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**SECURITIES        AND EXCHANGE COMMISSION**

**EXOBOX        TECHNOLOGIES CORP**

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**EXOBOX        TECHNOLOGIES CORP.**

|                                                                                                                                                                                                                                                         | PAGE   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART                  I. FINANCIAL INFORMATION                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                         |   |
| NOTE:                  THESE FINANCIAL STATEMENTS WERE NOT REVIEWED BY OUR INDEPENDENT                  REGISTERED                  PUBLIC ACCOUNTANTS                                                                                                       |   |
|                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                         |   |
| Item                  1. Financial Statements                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                         |   |
| Balance                  Sheets as of October 31, 2006 and July 31, 2006 (Unaudited)                  .                                                                                                                                                      | 3      |
|                                                                                                                                                                                                                                                         |   |
| Statements                  of Expenses for the three months ended October 31, 2006 and 2005                      and                  for                  the period from Inception to October 31, 2006 (Unaudited)                  . | 4      |
|                                                                                                                                                                                                                                                         |   |
| Statements                  of Cash Flows for the three months ended October 31, 2006 and 2005                      and                  for                  the period from Inception to October 31, 2006 (Unaudited)                  | 5      |
|                                                                                                                                                                                                                                                         |   |
| Notes                  to the Unaudited Financial Statements                                                                                                                                                                                                 | 6      |
|                                                                                                                                                                                                                                                         |   |
| Item                  2. Management's Discussion and Analysis of Financial Condition                  and Results                  of Operations ...                                                                                                         | 8      |
|                                                                                                                                                                                                                                                         |   |
| Item                  3. Controls and Procedures                                                                                                                                                                                                             | 10     |
|                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                         |   |
| PART                  II. OTHER INFORMATION                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                         |   |
| Item                  1. Legal Proceedings                                                                                                                                                                                                                   | 10     |
|                                                                                                                                                                                                                                                         |   |
| Item                  3. Defaults Upon Senior Securities                                                                                                                                                                                                     | 10     |
|                                                                                                                                                                                                                                                         |   |
| Item                  6. Exhibits and Reports on Form 8-K                                                                                                                                                                                                    | 10     |
|                                                                                                                                                                                                                                                         |   |
| Signatures                                                                                                                                                                                                                                                   | 11-15  |

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**EXOBOX        TECHNOLOGIES CORP.**

|                                                                                                                                                                                                                                             | October                  31, 2006 | July                  31, 2006 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|--------------------------------|
| ASSETS                                                                                                                                                                                                                                           |                              |                           |
| Cash                                                                                                                                                                                                                                             | $                  493            | $117,719                       |
|                                                                                                                                                                                                                                             |                              |                           |
| Property                  and equipment, net                                                                                                                                                                                                     | 16,776                            | 18,314                         |
| Other                  Assets:                                                                                                                                                                                                                   |                              |                           |
| Patents                                                                                                                                                                                                                                          | 67,233                            | 67,233                         |
| Intangibles,                  net                                                                                                                                                                                                                | 5,180                             | 5,810                          |
| TOTAL                  ASSETS                                                                                                                                                                                                                    | $                  89,682         | $209,076                       |
|                                                                                                                                                                                                                                             |                              |                           |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                                  |                              |                           |
| Current                  Liabilities:                                                                                                                                                                                                            |                              |                           |
| Accounts                  Payable                                                                                                                                                                                                                | $103,780                          | $83,453                        |
| Convertible                  Note Payable                                                                                                                                                                                                        | 6,407                             | -                              |
| Derivative                  Liability                                                                                                                                                                                                       | 1,634,187                         | -                              |
| Total                  current liabilities                                                                                                                                                                                                       | 1,744,374                         | 83,453                         |
|                                                                                                                                                                                                                                             |                              |                           |
| STOCKHOLDERS'                  EQUITY (DEFICIT)                                                                                                                                                                                                  |                              |                           |
|                                                                                                                                                                                                                                             |                              |                           |
| Preferred                  stock:                                                                                                                                                                                                                |                              |                           |
| Series                  A convertible preferred stock, $0.001 par, 2,500,000 shares authorized,                  2,392,915 shares issued and outstanding at October 31,                  2006                                                    | 2,393                             | 2,393                          |
|                                                                                                                                                                                                                                             |                              |                           |
| Series                  B convertible preferred stock, $0.001 par, 2,000,000 shares authorized,                  1,120,910 shares issued and outstanding at October 31,                  2006                                                    | 1,121                             | 1,231                          |
|                                                                                                                                                                                                                                             |                              |                           |
| Series                  C convertible preferred stock, $0.001 par, 25,000 shares authorized,                  20,000 shares issued and outstanding at October 31, 2006                                                                           | 20                                | 20                             |
|                                                                                                                                                                                                                                             |                              |                           |
| Series                  D convertible preferred stock, $0.001 par, 110,150 shares authorized,                  110,150 shares issued and outstanding at October 31, 2006                                                                         | 110                               | -                              |
|                                                                                                                                                                                                                                             |                              |                           |
| Common                  stock, $0.001 par value, 500,000,000 shares authorized, 10,917,500                  and                  5,000,000 shares issued and outstanding at October 31, 2006 and                  July 31,                  2006 | 10,918                            | 10,918                         |
|                                                                                                                                                                                                                                             |                              |                           |
| Additional                  paid-in capital                                                                                                                                                                                                      | 2,621,933                         | 2,621,933                      |
|                                                                                                                                                                                                                                             |                              |                           |
| Deficit                  accumulated during the development stage                                                                                                                                                                                | (4,291,187)                       | (2,510,872)                    |
| Total                  stockholders' equity (deficit)                                                                                                                                                                                            | (1,654,692)                       | 125,623                        |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                            | $                  89,682         | $209,076                       |

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**EXOBOX        TECHNOLOGIES CORP.**

|                                                | 3                  Months EndedOctober                  31, 2006 | 3                  Months EndedOctober                  31,2005 | Inception                  to October                  31,2006 |
|-----------------------------------------------------|------------------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------------------|
|                                                |                                                             |                                                            |                                                           |
| Other                  General & Administrative | $                  92,270                                        | $164,090                                                        | $                  406,073                                     |
| Depreciation                  and amortization      | 2,138                                                            | -                                                               | 7,140                                                          |
| Professional                  Fees                  | 44,636                                                           | -                                                               | 1,083,687                                                      |
| Payroll                  Expenses                   | 101,729                                                          | -                                                               | 520,337                                                        |
| Software                  development expense       | 243                                                              | -                                                               | 446,393                                                        |
| Research                  and Development           | -                                                                | -                                                               | 288,259                                                        |
| Loss                  on derivatives                | 1,539,298                                                        | -                                                               | 1,539,298                                                      |
|                                                |                                                             |                                                            |                                                           |
| Net                  Loss                           | $(1,780,314)                                                     | $(164,090)                                                      | $(4,291,187)                                                   |
|                                                |                                                             |                                                            |                                                           |
| Basic                  and diluted                  |                                                             |                                                            |                                                           |
| Net                  net loss per common share      | $                  (0.16)                                        | $                  (0.02)                                       | $                  (0.39)                                      |
|                                                |                                                             |                                                            |                                                           |
| Weighted                  average share outstanding | 10,917,500                                                       | 7,933,750                                                       | 10,895,074                                                     |

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**EXOBOX        TECHNOLOGIES CORP.**

|                                                                                                              | 3                    Months EndedOctober                    31, 2006 | 3                    Months EndedOctober                    31, 2005 | Inception                    toOctober                    31, 2006 |
|-------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|--------------------------------------------------------------------|
| CASH                    FLOWS FROM OPERATING ACTIVITIES                                                           |                                                                 |                                                                 |                                                               |
| Adjustments                    to reconcile net loss to net cash used in operating                    activities: |                                                                 |                                                                 |                                                               |
| Net                    Loss                                                                                       | $(1,780,314)                                                         | $(164,090)                                                           | $(4,291,187)                                                       |
| Share-based                    compensation                                                                       | -                                                                    | -                                                                    | 750,000                                                            |
| Warrant                    issued for consulting services                                                         | -                                                                    | -                                                                    | 12,495                                                             |
| Depreciation                    and amortization expense                                                          | 2,167                                                                | -                                                                    | 7,140                                                              |
| Loss                    on derivative                                                                             | 1,634,187                                                            | -                                                                    | 1,634,187                                                          |
| Accretion                    of debt discount                                                                     | (93,593)                                                             | -                                                                    | (93,593)                                                           |
| Change                    in:                                                                                     |                                                                 |                                                                 |                                                               |
| Increase                    in prepaid assets                                                                     | -                                                                    | (75,000)                                                             | -                                                                  |
| Increase                    in accounts payable                                                                   | 20,326                                                               | -                                                                    | 103,780                                                            |
| Increase                    in accounts payable                                                                   | -                                                                    | -                                                                    | -                                                                  |
| to                    stockholders                                                                                | -                                                                    | (3,162)                                                              | 7,178                                                              |
| Increase                    in accrued expenses                                                                   | -                                                                    | 513                                                                  | -                                                                  |
|                                                                                                              |                                                                 |                                                                 |                                                               |
| NET                    CASH USED IN OPERATING ACTIVITIES                                                          | (217,227)                                                            | (241,739)                                                            | (1,870,000)                                                        |
|                                                                                                              |                                                                 |                                                                 |                                                               |
| CASH                    FLOW FROM INVESTING ACTIVITIES                                                            |                                                                 |                                                                 |                                                               |
| Investment                    in patents                                                                          | -                                                                    | (12,500)                                                             | (67,233)                                                           |
| Investment                    in intangible assets                                                                | -                                                                    | (2,333)                                                              | (7,700)                                                            |
| Purchases                    of property and equipment                                                            | -                                                                    | (3,961)                                                              | (21,397)                                                           |
|                                                                                                              |                                                                 |                                                                 |                                                               |
| NET                    CASH USED IN INVESTING ACTIVITIES                                                          | -                                                                    | (18,794)                                                             | (96,330)                                                           |
|                                                                                                              |                                                                 |                                                                 |                                                               |
| CASH                    FLOWS FROM FINANCING ACTIVITIES                                                           |                                                                 |                                                                 |                                                               |
| Capital                    contributions                                                                          | -                                                                    | 980,000                                                              | 1,874,000                                                          |
| Advances                    from stockholder                                                                      | -                                                                    | -                                                                    | 6,450                                                              |
| Repayment                    of advances from Stockholders                                                        | -                                                                    | (2,950)                                                              | (13,628)                                                           |
| Convertible                    Note Payable                                                                       | 100,000                                                              | -                                                                    | 100,000                                                            |
| NET                    CASH PROVIDED BY FINANCING ACTIVITIES                                                      | 100,000                                                              | 977,050                                                              | 1,966,822                                                          |
|                                                                                                              |                                                                 |                                                                 |                                                               |
| NET                    CHANGE IN CASH                                                                             | (117,227)                                                            | 716,517                                                              | 492                                                                |
|                                                                                                              |                                                                 |                                                                 |                                                               |
| Cash                    balance, beginning                                                                        | 117,719                                                              | 54                                                                   | -                                                                  |
| Cash                    balance, ending                                                                           | $                    492                                             | $                    716,571                                         | $                    492                                           |
|                                                                                                              |                                                                 |                                                                 |                                                               |
| SUPPLEMENTAL                    DISCLOSURES                                                                       |                                                                 |                                                                 |                                                               |
| Cash                    paid for interest                                                                         | $                    1,761                                           | $                    -                                               | $                    1,881                                         |
| Cash                    paid for income taxes                                                                     | $                    -                                               | $                    -                                               | $                    -                                             |
|                                                                                                              |                                                                 |                                                                 |                                                               |

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**EXOBOX        TECHNOLOGIES CORP.**

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*Conversion        at Option of the Holders*

*Conversion        Percentage*

*Share        Conversion Percentage*

*Conversion        at Option of the Holders*

*Conversion        Percentage*

*Share        Conversion Percentage*

*Conversion        at Option of the Holders*

*Conversion        Percentage*

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*Conversion        at Option of the Holders*

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| Issue                  Date | Due                  Date | Instrument                          | Exercise                  Price Per Share | Value                  -Issue                  Date | Value                  -October                  31, 2006 |
|-----------------------------|---------------------------|-------------------------------------|-------------------------------------------|-----------------------------------------------------|-----------------------------------------------------------|
| 09-14-2006                  | 01-1-2007                 | $100,000                  term loan | $0.03                                     | $1,030,896                                          | $1,634,187                                                |

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**EXOBOX        TECHNOLOGIES CORP.**

|                                        |   | **EXOBOX                    TECHNOLOGIES CORP.**                |   |
|---------------------------------------------|--------|-----------------------------------------------------------------|--------|
|                                        |   |                                                            |   |
| Dated:                    December 20, 2006 |   | By:                    /s/ Robert B. Dillon                     |   |
|                                        |   | Robert                    B. Dillon                             |   |
|                                        |   | Chief                    Executive Officer                      |   |
|                                        |   | (Principal                    Executive Officer)                |   |
|                                        |   |                                                            |   |
|                                        |   |                                                            |   |
| Dated:                    December 20, 2006 |   | By:                    /s/ /s/ Michael G. Wirtz                 |   |
|                                        |   | Chief                    Financial Officer                      |   |
|                                        |   | (Principal                    Financial and Accounting Officer) |   |