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**SECURITIES        AND EXCHANGE COMMISSION**

**EXOBOX        TECHNOLOGIES CORP**

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**EXOBOX        TECHNOLOGIES CORP.**

|                                                                                                                                                                                                                                                         | PAGE   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART                  I. FINANCIAL INFORMATION                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                         |   |
| 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                                                                                                                                                                                                                                                                                | $                      492            | $117,719                           |
|                                                                                                                                                                                                                                                                                |                                  |                               |
| Property                      and equipment, net                                                                                                                                                                                                                                    | 16,777                                | 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, net of unamortized discount of $93,593                                                                                                                                                                                               | 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                      and July 31,                      2006               | 2,393                                 | 2,393                              |
|                                                                                                                                                                                                                                                                                |                                  |                               |
| Series                      B convertible preferred stock, $0.001 par, 2,000,000 shares                      authorized,                      1,120,910 and 1,231,080 shares issued and outstanding at October                      31, 2006                      and July 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 and                      July 31, 2006                                                               | 20                                    | 20                                 |
|                                                                                                                                                                                                                                                                                |                                  |                               |
| Series                      D convertible preferred stock, $0.001 par, 110,150 shares                      authorized,110,150 and no shares issued and outstanding at                      October 31,                      2006 and July 31, 2006                                  | 110                                   | -                                  |
|                                                                                                                                                                                                                                                                                |                                  |                               |
| Common                      stock, $0.001 par value, 500,000,000 shares authorized, 10,917,500                                                                                                                                                                                      |                                  |                               |
| 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 Ended October 31, 2006 | 3                    Months Ended October 31, 2005 | Inception                    to October 31, 2006 |
|-------------------------------------------------------|----------------------------------------------------|----------------------------------------------------|--------------------------------------------------|
|                                                  |                                               |                                               |                                             |
| Other                    General & Administrative | $                    92,240                        | $54,294                                            | $                    406,072                     |
| Depreciation                    and amortization      | 2,168                                              | -                                                  | 7,140                                            |
| Professional                    Fees                  | 44,636                                             | 10,822                                             | 1,083,688                                        |
| Payroll                    Expenses                   | 101,729                                            | 98,974                                             | 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)                        |                                             |
|                                                  |                                               |                                               |                                             |
| Weighted                    average share outstanding | 10,917,500                                         | 7,933,750                                          |                                             |

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**EXOBOX        TECHNOLOGIES CORP.**

|                                                                                                                  | 3                      Months Ended October 31, 2006 | 3                      Months Ended October 31, 2005 | Inception                      to October                      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                                                            | 2,168                                                | -                                                    | 7,140                                                                   |
| Loss                      on derivative                                                                               | 1,539,298                                            | -                                                    | 1,539,298                                                               |
| Change                      in:                                                                                       |                                                 |                                                 |                                                                    |
| Prepaid                      assets                                                                                   | -                                                    | (75,000)                                             | -                                                                       |
| Accounts                      payable                                                                                 | 21,621                                               | -                                                    | 105,076                                                                 |
| Accounts                      payable to stockholders                                                                 | -                                                    | (3,162)                                              | 7,178                                                                   |
| 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)                                                                |
| Proceeds                      from 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                                                                       | -                                                    | -                                                    | -                                                                       |
|                                                                                                                  |                                                 |                                                 |                                                                    |
| NON-CASH                                                                                                              |                                                 |                                                 |                                                                    |
| Discount                      on Note                                                                                 | $                      93,593                        | $                      -                             | $                      93,593                                           |
| Conversion                      of Series B Preferred to                                                              |                                                 |                                                 |                                                                    |
| Series                      D Preferred                                                                               | $                      110,000                       | $                      -                             | $                      110,000                                          |

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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*

*Share        Conversion Percentage*

*Conversion        at Option of the Holders*

*Conversion        Percentage*

*Share        Conversion Percentage*

| Issue                      Date | Due                      Date | Instrument                              | Exercise                      Price Per                      Share | Value                      -Issue                      Date | Value                      - October                      31,                      2006 |
|---------------------------------|-------------------------------|-----------------------------------------|--------------------------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| 09-14-2006                      | 01-1-2007                     | $105,000                      term loan | $0.03                                                              | $1,031,211                                                  | $1,634,187                                                                              |

|                                  | October                    31, 2006 | July                    31, 2006 | Loss(three                    months) |
|---------------------------------------|-------------------------------------|----------------------------------|---------------------------------------|
| $105,000                    term loan | $1,634,187                          | $                    -           | $1,539,298                    (a)     |

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PART        I

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**EXOBOX        TECHNOLOGIES CORP.**

|                                          |   | **EXOBOX                    TECHNOLOGIES CORP.**                |   |
|-----------------------------------------------|--------|-----------------------------------------------------------------|--------|
|                                          |   |                                                            |   |
| Dated:                    April 30, 2006      |   | By:                    /s/ Robert B. Dillon                     |   |
|                                          |   | Robert                    B. Dillon                             |   |
|                                          |   | Chief                    Executive Officer                      |   |
|                                          |   | (Principal                    Executive Officer)                |   |
|                                          |   |                                                            |   |
|                                          |   |                                                            |   |
| Dated:                    April 30, 2006 |   | By:                    /s/ Michael G. Wirtz                     |   |
|                                          |   | Chief                    Financial Officer                      |   |
|                                          |   | (Principal                    Financial and Accounting Officer) |   |

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