| Delaware                                                         |   | 20-2852636                              |
|------------------------------------------------------------------|--------|-----------------------------------------|
| (State                  or other jurisdiction of                 |   | (I.R.S.                  employer       |
| incorporation                  or organization)                  |   | identification                  number) |
|                                                             |   |                                    |
| c/o                  Spencer Trask Ventures, Inc.                |   |                                    |
| 535                  Madison Avenue, 18th                  Floor |   |                                    |
| New                  York, NY                                    |   | 10022                                   |
| (Address                  of principal executive offices)        |   | (Zip                  Code)             |

----

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**ADAGIO      ACQUISITION III, INC.**

**-      INDEX -**

|                                                                                                                                                                                                                      |                                                                           | Page   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                      |                                                                           |
| **PART                    I - FINANCIAL INFORMATION**:                                                                                                                                                                    |                                                                           |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    1.                                                                                                                                                                                                | Financial                    Statements                                        |   |
|                                                                                                                                                                                                                      |                                                                           |   |
| Condensed                    Balance Sheet June                    30, 2006 (unaudited)                                                                                                                                   | F-1                                                                            |
|                                                                                                                                                                                                                      |                                                                           |   |
| Condensed                    Statements of Operations (unaudited)Three                    and Six months ended June 30, 2006 and the periods from April                    22, 2005 (Inception) to June 30, 2006 and 2005 | F-2                                                                            |
|                                                                                                                                                                                                                      |                                                                           |   |
| Condensed                    Statement of Changes in Stockholder’s Equity (unaudited) for                    the period April 22, 2005 (Inception) through June 30,                    2006                         | F-3                                                                            |
|                                                                                                                                                                                                                      |                                                                           |   |
| Condensed                    Statements of Cash Flows (unaudited) Six                    months ended June 30, 2006 and the periods from April                    22, 2005 (Inception) to June 30, 2006 and 2005          | F-4                                                                            |
|                                                                                                                                                                                                                      |                                                                           |   |
| Notes                  to Interim Unaudited Condensed Financial Statements                                                                                                                                                | F-5                                                                            |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    2.                                                                                                                                                                                                | Management's                    Discussion and Analysis or Plan of Operation   | 1      |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    3.                                                                                                                                                                                                | Controls                    and Procedures                                     | 1      |
|                                                                                                                                                                                                                      |                                                                           |   |
| **PART                    II - OTHER INFORMATION**:                                                                                                                                                                       |                                                                           |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    1.                                                                                                                                                                                                | Legal                    Proceedings                                           | 2      |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    2.                                                                                                                                                                                                | Unregistered                    Sales of Equity Securities and Use of Proceeds | 2      |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    3.                                                                                                                                                                                                | Defaults                    Upon Senior Securities                             | 2      |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    4.                                                                                                                                                                                                | Submission                    of Matters to a Vote of Security Holders         | 2      |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    5.                                                                                                                                                                                                | Other                    Information                                           | 2      |
|                                                                                                                                                                                                                      |                                                                           |   |
| Item                    6.                                                                                                                                                                                                | Exhibits                                                                       | 2      |
|                                                                                                                                                                                                                      |                                                                           |   |
| Signatures                                                                                                                                                                                                                |                                                                           | 3      |

----

**PART      I - FINANCIAL STATEMENTS**

**Item      1. Financial Statements**

| **ADAGIO                ACQUISITION III, INC.**                                                                       |   |   |    |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| ***A                DEVELOPMENT STAGE COMPANY***                                                                      |   |   |    |
| ***BALANCE                SHEET (Unaudited)***                                                                        |   |   |    |
| ***June                30, 2006***                                                                                    |   |   |    |
|                                                                                                                  |   |   |    |
| **ASSETS**                                                                                                            |   |   |    |
| ***Current                Assets***                                                                                   |   |   |    |
| ***Cash                and cash equivalents***                                                                        |   | $      | 15,901  |   |
| ***Prepaid                expenses***                                                                                 |   |   | 3,125   |   |
|                                                                                                                  |   |   |    |   |
| ***Total                Assets***                                                                                     |   | $      | 19,026  |   |
|                                                                                                                  |   |   |    |   |
|                                                                                                                  |   |   |    |   |
| **LIABILITIES                AND STOCKHOLDER'S EQUITY**                                                               |   |   |    |   |
| ***Current                Liabilities***                                                                              |   |   |    |   |
| Accounts                payable and accrued expenses                                                                  |   | $      | 9,077   |   |
|                                                                                                                  |   |   |    |   |
| **STOCKHOLDER'S                EQUITY**                                                                               |   |   |    |   |
| ***Preferred                stock***                -                $.0001 par value - 10,000,000 shares authorized; |   |   |    |   |
| -0-                shares issued and outstanding                                                                      |   |   | -       |   |
| ***Common                stock***                -                $.0001 par value - 75,000,000 shares authorized;    |   |   |    |   |
| 2,500,000                shares issued and outstanding                                                                |   |   | 250     |   |
| **Additional                paid-in capital**                                                                         |   |   | 49,750  |   |
| **(Deficit)                accumulated during the development stage**                                                 |   |   | (40,051 | ) |
|                                                                                                                  |   |   |    |   |
| ***Total                Stockholder's Equity***                                                                       |   |   | 9,949   |   |
|                                                                                                                  |   |   |    |   |
|                                                                                                                  |   | $      | 19,026  |   |
|                                                                                                                  |   |   |    |   |

***See      notes to (unaudited) financial statements.***

----

| **ADAGIO                ACQUISITION III, INC.**                         |   |                            |      |                           |   |                         |   |                                                                        |      |
|-------------------------------------------------------------------------|--------|---------------------------------|-----------|--------------------------------|--------|------------------------------|--------|-----------------------------------------------------------------------------|-----------|
| ***A                DEVELOPMENT STAGE COMPANY***                        |   |                            |      |                           |   |                         |   |                                                                        |      |
| ***STATEMENTS                OF OPERATIONS (Unaudited)***               |   |                            |      |                           |   |                         |   |                                                                        |      |
|                                                                    |   | April                22, 2005   |      |                           |   |                         |   | Cumulative                    Period From                    April 22, 2005 |      |
|                                                                    |   | (Inception)                     |      | For                  the Three |   | For                  the Six |   | (Inception)                                                                 |      |
|                                                                    |   | Through                June 30, |      | Months                Ended    |   | Months                Ended  |   | Through                June 30,                                             |      |
|                                                                    |   | 2005                            |      | June                30, 2006   |   | June                30, 2006 |   |  2006                                                                  |      |
|                                                                    |   |                            |      |                           |   |                         |   |                                                                        |      |
| **Net                Sales**                                            |   | $                               | -         |                           | $      | -                            |   | $                                                                           | -         |   | $ | - |   |
|                                                                    |   |                            |      |                           |   |                         |   |                                                                        |      |   |   |   |   |
| **Cost                of Sales**                                        |   |                            | -         |                           |   | -                            |   |                                                                        | -         |   |   | - |   |
|                                                                    |   |                            |      |                           |   |                         |   |                                                                        |      |   |   |   |   |
| **Gross                Profit**                                         |   |                            | -         |                           |   | -                            |   |                                                                        | -         |   |   | - |   |
|                                                                    |   |                            |      |                           |   |                         |   |                                                                        |      |   |   |   |   |
| **General                and Administrative Expenses**                  |   |                            | (12,500   | )                              |   | (6,556                       | )      |                                                                        | (16,125   | ) |   | (40,927 | ) |
|                                                                    |   |                            |      |                           |   |                         |   |                                                                        |      |   |   |   |   |
| **Investment                Income**                                    |   |                            | -         |                           |   | 175                          |   |                                                                        | 360       |   |   | 876 |   |
|                                                                    |   |                            |      |                           |   |                         |   |                                                                        |      |   |   |   |   |
| **Net                (Loss)**                                           |   | $                               | (12,500   | )                              | $      | (6,381                       | )      | $                                                                           | (15,765   | ) | $ | (40,051 | ) |
|                                                                    |   |                            |      |                           |   |                         |   |                                                                        |      |   |   |   |   |
| **Basic                and Diluted (Loss) Per Share**                   |   | $                               | (0.01     | )                              | $      | (0.00                        | )      | $                                                                           | (0.01     | ) | $ | (0.02 | ) |
|                                                                    |   |                            |      |                           |   |                         |   |                                                                        |      |   |   |   |   |
| **Weighted                Average Number of Common Shares Outstanding** |   |                            | 1,071,429 |                           |   | 2,500,000                    |   |                                                                        | 2,500,000 |   |   | 2,270,115 |   |

***See      notes to (unaudited) financial statements.***

----

| **ADAGIO                ACQUISITION III, INC.**                                                     |   |                                       |   |                              |   |             |   |                            |          |                  |   |                                   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|-----------------------------------|--------|------------------|--------|---------------------------------|---------------|-----------------------|--------|----------------------------------------|--------|
| ***A                DEVELOPMENT STAGE COMPANY***                                                    |   |                                       |   |                              |   |             |   |                            |          |                  |   |                                   |   |
| ***STATEMENT                OF CHANGES IN STOCKHOLDER'S EQUITY                (Unaudited)***        |   |                                       |   |                              |   |
| ***FOR                THE PERIOD APRIL 22, 2005 (INCEPTION) THROUGH JUNE 30,                2006*** |   |                                       |   |                              |   |
|                                                                                                |   |                                  |   |                              |   |             |   |                            |          |                  |   | ***(Deficit)***                        |   |   |   |
|                                                                                                |   |                                  |   |                              |   |             |   |                            |          |                  |   | ***accumulated***                      |   |   |   |
|                                                                                                |   |  ***Preferred                Stock*** |   | ***Common                Stock*** |   | ***Additional*** |   | ***During                the*** |          |                  |   |
|                                                                                                |   |  ***Shares***                         |   | ***Amount***                      |   | ***Shares***     |   | ***Amount***                    |          | ***Paid-In-Capital*** |   | ***Development                Stage*** |   | ***Stockholder's***Equity |   |
|                                                                                                |   |                                  |   |                              |   |             |   |                            |          |                  |   |                                   |   |   |   |
| ***Balance*                -                April 22, 2005**                                        |   |                                       | -      |                              | $      | -                |   |                            | -             |                  | $      | -                                      |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                                                |   |                                       |   |                              |   |             |   |                            |          |                  |   |                                   |   |   |   |   |   |   |   |   |   |   |
| *June                6, 2005*                                                                       |   |                                       |   |                              |   |             |   |                            |          |                  |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of Common Stock                                                             |   |                                       | -      |                              |   | -                |   |                            | 2,500,000     |                  |   | 250                                    |   |   | 49,750 |   |   | - |   |   | 50,000 |   |
|                                                                                                |   |                                       |   |                              |   |             |   |                            |          |                  |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Net                (Loss)                                                                           |   |                                       | -      |                              |   | -                |   |                            | -             |                  |   | -                                      |   |   | - |   |   | (24,286 | ) |   | (24,286 | ) |
|                                                                                                |   |                                       |   |                              |   |             |   |                            |          |                  |   |                                   |   |   |   |   |   |   |   |   |   |   |
| ***Balance                -*December                31, 2005**                                      |   |                                       | -      |                              | $      | -                |   |                            | **2,500,000** |                  | **$**  | **250**                                |   | **$** | **49,750** |   | **$** | **(24,286** | **)** | **$** | **25,714** |   |
|                                                                                                |   |                                       |   |                              |   |             |   |                            |          |                  |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Net                (Loss)                                                                           |   |                                       | -      |                              |   | -                |   |                            | -             |                  |   | -                                      |   |   | - |   |   | (15,765 | ) |   | (15,765 | ) |
|                                                                                                |   |                                       |   |                              |   |             |   |                            |          |                  |   |                                   |   |   |   |   |   |   |   |   |   |   |
| ***Balance                -*June                30, 2006**                                          |   |                                       | -      |                              | $      | -                |   |                            | **2,500,000** |                  | **$**  | **250**                                |   | **$** | **49,750** |   | **$** | **(40,051** | **)** | **$** | **9,949** |   |

***See      notes to (unaudited) financial statements.***

----

| **ADAGIO                ACQUISITION III, INC.**                                          |
|------------------------------------------------------------------------------------------|
| ***A                DEVELOPMENT STAGE COMPANY***                                         |   |
| ***STATEMENTS                OF CASH FLOWS (Unaudited)***                                |
|                                                                                     |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   | Cumulative |   |
|                                                                                     |   |   |   | Period                From |   | Period                From |   |
|                                                                                     |   | For                the Six |   | April                22, 2005 |   | April                22, 2005 |   |
|                                                                                     |   | Months |   | (Inception) |   | (Inception) |   |
|                                                                                     |   | Ended |   | Through |   | Through |   |
|                                                                                     |   | June                30, 2006 |   | June                30, 2005 |   | June                30, 2006 |   |
|                                                                                     |   |   |   |   |   |   |   |
| ***Cash                Flows from Operating Activities***                                |   |   |   |   |   |   |   |
| Net                (Loss)                                                                |   | $ | (15,765 | ) | $ | (12,500 | ) | $ | (40,051 | ) |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |
| ***Adjustments                to reconcile Net (Loss) to***                              |   |   |   |   |   |   |   |   |   |   |
| ***net                cash used in operating activities:***                              |   |   |   |   |   |   |   |   |   |   |
| Decrease                (increase) in prepaid expenses                                   |   |   | 6,250 |   |   | - |   |   | (3,125 | ) |
| Increase                in accounts payable and accrued liabilities                      |   |   | 5,737 |   |   | - |   |   | 9,077 |   |
| ***Net                cash used in operating activities:***                              |   |   | (3,778 | ) |   | - |   |   | (34,099 | ) |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |
| ***Cash                Flows from Financing Activities***                                |   |   |   |   |   |   |   |   |   |   |
| Proceeds                from issuance of common stock                                    |   |   | - |   |   | 50,000 |   |   | 50,000 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |
| ***Net                Increase (decrease) in Cash and Cash                Equivalents*** |   |   | (3,778 | ) |   | 37,500 |   |   | 15,901 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |
| ***Cash                and Cash Equivalents - beginning***                               |   |   | 19,679 |   |   | - |   |   | - |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |
| ***Cash                and Cash Equivalents - end***                                     |   | $ | 15,901 |   | $ | 37,500 |   | $ | 15,901 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |

***See      notes to (unaudited) financial statements.***

----

**Adagio      Acquisition III, Inc.**

***A      Development Stage Company***

***Notes      to Unaudited Financial Statements***

----

| **1.  ** | **Development                Stage Company** |
|--------------------|----------------------------------------------|

| **2.  ** | **Summary                of Significant Accounting                Policies** |
|--------------------|------------------------------------------------------------------------------|

| ***a.  *** | ***Use                of Estimates*****-**The                preparation of the statement of financial condition in conformity                with                accounting principles generally accepted in the United States requires                management to make estimates and assumptions that affect the amounts                of                assets and liabilities and disclosure of contingent assets and liabilities                at the date of the statement of financial condition and reported                amounts                of revenues and expenses during the reporting period. Actual results                could                differ from those estimates. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***b.  *** | ***Cash                and Cash Equivalents*****-**For                purposes of the statement of cash flows,                the Company considers highly liquid financial instruments purchased                with a maturity of three months or less to be cash                equivalents. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***c.  *** | ***Income                Taxes***                -                The Company utilizes the liability method of accounting for                income taxes. Under the liability method, deferred tax assets and                liabilities                are determined based on the differences between financial reporting                  basis and tax basis of the assets and liabilities and are measured                  using                  enacted tax rates that will be in effect when the differences are                  expected                  to reverse. An allowance against deferred tax assets isrecognized,                  when it is more likely than not, that such tax benefits will not                  be                  realized. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***d.  *** | ***Loss                per Common Share***                -                Basic loss per share is calculated using the weighted-average                number of common shares outstanding during each period.                Diluted loss per share includes potentially dilutive securities such                as                outstanding options and warrants, using various methods such as the                *treasury                stock*                or                *modified                treasury stock*                method in the determination of dilutive                shares outstanding during each period. The Company does not have                any potentially dilutive                instruments. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***e.  *** | ***Fair                Value of Financial Instruments*****-**The                carrying value of current assets and current liabilities approximates                fair                value due to the short-term nature. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Adagio      Acquisition III, Inc.**

***A      Development Stage Company***

***Notes      to Unaudited Financial Statements***

----

**3.      Related Party Transactions **

**4.**
**Interim      Financial Statements**

----

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

**Item      3. Controls and Procedures.**

----

**PART      II — OTHER INFORMATION**

**Item      1. Legal Proceedings. **

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

**Item      3. Defaults Upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security Holders.**

**Item      5. Other Information.**

**Item      6. Exhibits.**

|  | Exhibit | Description |
|--|---------|-------------|
|   |   |   |
|--------|--------|--------|
|   | *3.1  | Certificate of              Incorporation. |
|--------|------------|--------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | *3.2 | Amendment to Certificate of              Incorporation. |
|--------|------|---------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | **3.3  | By-laws.  |
|--------|-------------|----------------|
|   |   |   |
|--------|--------|--------|
|   | 31.1 | Certification of the Company’s Principal              Executive Officer and Principal Financial Officer pursuant to Section              302              of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s              Quaterly Report on Form 10-QSB for the period ended June 30, 2006. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | 32.1 | Certification of the Company’s Principal              Executive Officer and Principal Financial Officer pursuant to 18 U.S.C.              Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley              Act              of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

| * | Filed                as an exhibit to the Company's registration statement on Form 10-SB/A,                as                filed with the Securities and Exchange Commission on November 8,                2005, and                incorporated herein by this                reference. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                               |                                                   |                                       |
|------------------------------------|--------------------------------------------------------|--------------------------------------------|
|                               | ADAGIO              ACQUISITION              III, INC. |
|                          |                                              |                                  |
| Date:              August 16, 2006 | By:                                          | /s/ William              P. Dioguardi |
|                               | William              P. Dioguardi                      |
|                               | President                                              |

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