**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB/A**

**Amendment      No. 1**

| x | QUARTERLY                REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|-----------------------------------------------------------------------------------------------------------------|

|   | For                the quarterly period ended March 31,                2006 |
|--------|-----------------------------------------------------------------------------|

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE                ACT |
|---|-----------------------------------------------------------------------------------------------|

|   | For                the transition period from _____________ to                _____________ |
|--------|---------------------------------------------------------------------------------------------|

| Highbury                Financial Inc.                                                          |
|-------------------------------------------------------------------------------------------------|
| (Exact                Name of Small Business Issuer as Specified in Its                Charter) |
|                                                                                            |
| Delaware                                                                                        |   | 20-3187008 |
| (State                or other Jurisdiction ofIncorporation                or Organization)     |   | (I.R.S.                EmployerIdentification                No.) |
|                                                                                            |
| 999                Eighteenth Street, Ste. 3000                                                 |
| Denver,                Colorado 80202                                                           |
| (Address                of Principal Executive Offices)                                         |
|                                                                                            |
| (303)                357-4802                                                                   |
| (Issuer’s                Telephone                Number, Including Area Code)            |

----

**Explanatory      Note**

----

**PART      I. FINANCIAL INFORMATION**

**Page**

| Item                1 – Financial Statements                                                                         | 1      |
|---------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed                Balance Sheets (as restated)                                                                           | 1      |
| Condensed                Statement of Operations (as restated)                                                                  | 2      |
| Condensed                Statement of Stockholders’ Equity (as restated)                                                  | 3      |
| Condensed                Statements of Cash Flows (as restated)                                                                 | 4      |
| Notes                to Unaudited Condensed Financial Statements (as restated)                                                  | 5      |
|                                                                                                                            |   |
| Item                2 – Management’s Discussion and Analysis or Plan of Operation (as                restated) | 13     |
|                                                                                                                            |   |
| Item                3 – Controls and Procedures                                                                      | 17     |
|                                                                                                                            |   |
| **PART                II. OTHER INFORMATION**                                                                                   | 18     |
|                                                                                                                            |   |
| Item                2 – Unregistered Sales of Equity Securities and Use of                Proceeds                   | 18     |
|                                                                                                                            |   |
| Item                6 – Exhibits (as restated)                                                                       | 19     |
|                                                                                                                            |   |
| Signatures                                                                                                                      | 20     |

----

**ITEM      1 - FINANCIAL STATEMENTS**

| **Highbury                Financial Inc.**          |
|-----------------------------------------------------|
| (a                company in the development stage) |

| **Condensed                Balance Sheets** |
|---------------------------------------------|

|                                                                                                                                                                                                                                                                        |   | **Restated****March                31, 2006** |       |  **December                31, 2005** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|--------------------------------------------|--------|
|                                                                                                                                                                                                                                                                        |   |  (unaudited)                             |       |                                       |   |   |
| Current                assets:                                                                                                                                                                                                                                              |   |                                          |       |                                       |   |   |   |
| Cash                                                                                                                                                                                                                                                                        |   | $                                             | 1,023,035  |                                       | $      | 36,902 |   |
| Cash                in Trust Account (Notes 2, 4)                                                                                                                                                                                                                           |   |                                          | 43,600,025 |                                       |   | — |   |
| Prepaid                expenses                                                                                                                                                                                                                                             |   |                                          | 131,463    |                                       |   | — |   |
| Total                current assets                                                                                                                                                                                                                                         |   |                                          | 44,754,523 |                                       |   | 36,902 |   |
|                                                                                                                                                                                                                                                                        |   |                                          |            |                                       |   |  |   |
| Deferred                registration costs (Note 2)                                                                                                                                                                                                                         |   |                                          | —    |                                       |   | 483,492 |   |
| Deferred                acquisition costs (Note 2)                                                                                                                                                                                                                          |   |                                          | 260,586    |                                       |   | — |   |
| Deferred                income taxes (Notes 2, 8)                                                                                                                                                                                                                           |   |                                          | 52,303     |                                       |   | — |   |
|                                                                                                                                                                                                                                                                        |   |                                          |       |                                       |   |   |   |
| Total                assets                                                                                                                                                                                                                                                 |   | $                                             | 45,067,412 |                                       | $      | 520,394 |   |
|                                                                                                                                                                                                                                                                        |   |                                          |            |                                       |   |  |   |
| Current                liabilities:                                                                                                                                                                                                                                         |   |                                          |            |                                       |   |  |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                                        |   | $                                             | 315,241    |                                       | $      | 427,846 |   |
| Income                taxes payable                                                                                                                                                                                                                                         |   |                                          | 109,498    |                                       |   | — |   |
| Deferred                underwriting fees (Note 6)                                                                                                                                                                                                                          |   |                                          | 673,333    |                                       |   | — |   |
| Deferred                investment income (Note 2)                                                                                                                                                                                                                          |   |                                          | 65,955     |                                       |   | — |   |
| Common                stock warrants (Note 3)                                                                                                                                                                                                                               |   |                                          | 9,966,600  |                                       |   | — |   |
| Underwriters’                purchase option (Note 3)                                                                                                                                                                                                                 |   |                                          | 732,000    |                                       |   | — |   |
| Notes                payable, stockholders (Note 7)                                                                                                                                                                                                                         |   |                                          | —    |                                       |   | 70,000 |   |
| Total                current liabilities                                                                                                                                                                                                                                    |   |                                          | 11,862,627 |                                       |   | 497,846 |   |
|                                                                                                                                                                                                                                                                        |   |                                          |            |                                       |   |  |   |
| Common                  stock, subject to possible conversion, 1,548,666                  shares at conversion value (Note 2)                                                                                                                                               |   |                                          | 8,657,910  |                                       |   | — |   |
|                                                                                                                                                                                                                                                                        |   |                                          |            |                                       |   |  |   |
| Stockholders’                equity                (Notes 2, 3, 4, 5, 6, 9):                                                                                                                                                                                          |   |                                          |            |                                       |   |  |   |
| Preferred                  stock, $.0001 par value, authorized 1,000,000 shares;                    none issued                                                                                                                                                             |   |                                          | —    |                                       |   | — |   |
| Common                  stock, $.0001 par value, authorized 50,000,000 shares;                    issued and outstanding 9,635,000 shares (which                      includes 1,548,666 subject to possible conversion) and                        1,725,000, respectively |   |                                          | 964        |                                       |   | 173 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                   |   |                                          | 25,834,808 |                                       |   | 24,827 |   |
| Income                (deficit) accumulated during the development stage                                                                                                                                                                                                    |   |                                          | (1,288,897 | )                                          |   | (2,452 | ) |
| Total                stockholders’ equity                                                                                                                                                                                                                             |   |                                          | 24,546,875 |                                       |   | 22,548 |   |
|                                                                                                                                                                                                                                                                        |   |                                          |       |                                       |   |   |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                                                             |   | $                                             | 45,067,412 |                                       | $      | 520,394 |   |

| See                Notes to unaudited condensed financial                statements |
|-------------------------------------------------------------------------------------|

----

| **Highbury                Financial Inc.**                  |
|-------------------------------------------------------------|
| (a                company in the development stage)         |
|  **Condensed                Statements of Operations** |

|                                                                  |   |  **Restated** **Period                from** **July                13, 2005** **(inception)                to March 31, 2006**  |       |  **Restated                Period from January 1, 2006 to March 31,                2006**  |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------|--------|
|                                                                  |   |   (unaudited)                                                                                                                                  |       |  (unaudited)                                                                                    |   |
| Operating                expenses:                                    |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
| Professional                fees                                      |   | $                                                                                                                                                        | (32,315    | )                                                                                                    | $      | (32,315 | ) |
| D&O                insurance                                      |   |                                                                                                                                                     | (16,787    | )                                                                                                    |   | (16,787 | ) |
| Administrative                fees                                    |   |                                                                                                                                                     | (16,452    | )                                                                                                    |   | (16,452 | ) |
| Franchise                taxes                                        |   |                                                                                                                                                     | (16,958    | )                                                                                                    |   | (14,962 | ) |
| Travel                and entertainment                               |   |                                                                                                                                                     | (7,051     | )                                                                                                    |   | (7,051 | ) |
| Other                expenses                                         |   |                                                                                                                                                     | (3,042     | )                                                                                                    |   | (2,586 | ) |
| Total                expenses                                         |   |                                                                                                                                                     | (92,605    | )                                                                                                    |   | (90,153 | ) |
| Operating                loss                                         |   |                                                                                                                                                     | (92,605    | )                                                                                                    |   | (90,153 | ) |
|                                                                  |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
| Non-operating                income / (loss):                         |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
| Investment                income                                      |   |                                                                                                                                                     | 244,503    |                                                                                                 |   | 244,503 |   |
| Loss                from derivative liabilities - warrants            |   |                                                                                                                                                     | (1,265,600 | )                                                                                                    |   | (1,265,600 | ) |
| Loss                from derivative liabilities - UPO                 |   |                                                                                                                                                     | (118,000   | )                                                                                                    |   | (118,000) | ) |
| Total                non-operating loss                               |   |                                                                                                                                                     | (1,139,097 | )                                                                                               |   | (1,139,097 | )  |
|                                                                  |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
| Loss                before provision for income taxes                 |   |                                                                                                                                                     | (1,231,702 | )                                                                                               |   | (1,229,250 | )  |
|                                                                  |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
| Provision                for income taxes (Note 8):                   |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
| Current                                                               |   |                                                                                                                                                     | (109,498   | )                                                                                                    |   | (109,498 | ) |
| Deferred                                                              |   |                                                                                                                                                     | 52,303     |                                                                                                 |   | 52,303 |   |
| Net                loss for the period                                |   | $                                                                                                                                                        | (1,288,897 | )                                                                                               | $      | (1,286,445 | )  |
|                                                                  |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
|                                                                  |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
| Weighted                average shares outstanding, basic and diluted |   |                                                                                                                                                     | 3,641,398  |                                                                                                 |   | 7,345,000 |   |
|                                                                  |   |                                                                                                                                                     |       |                                                                                                 |   |   |   |
| Net                loss per share, basic and diluted                  |   | $                                                                                                                                                        | (0.35      | )                                                                                               | $      | (0.18 | )  |

| See                Notes to unaudited condensed financial                statements |
|-------------------------------------------------------------------------------------|

----

| **Highbury                Financial Inc.**          |
|-----------------------------------------------------|
| (a                company in the development stage) |

| **Condensed                Statement of Stockholders’                Equity****(as                restated)** |
|---------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                   |   | **Common                Stock** |      | ****Additional**Paid-In** |   | ******Deficit**Accumulated**During                the Development** |   |            |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|---------------------------|--------|---------------------------------------------------------------------|--------|-----------------|------------|
|                                                                                                                                                                                                   |   |  **Shares**                |      |  **Amount**          |   |  **Capital**                                                   |   |  **Phase** |       | **Total** |   |
|                                                                                                                                                                                                   |   |                            |      |                      |   |                                                                |   |            |       |   |   |   |   |   |   |   |
| Sale                  of 1,725,000 shares of common stock to initial                    stockholders on August 1, 2005 at                      $0.0145 per share (Note 5)                              |   |                            | 1,725,000 |                      | $      | 173                                                                 |   | $               | 24,827     |   | $ | — |   | $ | 25,000 |   |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Net                loss for the period                                                                                                                                                                 |   |                            | —   |                      |   | —                                                             |   |            | —    |   |   | (2,452 | ) |   | (2,452 | ) |
|                                                                                                                                                                                                   |   |                            |      |                      |   |                                                                |   |            |       |   |   |   |   |   |   |   |
| Balance                at December 31, 2005                                                                                                                                                            |   |                            | 1,725,000 |                      | $      | 173                                                                 |   | $               | 24,827     |   | $ | (2,452 | ) | $ | 22,548 |   |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Unaudited:                                                                                                                                                                                             |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Sale                of 166,667 units in a private placement                                                                                                                                            |   |                            | 166,667   |                      |   | 17                                                                  |   |            | 999,985    |   |   | — |   |   | 1,000,002 |   |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Sale                  of 7,743,333 units, net of underwriters’ discount                    and offering expenses (includes 1,548,666                      shares subject to possible conversion) |   |                            | 7,743,333 |                      |   | 774                                                                 |   |            | 42,782,806 |   |   | — |   |   | 42,783,580 |   |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Proceeds                  subject to possible conversion of 1,548,666                    shares                                                                                                        |   |                            | —   |                      |   | —                                                             |   |            | (8,657,910 | ) |   | — |   |   | (8,657,910 | ) |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Reclassification                of derivative liability for part of proceeds from the sale of units                relating to warrants                                                                |   |                            | —   |                      |   | —                                                             |   |            | (8,701,000 | ) |   | — |   |   | (8,701,000 | ) |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Reclassification                of derivative liability relating to value of underwriters’ purchase                option                                                                        |   |                            | —   |                      |   | —                                                             |   |            | (614,000   | ) |   | — |   |   | (614,000 | ) |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Proceeds                from issuance of option                                                                                                                                                        |   |                            | —   |                      |   | —                                                             |   |            | 100        |   |   | — |   |   | 100 |   |
|                                                                                                                                                                                                   |   |                            |           |                      |   |                                                                     |   |            |            |   |   |  |   |   |  |   |
| Net                loss for the period                                                                                                                                                                 |   |                            | —   |                      |   | —                                                             |   |            | —    |   |   | (1,286,445 | ) |   | (1,286,445 | ) |
|                                                                                                                                                                                                   |   |                            |      |                      |   |                                                                |   |            |       |   |   |   |   |   |   |   |
| Balance                at March 31, 2006                                                                                                                                                               |   |                            | 9,635,000 |                      | $      | 964                                                                 |   | $               | 25,834,808 |   | $ | (1,288,897 | ) | $ | 24,546,875 |   |

| See                Notes to unaudited condensed financial                statements |
|-------------------------------------------------------------------------------------|

----

| **Highbury                Financial Inc.**          |
|-----------------------------------------------------|
| (a                company in the development stage) |

| **Condensed                Statements of Cash Flows****(as                restated)** |
|---------------------------------------------------------------------------------------|

|                                                                                                          |   | **Restated****Period                from** **July                13, 2005** **(inception)                to March 31, 2006** |        | **Restated****Period                from January 1, 2006 to March 31, 2006** |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|-------------|------------------------------------------------------------------------------|--------|
|                                                                                                          |   |  (unaudited)                                                                                                                      |        |  (unaudited)                                                            |   |
| Cash                flows from operating activities:                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Net                loss for the period                                                                        |   | $                                                                                                                                      | (1,288,897  | )                                                                       | $      | (1,286,445 | )  |
|                                                                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities: |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Loss                on derivatives – warrants                                                      |   |                                                                                                                                   | 1,265,600   |                                                                         |   | 1,265,600 |   |
| Loss                on derivatives – underwriters’ purchase option                           |   |                                                                                                                                   | 118,000     |                                                                         |   | 118,000 |   |
| Deferred                taxes                                                                                 |   |                                                                                                                                   | (52,303     | )                                                                            |   | (52,303 | ) |
|                                                                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Changes                in operating assets and liabilities:                                                   |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Increase                in trust account                                                                      |   |                                                                                                                                   | (310,458    | )                                                                            |   | (310,458 | ) |
| Increase                in prepaid expenses                                                                   |   |                                                                                                                                   | (131,463    | )                                                                            |   | (131,463 | ) |
| Increase                in accrued expenses                                                                   |   |                                                                                                                                   | 54,655      |                                                                         |   | 52,203 |   |
| Increase                in deferred interest                                                                  |   |                                                                                                                                   | 65,955      |                                                                         |   | 65,955 |   |
| Increase                in income taxes payable                                                               |   |                                                                                                                                   | 109,498     |                                                                         |   | 109,498 |   |
| Net                cash used in operating activities                                                          |   |                                                                                                                                   | (169,413    | )                                                                            |   | (169,413 | ) |
|                                                                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Cash                flows from investing activities:                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Cash                held in trust fund                                                                        |   |                                                                                                                                   | (43,289,567 | )                                                                            |   | (43,289,567 | ) |
| Net                cash used in investing activities                                                          |   |                                                                                                                                   | (43,289,567 | )                                                                            |   | (43,289,567 | ) |
|                                                                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Cash                flows from financing activities:                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Proceeds                from sale of shares of common stock and warrants                                      |   |                                                                                                                                   | 47,485,000  |                                                                         |   | 47,460,000 |   |
| Proceeds                from issuance of option                                                               |   |                                                                                                                                   | 100         |                                                                         |   | 100 |   |
| Proceeds                from notes payable, stockholders                                                      |   |                                                                                                                                   | 70,000      |                                                                         |   | — |   |
| Payments                of notes payable, stockholders                                                        |   |                                                                                                                                   | (70,000     | )                                                                            |   | (70,000 | ) |
| Payment                of costs of public offering                                                            |   |                                                                                                                                   | (3,003,085  | )                                                                            |   | (2,944,987 | ) |
| Net                cash provided by financing activities                                                      |   |                                                                                                                                   | 44,482,015  |                                                                         |   | 44,445,113 |   |
|                                                                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
|                                                                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Net                increase in cash                                                                           |   |                                                                                                                                   | 1,023,035   |                                                                         |   | 986,133 |   |
| Cash                at beginning of period                                                                    |   |                                                                                                                                   | —     |                                                                         |   | 36,902 |   |
| Cash                at end of period                                                                          |   | $                                                                                                                                      | 1,023,035   |                                                                         | $      | 1,023,035 |   |
|                                                                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Supplemental                schedule of non-cash financing activities:                                        |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Accrual                of costs of acquisition                                                                |   | $                                                                                                                                      | 260,586     |                                                                         | $      | 260,586 |   |
| Accrual                of deferred underwriting fees                                                          |   | $                                                                                                                                      | 673,333     |                                                                         | $      | 673,333 |   |
|                                                                                                          |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Supplemental                disclosure of cash flow information:                                              |   |                                                                                                                                   |        |                                                                         |   |   |   |
| Cash                paid for taxes                                                                            |   | $                                                                                                                                      | 2,146       |                                                                         | $      | 2,146 |   |

| See                Notes to unaudited condensed financial                statements |
|-------------------------------------------------------------------------------------|

----

**HIGHBURY        FINANCIAL INC.**

**Notes        to Unaudited Condensed Financial Statements**

**Note        1. Basis of Presentation**

**Note      2. Organization and Business Operations**

----

**HIGHBURY          FINANCIAL INC.**

**Notes          to Unaudited Condensed Financial Statements**

*Deferred      Income Taxes*

*Loss      Per Common Share*

----

**HIGHBURY          FINANCIAL INC.**

**Notes          to Unaudited Condensed Financial Statements**

*Deferred      Registration Costs*

*Deferred      Acquisition Costs*

*Recent      Accounting Pronouncements*

**Note      3. Initial Public Offering**

*Accounting      for Derivative Financial Instruments Indexed to, and Potentialy Settled in,      a      Company’s Own Stock*

----

**HIGHBURY          FINANCIAL INC.**

**Notes          to Unaudited Condensed Financial Statements**

*Accounting      for Derivative Financial Instruments Indexed to, and Potentialy Settled in,      a      Company’s Own Stock*

|                                              |   | March                31, 2006         |       |
|---------------------------------------------------|--------|---------------------------------------|------------|
|                                              |   | As                Previously Reported |       | As                Restated |   |
|                                              |   |                                  |       |   |   |
| Assets                                            |   | $                                     | 45,067,412 |   | $ | 45,067,412 |   |
| Liabilities                                       |   | $                                     | 1,164,027  |   | $ | 11,862,627 |   |
| Common                stock subject to conversion |   | $                                     | 8,657,910  |   | $ | 8,657,910 |   |
| Stockholders’                equity         |   | $                                     | 35,245,475 |   | $ | 24,546,875 |   |
|                                              |   |                                  |       |   |   |   |   |

----

**HIGHBURY          FINANCIAL INC.**

**Notes          to Unaudited Condensed Financial Statements**

|                                             |   | Period                from July 13, 2005(inception)                to March 31, 2006 |      | Three                Months EndedMarch                31, 2006 |   |
|--------------------------------------------------|--------|--------------------------------------------------------------------------------------|-----------|----------------------------------------------------------------|--------|
|                                             |   | As                Previously Reported                                                |      | As                Restated                                     |   | As                Previously Reported |   | As                Restated |   |
|                                             |   |                                                                                 |      |                                                           |   |   |   |   |   |
| Loss                from derivative liabilities: |   |                                                                                 |      |                                                           |   |   |   |   |   |
| Warrants                                         |   |                                                                                 | —   |                                                           | $      | (1,265,600 | ) |   | — |   | $ | (1,265,600 | ) |
| UPO                                              |   |                                                                                 | —   |                                                           | $      | (118,000 | ) |   | — |   | $ | (118,000 | ) |
| Pre-tax                income (loss)             |   | $                                                                                    | 151,898   |                                                           | $      | (1,231,702 | ) | $ | 154,350 |   | $ | (1,229,250 | ) |
| Provision                for income taxes        |   | $                                                                                    | (57,195   | )                                                              | $      | (57,195 | ) | $ | (57,195 | ) | $ | (57,195 | ) |
| Net                income (loss)                 |   | $                                                                                    | 94,703    |                                                           | $      | (1,288,897 | ) | $ | 97,155 |   | $ | (1,286,445 | ) |
|                                             |   |                                                                                 |      |                                                           |   |   |   |   |   |   |   |   |   |
| Weighted                average shares           |   |                                                                                 |      |                                                           |   |   |   |   |   |   |   |   |   |
| Basic                                            |   |                                                                                 | 3,641,398 |                                                           |   | 3,641,398 |   |   | 7,345,000 |   |   | 7,345,000 |   |
|                                             |   |                                                                                 |      |                                                           |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) per share         |   |                                                                                 |      |                                                           |   |   |   |   |   |   |   |   |   |
| Basic                                            |   | $                                                                                    | 0.03      |                                                           | $      | (0.35 | ) | $ | 0.01 |   | $ | (0.18 | ) |

**Note      4. Investments Held in Trust**

**Note      5. Stockholders’ Equity**

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**HIGHBURY            FINANCIAL INC.**

**Notes            to Unaudited Condensed Financial            Statements**

**Note      6. Commitments**

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**HIGHBURY            FINANCIAL INC.**

**Notes            to Unaudited Condensed Financial            Statements**

**Note      7. Notes Payable, Stockholders**

**Note      8. Income Taxes**

| Current                                         |   |    |    |
|-------------------------------------------------|--------|--------------|---------|
|                     Federal |   | $            | 95,817  |   |
|                     State   |   |         | 13,681  |   |
| Deferred                                        |   |         |    |   |
|                     Federal |   |         | (45,768 | ) |
|                     State   |   |         | (6,535  | ) |
|                                            |   | $            | 57,195  |   |

| Statutory                federal income tax rate                                                                                           |   |   | (34.0 | %)     |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------|--------|
| Permanent                difference related to derivative loss – Warrant and underwriters’                purchase option |   |   | 41.7  |   |
| State                tax net of federal benefit                                                                                            |   |   | (3.1  | )      |
| Effective                income tax rate                                                                                                   |   |   | 4.6   | %      |

|                                                           |   | **March                31, 2006** |   | **December                31, 2005** |   |
|----------------------------------------------------------------|--------|-----------------------------------|--------|--------------------------------------|--------|
| Interest                income deferred for reporting purposes |   | $                                 | 24,440 |                                 | $      | — |   |
| Expenses                deferred for income tax purposes       |   |                              | 28,772 |                                 |   | 909 |   |
| Valuation                allowance                             |   |                              | (909   | )                                    |   | (909 | ) |
| Net                deferred tax asset                          |   | $                                 | 52,303 |                                 | $      | — |   |

**Note      9. Recent Developments**

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**HIGHBURY            FINANCIAL INC.**

**Notes            to Unaudited Condensed Financial            Statements**

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**ITEM      2 – MANAGEMENT’S DISCUSSION      AND      ANALYSIS OR PLAN OF OPERATION**

**Forward      Looking Statements**

**Restatement**

*Accounting      for Derivative Financial Instruments Indexed to, and Potentialy Settled in,      a      Company’s Own Stock*

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|                                              |   | March                31, 2006         |       |
|---------------------------------------------------|--------|---------------------------------------|------------|
|                                              |   | As                Previously Reported |       | As                Restated |   |
|                                              |   |                                  |       |   |   |
| Assets                                            |   | $                                     | 45,067,412 |   | $ | 45,067,412 |   |
| Liabilities                                       |   | $                                     | 1,164,027  |   | $ | 11,862,627 |   |
| Common                stock subject to conversion |   | $                                     | 8,657,910  |   | $ | 8,657,910 |   |
| Stockholders’                equity         |   | $                                     | 35,245,475 |   | $ | 24,546,875 |   |
|                                              |   |                                  |       |   |   |   |   |

|                                             |   | Period                from July 13, 2005(inception)                to March 31, 2006  | Three                Months EndedMarch                31, 2006 |
|--------------------------------------------------|--------|--------------------------------------------------------------------------------------------|----------------------------------------------------------------|
|                                             |   |                                                                                       | As                Previously Reported                     |   |   | As                Restated |   |   | As                Previously Reported |   |   | As                Restated |   |
| Loss                from derivative liabilities: |   |                                                                                       |                                                           |   |   |   |   |   |   |   |   |   |   |
| Warrants                                         |   |                                                                                       | —                                                        |   | $ | (1,265,600 | ) |   | — |   | $ | (1,265,600 | ) |
| UPO                                              |   |                                                                                       | —                                                        |   | $ | (118,000 | ) |   | — |   | $ | (118,000 | ) |
| Pre-tax                income (loss)             |   | $                                                                                          | 151,898                                                        |   | $ | (1,231,702 | ) | $ | 154,350 |   | $ | (1,229,250 | ) |
| Provision                for income taxes        |   | $                                                                                          | (57,195                                                        | ) | $ | (57,195 | ) | $ | (57,195 | ) | $ | (57,195 | ) |
| Net                income (loss)                 |   | $                                                                                          | 94,703                                                         |   | $ | (1,288,897 | ) | $ | 97,155 |   | $ | (1,286,445 | ) |
|                                             |   |                                                                                       |                                                           |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares           |   |                                                                                       |                                                           |   |   |   |   |   |   |   |   |   |   |
| Basic                                            |   |                                                                                       | 3,641,398                                                      |   |   | 3,641,398 |   |   | 7,345,000 |   |   | 7,345,000 |   |
|                                             |   |                                                                                       |                                                           |   |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) per share         |   |                                                                                       |                                                           |   |   |   |   |   |   |   |   |   |   |
| Basic                                            |   | $                                                                                          | 0.03                                                           |   | $ | (0.35 | ) | $ | 0.01 |   | $ | (0.18 | ) |

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**Recent      Developments **

**Plan      of Operation**

** **

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|   | · | approximately                $600,000 of expenses for legal, accounting, due diligence and other                expenses attendant to the investigating of a target business and                structuring and negotiating of a business combination;                                                                                                                                                                                                                                                                                |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | approximately                $100,000 of expenses in legal and accounting fees relating to our                SEC                reporting obligations;                                                                                                                                                                                                                                                                                                                                                                               |
|   | · | approximately                $180,000 of expenses in fees relating to our office space and certain                general and administrative services; and                                                                                                                                                                                                                                                                                                                                                                            |
|   | · | approximately                $287,348 for general working capital that will be used for miscellaneous                expenses and reserves, including approximately $200,000 for director                and                officer liability and other insurance premiums. In addition, we may                elect                to use some of the working capital to make a down payment or pay                exclusivity or similar fees in connection with structuring and negotiating                a business combination. |

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**ITEM      3. CONTROLS AND PROCEDURES.**

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**PART      II.**

**OTHER      INFORMATION**

**ITEM      2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**Recent      Sales of Unregistered Securities**

**Use      of Proceeds from our Initial Public Offering and Private      Placement**

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**ITEM      6: EXHIBITS **

| (a)  | Exhibits:                           |                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------|-------------------------------------|-----------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                |                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|      |                                | **Exhibit                Number** |   | **Description                of Document**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|      |                                | 4.4                               |   | Form                of Warrant Agreement between Continental Stock Transfer & Trust                Company and Registrant (incorporated by reference to Exhibit 4.4                to                Amendment No. 5 to Registrant’s Registration Statement on Form S-1 (File                No. 333-127272) filed with the SEC on December 16, 2005).                **                                                                                                                                                                     |
|      |                                | 4.5                               |   | Form                of Unit Purchase Option granted to each of ThinkEquity Partners,                LLC and                EarlyBird Capital, Inc. (incorporated by reference to Exhibit 4.5                to                Amendment No. 7 to Registrant’s Registration Statement on Form S-1 (File                No. 333-127272) filed with the SEC on January 23, 2006).                **                                                                                                                                                      |
|      |                                | 10.1                              |   | Form                of Letter Agreement between the Registrant and each of R. Bruce Cameron,                Richard S. Foote, R. Bradley Forth, The Hillary Appel Trust, The                Catey                Lauren Appel Trust, Broad Hollow LLC (the initial stockholders) and                Russell L. Appel (incorporated by reference to Exhibit 10.1 to Amendment                No. 6 to Registrant’s Registration Statement on Form S-1 (File No.                333-127272) filed with the SEC on December 20, 2005).                ** |
|      |                                |  10.2                        |   | Form                of Stock Escrow Agreement between the Registrant and Continental                Stock                Transfer and Trust Company (incorporated by reference to Exhibit                10.2 to                Amendment No. 5 to Registrant’s Registration Statement on Form S-1 (File                No. 333-127272) filed with the SEC on December 16, 2005).                **                                                                                                                                                   |
|      |                                | 10.3                              |   | Form                of Investment Management Trust Agreement between the Registrant and                Continental Stock Transfer & Trust Company (incorporated by reference                to Exhibit 10.3 to Amendment No. 5 to Registrant’s Registration Statement                on Form S-1 (File No. 333-127272) filed with the SEC on December                16,                2005). **                                                                                                                                                 |
|      |                                | 10.4                              |   | Form                of Registration Rights Agreement between the Registrant and the initial                stockholders (incorporated by reference to Exhibit 10.4 to Amendment                No. 5                to Registrant’s Registration Statement on Form S-1 (File No. 333-127272)                filed with the SEC on December 16, 2005). **                                                                                                                                                                                              |
|      |                                | 31.1                              |   | Section                302 Certification by CEO. *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|      |                                | 31.2                              |   | Section                302 Certification by CFO. *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|      |                                | 32                                |   | Section                906 Certification by CEO and CFO. *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|      |                                |                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|      |                                |                              |   | **                Previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|      |                                |                              |   | *                Filed herewith.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|      |                                |                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (b)       | Reports                on Form 8-K: |                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

|   |   | **Date**                         |   | **Items**                 |   | **Financial                Statements**                                                                                                                                                                                                          |
|--------|--------|----------------------------------|--------|---------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | February                1, 2006  |   | 8.01,                9.01 |   | Audited                Financial Statements from July 13, 2005 (inception) to January 31,                2006                and from January 1, 2006 to January 31, 2006 and from July 13, 2005                (inception) to December 31, 2005 |
|   |   | February                3, 2006  |   | 8.01,                9.01 |   | Unaudited                Balance Sheet as of February 3, 2006                                                                                                                                                                                    |
|   |   | February                21, 2006 |   | 8.01,                9.01 |   |                                                                                                                                                                                                                                             |

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**SIGNATURES**

|                                     |                                                                                                              |                                               |
|------------------------------------------|-------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|
|                                     | **HIGHBURY                FINANCIAL INC.**                                                                        |
|                                |                                                                                                         |                                          |
| Date: October              13, 2006 | By:                                                                                                     | /s/ Richard              S. Foote   |
|                                     | Richard              S. Foote                                                                                     |
|                                     | President                and                Chief Executive Officer(Principal                  Executive Officer) |

|                                       |                                                                                                                                                                 |                                                       |
|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|
| Date: October                13, 2006 | By:                                                                                                                                                        | /s/ R.                Bradley Forth    |
|                                       | R.                Bradley Forth                                                                                                                            |
|                                       | Executive                    Vice President, Chief Financial Officer and Secretary(Principal                    Financial and Accounting                    Officer) |

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**EXHIBIT      INDEX**

| **Exhibit                Number** |   | **Description                of Document**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.4                               |   | Form                of Warrant Agreement between Continental Stock Transfer & Trust                Company and Registrant (incorporated by reference to Exhibit 4.4                to                Amendment No. 5 to Registrant’s Registration Statement on Form S-1 (File                No. 333-127272) filed with the SEC on December 16, 2005).                **                                                                                                                                                                     |
| 4.5                               |   | Form                of Unit Purchase Option granted to each of ThinkEquity Partners,                LLC and                EarlyBird Capital, Inc. (incorporated by reference to Exhibit 4.5                to                Amendment No. 7 to Registrant’s Registration Statement on Form S-1 (File                No. 333-127272) filed with the SEC on January 23, 2006).                **                                                                                                                                                      |
| 10.1                              |   | Form                of Letter Agreement between the Registrant and each of R. Bruce Cameron,                Richard S. Foote, R. Bradley Forth, The Hillary Appel Trust, The                Catey                Lauren Appel Trust, Broad Hollow LLC (the initial stockholders) and                Russell L. Appel (incorporated by reference to Exhibit 10.1 to Amendment                No. 6 to Registrant’s Registration Statement on Form S-1 (File No.                333-127272) filed with the SEC on December 20, 2005).                ** |
| 10.2                              |   | Form                of Stock Escrow Agreement between the Registrant and Continental                Stock                Transfer and Trust Company (incorporated by reference to Exhibit                10.2 to                Amendment No. 5 to Registrant’s Registration Statement on Form S-1 (File                No. 333-127272) filed with the SEC on December 16, 2005).                **                                                                                                                                                   |
| 10.3                              |   | Form                of Investment Management Trust Agreement between the Registrant and                Continental Stock Transfer & Trust Company (incorporated by reference                to Exhibit 10.3 to Amendment No. 5 to Registrant’s Registration Statement                on Form S-1 (File No. 333-127272) filed with the SEC on December                16,                2005). **                                                                                                                                                 |
| 10.4                              |   | Form                of Registration Rights Agreement between the Registrant and the initial                stockholders (incorporated by reference to Exhibit 10.4 to Amendment                No. 5                to Registrant’s Registration Statement on Form S-1 (File No. 333-127272)                filed with the SEC on December 16, 2005). **                                                                                                                                                                                              |
| 31.1                              |   | Section                302 Certification by CEO. *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 31.2                              |   | Section                302 Certification by CFO. *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 32                                |   | Section                906 Certification by CEO and CFO. *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                              |   | **                Previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                              |   | *                Filed herewith.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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