----

**BLACK      NICKEL ACQUISITION CORP. II**

**-      INDEX -**

|                                                                                                                 |   | Page   |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| **PART                  I - FINANCIAL INFORMATION**:                                                                 |   |   |   |
|                                                                                                                 |   |   |   |
| Item                  1. Financial Statements                                                                        |   |   |   |   |
|                                                                                                                 |   |   |   |   |
| Balance                  Sheet as of September 30, 2007 (Unaudited)                                                  |   |   | F-1    |   |
|                                                                                                                 |   |   |   |   |
| Statements                  of Operations for the Three and Nine Months Ended September                  30,         |   |   |        |   |
| 2007                  and 2006 and for the Cumulative Period from May 26, 2005                  (Inception)          |   |   |   |   |
| through                  September 30, 2007 (Unaudited)                                                              |   |   | F-2    |   |
|                                                                                                                 |   |   |   |   |
| Statement                  of Changes in Stockholders’ Equity (Deficiency) for the                  Cumulative |   |   |        |   |
| Period                  from May 26, 2005 (Inception) to September 30, 2007                  (Unaudited)             |   |   | F-3    |   |
|                                                                                                                 |   |   |   |   |
| Statements                  of Cash Flows for the Nine Months Ended September 30, 2007                  and          |   |   |        |   |
| 2006                  and for the Cumulative Period from May 26, 2005 (Inception)                  to                |   |   |   |   |
| September                  30, 2007 (Unaudited)                                                                      |   |   | F-4    |   |
|                                                                                                                 |   |   |   |   |
| Notes                  to Financial Statements (Unaudited)                                                           |   |   | F-5    |   |
|                                                                                                                 |   |   |   |   |
| Item                  2. Management's Discussion and Analysis of Financial                  Condition                |   |   |        |   |
|                    and Results of Operations                                                                    |   |   | 1      |   |
|                                                                                                                 |   |   |   |   |
| Item                  3. Controls and Procedures                                                                     |   |   | 2      |   |
|                                                                                                                 |   |   |   |   |
| **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                                                                                    |   |   | 4      |   |
|                                                                                                                 |   |   |   |   |
| Signatures                                                                                                           |   |   | 5      |   |

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**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements.**

**Black      Nickel Acquisition Corp. II**

**(A      Development Stage Enterprise)**

**Balance      Sheet (Unaudited)**

**September      30, 2007**

| **ASSETS**                                                                   |   |   |     |
|------------------------------------------------------------------------------|--------|--------|----------|
| Current                  Assets                                              |   |   |     |
| Cash                                                                         |   | $      | 66,674   |   |
| Prepaid                  expenses                                            |   |   | 1,875    |   |
|                                                                         |   |   |     |   |
|                                                                         |   | $      | 68,549   |   |
|                                                                         |   |   |     |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY (DEFICIENCY)** |   |   |     |   |
| Current                  Liabilities                                         |   |   |     |   |
| Accounts                  payable                                            |   | $      | 4,512    |   |
| Notes                  payable - related parties                             |   |   | 71,000   |   |
| Accrued                  expenses - related parties                          |   |   | 9,982    |   |
|                                                                         |   |   | 85,494   |   |
|                                                                         |   |   |     |   |
| Stockholders’                  Equity (Deficiency)                     |   |   |     |   |
| Preferred                  stock, $.0001 par value; 10,000,000 shares        |   |   |     |   |
| authorized,                  no shares issued                                |   |   | —  |   |
| Common                  stock, $.0001 par value; 75,000,000 shares           |   |   |     |   |
| authorized,                  2,915,000 shares issued and outstanding         |   |   | 292      |   |
| Additional                  paid-in capital                                  |   |   | 98,808   |   |
| Deficit                  accumulated during the development stage            |   |   | (116,045 | ) |
| Total                  stockholders’ equity (deficiency)               |   |   | (16,945  | ) |
|                                                                         |   |   |     |   |
|                                                                         |   | $      | 68,549   |   |

*See      accompanying notes to interim unaudited financial statements.*

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**Black      Nickel Acquisition Corp. II**

**(A      Development Stage Enterprise)**

**Statements      of Operations (Unaudited)**

|                                        |   | Three                  Months Ended                  September 30, 2006 |      | Three                  Months Ended                  September 30, 2007 |   | Nine                  Months EndedSeptember 30, 2006 |   | Nine                  Months EndedSeptember 30, 2007 |      | Cumulative Period                  from May                  26, 2005 (Inception) through September                  30, 2007 |   |
|---------------------------------------------|--------|-------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------|--------|------------------------------------------------------|--------|------------------------------------------------------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Net                  sales                  |   | $                                                                       | —   |                                                                    | $      | —                                              |   | $                                                    | —   |                                                                                                                                                        | $      | — |   | $ | — |   |
|                                        |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Cost                  of sales              |   |                                                                    | —   |                                                                    |   | —                                              |   |                                                 | —   |                                                                                                                                                        |   | — |   |   | — |   |
|                                        |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Gross                  profit               |   |                                                                    | —   |                                                                    |   | —                                              |   |                                                 | —   |                                                                                                                                                        |   | — |   |   | — |   |
|                                        |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Expenses:                                   |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| General                  and                |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Administrative                              |   |                                                                    | 3,903     |                                                                    |   | 44,487                                               |   |                                                 | 29,012    |                                                                                                                                                        |   | 62,468 |   |   | 114,763 |   |
|                                        |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Loss                  before other expenses |   |                                                                    | (3,903    | )                                                                       |   | (44,487                                              | )      |                                                 | (29,012   | )                                                                                                                                                           |   | (62,468 | ) |   | (114,763 | ) |
|                                        |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Other                  Expenses:            |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Interest                                    |   |                                                                    | —   |                                                                    |   | 627                                                  |   |                                                 | —   |                                                                                                                                                        |   | 1,282 |   |   | 1,282 |   |
|                                        |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Net                  (loss)                 |   | $                                                                       | (3,903    | )                                                                       | $      | (45,114                                              | )      | $                                                    | (29,012   | )                                                                                                                                                           | $      | (63,750 | ) | $ | (116,045 | ) |
|                                        |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Basic                  and Diluted          |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Loss                  per Share             |   | $                                                                       | —   |                                                                    | $      | (.03                                                 | )      | $                                                    | (.02      | )                                                                                                                                                           | $      | (.04 | ) |   |   |   |
|                                        |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Basic                  and Diluted          |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| Weighted                  average number of |   |                                                                    |      |                                                                    |   |                                                 |   |                                                 |      |                                                                                                                                                        |   |   |   |   |   |   |
| common                  shares outstanding  |   |                                                                    | 1,500,000 |                                                                    |   | 1,566,087                                            |   |                                                 | 1,500,000 |                                                                                                                                                        |   | 1,526,777 |   |   |   |   |

*See      accompanying notes to interim unaudited financial statements.*

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**Black      Nickel Acquisition Corp. II**

**(A      Development Stage Enterprise)**

**Statement      of Changes in Stockholders’ Equity (Deficiency)**

|                                                       |   | Preferred                  Stock |    | Common                  Stock |   | Additional                  Paid-in |   | Deficit                  Accumulated During the Development |      |    |   |
|------------------------------------------------------------|--------|----------------------------------|---------|-------------------------------|--------|-------------------------------------|--------|-------------------------------------------------------------|-----------|---------|--------|
|                                                       |   | Shares                           |    | Amount                        |   | Shares                              |   | Amount                                                      |      | Capital |   | Stage |   | Total |   |
| Balance,                  May 26, 2005                     |   |                             | — |                          | $      | —                             |   |                                                        | —   |    | $      | — |   | $ | — |   | $ | — |   | $ | — |   |
|                                                       |   |                             |    |                          |   |                                |   |                                                        |      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock                  |   |                             |    |                          |   |                                |   |                                                        |      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| on                  June 24, 2005                          |   |                             | — |                          |   | —                             |   |                                                        | 1,500,000 |    |   | 150 |   |   | 49,850 |   |   | — |   |   | 50,000 |   |
| Net                  loss                                  |   |                             | — |                          |   | —                             |   |                                                        | —   |    |   | — |   |   | — |   |   | (17,833 | ) |   | (17,833 | ) |
|                                                       |   |                             |    |                          |   |                                |   |                                                        |      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2005                |   |                             | — |                          |   | —                             |   |                                                        | 1,500,000 |    |   | 150 |   |   | 49,850 |   |   | (17,833 | ) |   | 32,167 |   |
|                                                       |   |                             |    |                          |   |                                |   |                                                        |      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                  |   |                             | — |                          |   | —                             |   |                                                        | —   |    |   | — |   |   | — |   |   | (34,462 | ) |   | (34,462 | ) |
|                                                       |   |                             |    |                          |   |                                |   |                                                        |      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2006                |   |                             | — |                          |   | —                             |   |                                                        | 1,500,000 |    |   | 150 |   |   | 49,850 |   |   | (52,295 | ) |   | (2,295 | ) |
|                                                       |   |                             |    |                          |   |                                |   |                                                        |      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                  of common stock for cash (unaudited) |   |                             | — |                          |   | —                             |   |                                                        | 1,415,000 |    |   | 142 |   |   | 48,958 |   |   | — |   |   | 49,100 |   |
| Net                  loss (unaudited)                      |   |                             | — |                          |   | —                             |   |                                                        | —   |    |   | — |   |   | — |   |   | (63,750 | ) |   | (63,750 | ) |
|                                                       |   |                             |    |                          |   |                                |   |                                                        |      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  September 30, 2007               |   |                             |    |                          |   |                                |   |                                                        |      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| (Unaudited)                                                |   |                             | — |                          | $      | —                             |   |                                                        | 2,915,000 |    | $      | 292 |   | $ | 98,808 |   | $ | (116,045 | ) | $ | (16,945 | ) |

*See      accompanying notes to interim unaudited financial statements.*

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**Black      Nickel Acquisition Corp. II**

**(A      Development Stage Enterprise)**

**Statements      of Cash Flows (Unaudited)**

|                                                     |   | Nine                  Months Ended                  September                  30,2006 |    | Nine                  MonthsEndedSeptember                  30,2007 |   | Cumulative                  PeriodFrom                  May 26,2005                  (Inception)through                  September                  30,2007 |   |
|----------------------------------------------------------|--------|----------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Cash                  Flows from Operating Activities    |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |
| Net                  loss                                |   | $                                                                                      | (29,012 | )                                                                   | $      | (63,750                                                                                                                                                     | )      | $ | (116,045 | ) |
| Adjustments                  to reconcile net loss to    |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| net                  cash used in operating activities   |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| Compensatory                  element of stock issuances |   |                                                                                   | — |                                                                |   | 38,100                                                                                                                                                      |   |   | 38,100 |   |
| Prepaid                  expenses                        |   |                                                                                   | — |                                                                |   | (1,875                                                                                                                                                      | )      |   | (1,875 | ) |
| Accounts                  payable and accrued expenses   |   |                                                                                   | (1,239  | )                                                                   |   | 344                                                                                                                                                         |   |   | 5,794 |   |
|                                                     |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| Cash                  Used in Operations                 |   |                                                                                   | (30,251 | )                                                                   |   | (27,181                                                                                                                                                     | )      |   | (74,026 | ) |
|                                                     |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| Cash                  Flows from Financing Activities    |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| Proceeds                  from note payable              |   |                                                                                   | — |                                                                |   | 71,000                                                                                                                                                      |   |   | 71,000 |   |
| Proceeds                  from sales of common stock     |   |                                                                                   | — |                                                                |   | 19,700                                                                                                                                                      |   |   | 69,700 |   |
|                                                     |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| Cash                  Provided by Financing Activities   |   |                                                                                   | — |                                                                |   | 90,700                                                                                                                                                      |   |   | 140,700 |   |
|                                                     |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| Net                  Increase (Decrease) in Cash         |   |                                                                                   | (30,251 | )                                                                   |   | 63,519                                                                                                                                                      |   |   | 66,674 |   |
|                                                     |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| Cash,                  beginning                         |   |                                                                                   | 37,441  |                                                                |   | 3,155                                                                                                                                                       |   |   | — |   |
|                                                     |   |                                                                                   |    |                                                                |   |                                                                                                                                                        |   |   |   |   |
| Cash,                  ending                            |   | $                                                                                      | 7,190   |                                                                | $      | 66,674                                                                                                                                                      |   | $ | 66,674 |   |

*See      accompanying notes to interim unaudited financial statements.*

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**Black      Nickel Acquisition Corp. II**

**(A      Development Stage Enterprise)**

**Notes      to Interim Unaudited Financial Statements**

| **1.** | **Development                Stage Enterprise** |
|--------|-------------------------------------------------|

| **2.** | **Basis                of Presentation for Interim Financial                Statements** |
|--------|------------------------------------------------------------------------------------------|

*Management’s      Discussion and Analysis*

| **3.** | **Summary                of Significant Accounting                Policies** |
|--------|------------------------------------------------------------------------------|

**Use      of Estimates**

**Loss      Per Common Share**

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**Black      Nickel Acquisition Corp. II**

**(A      Development Stage Enterprise)**

**Notes      to Interim Unaudited Financial Statements**

**Fair      Value of Financial Instruments**

**Income      Taxes**
*Accounting      for Income Taxes*

| **4.** | **Notes                Payable** |
|--------|----------------------------------|

| **5.** | **Related                Party Transactions** |
|--------|-----------------------------------------------|

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**Black      Nickel Acquisition Corp. II**

**(A      Development Stage Enterprise)**

**Notes      to Interim Unaudited Financial Statements**

| **6.** | **Recent                Accounting Pronouncements** |
|--------|-----------------------------------------------------|

| **7.** | **Stockholders’                Equity** |
|--------|-----------------------------------------------|

| **8.** | **Subsequent                  Events** |
|--------|----------------------------------------|

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**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations. **

***Plan      of Operations***

***Liquidity      and Capital Resources***

***Results      of Operations***

***Off-Balance      Sheet Arrangements***

** **

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**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. **

----

**Edward      J. Wegel.**

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**Item      6. Exhibits.**

| Exhibit |   | Description                                                                                                                                                                                                                                                                                               |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                      |
| *3.1    |   | Certificate                of Incorporation, as filed with the Delaware Secretary of State on                May 26,                2005.                                                                                                                                                                 |
|    |   |                                                                                                                                                                                                                                                                                                      |
| *3.2    |   | By-Laws.                                                                                                                                                                                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                                                                      |
| **4.1   |   | Promissory                Note issued by Black Nickel Acquisition Corp. II to Paul T. Mannion,                Jr.,                dated September 28, 2007.                                                                                                                                               |
|    |   |                                                                                                                                                                                                                                                                                                      |
| **4.2   |   | Promissory                Note issued by Black Nickel Acquisition Corp. II to Andrew Reckles,                dated                September 28, 2007.                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                      |
| **4.3   |   | Promissory                Note issued by Black Nickel Acquisition Corp. II to Robert Prag,                dated                October 12, 2007, 2007.                                                                                                                                                    |
|    |   |                                                                                                                                                                                                                                                                                                      |
| **10.1  |   | Registration                Rights Agreement, by and among Black Nickel Acquisition Corp. II,                Paul T.                Mannion, Jr., Andrew Reckles and Robert Prag, dated October 15,                2007.                                                                                  |
|    |   |                                                                                                                                                                                                                                                                                                      |
| 31.1    |   | Certification                of the Company’s Principal Executive Officer pursuant to Section 302 of                the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly                Report on Form 10- QSB for the quarter ended September 30,                2007. |
|    |   |                                                                                                                                                                                                                                                                                                      |
| 31.2    |   | Certification                of the Company’s Principal Financial Officer pursuant to Section 302 of                the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly                Report on Form 10- QSB for the quarter ended September 30,                2007. |
|    |   |                                                                                                                                                                                                                                                                                                      |
| 32.1    |   | Certification                of the Company’s Principal Executive Officer pursuant to 18 U.S.C. Section                1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act                of                2002.                                                                    |
|    |   |                                                                                                                                                                                                                                                                                                      |
| 32.2    |   | Certification                of the Company’s 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,                as                filed with the Securities and Exchange Commission on January 12,                2006, and                incorporated herein by this                reference. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Filed                as an exhibit to the Company's Current Report on Form 8-K, as filed                with                the Securities and Exchange Commission on October 19, 2007, and                incorporated herein by this                reference. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|                                 |                                                                     |                                               |
|--------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------|
|                                 | BLACK              NICKEL              ACQUISITION CORP. II              |
|                            |                                                                |                                          |
| Date:              November 19, 2007 | By:                                                            | /s/              Paul              T. Mannion, Jr. |
|                                 | Name:                Paul T. Mannion, Jr.Title:                President |

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