UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-Q (Mark One) [x]Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period endedJune 30, 2012.  [ ]Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from  to .  Commission file number: 333-17627  SKAJAQUODA GROUP, INC. (Exact name of registrant as specified in its charter)  Delaware
(State or other jurisdiction of
incorporation or organization)
     45-2117356
(I.R.S. Employer
Identification No.)
  1001 Society Drive, Claymont, Delaware 19703 (Address of principal executive offices)    (Zip Code)  (302) 504-4448 (Registrants telephone number, including area code)  n/a (Former name, former address and former fiscal year, if changes since last report)  Indicate by check markwhether theregistrant: (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: Yes[x]No[ ].  Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes[x]No[ ]  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company as defined by Rule 12b-2 of the Exchange Act: Large accelerated filer[ ]Accelerated filer[ ]Non-accelerated filer[ ]Smaller reporting company[x]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes[ ]No[x]  Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date. The number of shares outstanding of the issuers common stock, $0.00001 par value (the only class of voting stock), at July 5, 2012, was 1,000,000.
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TABLE OF CONTENTS
PART 1- FINANCIAL INFORMATIONItem1.
     Financial Statements:
     3Balance Sheets as of June 30, 2012(Unaudited)
     4Unaudited Statements of Operations for the three  months ended June 30, 2012.
     5Unaudited Statement of Changes in Stockholders Equity
  6Unaudited Statements of Cash Flows for the three  months ended June 30, 2012.
     7Notes to Financial Statements
     8Item 2.
     Management's Discussion and Analysis of Financial Condition and Results of Operations
     12Item 3.
     Quantitative and Qualitative Disclosures about Market Risk
     17Item 4.
     Controls and Procedures
     17PART II-OTHER INFORMATIONItem 1.
     Legal Proceedings
     18Item 1A.
     Risk Factors
     18Item 2.
     Unregistered Sales of Equity Securities and Use of Proceeds
     19Item 3.
     Defaults Upon Senior Securities
     20Item 4.
     (Removed and Reserved)
     20Item 5.
     Other Information
     20Item 6.
     Exhibits
     20Signatures
     21Index to Exhibits
     22
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PART I  FINANCIAL INFORMATION  ITEM 1.     FINANCIAL STATEMENTS  As used herein, the terms Company, we, our, and us refer to Skajaquoda Group, inc., a Delaware corporation, and our subsidiaries and predecessors, unless otherwise indicated. In the opinion of management, the accompanying unaudited financial statements included in this Form 10-Q reflect all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.
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**Skajaquoda  Group, Inc. (A Development Stage Entity)**  **Balance  Sheet**   **UNAUDITED**
          June 30, 2012
      **AUDITED**
        December 31, 2011Assets*Current assets*Cash and cash equivalents
      $
      61,172
      99,376Accounts receivable
      
      1,124,155Deferred offering costs
      
      0Total current assets
      
      1,185,328
      99,376*Noncurrent assets*Property, plant, and equipment
      
      810Loan receivables
      
      41,538
      20,730Total noncurrent assets
      
      42,348
      20,730Total assets
      $
      1,227,677
      20,730Liabilities and Stockholders Equity*Current liabilities*Current income taxes payable
      $
      0Demand loans payable to related party
      
      103,137
      103,137Accounts payable
      
      1,114,077
      2,500Total current liabilities
      
      1,217,215
      105,637Total liabilities
      
      1,217,215
      105,637Stockholders' EquityCommon stock, $0.00001 par value, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding at June 30, 2012
      $
      10
      10Additional paid-in capital
      
      20,129
      20,129Retained earnings
      
      (5,670)
      (5,670)Total stockholders equity
      
      10,462
      14,469Total liabilities and stockholders equity
      $
      1,227,677
      120,106
 The accompanying notes are an integral part of these consolidated financial statements
 
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Skajaquoda Group, Inc. (A Development Stage Entity) **Statement of Operations
      Three Months Ended June 30, 2012 and From April 29, 2011 (Inception) to June 30, 2011 and Six Months Ended June 30, 2012 and From April 29, 2011 (Inception) to June 30, 2012** **UNAUDITED**
          Three months Ended June 30, 2012
          **AUDITED**
          From April 29, 2011 (Inception) to June 30, 2011
          **UNAUDITED**
          Six Months Ended June 30, 2012
          **UNAUDITED**
          From April 29, 2011 (Inception) to June 30, 2012*Revenue*Product Sales
          $
          1,124,155
          
          1,124,155
          1,124,155Services
          
          10
          
          10
          10Consulting services - related party
          
          
          20,801
          
          20,801Consulting services - related party
          
          
          9,400
          
          59,400Interest income
          
          259
          
          518
          518Total revenue
          
          1,124,424
          30,201
          1,124,683
          1,204,884Cost of goods sold
          
          (1,111,577)
          
          (1,111,577)
          (1,111,577)Gross Profit
          
          12,847
          30,201
          13,106
          93,307*Expenses*General administrative
          
          14,228
          2,250
          17,113
          102,984Total expenses
          
          14,228
          2,250
          17,113
          102,984Total income before income taxes
          
          (1,381)
          27,951
          (4,007)
          (9,677)Income tax expense
          
          0
          27,951
          0
          0Net income
          
          (1,381)
          18,448
          (4,007)
          (9,677)*Earnings per share*Basic
          $
          (0.0014)
          0.0184
          (0.004)
          (0.0097)Diluted
          $
          (0.0014)
          0.0184
          (0.004)
          (0.0097)*Weighted average common shares*Basic
          
          1,000,000
          1,000,000
          1,000,000
          1,000,000Diluted
          
          1,000,000
          1,000,000
          1,000,000
          1,000,000
    The accompanying notes are an integral part of these consolidated financial statements
 
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**Skajaquoda Group, Inc. (A Development Stage Entity)** **Statement of Changes in Stockholders' Equity** **From April 29, 2011 (Inception) to June 30, 2012** **Common Stock**
        **Additional** **Paid-in Capital**
        **Retained Earnings**
        **Total****Shares**
        **Amount****Balance at April 29, 2011**
        **-**
        **$ -**
        **$ -**
        **$ -**
        **$ -****Issuance of common stock**
        **1,000,000**
        **10**
        **$ 20,129**
        **-**
        **20,139****Net income**
        **-**
        **-**
        **-**
        **(9,677)**
        **(9,677)****Balance at 30 June 2012**
        **1,000,000**
        **$ 10**
        **$ 20,129**
        **$ (9,677)**
        **$ 10,462** The accompanying notes are an integral part of these  financial statements.
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**Skajaquoda  Group, Inc. (A Development Stage Entity)** **Statement of Cash Flows
    Six Months Ended June 30, 2012 and From April 29, 2011 (Inception) to June 30, 2012** **UNAUDITED** June 30, 2012
      From April 29, 2011 (Inception) to June 30, 2012Cash flow from operating activitiesNet income
      **$**
      **(4,007)**
      **(9,677)**Adjustments to reconcile net income to net cashprovided by operating activities:
      
      0
      0Increase in accounts receivable
      
      (1,124,155)
      (1,124,155)Increase in accounts payable
      
      1,111,577
      1,114,077Increase in income taxes payable
      
      0
      0Net cash provided by operating activities
      **$**
      **(16,585)**
      **(19,755)**Purchase of property and equipment
      
      (810)
      (810)Cash flow from investing activities
      
      (518)
      (518)Issuance of loan receivable
      
      (20,290)
      (41,020)Cash flow used in investing activities
      **$**
      **(21,618)**
      **(42,348)**Cash flow from financing activities
      
      0
      0Issuance of common stock
      
      0
      20,139Payment of deferred offering costs
      
      0
      0Proceeds from demand loans from related party
      
      0
      103,137Cash flow provided by financing activities
      **$**
      **0**
      **123,276**Net increase (decrease) in cash and cash equivalents
      
      (38,203)
      61,173Cash and cash equivalents at beginning of period
      
      **99,376**Cash and cash equivalents at end of period
      **$**
      **61,173**
      **61,173**Interest paid
      **$**
      -
      -Taxes paid
      $
      -
      -
    The accompanying notes are an integral part of these consolidated financial statements
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SKAJAQUODA GROUP, INC. Notes to the Financial Statements as ofJune 30, 2012 **1. Incorporation  and Operations** Skajaquoda Group Inc.  ("Skajaquoda" or the "Company") is domiciled in Delaware,  and commenced operations on April 29, 2011 (Inception). The Company plans to  become a registered investment advisor.
    Based on the Company's business  plan, it is a development stage company since planned principle operations have  not yet commenced. Accordingly, the Company has prepared its financial  statements in accordance with accounting principles generally accepted in the  United States of America ("GAAP") that apply to developing  enterprises. As a development stage entity, the Company discloses its retained  earnings during the development stage and the cumulative statements of  operations and cash flows from commencement of development stage to the current  balance sheet date. The development stage began on April 29, 2011, when the  Company was organized. **2. Going Concern** The preparation of financial  statements in accordance with GAAP contemplates that operations will be  sustained for a reasonable period. The Company is in the development stage and  is dependent on outside sources of financing for continuation of its  operations. These conditions raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period. 
    The company plans to improve its financial condition thru a private placement.  However, there is no assurance that the company will be successful in  accomplishing this objective. Management believes that this plan provides an  opportunity for the Company to continue as a going concern. We cannot give any  assurances regarding the success of management's plans. Our financial  statements do not include adjustments relating to the recoverability of  recorded assets or liabilities that might be necessary should we be unable to  continue as a going concern.
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SKAJAQUODA GROUP, INC. Notes to the Financial Statements as ofJune 30, 2012 **3. Significant  Accounting Policies** Cash and Cash Equivalents -  For purposes of the statements of cash flows, the Company considers all highly  liquid investments with original maturities of three months of less to be cash  equivalents. Cash and cash equivalents are stated at cost which approximates  fair value. Accounts Receivable - The  Company grants credit to customers in the normal course of operations. Accounts  receivables are based on management's evaluation of outstanding receivables at  year end. Allowance for doubtful accounts, if any, is provided based on the  review of outstanding receivables, historical experience and economic  conditions. Uncollectible accounts are expensed in the period such amounts are  determined. Loan Receivable - Loans  receivable are financial assets with fixed or determinable payments that are  not quoted in an active market are measured at amortized cost using the  effective interest method, less any impairment. Loans receivable are assessed  for indicators of impairment at the end of each reporting period, and are  considered to be impaired when there is objective evidence that, as a result of  one or more events that occurred after the initial recognition of the financial  asset, the estimated future cash flows of the investment have been affected. Revenue - Revenue is  recognized as earned from the performance of services in accordance with SEC  Staff Bulletin No. 104, "Revenue Recognition" ("SAB 104").  Under SAB 104, service revenues are recognized when persuasive evidence of an  arrangement exists, service has been performed, the sales price is fixed and  determinable, and collectability is reasonably assured. Income Taxes - The Company  follows the asset and liability method of accounting for future income taxes.  Under this method, future income tax assets and liabilities are recorded based  on temporary differences between the carrying amount of assets and liabilities  and their corresponding tax basis. In addition, the future benefits of income  tax assets including unused tax losses, are recognized, subject to a valuation  allowance to the extent that it is more likely than not that such future  benefits will ultimately be realized. Future income tax assets and liabilities  are measured using enacted tax rates and laws expected to apply when the tax  liabilities or assets are to be either settled or realized. The Company does  not have any significant deferred tax asset or liabilities at June 30,  2012. The Company's effective tax rate approximates the Federal statutory  rates. Earnings Per Share - Basic  earnings per share is computed by dividing net income by the weighted average  number of shares of common stock outstanding during the period. Diluted  earnings per share is computed by dividing net income by the weighted average  number of shares of common stock, common stock equivalents and potentially  dilutive securities outstanding during each period. The Company has no  potentially dilutive common shares at June 30,  2012. Other Comprehensive Income -  Other comprehensive loss represents the change in equity of an enterprise  during a period from transactions from non-owner sources. The company has no  accounts or transactions that give rise to other comprehensive income. Fair Value - The fair values  of accounts receivable and taxes payable approximates their carrying values due  to the short-term nature of these instruments. The fair value of loan  receivable approximates its carrying value due the proximity of its issuance  date to the date of the accompanying financial statements.
  Use of Estimates - The  preparation of financial statements in conformity with GAAP requires management  to make estimates and assumptions that affect the reported amounts of assets  and liabilities at the date of the financial statements and reported amounts of  revenues and expenses during the reporting period. Actual results could differ  from those estimates. Management believes that the estimates are reasonable.
  9


SKAJAQUODA GROUP, INC.

Notes to the Financial Statements as ofJune 30, 2012

**4. Loan  Receivable** On June 23, 2011, the  Company disbursed $20,730 under a $25,000 line of credit ("Note") to  an unrelated party. The unpaid principal of this line of credit shall bear  simple interest at the rate of 5% per annum. Interest shall be calculated based  on the principal balance as may be adjusted from time to time to reflect  additional advances made hereunder. The loan does not bear interest in 2011.  Interest on the unpaid balance of this Note shall accrue monthly beginning in  January 1 2012 but shall not be due and payable until June 22, 2016, when the  principal balance of this Note becomes due and payable. No consideration was  received for this disbursement. Between May and June, 2012, the  Company disbursed $20,290 under a $32,000 line of credit ("Note") to  an unrelated party. The unpaid principal of this line of credit shall bear  simple interest at the rate of 5% per annum. Interest shall be calculated based  on the principal balance as may be adjusted from time to time to reflect  additional advances made hereunder.  Interest on the unpaid balance of this Note shall accrue monthly  but shall not be due and payable until May 18, 2013, when the  principal balance of this Note becomes due and payable. No consideration was  received for this disbursement. **5. Stockholders'  Equity** *Common Stock -*The Company is authorized to issue ten million  (10,000,000) shares of shares of CommonStock, par value $.00001 per share (the  "Common Stock"). As of June 30, 2012, ten  million (10,000,000) shares of Common Stock, par value $.00001 per share, are  authorized, of which 1,000,000 shares are issued and outstanding. All shares of the Company's  Common Stock have equal rights and privileges with respect to voting,  liquidation and dividend rights. Each share of Common Stock entitles the holder  thereof to: One non-cumulative vote for  each share held of record on all matters submitted to a vote of the  stockholders;
    To participate equally and to receive any and all such dividends as may be  declared by the Board of Directors out of funds legally available therefore;  and 
    To participate pro rata in any distribution of assets available for  distribution upon liquidation. Stockholders have no  preemptive rights to acquire additional shares of Common Stock or any other  securities. Common shares are not subject to redemption and carry no  subscription or conversion rights. All outstanding shares of Common Stock are  fully paid and non-assessable. *Preferred Stock  -*As of June 30,  2012, no shares of Preferred Stock  are authorized and no shares are issued and outstanding. 10


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SKAJAQUODA GROUP, INC.

Notes to the Financial Statements as ofJune 30, 2012

**6. Related Party  Transactions** During 2011, the Company  earned $59,400 in consulting fee revenue for services rendered to Skajaquoda  Capital, LLC, a privately held company owned by our chief executive officer  Einar Agustsson. Skajaquoda Capital, LLC is in the business of investing in  stocks, bonds, options and other securities.
    During 2011, the Company earned $20,801 in consulting fee revenue for services  rendered to LA, a related party owning 1% of our common stock. LA is in the  business of investing in stocks, bonds, options and other securities. During 2011, the Company  incurred $70,500 in consulting expenses for services performed by Likenia, a  related party owning 1% of our common stock, and has classified these expenses  as deferred offering costs in the accompanying financial statements due to  their association with a proposed public offering of its securities. Likenia is  in the business of providing consulting services to businesses. The Company believes these  transactions were effected at fair value based on the services performed. These services were and are  provided as needed and do not have any fixed terms. Since our Chief executive  officer is currently not receiving salary we did not have any significant costs  associated with providing these services.
    During 2011, the Company entered into a loan agreement with Einar Agustsson the  chief executive officer of the company and owner of 60% of our common stock to  borrow $110,000 to fund operations. The loan does not bear interest and is due  on demand. **7. Demand Loan  Payable** Effective September 30,  2011, the Company entered into a loan agreement with a related party to borrow  $110,000 to fund operations. The loan does not bear interest and is due on  demand. 11




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Item 2.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  ThisManagements Discussion and Analysis of Financial Condition andResults of Operationsand other parts of this current report contain forward-looking statements that involve risks and uncertainties. Forward-looking statements can also be identified by words such as anticipates, expects, believes, plans, predicts, and similar terms. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include but are not limited to those discussed in the subsection entitledForward-Looking Statements and Factors That May Affect Future Results and Financial Conditionbelow. The following discussion should be read in conjunction with our financial statements and notes thereto included in this current report. Our fiscal year end is December 31. **PLAN  OF OPERATIONS:** During this quarter we became a licensed metals retailer in the state of Delaware and started offering the sale and storage of precious metals to our clients. We have made a contract with a fully insured vault company located in Delaware to store our clients precious metals. We see this new service as a part of our planned investment management service and allows us to provide our clients with a broader range of investment opportunities. Our attempt to become quoted on the OTC Bulletin Board has consumed more time than originally planned for and has delayed our  plans of becoming a registered investment advisor. Until we become quoted we  may not be able to raise the financing needed to hire the staff neccessary for  such an operation. Our plan of operations for the next twelve months is  to proceed with the implementation of our business plan.  We will strive to  launch all aspects of our operations. We may require up to $200,000 in  additional financing to expand our operations as outlined in the table below,  subject to our cash on hand and actual revenues. **Goal**
    **Expected Manner    of occurance or Method of Achievment**
    **Date When Steps    Shold Be Accomplished**
    **Cost of    Completion**Complete IA Registration
    Complete investment advisor registration process
    6 - 9 months
    $40,000Complete corporate website
    Complete design and technology of our corporate website
    6 - 9 months
    $30,000Launch Marketing Phase
    Implementation of markting plan
    6 - 12 months
    $75,000Create Corporate Identity and brand recognition
    Build our image as a trusted service provider
    12 - 24 months
    $55,000 Our total expenditures over the next twelve months  are anticipated to be approximately $200,000 including the remaining estimated  costs of this offering. Our cash on hand as of June 30, 2012 is $61,173. We do  not have sufficient cash to fund our operations for the next twelve months.
  Our monthly expenses
  consist of rent, legal fees, accounting and audit fees associated with our attempt to become quoted on the OTC Bulletin Board. We are currently in the beginning stages of the investment advisor registration process which has created minor costs. All steps will be undertaken contemporaneously. Limited operating  history; need for additional capital We cannot guarantee we will be successful in our  business operations. Our business is subject to risks inherent in the establishment  of a business enterprise, including limited capital resources and possible cost  overruns due to price and cost increases in services and products. We have no assurance that future financing will be  available to us on acceptable terms. If financing is not available on  satisfactory terms, we may be unable to continue, develop or expand our  operations. Equity financing could result in dilution to shareholders. **Long-Term Liquidity Needs**
  We  plan to meet our most significant liquidity needs beyond the next 12 months through  future cash flow, the private or public issuance of debt or equity securities. We  cannot provide any assurances that we will be able to access the capital  markets on favorable terms, if at all. 12


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**Cash Requirements** 
    Our cash on hand as of June 30, 2012 is $61,173. However, we will  require additional financing in order to proceed with some or all of our goals  as projected at more than twelve (12) months. We presently do not have any  arrangements for additional financing, and no potential lines of credit or  sources of financing are currently available for the purpose of proceeding with  any of our goals projected at more than twelve (12) months.
    Any additional growth of the Company may require additional cash infusions.  We may face expenses or other circumstances such that we will have additional  financing requirements. In such event, the amount of additional capital we may  need to raise will depend on a number of factors. These factors primarily  include the extent to which we can achieve revenue growth, the profitability of  such revenues, operating expenses, research and development expenses, and  capital expenditures. Given the number of programs that we have ongoing and not  complete, it is not possible to predict the extent or cost of these additional  financing requirements.
    Notwithstanding the numerous factors that our cash requirements depend on,  and the uncertainties associated with each of the major revenue opportunities  that we have, we believe that our plan of operation can build long-term value  if we are able to demonstrate clear progress toward our objectives.
    Progress in the development of our business plan will likely lend  credibility to our plan to maintain profitability. We anticipate that we will  hire several members to our sales, marketing, research and development,  regulatory and administrative staff during the course of 2012 in order to fully  implement our plans for growth.
    The failure to secure any necessary outside funding would have an adverse  affect on our development and results therefrom and a corresponding negative  impact on shareholder liquidity. **Future Financings** 
    Our plan of operation calls for significant expenses in connection with the  implementation of our business plan over the course of the next 24 months. For  the next twelve months, management anticipates that the minimum cash  requirements to fund our proposed goals and our continued operations will be at  least $200,000. As such, we do not have sufficient funds on hand to meet our  planned expenditures over the next 24 months. Therefore, we plan to seek  additional financing to meet our planned expenditures through a private  placement of our common stock shortly after we have become quoted on the OTCBB. These plans, if successful, will mitigate the factors  which raise substantial doubt about the Company's ability to continue as a  going concern. Obtaining additional financing would be subject to a number of factors,  including development of our business plan and interest in our company. These  factors may make the timing, amount, terms or conditions of additional  financing unavailable to us. 13


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**RESULTS OF OPERATIONS** **RESULTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 2012** ***REVENUE*** 
    Our net revenue amounted to $12,847 for the quarter ended June 30, 2012.
    The revenue came from the sale of precious metals and interest on loan assets. Our Chief executive officer is currently not receiving  salary so we did not have any significant costs associated with salary. Net income for the quarter ended June 30, 2012 is $(1,381). Fluctuations in our revenues are primarily the result of the nature of the  business model we operate. The Company can neither predict or assess, nor prevent  fluctuations. We attempt to offer services at competitive prices. Because of  the unpredictable nature of fluctuations, we do not attribute fluctuations to  any particular item or event. Our business model is designed to respond to  fluctuation with immediate change. We do not account for or analyze the  fluctuations as we do not believe it to be a prudent use of resources, given  our business model. ***COST OF GOODS SOLD***
  We had cost of goods sold of $1,111,577 or 98.88% of sales for the three months ended June 30, 2012.***OPERATING EXPENSES*** 
    Our total operating expenses for the quarter ended June 30, 2012 were $14,228. Expenses consisted primarily of general operating  expenses including professional fees.  Our operating expenses are mostly attributable to our accounting  and legal expenses associated with our SEC filing and attempt to become listed  on the OTCBB.***NET PROFIT*** 14


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***LIQUIDITY AND CAPITAL RESOURCES*** 
    At June 30, 2012, our cash balance was $61,173.
    Cash flows from operating activities for the quarter ended June 30,, 2012 were negative $(13,959).
    As of September 30, 2011, a related party had loaned the Company $110,000.  This loan is payable on demand, unsecured and does not accrue interest.
    The Director believes that the Company will in the beginning of November  2012 generate sufficient cash from its operating activities for the foreseeable  future, supplemented by an anticipated infusion of capital, to fund its working  capital needs, strengthen its balance sheet and support its growth strategy of  expanding its geographic distribution and product offerings. **Operating Activities** 
    The Company has no current liabilities besides a loan agreement with a  related party to of $110,000 to fund operations. The loan does not bear  interest and is due on demand. Working capital (the difference between the  Company's current assets and current liabilities) was ($31,887) at June  30, 2012. Our net income for the quarter, as adjusted for amortization and future  income taxes, was $(1,381) for the quarterly period ended June 30, 2012. **Financing Activities** 
    During the period from April 29, 2011(inception) to June 30, 2012, we had $20,139 in cash provided from  the issuance of common stock through financing activities, sold to our Chief  Executive Officer and other investors. On June 23, 2011, the Company disbursed $20,730 under a $25,000 line of  credit ("Note") to an unrelated party. The unpaid principal of this  line of credit shall bear simple interest at the rate of 5% per annum. Interest  shall be calculated based on the principal balance as may be adjusted from time  to time to reflect additional advances made hereunder. Interest on the unpaid  balance of this Note shall accrue monthly but shall not be due and payable  until June 22, 2016, when the principal balance of this Note becomes due and  payable.
    As of September 30, 2011, a related party had loaned the Company $110,000. This  loan is payable on demand, unsecured and does not accrue interest. Between May and June, 2012, the  Company disbursed $20,290 under a $32,000 line of credit ("Note") to  an unrelated party. The unpaid principal of this line of credit shall bear  simple interest at the rate of 5% per annum. Interest shall be calculated based  on the principal balance as may be adjusted from time to time to reflect  additional advances made hereunder.  Interest on the unpaid balance of this Note shall accrue monthly  but shall not be due and payable until May 18, 2013, when the  principal balance of this Note becomes due and payable. No consideration was  received for this disbursement. **Off-Balance Sheet Arrangements** 
    The Company has no material transactions, arrangements, obligations  (including contingent obligations), or other relationships with unconsolidated  entities or other persons that have or are reasonably likely to have a material  current or future impact on its financial condition, changes in financial  condition, results of operations, liquidity, capital expenditures, capital  resources, or significant components of revenues or expenses. 15


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**Market Risk** 
      In the normal course of business, the Company is exposed to foreign  currency exchange rate and interest rate risks that could impact its results of  operations.
      Substantial portion of the company's net sales, cost of sales and operating  expenses could be denominated in foreign currencies. This exposes the Company  to risks associated with changes in foreign currency exchange rates that can  adversely impact revenues, net income and cash flow.**Critical Accounting Policies and Estimates** 
      Management has identified the following policies and estimates as critical  to the Company's business operations and the understanding of the Company's  results of operations. Note that the preparation of this report requires  management to make estimates and assumptions that affect the reported amounts  of assets and liabilities, disclosure of contingent assets and liabilities at  the date of the Company's financial statements, and the reported amounts of  revenue and expenses during the reporting period. Actual results could differ  from those estimates, and the differences could be material.**Revenue Recognition** 
      SAB No. 104 requires that four basic criteria be met before revenue can be  recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has  occurred or services have been rendered; (3) the fee is fixed or determinable;  and (4) collectibility is reasonably assured. Should changes in conditions  cause management to determine that these criteria are not met for certain  future transactions, revenue recognized for a reporting period could be  adversely affected.
 **Goodwill** 
      The Company has not attributed any value to goodwill. **Accounting for Income Taxes** 
      The Company accounts for income taxes under the asset and liability method.  Under this method, deferred assets and liabilities are recognized based on  anticipated future tax consequences attributable to differences between  financial statement carrying amounts of assets and liabilities and their  respective tax bases. The Company establishes a valuation allowance to the  extent that it is more likely than not that deferred tax assets will not be  recoverable against future taxable income. **Code of Ethics**
 **Investment Advisor Registration Process**
    In recent years the registration system for Investment advisers was overhauled.  Previously, Investment advisers were required to register with the SEC, and  with each state in which they did business. Today Investment advisers are  regulated by either the SEC or the States, but not both. Of course, both groups  of regulators maintain jurisdiction over the activities of these advisers, the  change has been in the registration requirements.
    Simplifying the structure, firms that have less than $25 million of assets  under continuous and regular management generally must register with the state  or states in which they have a place of business and in which they have  clients, while firms that have more than $30 million under management must  register with the SEC. Between $25 and $30 million the firm is allowed to  register with the SEC or applicable states. (There are other exceptions to  state registration, such as for firms doing business in 30 or more states and  firms doing an Internet based business.) Firms that are registered with the SEC  usually have to provide a copy of their Form ADV and pay a filing fee to states  in which they have clients. Filings        Part 1 **Part II** is a written disclosure statement (or a written brochure) that  provides information about business practices, fees, and conflicts of interest  the adviser may have with its clients. Part II must be completed in paper  format. IARD is not prepared to accept an electronic filing of Part II at this  time. You can print a blank copy of Part II from the SEC website.
  Part II is a disclosure statement that an adviser must use to provide  information to clients and potential clients. Read rule 204-3 under the  Investment Advisers Act of 1940 regarding your legal obligations 1) to deliver  a copy of Part II (or a brochure containing comparable information) to  prospective clients and 2) to offer annually a copy of Part II (or a brochure  containing comparable information) to all current customers. You must keep your  Part II current, maintain a copy in your files, and make it available to SEC  staff upon request. Do not send your Part II to the SEC. Check with state  securities authorities to determine what their filing requirements are for Part  II. **Ongoing Requirements**
  While the requirements for registration and maintaining the registration vary  from state to state, there are some general principles which apply in all states.  Each state requires that IAs who do business in their state:
          State advisers to register or become  licensed.
          Federal covered advisers to make a  notice filing of their Form ADV. 
          A passing score on a competency  examination for each individual acting as an investment adviser or investment  adviser representative.
          Payment of a fee for processing the  applications. 
          Certain disclosures to the  securities agency and/or the public.
          Registration of branch offices of the  adviser.
          A bond or minimum net capital.
  A notice filing for a federal covered adviser is usually made by:
          Filing a complete copy of its Form  ADV as filed with the US SEC.
          Filing a Form U-4 application for  each investment adviser representative who will provide services on behalf of  the investment adviser.
          Payment of any required notice  filing fees.
  The State and the SEC require electronic filing via the Investment Adviser  Registration Depository (IARD). Firms must register with the IARD prior to  making a filing. Complete information regarding the IARD system is available at  http://www.iard.com/GetStarted.asp **Annual Renewals**
  Investment advisers and investment adviser representatives must renew their  registration/license annually. In many states, the term is from January 1 to  December 31 of a given year. However, some states have different renewal dates.  If an adviser becomes registered/licensed in the middle of a year, the fee is  usually not prorated. Today, the renewal process for investment advisers is handled by IARD. **Market Price of and Dividends on the Registrant's Common Equity and Related  Stockholder Matters** 
  (a) No shares of the Company's common stock have previously been registered  with the Securities and Exchange Commission (the "SEC") or any state  securities agency or authority. The Company has made an application to  FINRA for the Company's shares to be quoted on the OTCBB. The Company's application to the FINRA  consists  of current corporate information, financial statements and other documents as  required by Rule 15c211 of the Securities Exchange Act of 1934, as amended.  Inclusion on the OTCBB permits price quotation for the Company's shares to be  published by such service.
  The Company is not aware of any existing trading market for its common  stock. The Company's common stock has never traded in a public market. There  are no plans, proposals, arrangements or understandings with any person(s) with  regard to the development of a trading market in any of the Company's  securities.
  If and when the Company's common stock is traded in the OTCBB, most likely  the shares will be subject to the provisions of Section 15(g) and Rule 15g-9 of  the Securities Exchange Act of 1934, as amended (the "Exchange Act"),  commonly referred to as the "penny stock" rule. Section 15(g) sets  forth certain requirements for transactions in penny stocks and Rule 15g9(d)(1)  incorporates the definition of penny stock as that used in Rule 3a51-1 of the  Exchange Act.
  The Commission generally defines penny stock to be any equity security that  has a market price less than $5.00 per share, subject to certain exceptions.  Rule 3a51-1 provides that any equity security is considered to be a penny stock  unless that security is: registered and traded on a national securities  exchange meeting specified criteria set by the Commission; authorized for  quotation on The NASDAQ Stock Market; issued by a registered investment  company; excluded from the definition on the basis of price (at least $5.00 per  share) or the issuer's net tangible assets; or exempted from the definition by  the SEC. If the Company's shares are deemed to be a penny stock, trading in the  shares will be subject to additional sales practice requirements on  broker-dealers who sell penny stocks to persons other than established  customers and accredited investors, generally persons with assets in excess of  $1,000,000 or annual income exceeding $200,000, or $300,000 together with their  spouse.
  For transactions covered by these rules, broker-dealers must make a special  suitability determination for the purchase of such securities and must have  received the purchaser's written consent to the transaction prior to the  purchase. Additionally, for any transaction involving a penny stock, unless  exempt, the rules require the delivery, prior to the first transaction, of a risk  disclosure document relating to the penny stock market. A broker-dealer also  must disclose the commissions payable to both the broker-dealer and the  registered representative, and current quotations for the securities. Finally,  the monthly statements must be sent disclosing recent price information for the  penny stocks held in the account and information on the limited market in penny  stocks. Consequently, these rules may restrict the ability of broker dealers to  trade and/or maintain a market in the Company's common stock and may affect the  ability of shareholders to sell their shares.
  (b) Holders. At June 30, 2012, there were 41 record holders of 1,000,000  shares of the Company's Common Stock.
  (c) Dividends. The Registrant has not paid any cash dividends to date and does  not anticipate or contemplate paying dividends in the foreseeable future. It is  the present intention of management to utilize all available funds for the  development of the Registrant's business. ***Equity Compensation Plans*** 
  We have no equity compensation program including no stock option plan and  none are planned for the foreseeable future.***Dividends***
  There are no restrictions in our articles of incorporation or bylaws that  prevent us from declaring dividends. 
  We have not declared any dividends, and we do not plan to declare any dividends  in the foreseeable future. Going Concern  Our auditors included an explanatory statement in their report on the Companys  financial statements for the periods ended December 31, 2011,  expressing an opinion as to our ability to continue as a going concern as a result of a working capital deficit. Our ability to continue as a going concern is subject to the ability of the Company to  obtaining additional funding from outside sources. Managements plan to address the Companys ability to continue as a going concern includes (i) increasing our gross profit; (ii) financing from private placement sources; and (iii) converting outstanding debt to equity. Although the Company believes that it will be able to remain a going concern, through the methods discussed above, there can be no assurances that such methods will prove successful.  16


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Stock-Based Compensation  We have adopted Accounting Standards Codification Topic (ASC) 718, Share-Based Payment, which addresses the accounting for stock-based payment transactions in which an enterprise receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprises equity instruments or that may be settled by the issuance of such equity instruments.  We account for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 505. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services.   ITEM 3.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  Not required.  ITEM 4.          CONTROLS AND PROCEDURES  Evaluation of Disclosure Controls and Procedures  In connection with the preparation of this report on Form 10-Q, an evaluation was carried out by the Companys management, with the participation of the chief executive officer and the chief financial officer, of the effectiveness of the Companys disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (Exchange Act)). Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commissions rules and forms and that such information is accumulated and communicated to management, including the chief executive officer and the chief financial officer, to allow timely decisions regarding required disclosures.  Based on that evaluation, the Companys management concluded, as of the end of the period covered by this report, that the Companys disclosure controls and procedures were ineffective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Commissions rules and forms, and that such information was not accumulated and communicated to management, including the chief executive officer and the chief financial officer, to allow timely decisions regarding required disclosures.  Changes in Internal Control over Financial Reporting  There have been no changes in internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the period ended June 30, 2012, that materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.   17


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PART II OTHER INFORMATION  ITEM 1.          LEGAL PROCEEDINGS  We are not aware of any pending or threatened legal proceedings, in which we are involved. In addition, we are not aware of any pending or threatened legal proceedings in which entities affiliated with our officers, directors or beneficial owners are involved.  ITEM 1A.       RISK FACTORS The information to be reported under
this item has not changed since the previously filed 10K, for the year ended
December 31, 2011.  18




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ITEM 2.          UNREGISTERED SALES OF EQUITY SECURITIESAND USE OF PROCEEDS On 04/29/2011 we sold 600,000 shares of our common stock to our Chief Executive Officer, Einar Agustsson, at 0.0002316 per share. The shares were sold pursuant to the exemption for non-public offerings under Section 4(2) of the Securities Act. On 05/17/2011the company filed a notice of exempt offering of securities according to regulation D rule 506 of the securities act. The company sold 400,000 shares of its common stock to outside investors in a private placement. Each investor bought 10,000 shares of common stock for 0.05 per share. After the purchase each investor that participated in the offering holds 1% of the company's common stock. The names of the investors that bought shares in the offering are: Bjorgvin F ehf, Vergar Capital AF inc, Luxury Adventures ltd, Rivers of Iceland, SQDA 1 ltd, AH Klast ltd, IHF Group ltd, AGSN ehf, LA ltd, 
  ROI ltd, Likenia inc, Alphacrux inc, TA Group ltd, AT Group ltd, AH Group ltd, Janulus inc, Strigiform ltd, Agust Fannar Einarsson, BS Fridriksson LLC, Soley Rut Magnusdottir, Pointer White ltd, SQDA 2 ltd, Waterthorn ltd, Worros ltd, Mattport ltd, Marrots ltd, Mjolnir Energy Fund, Nebulark ltd, WE Moray ltd, Ducard Holdings ltd, Wolfray ltd, Leapdoor ltd, Dragensaw ltd, Wertoch ltd, Smokebay ltd, Gahrt ltd, Erethizon Finance ltd, Mammansara ltd, Pennanti ltd, Felynx ltd. The Company complied with the exemption requirements of Section 4(2) of the Securities Act based on the following factors: (1) the offers were isolated private transactions by the Company which did not involve public offerings; (2) the offeree has access to the kind of information which registration would disclose; and (3) the offeree is financially sophisticated.  The Company complied with the requirements of Regulation D of the Securities Act by: (i) foregoing any general solicitation or advertising to market the securities; (ii) offering only to an accredited offeree; (iii) having not violated antifraud prohibitions with the information provided to the offeree; (iv) being available to answer questions by the offeree.  19


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ITEM 3.          DEFAULTS ON SENIOR SECURITIES  None. ITEM 4.          (REMOVED AND RESERVED)  Removed and reserved ITEM 5.          OTHER INFORMATION None.  ITEM 6.          EXHIBITS  Exhibits required to be attached by Item 601 of Regulation S-K are listed in the Index to Exhibits on page 28 of this Form 10-Q, and are incorporated herein by this reference. 20


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SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.   Skajaquoda Group, inc.                                                            Date   /s/ Einar Agustsson                                                                 July 5, 2012 By: Einar Agustsson Its: Chief Executive Officer and Director    /s/ Einar Agustsson                                                                 July 5, 2012 By: Einar Agustsson Its: Chief Financial Officer and Principal Accounting Officer   21


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INDEX TO EXHIBITS  Number      Description  3.1.1*          Articles of Incorporation filed with the Delaware Secretary of State on April 29, 2011. Incorporated by reference as Exhibits to the Form S-1 filed on September 8, 2011. 3.2*             Bylaws. Incorporated by reference to the Companys Registration Statement on Form S-1 filed with the Commission on September 8, 2011. 14*              Code of Ethics adopted October 6, 2011. Incorporated by reference to the Companys Form 10-K filed with the Commission on September 8, 2011. 31.1            
  Certification of the Chief Executive Officer pursuant to Rule 13a-14 of the Securities and Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (attached). 31.2            
Certification of the Chief Financial Officer pursuant to Rule 13a-14 of the Securities and Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (attached). 32.1            
  Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (attached). 32.2            
  Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (attached).  *              Incorporated by reference from previous filings of the Company. 22


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