UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549





FORM
      10-QSB




(Mark
      One)




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




For
      the
      quarterly period ended December 31 ,
      2007




oTRANSITION
      REPORT UNDER
      SECTION 13 OR 15(d) OF THE EXCHANGE ACT





For
      the
      transition period from ____________ to _________________





Commission
      file number 333-116817





Splinex
      Technology Inc.





(Exact
      name of small business issuer as specified in its charter)




**Delaware**
            
            **20-0715816**(State or other jurisdiction of incorporation or organization)
            
            (IRS
                Employer Identification No.)





500
      W.
      Cypress Creek Road Suite 100


Fort
      Lauderdale, FL 33309


(Address
      of principal executive offices)





(954)
      556-4020


(Issuer’s
      telephone number)





(Former
      name, former address and former fiscal year, if changed since last
      report)





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes xNo o




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act.) Yes xNo o




State
      the
      number of shares outstanding of each of the issuer’s classes of common equity,
      as of the latest practicable date: At December 1, 2007, the number of shares
      outstanding of the issuer’s common stock was 100,757,770 shares.





Transitional
      Small Business Disclosure Format (Check one): Yes oNo x










**SPLINEX
      TECHNOLOGY INC.**


**Form
      10-QSB**


**For
      the Quarter Ended December 31, 2007**


**INDEX**





PageNo.PART
                I — FINANCIAL INFORMATIONItem
                1.
            Financial
                StatementsCONDENSED
                CONSOLIDATED UNAUDITED BALANCE SHEETS – AS OF DECEMBER 31, 2007 AND
                MARCH 31, 2007
            3CONDENSED
                CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS - FOR THE THREE AND
                NINE
                MONTHS ENDED DECEMBER 31, 2007 AND 2006 AND FOR THE PERIOD FROM INCEPTION
                (OCTOBER 28, 2003) THROUGH DECEMBER 31, 2007
            4CONDENSED
                CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS - FOR THE THREE AND
                NINE
                MONTHS ENDED DECEMBER 31, 2007 AND 2006 AND FOR THE PERIOD FROM INCEPTION
                (OCTOBER 28, 2003) THROUGH DECEMBER 31, 2007
            5Notes
                to Condensed Consolidated Unaudited Financial Statements
            6Item
                2.
            Management’s
                Discussion and Analysis or Plan of Operation.
            11Item
                3.
            Controls
                and Procedures
            13PART
                II — OTHER INFORMATIONItem
                1.
            Legal
                Proceedings
            13Item
                6.
            Exhibits
            14Signatures
            15




2




PART
      I —
FINANCIAL INFORMATION





Item
      1.
      Financial Statements.





SPLINEX
      TECHNOLOGY INC.


(A
      DEVELOPMENT STAGE COMPANY)


CONDENSED
      CONSOLIDATED UNAUDITED BALANCE SHEET





December 31,
              2007
            
            March 31,
              2007**ASSETS**Current
                assetsCash
            
            $
            373,552
            
            $
            251Prepaid
                expenses and other
            
            
            -
            
            
            5,132Total
                current assets
            
            
            373,552
            
            
            5,383Property
                and equipment, net
            
            
            -
            
            
            -Total
                assets
            
            $
            373,552
            
            $
            5,383**LIABILITIES
                AND STOCKHOLDERS' DEFICIENCY IN ASSETS**Current
                liabilitiesDemand
                note payable and accrued interest due to related party - Ener1
                Group
            
            
            -
            
            
            776,476Note
                payable and accrued interest due to related party -
                Bzinfin
            
            
            -
            
            
            2,805,207Demand
                note payable due to related party - Splinex LLC
            
            
            500,000
            
            
            -Accounts
                payable
            
            
            154,786
            
            
            557,120Accrued
                expenses
            
            
            17,500
            
            
            500,927Due
                to related parties
            
            
            -
            
            
            138,262Total
                current liabilities
            
            
            672,286
            
            
            4,777,992**COMMITMENTS
                AND CONTINGENCIES****STOCKHOLDERS'
                DEFICIENCY IN ASSETS**Preferred
                stock ($.001 par value, 150,000,000 sharesauthorized
                and no shares issued and outstanding
            
            
            -
            
            
            -Common
                stock ($.001 par value, 300,000,000 sharesauthorized
                and 100,757,770 shares issued and outstanding)
            
            
            100,758
            
            
            100,758Treasury
                stock, at cost; 250,000 shares
            
            
            (62,500
            )
            
            (62,500
            )Paid
                in capital
            
            
            1,247,974
            
            
            1,109,712Common
                stock subscriptions payable
            
            
            3,771,047
            
            
            -Deficit
                accumulated during the development stage
            
            
            (5,356,013
            )
            
            (5,920,579
            )Total
                stockholders' deficiency in assets
            
            
            (298,734
            )
            
            (4,772,609
            )Total
                liabilities and stockholders' deficiency in assets
            
            $
            373,552
            
            $
            5,383





See
      accompanying notes.




3


SPLINEX
      TECHNOLOGY INC.


(A
      DEVELOPMENT STAGE COMPANY)


CONDENSED
      CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS





Three Months
                Ended
              December 31,
                2007
            
            Three Months
                Ended
              December 31,
                2006
            
            Nine Months
                Ended
              December 31,
                2007
            
            Nine Months
                Ended
              December 31,
                2006
            
            Cumulative
              From Inception
                (October 28,
              2003)
                Through December 31,
              2006Net
                sales
            
            $
            -
            
            $
            852
            
            $
            98
            
            $
            1,645
            
            $
            3,911Operating
                ExpensesSales
                and marketing
            
            
            
            
            
            -
            
            
            -
            
            
            -
            
            
            561,296General
                and administrative
            
            
            21,877
            
            
            99,652
            
            
            60,937
            
            
            321,746
            
            
            3,618,372Research
                and development
            
            
            -
            
            
            -
            
            
            -
            
            
            24,996
            
            
            1,984,516Total
                operating expenses
            
            
            21,877
            
            
            99,652
            
            
            60,937
            
            
            346,742
            
            
            6,164,183Costs
                of merger and registration
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            512,321Total
                expenses
            
            
            21,877
            
            
            99,652
            
            
            60,937
            
            
            346,742
            
            
            6,676,504Loss
                from operations
            
            
            (21,877
            )
            
            (98,800
            )
            
            (60,839
            )
            
            (345,097
            )
            
            (6,672,593
            )Other
                income (expense)Other
                income from settlements
            
            
            735,869
            
            
            -
            
            
            735,869
            
            
            -
            
            
            903,113Interest
                expense, net
            
            
            (27,734
            )
            
            (40,097
            )
            
            (110,464
            )
            
            (118,021
            )
            
            (409,380
            )Total
                other income and (expense)
            
            
            708,135
            
            
            (40,097
            )
            
            625,405
            
            
            (118,021
            )
            
            493,733Income
                (loss) before income taxes
            
            
            686,258
            
            
            (138,897
            )
            
            564,566
            
            
            (463,118
            )
            
            (6,178,860
            )Income
                taxes
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -Net
                income (loss)
            
            $
            686,258
            
            $
            (138,897
            )
            $
            564,566
            
            $
            (463,118
            )
            $
            (6,178,860
            )Net
                income (loss) per basic and fully diluted share
            
            $
            0.01
            
            $
            (0.00
            )
            $
            0.01
            
            $
            (0.00
            )Weighted
                average shares outstanding
            
            
            100,757,770
            
            
            100,757,770
            
            
            100,757,770
            
            
            100,757,770








See
      accompanying notes.




4


SPLINEX
      TECHNOLOGY INC.


(A
      DEVELOPMENT STAGE COMPANY)


CONDENSED
      CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS





Nine Months Ended
                December 31, 2007
            
            Nine Months Ended
              December 31, 2006
            
            Cumulative From
                Inception (October 28, 2003) Through
                December 31,
              2007Cash
                flows from operating activities:Net
                income (loss)
            
            $
            564,566
            
            $
            (463,118
            )
            $
            (6,178,860
            )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Depreciation
            
            
            -
            
            
            5,622
            
            
            71,817Non
                cash settlement incomeExecutive
                compensation paid with common stock and other non-cash
                expenses
            
            
            -
            
            
            -
            
            
            32,179Non
                cash interest expense
            
            
            110,464
            
            
            117,146
            
            
            402,715Changes
                in operating assets and liabilities:
            
            
            
            
            
            
            
            
            -Prepaid
                expenses and other
            
            
            5,133
            
            
            57,886
            
            
            -Due
                to related parties
            
            
            -
            
            
            -
            
            
            138,261Other
                assets
            
            
            -
            
            
            9,881
            
            
            -Accounts
                payable
            
            
            (402,336
            )
            
            116,822
            
            
            154,787Accrued
                expenses
            
            
            (463,427
            )
            
            (99,194
            )
            
            (16,250
            )Total
                adjustments
            
            
            (888,427
            )
            
            208,163
            
            
            645,247Net
                cash used in operating activities
            
            
            (323,861
            )
            
            (254,955
            )
            
            (5,533,612
            )Cash
                flows from investing activities:Purchase
                of equipment
            
            
            -
            
            
            -
            
            
            (79,429
            )Employee
                loans and advances, net
            
            
            -
            
            
            831
            
            
            -Net
                cash used in investing activities
            
            
            -
            
            
            831
            
            
            (79,429
            )Cash
                flows from financing activities:Note
                payable related parties
            
            
            558,900
            
            
            248,331
            
            
            3,848,331Contributed
                capital from equity investors
            
            
            -
            
            
            -
            
            
            2,000,000Net
                cash provided by financing activities
            
            
            558,900
            
            
            248,331
            
            
            5,848,331Net
                increase (decrease) in cash
            
            
            235,039
            
            
            (5,793
            )
            
            235,290Cash
                at beginning of period
            
            
            251
            
            
            9,458
            
            
            -Cash
                at end of period
            
            $
            373,552
            
            $
            3,665
            
            $
            373,552Supplemental
                Disclosure of Cash Flow InformationNon-cash
                investing and financing activities:Related
                party debt and accrued interest to be exchanged for common
                stock
            
            $
            3,771,047
            
            $
            -
            
            $
            3,771,047




See
      accompanying notes.




5


SPLINEX
        TECHNOLOGY INC.
 (A
        DEVELOPMENT STAGE COMPANY)
 NOTES
        TO
        CONDENSED FINANCIAL STATEMENTS
 
 NOTE
        1.
        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
 Organization
        and Basis of Presentation
 
 Splinex
        Technology Inc. ( “Technology”) was organized under the laws of the State of
        Delaware as a wholly owned subsidiary of Splinex, LLC, a Florida limited
        liability company (the “Predecessor”), to conduct the business and operations of
        the Predecessor. Under an agreement effective April 1, 2004 (the
“Contribution Agreement”), the Predecessor contributed substantially all of its
        assets, liabilities and operations to Technology. The financial statements
        include the accounts of Technology and the Predecessor (combined, the
“Company”), and all material intercompany transactions have been eliminated. The
        Company began its development stage activity on October 28, 2003
        (“Inception”).
 
 The
        accompanying unaudited condensed consolidated financial statements have been
        prepared in accordance with generally accepted accounting principles for
        interim
        financial information and Regulation S-B. Accordingly, they do not include
        all
        of the information and footnotes required for complete financial statements.
        In
        the opinion of management, all adjustments (consisting of normal recurring
        adjustments) considered necessary for a fair presentation of the results
        for the
        interim periods presented have been included. These results have been determined
        on the basis of generally accepted accounting principles and practices applied
        consistently with those used in the preparation of the Company's Annual
        Financial Statements for the year ended March 31, 2007. Operating results
        for
        the three and nine months ended December 31, 2007 are not necessarily indicative
        of the results that may be expected for the year ending March 31, 2008. It
        is
        recommended that the accompanying condensed consolidated financial statements
        be
        read in conjunction with the financial statements and notes for the year
        ended
        March 31, 2007 included in the
        Company’s Form 10-KSB filed with the Securities and Exchange
        Commission.
 
 Reclassifications
 
 Certain
        prior period amounts have been reclassified to conform to the current year
        presentation.
 
 Basis
        of
        Consolidation
  The
        consolidated interim financial statements include the accounts of Technology
        and
        its wholly owned subsidiary, ANTAO Ltd., a limited liability company formed
        under the laws of Russia (“ANTAO”). All material intercompany accounts and
        transactions have been eliminated in consolidation.
 
 Business
        Activity
 
 In
        2004,
        the Company began developing visualization software, and commenced selling
        the
        software in 2005. Due to lack of significant sales, the Company substantially
        reduced its workforce and overhead costs beginning in September 2005. The
        Company terminated its use of software development services previously provided
        to us by Splinex Outsourcing, Inc., a Russian outsourcing company; terminated
        or
        accepted resignations from our personnel, certain executives, and managers;
        and
        ceased marketing activities. From September 2005 through July 2007, Ener1
        Group,
        Inc., a related party, began loaning the Company money to fund its operations.
        In July 2007, Ener1 Group, Inc. stopped funding the Company operations and
        the
        Company stopped paying its remaining executive employee. In August and September
        2007, two of the three members of the board of directors resigned. The Company
        had no employees at March 31, 2007; however, a non-paid executive continues
        to
        perform duties as necessary.
 
 As
        further described in the Splinex Restructuring note, in December 2007, a
        related
        party structured a transaction that provided funds to the Company to settle
        its
        existing debts at a discount to the face amount of the obligations, restructured
        certain notes payable in exchange for newly issued common shares of the Company,
        and gave Splinex LLC a substantial majority of the outstanding common shares
        (the “Splinex Restructuring”). The Company expects its controlling shareholders
        to direct Splinex to acquire one or more companies, although no definitive
        purchase agreements have yet been signed.
  6
  Use
        of
        Estimates
  The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States of America requires management to
        make
        estimates and assumptions that affect the reported amounts of assets and
        liabilities and disclosures of contingent assets and liabilities as of the
        balance sheet date and the reported amounts of expenses for the period
        presented. Actual results could differ from those estimates.
 
 Cash
        and
        Cash Equivalents
 
 Cash
        and
        cash equivalents include highly liquid money market investments purchased
        with
        an original maturity of three months or less. At December 31, 2007, the Company
        had no cash equivalents. The Company maintains its cash in a bank deposit
        account, the balance of which, at times, may exceed federally insured limits.
        Accounts are guaranteed by the Federal Deposit Insurance Corporation
        (FDIC) up to $100,000. At December 31, 2007, the Company had $273,552 in
        excess of FDIC insured limits.
 
 Foreign
        Currency Transactions
 
 All
        transactions of the Company are denominated in U.S. dollars. The Company
        paid
        Russian research, programming and administrative costs under a U.S. dollar
        denominated agreement. Consolidated general and administrative expenses include
        immaterial foreign exchange rate losses on Russian bank balances maintained
        by
        ANTAO. The Company has not engaged in foreign currency hedging activities.
 
 Stock-Based
        Compensation
 
 Statement
        of Financial Accounting Standards (“SFAS”) No. 123R, “Accounting for
        Stock-Based Compensation,” requires companies to record employee stock option
        compensation at fair value. The Company adopted SFAS 123R during the quarter
        ending March 31, 2005. No options were granted or exercised during the three
        and
        nine months ending December 31, 2007. At December 31, 2007, the Company has
        300,000 options outstanding under its plan, all of which are vested, with
        an
        exercise price of $0.10 per share and with a remaining contractual term of
        7
        years.
 
 Software
        Development Costs
 
 The
        Company accounts for software development costs in accordance with SFAS
        No. 86, “Accounting for the Costs of Computer Software to Be Sold, Leased
        or Otherwise Marketed.” Costs incurred to establish the technological
        feasibility of a computer software product are considered research and
        development costs and are expensed as incurred. When the technological
        feasibility of a software product has been established using the working
        model
        approach, development cost are capitalized. Capitalization of these costs
        ceases
        when the product is ready for production. The Company has expensed all software
        development costs since inception.
 
 Revenue
        Recognition
 
 The
        Company’s revenues, net of sales returns and other allowances, are from the
        licensing of products. The Company recognizes revenues in accordance with
        Statement of Position or “SOP” 97-2, “Software Revenue Recognition,” as amended,
        SOP 81-1, “Accounting for Performance of Construction-Type and Certain
        Production-Type Contracts,” and Staff Accounting Bulletin or “SAB” 104, “Revenue
        Recognition.” The Company will recognize revenues when persuasive evidence of an
        arrangement exists, delivery has occurred, the vendor’s fee is fixed or
        determinable, vendor-specific objective evidence exists for all undelivered
        elements of the arrangement and collection is determined to be probable.
 
 Net
        Income (Loss) Per Share
 
 Basic
        net
        income per common share is computed by dividing net loss applicable to common
        stockholders by the weighted-average number of common shares outstanding
        during
        the period. Diluted net loss per common share is determined using the
        weighted-average number of common shares outstanding during the period, adjusted
        for the dilutive effect of common stock equivalents, consisting of shares
        issuable upon exercise of common stock options. In periods when losses are
        reported, the weighted-average number of common shares outstanding excludes
        common stock equivalents because their inclusion would be anti-dilutive.
        The
        earnings per share calculation does not include the 113,500,000 shares that
        will
        be issued in accordance with the Exchange Agreement. Had
        the
        additional shares been outstanding for the entire period, the
        earnings per share would have been $0.00 and $0.00 for the three and
        nine months ended December 31, 2007, respectively.
 
 7
  Fair
        Value of Financial Instruments
 
 The
        Company’s financial instruments consist mainly of cash, short-term payables and
        borrowings under the notes payable. The Company believes that the carrying
        amounts approximate fair value, due to their short-term maturities and current
        interest rates.
 
 Impairment
        of Long-Lived Assets
 
 The
        Company reviews its long-lived assets for impairment whenever events or changes
        indicate that the carrying amount of an asset or group of assets may not
        be
        recoverable. No impairment losses were recorded during the nine months ended
        December 31, 2007.
 
 NOTE
        2.
        GOING CONCERN CONSIDERATIONS
 
 The
        Company’s financial statements have been prepared on a going concern basis,
        which contemplates the realization of assets and the settlement of liabilities
        and commitments in the normal course of business. The Company is in the
        development stage and has had minimal revenues since Inception. Management
        recognizes that the Company must raise capital sufficient to fund business
        activities until such time as it can generate revenues and net cash flows
        in
        amounts necessary to enable it to continue in existence. The realization
        of
        assets and satisfaction of liabilities in the normal course of business is
        dependent upon the Company achieving these goals. Management’s plans include
        such alternatives as an acquisition or merger with a company.
 
 The
        Company has been unable to generate any significant sales of the product
        due in
        part to a lack of funds for marketing and promotion. In addition, a value
        added
        reseller of our product was unable to generate significant sales of the product.
        In September 2005, the Company changed its business strategy and took certain
        actions to reduce its overhead costs. The Company terminated its use of software
        development services previously provided to its by Splinex Outsourcing, Inc.,
        a
        Russian outsourcing company; terminated or accepted resignations from most
        of
        its personnel, executives, and managers; and ceased marketing activities.
        From
        September 2005 through July 2007, Ener1 Group, Inc., a related party, loaned
        the
        Company money to fund its operations. In July 2007, Ener1 Group, Inc. stopped
        funding the Company operations and stopped paying its remaining executive
        employee. In August and September 2007, two of the three members of the board
        of
        directors resigned. The Company had no employees at March 31, 2007; however,
        a
        non-paid executive continues to perform duties as necessary.
 
 In
        December 2007, a related party structured a transaction that provided funding
        to
        settle existing debts of the Company at a discount to the face amount of
        the
        obligations, restructured certain notes payable in exchange for newly issued
        common shares of the Company, and gave Splinex LLC substantial majority of
        the
        outstanding common shares (the “Splinex Restructuring”). The Company expects the
        Company’s controlling shareholders to direct the Company to acquire or merge
        with one or more companies, although no definitive purchase agreements have
        yet
        been signed.
 
 The
        Company has engaged in discussions with several potential merger partners,
        but
        to date has been unable to reach agreement on terms for a merger primarily
        because the Company had been unable to reach a satisfactory settlement of
        certain severance and trade obligations. The Company has no formal agreements
        to
        merge with another company, and expects that Splinex LLC, the controlling
        shareholder, will direct Splinex to find an appropriate merger partner and
        complete a merger after completion of the Splinex Restructuring. If the Company
        did not complete the Splinex Restructuring, it is likely that the Company
        would
        discontinue operations and cease to do business.
 
 In
        accordance with the funding provisions in the Predecessor’s operating agreement,
        certain members of the Predecessor contributed capital of $2,000,000 to the
        Predecessor. As of July 27, 2005, the Company had borrowed $2,500,000 under
        a
        $2,500,000 revolving loan agreement with Bzinfin, S. A., a company that is
        affiliated with the Company through common ownership (the “Bzinfin Loan”). The
        Company borrowed an additional $50,000 from Bzinfin during September 2005,
        and
        the loan agreement was amended to include the additional borrowing under
        the
        same terms and conditions. Loans under this agreement must be repaid two
        years
        from the date of the initial funding, which occurred on February 7, 2005.
        The
        Company received an extension of the due date of the Bzinfin Loan from February
        7, 2007 until June 30, 2007. The loan is currently in default.
 
 8
  The
        Company borrowed funds from a related party, Ener1 Group, Inc., to pay certain
        ongoing expenses while the Company pursues various alternatives. The Company
        ceased receiving funding from Ener1 Group, Inc. effective July 2007. From
        October 2005 through December 31, 2007, the Company borrowed $798,331 from
        Ener1
        Group, Inc., under a demand note that bears interest at an annual rate of
        5%
        payable at maturity.
 
 Management
        believes that actions presently being taken, as described herein, provide
        the
        opportunity for the Company to continue as a going concern; however, there
        is no
        assurance this will occur.
 
 NOTE
        3.
        SEGMENT INFORMATION
 
 The
        Company’s sole reportable business segment is visual communication software
        products and services. The Company’s accounting policies for segments are the
        same as those described in the summary of significant accounting
        policies.
 
 NOTE
        4.
        ACCRUED EXPENSES
 
 Accrued
        expenses represent expenses that are owed at the end of the period that either
        have not been billed by the provider or are expenses that are estimated for
        services provided. Accrued expenses at March 31, 2007 also include severance
        and
        other wage related expenses due to former employees. At December 31, 2007
        and
        March 31, 2007, accrued expenses consisted of the following:
 
 **December 31,2007**
              
              **March 31,2007**Accrued
                  severance and termination obligations
              
              $
              -
              
              $
              467,416Audit
              
              
              17,500
              
              
              24,000Accrued
                  vacation and wages
              
              
              -
              
              
              9,511$
              17,500
              
              $
              500,927
 
 NOTE
        5.
        STOCKHOLDERS’ EQUITY
 
 The
        Company has the authority to issue 300,000,000 shares of common stock, par
        value
        of $0.001 per share. Each holder of common stock is entitled to one vote
        for
        each share held. The Company has the authority to issue 150,000,000 shares
        of
        preferred stock, par value $0.001 per share, which may be divided into series
        with the designations, powers, preferences, and relative rights and any
        qualifications, limitations or restrictions as determined by the Company’s board
        of directors. Subscriptions payable reflect the expected exchange of debt
        for
        common shares expected to conclude in February 2007
 
 NOTE
        6.
        RELATED PARTY TRANSACTIONS
 
 On
        January 1, 2004 and February 1, 2004, the Company entered into
        consulting agreements with two members of the Predecessor, one of whom is
        also
        director of the Company. The consulting agreements engage the members to
        provide
        consulting services including providing advice regarding equity restructuring,
        business planning, strategic planning, and international licensing in exchange
        for $100,000 per year, or a monthly fee to each consultant of $8,333. General
        and administrative expenses include consulting fees under these agreements
        of
        $50,000 and $150,000 for the three and nine months ended December 31, 2006,
        respectively. The Company and the related parties agreed to terminate the
        consulting agreements effective December 31, 2006, and agreed to forego
        collection of all payments due under the contract during December 2007.
 
 The
        Company shared personnel with Ener1, Inc. and Ener1 Group, Inc., entities
        affiliated with the Company by common ownership and through common control.
         Accordingly, amounts have been allocated to and from the Company for the
        services of personnel and other expenses. The Company incurred rent expense
        of
        $0 and $10,486 for its office space under a sublease with Ener1 Group, Inc.
        for
        the three and nine months ended December 31, 2006, respectively. ****
 
 9
 Effective
        January 27, 2006, the Company’s President, Mr. Herlihy, began performing
        services for Ener1, Inc., including serving as its Chief Financial Officer
        from
        January 27, 2006 through October 16, 2006 and again as of November, 2007,
        in
        addition to his continuing role at Splinex. Splinex paid $60,000 and Ener1
        paid
        $190,000 of Mr. Herlihy’s $250,000 annual salary through May 2007, at which time
        Splinex discontinued making salary payments to Mr. Herlihy. Mr. Herlihy
        dedicated substantially all of his time to Ener1 except for the time necessary
        to attend to the administrative and financial matters of Splinex. Mr. Herlihy
        resigned from Splinex in February 2008.
 
 NOTE
        7.
        DEBT DUE TO RELATED PARTIES
 
 Effective
        April 1, 2004, a company that is affiliated with the Company through common
        ownership, entered into a revolving loan agreement, the Bzinfin Loan, with
        the
        Company under which the Company borrowed $2,550,000 in aggregate principal
        through March 31, 2006. Loans under this agreement bear interest at an annual
        rate of 5% and must be repaid two years from the date of the initial funding,
        which occurred on February 7, 2005. The Company received an extension of
        the due
        date of the Bzinfin Loan from February 7, 2007 until June 30, 2007. At December
        31, 2007, the Company had restated this debt (see Note 9) and the balance
        was
        $0.
 
 Prior
        to
        restructuring, the Company had borrowed $835,736 from Ener1 Group under a
        demand
        note bearing annual interest of 5% to fund working capital needs. Accrued
        interest at December 31, 2007 was $25,464. After the restructuring, this
        principal debt was eliminated and the total amount due was $0.
 
 In
        December 2007, Bzinfin provided Splinex LLC a loan of $500,000 to pay for
        restructuring and settlement costs, which Splinex LLC loaned to the Company
        in
        the form of a non-interest bearing demand note. Splinex LLC is required to
        repay
        this amount to Bzinfin upon the completion of the Splinex
        Restructuring.
 
 NOTE
        8.
        COMMITMENTS AND CONTINGENCIES
 
 ***Foreign
        subsidiary***
 
 The
        Company has outsourced computer programming to a company located in
        Ekaterinberg, Russia. The Company may engage in outsourcing or other
        business operations in Russia again in the future. The Company’s operations in
        Russia are subject to significant risks not typically associated with companies
        in North America and Western Europe. These risks include, among
        others, political, economic and legal risks associated with doing business
        in Russia, limitations on foreign currency transactions, and risks
        associated with evolving Russian laws on issues including creditor rights
        and intellectual property. The Company’s ability to develop products
        and earn revenues may be adversely affected by changes in the political,
        economic, legal and social conditions in Russia, and by changes in governmental
        policies with respect to laws and regulations, anti-inflationary measures,
        foreign currency transactions, and rates and methods of taxation, among other
        things.
 
 NOTE
        9.
        SPLINEX RESTRUCTURING
 
 In
        December 2007, a related party structured a transaction that provided funds
        to
        the Company to settle its existing debts at a discount to the face amount
        of the
        obligations, restructured certain notes payable which will be exchanged for
        newly issued common shares of the Company, and gave Splinex LLC substantial
        majority of the outstanding common shares (the “Splinex Restructuring”). The
        Company expects its controlling shareholders to direct Splinex to acquire
        one or
        more companies, although no definitive purchase agreements have yet been
        signed.
        The actions taken to restructure the company are described in the following
        paragraph.
 
 In
        December 2007, Bzinfin agreed to loan Splinex LLC up to $500,000 to be used
        to
        fund the settlement of certain financial obligations and the costs of audit
        and
        filing financial reports with the SEC. On or about December 17, 2007, under
        a
        Purchase Agreement, 1) certain holders, who had received shares in the Company
        as distributions from Splinex LLC, transferred their ownership of 35,162,334
        shares of common stock of the Company to Splinex LLC for nominal consideration,
        and 2) Bzinfin and Ener1 Group assigned debt obligations to Splinex LLC in
        the
        amount of $2,805,207 and $845,864, respectively. Under a Purchase Agreement
        dated December 17, 2007, TGR Capital LLC, a Florida limited liability company
        (“TGR”) controlled by a related party, 1) acquired the membership interests in
        Splinex LLC, thereby giving TGR control over Splinex LLC, and 2) agreed to
        repay
        the Bzinfin loan of $500,000. Under an Exchange Agreement dated December
        18,
        2007, the Company agreed to issue 113,500,000 newly issued shares of the
        Company
        to Splinex LLC of which 8,500,000 shares will be issued to Bzinfin and 2,125,000
        will be issued to Alexander Malovik in exchange for the Bzinfin and Ener1
        Group
        notes. The shares will be issued after the new transfer agent for the Company
        administers the official records transfer, which is expected in February
        2008.
        Splinex LLC owned 98,157,334 shares of the Company as of December 17, 2007
        after
        the transfer and will own 201,032,334 shares after the completion of the
        Exchange Agreement. The Company had 100,757,769 shares outstanding at December
        17, 2007 and will have 214,257,769 shares outstanding after the completion
        of
        the Exchange Agreement. On December 17, 2007, the Company agreed to revised
        payment terms related to a termination agreement with its former chief executive
        officer. The Company has terminated consulting agreements with Mike Zoi and
        Peter Novak, and the consultants have agreed to terminate all previous accrued
        consulting payment obligations. As of December 31, 2007, the Company has
        reached
        settlement agreements with substantially the majority of all remaining
        creditors; certain payments were made in January, 2008 in accordance with
        the
        settlement agreements.
  10


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





*This
      Quarterly* *Report on Form 10-QSB contains forward -looking statements within the meaning
      of
      Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
      Securities Exchange Act of 1934, as amended. These statements relate to our
      expectations, hopes, intentions or strategies regarding future events or future
      financial performance.  Any statements contained in this report that are
      not statements of historical fact may be deemed forward-looking statements.
      In
      some cases, forward-looking statements can be identified by terminology such
      as
“may,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend”, “believe,”
“estimate,” “predict,” “potential” or “continue,” or the negative of such terms
      or other comparable terminology. Forward-looking statements include but are
      not
      limited to statements regarding: our future business plans; the expected release
      dates and future sales of our products; development of other products; expected
      hiring levels; marketing plans; increases of selling, general and administrative
      costs and research and development spending; our product development strategy;
      financing requirement and capital raising plans  These statements are only
      predictions and are subject to a number of assumptions, risks and uncertainties
      that could cause actual results to differ materially from those expressed or
      implied in the forward-looking statements. The following important factors,
      in
      addition to those discussed in our filings with the Securities and Exchange
      Commission (the “Commission”) from time to time, and other unforeseen events or
      circumstances, could affect our future results and could cause those results
      or
      other outcomes to differ materially from those expressed or implied in our
      forward-looking statements: general economic conditions; competition; our
      ability to raise capital; our ability to control costs; changes within our
      industries; release of new and upgraded products and services by us or our
      competitors; development of our sales force; employee retention; our ability
      to
      protect our intellectual property; legal and regulatory issues; changes in
      accounting policies or practices; and successful adoption of our products and
      services.*




*All
      forward-looking statements* *are
      based on information available to us on the date* *of
      this filing* *,
      and
      we* *assume* *no
      obligation to update* ** *such* *statements.*


**


*The
      following discussion should be read in conjunction with our* *other
      filings with the Securities and Exchange Commission and the* *consolidated* *interim* *financial
      statements and related notes included in this* *Quarterly
      Report.*




**Plan
      of Operation**




In
      2004,
      we began developing visualization software, and commenced selling the software
      in 2005. Due to lack of significant sales, we substantially reduced our
      workforce and overhead costs beginning in September 2005. From September 2005
      through July 2007, Ener1 Group, Inc., a related party, loaned us money to fund
      our operations. In July 2007, Ener1 Group, Inc. stopped funding our operations
      and we stopped paying our remaining executive employee. In August and September
      2007, two of our three members of the board of directors resigned. The Company
      had no employees at March 31, 2007; however, a non-paid executive continued
      to
      perform duties as necessary, until his resignation on February 6, 2008.





In
      December 2007, a related party structured a transaction that provided funds
      to
      us to settle our existing debts at a discount to the face amount of the
      obligations, restructured certain notes payable in exchange for newly issued
      common shares of the company, and gave Splinex LLC substantial majority of
      the
      outstanding common shares (the “Splinex Restructuring”). We expect our
      controlling shareholders to direct Splinex to acquire one or more companies,
      although no definitive purchase agreements have yet been signed. The actions
      taken to restructure the company are described in the following
      paragraph.





In
      December 2007, Bzinfin, S.A., a company that is affiliated with the Company
      through common ownership, agreed to loan Splinex LLC up to $500,000 to lend
      to
      the Company to be used to fund the settlement of certain financial obligations
      and the costs of audit and filing financial reports with the SEC. On or about
      December 17, 2007, under a Purchase Agreement, 1) certain holders, who had
      received shares in the Company as distributions from Splinex LLC, transferred
      their ownership of 35,162,334 shares of common stock of the Company to Splinex
      LLC for nominal consideration, and 2) Bzinfin and Ener1 Group assigned debt
      obligations to Splinex LLC in the amount of $2,805,207 and $845,864,
      respectively. Under a Purchase Agreement dated December 17, 2007, TGR Capital
      LLC, a Florida limited liability company (“TGR”) controlled by a related party,
      1) acquired the membership interests in Splinex LLC, thereby giving TGR control
      over Splinex LLC, and 2) agreed to repay the Bzinfin loan of $500,000. Under
      an
      Exchange Agreement dated December 18, 2007, the Company agreed to issue
      113,500,000 newly issued shares of the Company to Splinex LLC of which 8,500,000
      shares will be issued to Bzinfin and 2,125,000 will be issued to Alexander
      Malovik in exchange for the Bzinfin and Ener1 Group notes. The shares are
      expected to be issued in February 2008. The exchange of shares for the debt
      will
      occur after a qualified transfer agent has been retained. Splinex LLC owned
      98,157,334 shares of the Company as of December 17, 2007 after the transfer
      and
      will own 201,032,334 shares after the completion of the Exchange Agreement.
      The
      Company had 100,757,769 shares outstanding at December 17, 2007 and will have
      214,257,769 shares outstanding after the completion of the Exchange Agreement.
      On December 17, 2007, the Company agreed to revised payment terms related to
      a
      termination agreement with its former chief executive officer. The Company
      has
      terminated consulting agreements with Mike Zoi and Peter Novak, and the
      consultants have agreed to terminate all previous accrued consulting payment
      obligations. The Company has reached settlement agreements with substantially
      the majority of all remaining creditors. The sole director and the President
      and
      Chief Financial Officer resigned in January 2008, and Splinex LLC appointed
      two
      Board members and officers to replace them.  The owners and members of TGR
      intend to acquire one or more companies, although no definitive purchase
      agreements have yet been signed. Any potential acquisition would be financed
      primarily with new shares of Splinex, and therefore would result in substantial
      dilution to the existing shareholders.





11


Several
      factors exist that raise significant doubt as to our ability to continue
      operating as a going concern. These factors include our history of net losses
      and the facts that our company is in the development stage and we have earned
      minimal revenues to date. We have no remaining funds available under our
      revolving loan agreement and are dependent upon Ener1 Group, Inc. to fund our
      operations. Our independent auditors’ report on our financial statements for the
      year ended March 31, 2007 contains an explanatory paragraph about our
      ability to continue as a going concern. Management believes that the Splinex
      Restructuring, as described in the preceding paragraphs, provides the
      opportunity for us to continue as a going concern; however, there is no
      assurance this will occur.





**Results
      of Operations for the Three Month Period Ended December 31, 2007**





We
      reported net income of $686,258, or $0.01 per share, for the three months ended
      December 31, 2007, compared to a loss of $138,897 or $(0.00) per share in the
      prior year quarter. Weighted average shares outstanding were 100,757,770 for
      both quarters. The net income for the three months ended December 31, 2007
      reflects other income of $735,869 from settlement of vendor obligations and
      employment contracts which were concluded in December 2007.





General
      and administrative expenses for the three months ended December 31, 2007 were
      primarily accounting and audit costs. General and administrative expenses for
      the three months ended December 31, 2006 included wages and benefits of $15,812,
      consulting fees of $50,000 payable to a director, Dr. Novak and, a related
      party, Mike Zoi; audit fees of $9,000; and insurance costs of $17,683.





Interest
      expenses decreased from $40,097 for the three months ended December 31, 2006
      to
      $27,734 in the three months ended December 31, 2007 due to the Splinex
      Restructuring which where the related party debt will be exchanged for common
      shares of the Company. The pending exchange is currently reported as
      subscriptions receivable at December 31, 2007.





**Results
      of Operations for the Nine Month Period Ended December 31, 2007**





We
      reported net income of $564,566, or $0.01 per share, for the nine months ended
      December 31, 2007 compared to a loss of $463,118, or $0.00 per share for the
      nine months ending December 31, 2006. The net income for the nine months ended
      December 31, 2007 reflects other income of $735,869 from settlement of vendor
      obligations and employment contracts which were concluded in December 2007.





General
      and administrative expenses for the nine months ended December 31, 2007 were
      primarily wages and accounting and audit expenses. General and administrative
      expenses for the nine months ended December 31, 2006 included wages and benefits
      of $50,622; consulting fees of $150,000 payable to a director and a related
      party, Mike Zoi; audit fees of $43,000; insurance costs of $60,726; and
      amortization of accounting software license fees of $42,064. Interest expenses
      decreased from $118,021 for the nine months ended December 31, 2006 to $110,464
      in the nine months ended December 31, 2007; the related party debt will be
      exchanged for common shares of the Company under the Splinex Restructuring.





12


**Liquidity
      and capital resources**





At
      December 31, 2007, we had negative working capital of $298,734 and cash of
      $373,552. The Company is dependent upon receiving funds from its controlling
      shareholder, Splinex, LLC. The Company reached settlement agreements with the
      majority of its creditors and former employees in December 2007.





In
      December 2007, Bzinfin agreed to loan Splinex LLC up to $500,000 to lend to
      the
      Company to be used to fund the settlement of certain financial obligations
      and
      the costs of audit and filing financial reports with the SEC. On or about
      December 17, 2007, under a Purchase Agreement, 1) certain holders, who had
      received shares in the Company as distributions from Splinex LLC, transferred
      their ownership of 35,162,334 shares of common stock of the Company to Splinex
      LLC for nominal consideration, and 2) Bzinfin and Ener1 Group assigned debt
      obligations to Splinex LLC in the amount of $2,805,207 and $845,864,
      respectively. Under a Purchase Agreement dated December 17, 2007, TGR Capital
      LLC, a Florida limited liability company (“TGR”) controlled by a related party,
      1) acquired the membership interests in Splinex LLC, thereby giving TGR control
      over Splinex LLC, and 2) agreed to repay the Bzinfin loan of $500,000. Under
      an
      Exchange Agreement dated December 18, 2007, the Company agreed to issue
      113,500,000 newly issued shares of the Company to Splinex LLC of which 8,500,000
      shares will be issued to Bzinfin and 2,125,000 will be issued to Alexander
      Malovik in exchange for the Bzinfin and Ener1 Group notes. The shares will
      be
      issued after the new transfer agent for the Company administers the official
      records transfer, which is expected in February 2008. Splinex LLC owned
      98,157,334 shares of the Company as of December 17, 2007 after the transfer
      and
      will own 201,032,334 shares after the completion of the Exchange Agreement.
      The
      Company had 100,757,770 shares outstanding at December 17, 2007 and will have
      214,257,769 shares outstanding after the completion of the Exchange Agreement.
      On December 17, 2007, the Company agreed to revised payment terms related to
      a
      termination agreement with its former chief executive officer. The Company
      has
      terminated consulting agreements with Mike Zoi and Peter Novak, and the
      consultants have agreed to terminate all previous accrued consulting payment
      obligations. As of December 31, 2007, the Company has reached settlement
      agreements with substantially the majority of all remaining creditors; certain
      payments were made in January, 2008 in accordance with the settlement
      agreements.





We
      do not
      have material exposure to market risks associated with changes in interest
      rates
      related to cash equivalent securities held at December 31, 2007.





**Off-balance
      sheet arrangements**





At
      December 31, 2007, we did not have any off-balance sheet arrangements, as
      defined in item 303(c)(2) of Regulation S-B.





Item
      3.
      Controls and Procedures.





Our
      disclosure controls and procedures are designed to provide reasonable assurance
      that information required to be disclosed in our reports filed or
      submitted under
      the Securities Exchange Act of 1934 is
      recorded, processed, summarized and reported within
      the time periods specified in the SEC’s
      rules and forms, and that such information is
      accumulated and communicated to our
      management, including our chief executive officer and chief financial
      officer ,
      as
      appropriate, to allow for timely
      decisions regarding required disclosure .
      In
      designing and evaluating the disclosure controls and procedures, management
      recognized that any controls and procedures, no matter how well designed and
      operated, can provide only reasonable assurance of achieving the desired control
      objectives, and management is required to apply its judgment in evaluating
      the
      cost-benefit relationship of possible controls and procedures.





As
      of
      December 31, 2007, we
      carried out an evaluation , under
      the supervision and with the participation of our management,
      our general counsel, of the
      effectiveness of the design and operation of our disclosure controls and
      procedures. Based on
      the foregoing, our general
      counsel concluded that our disclosure controls and procedures were
      inadequate because there were a limited number of personnel insufficient to
      have
      an adequate segregation of duties.


During
      the quarter ended December 31, 2007, there were no changes in internal controls
      over financial reporting that have materially affected, or are reasonably likely
      to materially affect, our internal control over financial
      reporting.




PART
      II —
OTHER INFORMATION





Item
      1.
      Legal proceedings





From
      time
      to time, we may be involved in litigation relating to claims arising out of
      our
      intellectual property and operations. We are not currently a party to any such
      proceedings the outcome of which would have a material affect on our company.


13


Item
      6.
      Exhibits




Exhibit
                Number
              
              Description2.1
              
              Agreement
                  and Plan of Merger among Ener1 Acquisition Corp., Splinex and Ener1,
                  Inc.,
                  dated as of June 9, 2004, incorporated herein by reference to Exhibit
                  2.1 to Splinex’s Registration Statement on Form S-1 filed with the
                  Commission on June 24, 2004 (Registration No.
                  333-116817)2.2
              
              First
                  Amendment to Agreement and Plan of Merger among Ener1 Acquisition
                  Corp.,
                  Splinex and Ener1, Inc., dated as of October 13, 2004, incorporated
                  herein by reference to Exhibit 2.2 to Splinex’s Registration Statement on
                  Form S-1 filed with the Commission on October 15, 2004 (Registration
                  No.
                  333-116817)2.3
              
              Second
                  Amendment to Agreement and Plan of Merger among Ener1 Acquisition
                  Corp.,
                  Splinex and Ener1, Inc., dated as of December 23, 2004, incorporated
                  herein by reference to Exhibit 2.3 to Splinex’s Registration Statement on
                  Form S-1 filed with the Commission on December 27, 2004 (Registration
                  No.
                  333-116817)3.1
              
              Certificate
                  of Incorporation of Splinex, incorporated herein by reference to
                  Exhibit
                  3.1 to Splinex’s Registration Statement on Form S-1 filed with the
                  Commission on June 24, 2004 (Registration No.
                  333-116817)3.2
              
              Certificate
                  of Merger of Splinex, incorporated herein by reference to Exhibit
                  3.2 to
                  Splinex’s Registration Statement on Form S-1 filed with the Commission
                  on
                  December 27, 2004 (Registration No. 333-116817)3.3
              
              Bylaws
                  of Splinex, incorporated herein by reference to Exhibit 3.3 to
                  Splinex’s
                  Registration Statement on Form S-1 filed with the Commission on
                  June 24,
                  2004 (Registration No. 333-116817)31.1
              
              Certification
                  of Principal Executive Officer and Principal Financial Officer
                  pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 200232.1
              
              Certification
                  of Principal Executive Officer pursuant to 18 U.S.C. Sec. 1350,
                  as adopted
                  pursuant to Section 906 of the Sarbanes-Oxley Act of
                  2002
  14


**SIGNATURES**





In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.




Splinex
                Technology Inc.RegistrantDate:
                February 20, 2008
            
            By:
            
            /s/
                Curtis WolfeName:
                Curtis WolfeTitle:
                General Counsel




15