NETWORK.COM, INC.(Exact name of small business issuer as specified in its charter)  Delaware
        
        33-0860242(State or other jurisdiction of incorporation or organization)
        
        (I.R.S. Employer Identification No.)  #1400-1500 West Georgia Street, VancouverBritish Columbia, V6G 2Z6(Address of principal executive offices)  (604) 684-3027(Issuer's telephone number)  n/a(Former name, former address and former fiscal year, if changed since last report)  Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      YesxNo [   ] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YesxNo o State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: There were 19,043,000 common shares issued and outstanding as at May 1, 2006. Transitional Small Business Disclosure Format (Check one):
        Yes o
        Nox       F-1   PART I Item 1.  Financial Statements  The Electric Network.com, Inc. (A Development Stage Company) Balance Sheets (Expressed in U.S. dollars)   March 31,
2006
$
        December 31,
2005
$AssetsCurrent AssetsCash
        17,142
        1,437Total Assets
        17,142
        1,437Liabilities and Stockholders DeficitCurrent LiabilitiesAccounts payable (Note 3(f))
        
        5,561Accrued liabilities (Note 4)
        9,791
        13,170Advances payable (Note 5)
        95,100
        55,100Total Liabilities
        104,891
        73,831Commitments and Contingencies (Note 1)Stockholders DeficitCommon Stock, 100,000,000 common shares authorized with a par value of $0.001; 19,043,000 shares issued and outstanding, respectively
        19,043
        19,043Additional Paid in Capital
        213,154
        213,154Donated Capital
        15,400
        15,400Deficit Accumulated During the Development Stage
        (335,346)
        (319,991)Total Stockholders Deficit
        (87,749)
        (72,394)Total Liabilities and Stockholders Deficit
        17,142
        1,437     (The accompanying notes are an integral part of the financial statements.)      F-2     The Electric Network.com, Inc. (A Development Stage Company) Statements of Operations (Expressed in U.S. dollars)   Accumulated
        Three Months Ended
March 31,For the Period FromFebruary 3, 1999(Date of Inception)to March 31,2006
        2006
        2005$
        $
        $Revenue
        475
        
        ExpensesConsulting (Note 3(d))
        155,934
        7,388
        4,945Donated overhead
        5,800
        
        Donated services
        9,600
        
        General and administrative
        161,046
        6,164
        4,440Interest (Notes 3(b), (e), and 5(a))
        3,441
        1,803
        125335,821
        15,355
        9,510Net Loss for the Period
        (335,346)
        (15,355)
        (9,510)Basic and Diluted Loss Per Share
        
        
        Weighted Average Shares Outstanding
        
        19,043,000
        18,976,000           (The accompanying notes are an integral part of the financial statements.)        F-3    The Electric Network.com, Inc. (A Development Stage Company) Statements of Cash Flows (Expressed in U.S. dollars)   Three Months EndedMarch 31,2006
        2005$
        $Cash Flows to Operating ActivitiesNet Loss for the Period
        (15,355)
        (9,510)Change in operating assets and liabilitiesAccounts receivable
        
        207Accounts payable and accruals
        (8,940)
        (7,196)Net Cash Used by Operating Activities
        (24,295)
        (16,499)Cash Flows From Financing ActivitiesProceeds from issuance of shares, net
        
        20,000Proceeds from promissory note
        50,000
        Repayment of promissory note
        (10,000)Net Cash Provided by Financing Activities
        40,000
        20,000Increase in Cash
        15,705
        3,501Cash  Beginning of Period
        1,437
        111Cash  End of Period
        17,142
        3,612Supplemental DisclosuresInterest paid
        
        Income tax paid
        
                  (The accompanying notes are an integral part of the financial statements.)       F-4   The Electric Network.com, Inc. (A Development Stage Company) Notes to the Financial Statements (Expressed in U.S. dollars)   1.
        Development Stage Company The Electric Network.com, Inc. herein (the Company) was incorporated in the State of Nevada, U.S.A. on February 3, 1999. Effective March 31, 2004, the Company changed the state of domicile to Delaware. The change of domicile was effected through the merger of The Electric Network.com, Inc., a Nevada corporation, with and into The Electric Network.com, Inc., a Delaware corporation that had been formed specifically for this purpose. Prior to the merger, the surviving Delaware corporation was a wholly-owned subsidiary of the Nevada corporation. The Company is based in Vancouver, British Columbia. During the year ended December 31, 2004, the Company commenced a preliminary launch of its online Internet Web Site on which users can browse through listed items in a fully automated, topically arranged, online service provided on a twenty-four hours a day, seven days a week basis. The Company generates revenue from the operation of its online auction by charging nominal listing fees to users that post items on the website. During this preliminary launch, over fifty users registered as members. The Company generated nominal revenue from this business and did not generate any revenue during the three-month period ended March 31, 2006. There is no guarantee that any revenue will be generated in the future. The Company is dependent upon its successful efforts to raise additional equity financing and/or attain profitable operations. There
is no guarantee that the Company will be able to raise any equity financing or sell any of its products and services at a profit. These factors raise substantial doubt regarding the Companys ability to continue as a going concern. The Company filed an SB-2 Registration Statement with the United States Securities and Exchange Commission which was declared effective July 1, 2004. The Company registered 8,213,000 common shares by selling shareholders and planned to sell up to 500,000 common shares at $0.25 per share. In March 2005, the Company issued 80,000 shares of common stock at $0.25 per share for cash proceeds of $20,000. The Company is listed on the Over-The-Counter Bulletin Board under the trading symbol ETNW. In January 2006, the Company issued a promissory note for 150,000 for funds advanced to the Company by a non-related company. The advance is unsecured, bears interest at 8% per annum, and is payable on demand. 2.
        Summary of Significant Accounting Policies (a)
        Year End The Companys fiscal year end is December 31. (b)
        Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. (c)
        Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 revenues and expenses during the periods. Actual results could differ from those estimates. (d)
        Comprehensive Loss The Company applies SFAS No. 130 Reporting Comprehensive Income. As at March 31, 2006 and 2005, the company has no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.       F-5   The Electric Network.com, Inc. (A Development Stage Company) Notes to the Financial Statements (Expressed in U.S. dollars)   2.
        Summary of Significant Accounting Policies (continued)(e)
        Fair Value of Financial Instruments The carrying amounts of the Companys financial instruments, which include cash equivalents, accounts payable, accrued liabilities, and advances to related parties, approximate their fair value. (f)
        Net Loss Per Share The Company computes net loss per share in accordance with SFAS No. 128, Earning per Share (SFAS 128). SFAS 128 requires presentation of both basic and diluted net loss per share (EPS) on the face of the income statement. Basic net loss per share is computed by dividing the net loss for the year by the weighted average number of shares of common stock outstanding during the year. Diluted net loss per share is computed by dividing the net loss for the year by the weighted average number of shares of common stock and potential common stock outstanding during the year, if dilutive. (g)
        Revenue Recognition The Company receives and recognizes revenue as users post items for sale and also when items are purchased on the website. Users will be obligated to pay a listing fee for their items to be placed in the auction directory. This fee is determined by the price of the item with a larger priced item reflecting a larger listing fee. When an item is sold through the auction website, the buyer must pay a premium in the form of a percentage of the final sale, with a higher percentage charged for higher priced items. The listing fee and commission revenue is recognized in the period the fee or commission is earned. Although the Company has not generated any revenue from the final value fee, the Company has recognized revenue from listing fees. (h)
        Stock-Based Compensation Prior to January 1, 2006, the Company accounted for stock-based awards under the recognition and measurement provisions of Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees using the intrinsic value method of accounting, under which compensation expense was only recognized if the exercise price of the Companys employee stock options was less than the market price of the underlying common stock on the date of grant. Effective January 1, 2006, the Company adopted the fair value recognition provisions of SFAS No. 123R Share Based Payments, using the modified retrospective transition method. There was no effect on the Companys reported loss from operations, cash flows or loss per share as a result of adopting SFAS No 123R. (i)
        Recent Accounting Pronouncements In May 2005, the Financial Accounting Standards Board (FASB) issued SFAS No. 154, Accounting Changes and Error Corrections  A Replacement of APB Opinion No. 20 and SFAS No. 3. SFAS 154 changes the requirements for the accounting for and reporting of a change in accounting principle and applies to all voluntary changes in accounting principle. It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS 154 requires retrospective application to prior periods financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The provisions of SFAS No. 154 are effective for accounting changes and correction of errors made in fiscal years beginning after
December 15, 2005. The adoption of this standard is not expected to have a material effect on the Companys results of operations or financial position.       F-6   The Electric Network.com, Inc. (A Development Stage Company) Notes to the Financial Statements (Expressed in U.S. dollars)   2.
        Summary of Significant Accounting Policies (continued) (i)
        Recent Accounting Pronouncements (continued) In December 2004, FASB issued SFAS No. 153, Exchanges of Nonmonetary Assets - An Amendment of APB Opinion No. 29. The guidance in APB Opinion No. 29, Accounting for Nonmonetary Transactions, is based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included certain exceptions to that principle. SFAS No. 153 amends Opinion No. 29 to eliminate the exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as
a result of the exchange. The provisions of SFAS No. 153 are effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The adoption of this standard is not expected to have a material effect on the Companys results of operations or financial position. 3.
        Related Party Transactions/Balances (a)
        Advances payable include $5,100 due to a former President of the Company. This advance is unsecured, non-interest bearing and payable on demand. (b)
        A company controlled by a former President of the Company advanced $10,000 during fiscal 2003. This amount is unsecured, bears simple interest at 5% per annum and is due on demand. Interest expense of $125 was charged to operations during the period ended March 31, 2006 (2005 - $125). (c)
        A company controlled by the former President of the Company advanced $10,000 during the previous fiscal year.  The advance was unsecured, non-interest bearing and payable on demand.  The advance was repaid during the current period. (d)
        Commencing in November 2005, the President of the Company received $1,500 per month for consulting services rendered.  This amount was increased to $2,000 per month commencing in December 2005.  During the period, the President was paid $6,000 (2005 - $ nil). (e)
        The President of the Company advanced $30,000 in November 2005. The advances are unsecured, bearing simple interest at 12% per annum and payable in November 2006.  Interest expense of $900 was charged to operations during the period ended March 31, 2006 (2005 - $ nil). (f)
        Accounts payable includes an amount of $3,000 owing to the President of the Company at December 31, 2005. 4.
        Accrued Liabilities The amount accrued at March 31, 2006 relates to $6,350 in professional fees (December 31, 2005 - $11,532) and $3,441 of accrued interest expense (2005: $1,638). 5.
        Advances Payable (a)
        In January 2006, the Company issued a $50,000 promissory note to a non-related company.  The note is unsecured, bearing simple interest at 8% per annum, and payable on demand.  Interest expense of $778 was charged to operations during the period ended March 31, 2006 (2005 - $ nil). (b)
        See Notes 3(a), (b), and (e).       - 2 -    Item2.
        Management's Discussion and Analysis and Plan of Operation. FORWARD-LOOKING STATEMENTS This quarterly report contains forward-looking statements as that term is defined in applicable securities laws.  These statements relate to future events or our future financial performance.  In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology.  These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.  In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars.  All references to "common shares" refer to the common shares in our capital stock. As used in this quarterly report, the terms "we", "us", "our", and "Electric Network" means The Electric Network.com, Inc., unless otherwise indicated. General We were incorporated in Nevada on February 3, 1999.  Effective March 31, 2004, we changed our state of domicile of incorporation to the State of Delaware.  Our change of domicile was effected through the merger of The Electric Network.com, Inc., a Nevada corporation, with and into The Electric Network.com, Inc., a Delaware corporation that was formed specifically for this purpose and which, prior to the merger, was the wholly-owned subsidiary of the Nevada corporation.  The Delaware corporation was the surviving corporation in this merger. Our principal executive office is located at Suite 1400-1500 West Georgia Street, Vancouver, British Columbia, Canada  V6G 2Z6.  The telephone number of our principal executive office is (604) 684-3027. Plan of Operation Our principal business activity consists of the operation of an Internet based auction website over which users can advertise and buy and sell goods and services for a fee. Over the past year it has become increasingly clear to us that we were not having much success in pursuing our business plan.  We believe that this was primarily due to the inability of Brad Rudover, our past President, to source adequate financing to support the implementation of our business plan.  During the period ended September 30, 2005, Mr. Rudover concluded that it would be in the best interest of our company and its shareholders if he were to step aside in favour of a public company veteran with a strong track record of fundraising and business model execution who might be better qualified to create shareholder value for us. On November 8, 2005, we joined in a share purchase agreement between Mr. Brad W. Rudover and Dr. John Veltheer in order to evidence our consent to the sale of Mr. Rudovers shares to Dr. Veltheer.  In the share purchase agreement, Mr. Rudover agreed to resign from his office of President of our company and from his seat on our board of directors in order to make way for Dr. Veltheers appointment to our board of directors and as our President.  Pursuant to the agreement, John Veltheer purchased all 4,500,000 shares of our common stock that were owned by Brad W. Rudover on November 8, 2005.       - 3 -   Also on November 8, 2005, Dr. Veltheer agreed to loan $10,000 to our company by way of an unsecured simple demand promissory note that will mature on November 8, 2006, Brad W. Rudover resigned as our President and a member of our board of directors and Dr. John E. Veltheer was appointed as our new President and a member of our board of directors. Dr. Veltheer has had experience at the executive level of a number of public and private companies over the past nine years, including both established businesses and start-up adventures.  He is also familiar with the regulatory compliance and corporate governance requirements imposed by the Securities and Exchange Commission.  We pay Dr. Veltheer a nominal salary of $2,000 per month. Dr. Veltheer has reviewed the current state of our business in detail and he commissioned Evans & Evans, Inc., a Canadian boutique investment banking firm to evaluate our current business and our future prospects.  Evans & Evans offers a range of independent and advocate services to its clients including valuation and fairness opinions, business planning and research, mergers and acquisitions advice, business due diligence, market and competitive research and capital formation assistance. During November and December 2005, Evans & Evans conducted an evaluation of our past and present management, our financial results and regulatory filings, our website, our software and our hosting arrangements. Evans & Evans concluded that we need to modify our business plan to focus on a specific niche auction market.  Examples of successful niche internet auction businesses include CigarBid.com, GolfClubExchange.com, and WineBid.com.  Based on discussions with Evans & Evans, and having considered the current state of our business, including our current lack of capitalization and revenues, our management is currently revising our business plan to focus on and serve a unique marketplace whereby like-minded individuals can buy and sell goods in which they have a significant interest.  It is our opinion that eclectic collectors and consumers interested in highly specific product niches would prefer to buy and sell amongst themselves than be mixed in with the masses at eBay or one of our other competitors. We intend to continue to develop our current business under Dr. Veltheers guidance.  We will continue to maintain our server, website and Internet connection. As a result of our failure to generate substantial revenues, we have not been satisfied with our initial business plan and have actively been seeking to create shareholder value with a more defined business plan in the niche internet auction arena. Simultaneously, in an effort to substantiate stockholder value, we will continue to seek compatible or alternative business opportunities. Should we be able to locate and negotiate with an established business entity for the merger of a target business or alternatively acquire a business it may be compatible with our revised business plan or it may be a business unrelated to our current business. We can provide no assurance that we will be able to locate any such business opportunities. We may seek a business opportunity with entities which have recently commenced operations or wish to utilize the public marketplace in order to raise additional capital in order to expand business development activities or develop a new product or service. We may acquire assets and establish wholly-owned subsidiaries in various businesses or acquire existing businesses as subsidiaries.  No assurances can be given that we will be successful in locating or negotiating with any startups or find any assets to acquire. The search for and analysis of new business opportunities will be undertaken by our President, who is not a professional business analyst.  In seeking or analyzing prospective business opportunities, Dr. Veltheer may utilize the services of outside consultants or advisors. Management does not have the capacity to conduct as extensive an investigation of a target business as might be undertaken by a venture capital fund or similar institution. As a result, management may elect to merge with a target business which has one or more undiscovered shortcomings and may, if given the choice to select among target businesses, fail to enter into an agreement with the most investment-worthy target business.  Likewise, no assurances can be given that we will be able to enter into a business combination, as to the terms of a business combination, or as to the nature of the target business.       - 4 -   As of the date hereof, management has not made any decisions concerning or entered into any written agreements for a business combination. When any such agreement is reached or other material fact occurs, we will file notice of such agreement or fact with the Securities and Exchange Commission on Form 8-K. Persons reading this Report are advised to determine if we have subsequently filed a Form 8-K. Our Chief Financial Officer, J. David Brow, will continue to consult for our company on an uncompensated as-needed basis during the next few fiscal periods.  Mr. Brow, who is currently Regional Manager for the Americas' Retail and Electronic Sales Distribution Channels for Symantec Corporation's Enterprise Administration Business Unit, has extensive experience with online sales and marketing strategies and he will provide Dr. Veltheer with insight into establishing procedures, strategies and business development. Once we have developed a concept for a niche internet auction site we will target users (both buyers and sellers) primarily through direct email marketing.  Direct email marketing campaigns send targeted direct email to recipients on opt-in email lists maintained by online communities, clubs, organizations etc.  Campaigns can vary tremendously in cost but we believe that these campaigns will provide us with a cost effective means of reaching our target market.  Our initial budget for email marketing is $10,000-$15,000.  We plan to conduct direct email marketing campaigns when we have a niche auction site delineated. We believe that we will need to advertise our website, our products and our services to attract users as we ramp up operations into our full launch but we appreciate that our advertising budget will not permit extensive or expensive methods of advertising.  We intend to focus our advertising efforts on online advertising campaigns with 24/7 Canada, Inc., a subsidiary of 24/7 Real Media, Inc.  24/7 Canada uses permission-based email and segmented and targeted website advertising based on targeted location, and is capable of targeting users by language, age, time of day and interest.  We believe that using 24/7 Canada as an advertising medium will permit our company to present to our target audience (Vancouver area residents and businesses).  We have budgeted approximately $15,000 for advertising over the next 12 months. Our current President and Chief Executive Officer, John Veltheer, is currently handling our operations on a part-time consulting basis, for which we pay him $2,000 per month.  Mr. Veltheer is in charge of overall business development and will look to consultants to test our PHP Auction software and manage our marketing and advertising efforts as required.  He will also ensure that Binary continues to maintain our server, website and internet connection.  Our Chief Financial Officer, J. David Brow, will consult for our company on an uncompensated as-needed basis during the next few fiscal periods.  Mr. Brow, who is currently regional manager for the Americas' Retail and Electronic Sales Distribution Channels for Symantec Corporation's Enterprise Administration Business Unit, has extensive experience with on-line sales and marketing strategies and he will provide our company with insight into establishing
procedures, strategies and business development during our launch process. Purchase or Sale of Equipment As discussed above, we have purchased a server from our past President, Brad Rudover for $500.  This server is an essential part of our business as this connects our website to the internet and allows our users to buy and sell items in our online marketplace. In the future, if we are generating revenue we anticipate on purchasing an Apple iBook G4 notebook computer. Macintosh has become the standard for graphics editing and we believe this will allow us to improve the appearance of our website and any auction items listed on it.  Along with graphics this notebook will also act as a database in which we can store all usr and transaction information.  As a development company with limited resources we will rely on our ability to generate revenue prior to making this purchase. Personnel As of May 1, 2006, our Chief Executive Officer, John Veltheer, and our Chief Financial Officer, J. David Brow, continue to consult for our company and we do not have any employees.  Both Messrs. Veltheer and Brow handle       - 5 -   all of the responsibilities in the area of corporate administration, business development and research.  We do not currently have or plan to add any other employees or consultants during the next twelve months. In addition to the costs of our operations outlined above, we expect to incur administrative and professional charges associated with preparing, reviewing, auditing and filing our financial statements and our periodic and other disclosure documents.  For the 12 months ending March 31, 2007, we have budgeted $35,000 for accountants and lawyers fees for our periodic filing requirements, and an additional $8,000 for miscellaneous office and filing fees and expenses. Research and Development As we are currently in the process of developing our business, we do not plan to spend any time or money on research and development of additional products during the next 12 months.  In addition, we do not anticipate that we will implement any formal research and development effort.  We anticipate that we will constantly research our competitors' products and services and that this effort will result in constant improvement of our own website and product offerings.  We anticipate that Dr. Veltheer, our President and Chief Executive Officer, will perform these services for us in the normal course of performing his consulting duties, and we have not budgeted any additional funds for this purpose. Going Concern We incurred a loss of $15,355 for the three month period ended March 31, 2006, and we have incurred an accumulated deficit since inception of $335,346.  At March 31, 2006, we had $17,142 in cash and $104,891 in current liabilities resulting in a working capital deficiency of $87,749.  As we have only recently commenced operations, we have only generated nominal revenues and there can be no assurance that we can generate any significant revenues from operations.Our management believes that our company cannot sustain its operations from existing working capital and operations over the next 12 months.  Therefore, we believe that the only source of funds available to us to finance our operating and capital requirements will be to raise capital as needed on a private placement basis.  As described in more detail above, we estimate that we will need $35,000 to
satisfy our cash requirements for the next twelve months. A company controlled by the former president of our company advanced $10,000 to our company by way of an unsecured simple demand promissory note.  The advance was unsecured, non-interest bearing and payable on demand.  The advance was repaid during the current quarter. On November 22, 2005, Dr. John Veltheer, our President and Chief Executive Officer, agreed to loan $30,000 to our company by way of an unsecured simple demand promissory note indicating that the principal amount plus simple interest calculated at a rate of 12% per annum, will be repayable in full on the first anniversary of the promissory note. On January 19, 2006, a shareholder agreed to loan $50,000 to our company by way of an unsecured simple demand promissory note indicating that the principal amount plus simple interest calculated at a rate of 8% per annum, with no specific date of repayment. The financial statements included with our annual report filed with the Securities and Exchange Commission on February 21, 2006 have been prepared on the going concern basis which assumes that adequate sources of financing will be obtained as required and that our assets will be realized and liabilities settled in the ordinary course of business.  Accordingly, the audited financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary should we be unable to continue as a going concern. In order to continue as a going concern, we require additional financing.  There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms.       - 6 -   Due to the uncertainty of our ability to meet our current operating and capital expenses, in their report on the consolidated financial statements for the year ended December 31, 2005, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern.  Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors. Recently Issued Accounting Standards In May 2005, the Financial Accounting Standards Board (FASB) issued SFAS No. 154, Accounting Changes and Error Corrections  A Replacement of APB Opinion No. 20 and SFAS No. 3. SFAS 154 changes the requirements for the accounting for and reporting of a change in accounting principles and applies to all voluntary changes in accounting principles. It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS 154 requires retrospective application to prior periods financial statements of changes in accounting principles, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The provisions of SFAS No. 154 are effective for accounting changes and correction of errors made in fiscal years beginning after December 15, 2005. The
adoption of this standard is not expected to have a material effect on our companys results of operations or financial position. In December 2004, FASB issued SFAS No. 153, Exchanges of Nonmonetary Assets - An Amendment of APB Opinion No. 29. The guidance in APB Opinion No. 29, Accounting for Nonmonetary Transactions, is based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included certain exceptions to that principle. SFAS No. 153 amends Opinion No. 29 to eliminate the exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. The provisions of SFAS No. 153 are effective for nonmonetary asset exchanges occurring in fiscal periods
beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The adoption of this standard is not expected to have a material effect on our companys results of operations or financial position. APPLICATION OF CRITICAL ACCOUNTING POLICIES Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States.  Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by managements application of accounting policies.  We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financials. Revenue Recognition We receive and recognize revenue as users post items for sale and also when items are purchased on the website. Users will be obligated to pay a listing fee for their items to be placed in the auction directory. This fee is determined by the price of the item with a larger priced item reflecting a larger listing fee. When an item is sold through the auction website, the buyer must pay a premium in the form of a percentage of the final sale, with a higher percentage charged for higher priced items. The listing fee and commission revenue is recognized in the period the fee or commission is earned. Although we have not generated any revenue from the final value fee, we have recognized revenue from listing fees. We do not expect difficulty collecting accounts receivable as amounts are to be received from PayPal.       - 7 -   Stock-based Compensation We do not have a stock option plan, however, we do issue shares of common stock to non-employees for services.  We account for shares of common stock issued for services to non-employees in accordance with SFAS No. 123R Share Based Payments. RISK FACTORS This quarterly report contains forward-looking statements as that term is defined in the applicable securities law.  These statements relate to future events or our future financial performance.  In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology.  These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.  Our forward-looking statements involve various risks and uncertainties, some but not all of which are as outlined below.  We caution readers of this quarterly report that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any of our estimates, projections or other forward-looking statements.  In evaluating us, our business and any investment in our business, readers should carefully consider the
following factors: Our company is in the early development stage. The fact that we have only generated nominal revenues since our incorporation raises substantial doubt about our ability to continue as a going concern, as indicated in our independent auditors' opinion given in connection with our audited financial statements for the year ended December 31, 2005 and in the notes to the financial statements included with our annual report on Form 10-KSB filed with the Securities and Exchange Commission on February 21, 2006. Our company is in the early development stage.  We have only generated nominal revenues since we were incorporated on February 3, 1999.  We incurred a loss of $15,355 for the three months ended March 31, 2006 and we have an accumulated deficit of $335,346 from the date of our incorporation on February 3, 1999 through the period ending March 31, 2006.  We anticipate that we will operate in a deficit position for the foreseeable future.  We will require additional financing in order to fund our marketing efforts and our monthly overhead.  To date, our primary source of funds has been the sale of our common stock but there can be no assurance that we will be able to raise additional working capital through the sale of our common stock or through any other means.  If we cannot raise the working capital required for the development of our business, our business will fail.  These circumstances raise substantial
doubt about our ability to continue as a going concern as expressed in an explanatory note that forms part of our independent auditors' report on our financial statements for the year ending December 31, 2005 and is included in the notes to the financial statements included with our annual report on Form 10-KSB filed with the Securities and Exchange Commission on February 21, 2006. There is a limited public market for shares of our common stock, which will make it difficult for you to sell your shares.  If you cannot sell your shares, you may lose all of your investment. There is a limited public market for our common stock and we can give no assurance that one will develop or be sustained.  Although our common stock received approval for quotation on the National Association of Securities Dealers Inc.'s OTC Bulletin Board on November 23, 2004, it has traded less than ten times.  If a broader public market for our common stock does not develop, then you may not be able to resell your shares of our common stock and you may lose all of your investment.       - 8 -   Even if a significant market for our shares of common stock should develop, the market price for our shares of common stock may be significantly affected by the current stage of our business and our lack of any more than nominal operating revenues and our financial and operations results from time-to-time.  Further, equity markets in general and the OTC Bulletin Board in particular can experience extreme volatility that can affect the market price of equity securities in ways that are often unrelated or disproportionate to the operating performance of the issuer companies.  You should not invest in our company unless you are prepared to hold onto your securities for a significant period of time. Our directors and officers are engaged in other full-time business activities and they may not devote sufficient time to our business, which could have an adverse effect on our ability to conduct operations and generate revenues. Our directors and officers are involved in other business activities.  Dr. John Veltheer, our President, Chief Executive Officer and one of our directors is employed full-time as the Chief Executive Officer of Vecten Corporation, a startup private equity fund.  J. David Brow, our Chief Financial Officer, secretary, treasurer and one of our directors is employed full-time as a Regional Manager of Symantec Corporation.  As a result, our directors and officers may not be able to devote sufficient time to our business affairs, which may negatively affect our ability to market our proposed business and conduct both our current and our proposed operations. Because our officers, directors and principal shareholders control a majority of our common stock, investors will have little or no control over our management or other matters requiring shareholder approval. Our officers and directors and their affiliates, in the aggregate, beneficially own 44.7% of the issued and outstanding shares of our common stock.  As a result, they have the ability to control matters affecting minority shareholders, including the election of our directors, the acquisition or disposition of our assets, and the future issuance of our shares.  Because our officers, directors and principal shareholders control the company, investors will not be able to replace our management if they disagree with the way our business is being run.  Because control by these insiders could result in management making decisions that are in the best interest of those insiders and not in the best interest of the investors, you may lose some or all of the value of your investment in our common stock. We rely on third parties to ensure that our website and our software are operating properly.  If our website or our software fail to operate properly and these third parties fail to perform as expected, our website will not operate as intended and our business will be adversely affected. We rely on contractors to correct errors in our software and make changes to our auction website in a timely manner.  These contractors may be unable or unwilling to correct problems with our software or website in a timely manner.  If we experience technical problems with our software or our website, or if we lose our connection to the internet, and these problems are not corrected immediately, our service could be adversely affected.  We have already experienced periodic system interruptions and we believe that these will continue to occur from time to time.  These outages have stemmed from a variety of causes, including third-party hardware and software problems and human error.  If our users become frustrated with our level of service, they may switch to a competitor's service.  If any of these events occur, our business could be adversely affected. In addition, we may add new features and functionality to our services that may result in the need to develop or license additional technologies.  If we are unable to add additional software and/or hardware or upgrade our technology, transaction processing systems or network infrastructure to accommodate increased traffic or transaction volume, our business could suffer adverse consequences including unanticipated system disruptions, slower response times, degradation in levels of customer support, impaired quality of the users' experience on its service and delays in reporting accurate financial information.  These consequences could harm or limit our ability to expand our business. Competition is strong in the market for online exchanges of goods and services.  If we cannot compete in this market, our ability to earn revenues will be limited and our business may fail. The market for online exchanges of goods and services is highly competitive and consists of a number of established companies.  We compete for internet users that currently are familiar with more established online auction sites,       - 9 -   such as eBay, uBid.com, Yahoo! Auctions, Winebid.com, Golfclubexchange.com and others who have more financial resources, operating experience and brand awareness among internet users than we have.  This industry is also highly fragmented, and is subject to rapidly changing consumer demands and preferences. The online auction industry requires that a marketer recognize trends and adequately provide services to meet such trends.  To compete effectively, our services have to be competitive in terms of quality, price, service, style and, with respect to branded product lines, consumer recognition.  We believe that our success depends in large part upon our ability to anticipate, gauge and respond to changing consumer demands in a timely manner, generating brand awareness.  If we do not generate sufficient brand awareness, or if we cannot anticipate, gauge and respond to consumer demands, we will not be able to compete in this industry and our ability to earn revenues will be harmed. In addition, the widespread adoption of new internet, networking or telecommunications technologies or other technological changes could require substantial expenditures by our company to modify or adapt our services or infrastructure.  If we cannot raise the money required to effect these changes, we will not be able to compete with other businesses engaged in the internet auction business that are able to effect these changes. If we are unable to protect our intellectual property, our efforts to create and thereafter to increase public recognition of our brand may be impaired. We currently hold the internet domain name "www.electricnetwork.com".  The acquisition and maintenance of domain names generally is regulated by governmental agencies and their designees.  The regulation of domain names in the United States and Canada, as well as in other foreign countries, is subject to change.  As a result, we may be unable to acquire or maintain relevant domain names in all countries where we intend to do business.  This could impair our efforts to build brand recognition and increase traffic to our website.  In addition, we may be unable to prevent third parties from acquiring domain names that are similar to, infringe upon or otherwise decrease the value of our domain name. We have applied for trademark registration with the United States Patent and Trademark Office of the mark "The Electricnetwork.com" for use in conjunction with our website.  Our application for trademark registration has been granted, and the trademark was registered on June 22, 2004.  We have not applied for similar trademark registration in Canada or in any other country.  If we cannot protect our trademark in Canada or in other countries where we propose to do business, we would either need to expend resources to defend that use, or identify another name to use, and change our domain name and other materials to conform to that new name.  In such an event, our efforts to build brand awareness and attract traffic to our website would be adversely affected. Government regulation of the internet could have adverse impacts on our business. The applicability to the internet of existing laws governing taxation of products and services sold over the internet, the protection of intellectual property, user privacy, pricing, content, distribution, antitrust and the quality of products and services is rapidly evolving.  The application of these laws to the internet and the adoption of new laws or regulations pertaining to these matters could reduce the rate of growth of the internet.  If these regulations make the operation of a website such as ours more expensive than we anticipate, or more unwieldy than potential bidders and sellers are willing to tolerate, then these regulations could potentially decrease the usage of our website and could otherwise harm our business. We may be required to expend resources defending our reputation or assets from liability for claims arising from users listing for sale items that it is unlawful to list. Laws relating to the liability of providers of online services for the activities of their users on their service is currently unsettled.  We are aware that certain goods, such as firearms, other weapons, adult material, tobacco products, alcohol and other goods that may be subject to regulation by local, state or federal authorities, may be listed and traded on our website.  We may be unable to prevent the sale of unlawful goods, or the sale of goods in an unlawful manner, by users of our website and we may be subject to civil or criminal liability for unlawful activities carried out by users through its service.  Any costs incurred as a result of liability or asserted liability relating to the sale of unlawful goods or the unlawful sale of goods could harm our business.       - 10 -   Fraudulent activities by persons using our website could harm our reputation and our business. Our success will depend largely upon sellers reliably delivering and accurately representing their listed goods and buyers paying the agreed purchase price.  We will not take responsibility for delivery of payment or goods to any buyer or seller but we anticipate that we may receive communications from users who did not receive the purchase price or the goods that were to have been exchanged.  While we anticipate that we will be able suspend the accounts of users who fail to fulfil their obligations to other users, we will not have the ability to otherwise require users to make payments or deliver goods.  We may also periodically receive complaints from buyers as to the quality of the goods purchased. Any negative publicity generated as a result of fraudulent or deceptive conduct by users of our website could damage our reputation and diminish the value of our brand.  We may in the future receive additional
requests from users requesting reimbursement or threatening legal action against us if no reimbursement is made.  Any resulting litigation could be costly for our company, divert management attention, result in increased costs of doing business, lead to adverse judgments or could otherwise harm our reputation and our business. We depend on the continued growth of online commerce. The business of selling goods over the internet, particularly through online trading, is dynamic and relatively new. Acceptance of and growth in use of the internet as a medium for consumer commerce may not continue.  Concerns about fraud, privacy, and other problems may discourage additional consumers from adopting the internet as a medium of commerce.  In particular, our website will require users to make publicly available personal information that some potential users may be unwilling to provide. These concerns may increase if and as additional publicity over privacy issues over the internet increases.  Market acceptance for recently introduced services and products over the internet is highly uncertain, and there are few proven services and products.  In order to build and continuously expand our user base, we must appeal to and acquire consumers who historically have used traditional means of commerce
to purchase goods.  If these consumers prove to be less active than we anticipate, and we are unable to establish efficiencies in our operating costs, including our cost of acquiring and retaining customers, our business could be adversely impacted. Because we can issue additional shares of common stock, and there is a substantial likelihood that we will do so in order to finance the completion of our website, our marketing and our monthly operations requirements, purchasers of our common stock may suffer immediate dilution of their interest in our company. The most likely source of future funds presently available to us is through the sale of equity.  Any sale of our shares will result in dilution to existing shareholders.  Furthermore, there is no assurance that we will not incur debt in the future, that we will have sufficient funds to repay our future indebtedness or that we will not default on our future debts, jeopardising our business viability.  Finally, we may not be able to borrow or raise additional capital in the future to meet our needs or to otherwise provide the capital necessary to conduct business and explore our properties, which might result in the loss of some or all of your investment in our common stock. Because some of our officers and directors are located in non-U.S. jurisdictions, you may have no effective recourse against the management for misconduct and may not be able to enforce judgement and civil liabilities against our officers, directors, experts and agents. Our President is a resident of Canada, and all or a substantial portion of our assets and those of our President are located outside the United States. As a result, it may be difficult for investors to enforce within the United States any judgments obtained against our company, our officers or directors, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state thereof. We have only generated limited revenues from our business operations and we will need to raise additional funds in the near future.  If we are not able to obtain future financing when required, we might be forced to change our business operations or discontinue our current business. Since our incorporation, we have generated insignificant revenues from listing fees.  Because we cannot anticipate when we will be able to generate significant revenue from our current business, we will need to raise additional funds to continue to develop our website and business or to respond to unanticipated requirements or expenses.  We       - 11 -   do not currently have any arrangements for financing and we can provide no assurance to investors we will be able to find such financing when such funding is required. Obtaining additional financing would be subject to a number of factors, including investor acceptance of our website and our business model.  The most likely source of future funds presently available to us is through the sale of equity capital.  Any sale of share capital will result in dilution to existing shareholders. Furthermore, there is no assurance that we will not incur debt in the future, that we will have sufficient funds to repay our future indebtedness or that we will not default on our future debts, jeopardizing our business viability. Finally, we may not be able to borrow or raise additional capital in the future to meet our needs or to otherwise provide the capital necessary to conduct our current business, which might result in
the loss of some or all of your investment in our common stock.  Since we have been unable to generate significant revenues we have decided to reassess our business plan and seek comparable or alternative business opportunities. We are an insignificant participant in the business of seeking business opportunities wherein a large number of established and well financed entities are our competitors. We are and will continue to be an insignificant participant in the business of seeking business opportunities.  A large number of established and well-financed entities, including venture capital firms, are active in seeking and pursuing business opportunities and mergers and acquisitions of companies, which may be business opportunities, or merger or acquisition target candidates for us. Nearly all such entities have significantly greater financial resources, technical expertise and managerial capabilities than we do and, consequently, we will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. Moreover, we will also compete with numerous other small public companies in seeking merger or acquisition candidates. Trading of our common stock may be restricted by the United States Securities and Exchange Commission's penny stock regulations, which may limit the development of a liquid public market for our common stock and may limit a shareholder's ability to buy and sell our common stock. Shares of our common stock are subject to rules adopted by the Securities and Exchange Commission that regulate broker-dealer practices in connection with transactions in "penny stocks".  "Penny stock" is defined to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions.  If we establish a trading market for our common stock, our common stock will most likely be covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors."  The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse.  The penny stock rules
require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market.  The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account.  The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer
must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction.  These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules.  Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. Item 3. Controls and Procedures As required by Rule 13a-15 under the Exchange Act, as of the end of the period covered by this quarterly report, being March 31, 2006, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures.  This evaluation was carried out under the supervision and with the participation of our company's management, including our company's President along with our company's Chief       - 12 -   Financial Officer.  Based upon that evaluation, our company's President, along with our company's Chief Financial Officer, concluded that our company's disclosure controls and procedures are effective as at the end of the period covered by this report.  There have been no changes in our internal controls over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting. Disclosure controls and procedures and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission's rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our President and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure. Part II - OTHER INFORMATION Item 1.  Legal Proceedings. We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation.  There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest. Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds. None Item 3.  Defaults Upon Senior Securities. None. Item 4.  Submission of Matters to a Vote of Security Holders. None. Item 5.  Other Information. None. Item 6.  Exhibits. Exhibits required by Item 601 of Regulation S-B (3)
        Articles of Incorporation and Bylaws 3.1           Articles of Incorporation (incorporated by reference from our Registration Statement on Form 10-SB filed on June 27, 2002). 3.2          Bylaws (incorporated by reference from our Registration Statement on Form 10-SB filed on June 27, 2002). (10)
        Material Contracts 10.1         Management Services Agreement between The Electric Network.com, Inc. and J. David Brow dated February 1, 2003 (incorporated by reference from our Annual Report on Form 10-KSB filed on April 9, 2004).       - 13 -   10.2         Management Services Agreement dated January 27, 2004 between The Electric Network.com, Inc. and Brad W. Rudover (incorporated by reference from our Annual Report on Form 10-KSB filed on April 9, 2004). 10.3         Shareholder Rights Agreement between The Electric Network.com, Inc. and Muir Woods Investment Group IBC dated December 2, 2003 (incorporated by reference from our Annual Report on Form 10-KSB filed on April 9, 2004). 10.4         Management Services Agreement dated February 1, 2003 between The Electric Network.com Inc. and J. David Brow (incorporated by reference from our Annual Report on Form 10-KSB filed on April 9, 2004). 10.5         Services Agreement dated May 1, 2004 between The Electric Network.com, Inc. and Binary Environments Ltd. (incorporated by reference from our Quarterly Report on Form 10-QSB filed on May 17, 2004). 10.6         Promissory Note dated November 2, 2005 between The Electric Network.com Inc. and Dr. John Veltheer (incorporated by reference from our Current Report on Form 8-K filed on November 28, 2005). 10.7         Promissory Note dated January 19, 2006 between The Electric Network.com Inc. and IFG Trust Services Inc. (incorporated by reference from our Annual Report on Form 10-KSB filed on February 21, 2006). (14)
        Code of Ethics 14.1        Code of Ethics (incorporated by reference from our Annual Report on Form 10-KSB filed on March 31, 2005). (31)
        Section 302 Certifications31.1*
        Section 302 Certification.31.2*
        Section 302 Certification.(32)
        Section 906 Certifications32.1*
        Section 906 Certification.32.2*
        Section 906 Certification.       - 14 -    SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE ELECTRIC NETWORK.COM, INC. By: /s/ John E. Veltheer John E. Veltheer, President and Director (Principal Executive Officer)  /s/ J. David Brow J. David Brow, Treasurer, Secretary and Director (Principal Financial Officer) Date:  May 11, 2006