**UNITED STATES**
**SECURITIES AND EXCHANGE COMMISSION**
**Washington, D.C. 20549**

**FORM 10-QSB**
x
    QUARTERLY REPORT PURSUANT TO
      SECTION 13 OR 15(d)OF
      THE SECURITIES ACT OF 1934**For
      the quarterly period ended August 31, 2005**ORo
    TRANSITION REPORT PURSUANT TO
      SECTION 13 OR 15(d)OF
      THE SECURITIES ACT OF 1934**For
      the transition period from****___________****to****____________**
**Commission File Number: 333-64244**


**THE MACREPORT.NET, INC.**
(Exact name of registrant as specified in its charter)
**Delaware**
    **11-3584538**(State
      or other jurisdiction of
    (I.R.S.
      Employerincorporation
      or organization)
    Identification
      No.)

**150 Broadhollow Road**
**Suite PH11**
**Melville, NY 11747**

(Address, including zip code, of principal executive offices)

**(631) 423-4222**
(Registrant’s telephone number, including area code)

Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.

(1)Yes
    x
    No
    o(2)Yes
    x
    No
    o

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of
shares outstanding of each of the issuer’s classes of common stock, as of the
latest practicable date.

The number of shares
of Common Stock outstanding as of August 31, 2005 was 17,293,041.


- 1 -
INDEX
**THE
      MACREPORT.NET, INC.****FORM
      10-QSB****August
      31, 2005****INDEX****PART
      I - FINANCIAL INFORMATION**PageItem
      1.Unaudited
      Condensed Consolidated Balance Sheet
    3Unaudited
      Condensed Consolidated Statements of Operations
    4Unaudited
      Condensed Consolidated Statements of Cash Flows
    6Unaudited
      Notes to Condensed Consolidated Financial Statements
    7Item
      2.
    Management’s
      Discussion and Analysis of FinancialCondition
      and Results of Operations
    9Item
      3.
    Controls
      and Procedures
    14**PART
      II - OTHER INFORMATION**Item
      1.
    Legal
      Proceedings
    15Item
      2.
    Changes
      in Securities
    15Item
      3.
    Defaults
      by the Company upon Its Senior Securities
    15Item
      4.
    Submission
      of Matters to a Vote of Security Holders
    16Item
      5.
    Other
      Information
    16Item
      6.
    Exhibits
      and Reports on Form 8-K
    16Signatures
    17
- 2 -
INDEX**PART I.**
**FINANCIAL INFORMATION**

**ITEM 1.****FINANCIAL
STATEMENTS**
THE MACREPORT.NET,
INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET - UNAUDITED
AUGUST 31,
2005
ASSETSCURRENT
      ASSETS:Cash
      and cash equivalents
    
    $
    257,616Marketable
      securities
    
    
    473,802Accounts
      receivable
    
    
    25,175Other
      current assets
    
    
    5,200Total
      current assets
    
    
    
    
    
    761,793PROPERTY
      AND EQUIPMENT, net
    
    
    
    
    
    2,093,431OTHER
      ASSETSDeposits
    
    
    10,946Total
      other assets
    
    
    
    
    
    10,946Total
      assets
    
    
    
    
    $
    2,866,170LIABILITIES
      AND STOCKHOLDERS' EQUITYCURRENT
      LIABILITIES:Accounts
      payable and accrued expenses
    
    $
    358,119Notes
      payable
    
    
    1,417,694Loan
      Payable - Related Party
    
    
    728,347Deferred
      revenue
    
    
    114,486Total
      Liabilities
    
    
    
    
    
    2,618,646COMMITMENTSSTOCKHOLDERS'
      EQUITY:Preferred
      stock $.0001 par value, authorized 5,000,000shares,
      no shares issued
    
    
    -Common
      stock $.0001 par value, authorized 25,000,000shares,
      17,293,041 shares issued and outstanding
    
    
    1,730Additional
      paid-in-capital
    
    
    3,731,872Deficit
    
    
    (3,486,078
    )Total
      stockholders' equity
    
    
    
    
    
    247,524Total
      liabilities and stockholders' equity
    
    
    
    
    $
    2,866,170
See accompanying
notes to consolidated financial statements.

- 3 -
INDEX
THE MACREPORT.NET,
INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS - UNAUDITED
Three
      months
    
    Three
      monthsending
    
    endingAugust
      31,
    
    August
      31,2005
    
    2004REVENUES
    
    $
    404,604
    
    $
    481,351COST
      OF REVENUES
    
    
    119,297
    
    
    75,056GROSS
      PROFIT
    
    
    285,307
    
    
    406,295SELLING,
      GENERAL ANDADMINISTRATIVE
      EXPENSES
    
    
    401,503
    
    
    309,367(LOSS)
      INCOME BEFORE OTHER INCOME (EXPENSE)
    
    
    (116,196
    )
    
    96,928OTHER
      INCOME (EXPENSE):Net
      Rental Loss
    
    
    (161,415
    )
    
    -Unrealized
      gain on non-marketable securities
    
    
    40,297
    
    
    321,780Loss
      on sale of marketable securities
    
    
    (21,089
    )
    
    (42,349
    )Interest
      expense
    
    
    (23,590
    )
    
    (20,262
    )Interest
      income
    
    
    12
    
    
    -(165,785
    )
    
    259,169(LOSS)
      INCOME BEFORE PROVISION FORINCOME
      TAXES
    
    
    (281,981
    )
    
    356,097PROVISION
      FOR INCOME TAXES
    
    
    -
    
    
    -NET
      (LOSS) INCOME
    
    $
    (281,981
    )
    $
    356,097(LOSS)
      INCOME PER COMMON SHARE:BASIC
      AND DILUTED
    
    $
    (0.02
    )
    $
    0.02WEIGHTED
      AVERAGE NUMBER OFSHARES
      OUTSTANDING:BASIC
    
    
    17,293,041
    
    
    16,283,809DILUTED
    
    
    17,293,041
    
    
    16,704,233


See accompanying
notes to consolidated financial statements.
- 4 -
INDEXTHE MACREPORT.NET,
INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS - UNAUDITED
Nine
      months
    
    Nine
      monthsending
    
    endingAugust
      31,
    
    August
      31,2005
    
    2004REVENUES
    
    $
    1,323,844
    
    $
    1,599,870COST
      OF REVENUES
    
    
    423,280
    
    
    203,716GROSS
      PROFIT
    
    
    900,564
    
    
    1,396,154SELLING,
      GENERAL ANDADMINISTRATIVE
      EXPENSES
    
    
    1,462,169
    
    
    828,846(LOSS)
      INCOME BEFORE OTHER INCOME (EXPENSE)
    
    
    (561,605
    )
    
    567,308OTHER
      INCOME (EXPENSE):Net
      Rental Loss
    
    
    (352,548
    )
    
    -Other
      income
    
    
    5,000
    
    
    -Unrealized
      gain on non-marketable securities
    
    
    9,463
    
    
    330,640Loss
      on sale of marketable securities
    
    
    (564,575
    )
    
    (2,482
    )Interest
      expense
    
    
    (86,276
    )
    
    (62,966
    )Interest
      income
    
    
    1,520
    
    
    -(987,416
    )
    
    265,192(LOSS)
      INCOME BEFORE PROVISION FORINCOME
      TAXES
    
    
    (1,549,021
    )
    
    832,500PROVISION
      FOR INCOME TAXES
    
    
    125
    
    
    -NET
      (LOSS) INCOME
    
    $
    (1,549,146
    )
    $
    832,500(LOSS)
      INCOME PER COMMON SHARE:BASIC
      AND DILUTED
    
    $
    (0.09
    )
    $
    0.05WEIGHTED
      AVERAGE NUMBER OFSHARES
      OUTSTANDING:BASIC
    
    
    17,012,019
    
    
    16,280,292DILUTED
    
    
    17,012,019
    
    
    16,686,057

See accompanying
notes to consolidated financial statements.- 5 -
INDEXTHE MACREPORT.NET,
INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED

Nine
      months
    
    Nine
      monthsending
    
    endingAugust
      31,
    
    August
      31,2005
    
    2004CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      (loss) income
    
    $
    (1,549,146
    )
    $
    832,500Adjustments
      to reconcile net (loss) income to net cash(used
      in) provided by operating activities:Depreciation
      and amortization
    
    
    33,730
    
    
    7,760Unrealized
      gain on non-marketable securities
    
    
    (9,463
    )
    
    (330,640
    )Realized
      loss on sale of securities
    
    
    564,575
    
    
    2,482Marketable
      securities received for payment of services
    
    
    (215,550
    )
    
    (1,033,919
    )Purchases
      of marketable securities
    
    
    -
    
    
    (26,651
    )Proceeds
      from sale of marketable securities
    
    
    355,650
    
    
    557,103Changes
      in operating assets and liabilities:(Increase)
      decrease in assets:Accounts
      receivable
    
    
    (10,467
    )
    
    -Other
      current assets
    
    
    (1,200
    )
    
    -Deposits
    
    
    (3,375
    )
    
    -Increase
      (decrease) in liabilities:Accounts
      payable and accrued expenses
    
    
    81,141
    
    
    (18,759
    )Deferred
      revenue
    
    
    (249,547
    )
    
    392,534Total
      adjustments
    
    
    545,494
    
    
    (450,090
    )Net
      cash (used in) provided by operating activities
    
    
    (1,003,652
    )
    
    382,410CASH
      FLOWS FROM INVESTING ACTIVITIES:Purchase
      of property and equipment
    
    
    (1,401,494
    )
    
    (148,568
    )Net
      cash used in investing activities
    
    
    (1,401,494
    )
    
    (148,568
    )CASH
      FLOWS FROM FINANCING ACTIVITIES:Net
      proceeds from issuance of common stock
    
    
    2,000,000
    
    
    -Repayments
      of notes payable
    
    
    (188,272
    )
    
    -Net
      cash provided by financing activities
    
    
    1,811,728
    
    
    -Net
      (decrease) increase in cash and cash equivalents
    
    
    (593,418
    )
    
    233,842Cash
      and cash equivalents at beginning of year
    
    
    851,034
    
    
    1,868Cash
      and cash equivalents at end of year
    
    $
    257,616
    
    $
    235,710

See accompanying
notes to consolidated financial statements.

- 6 -
INDEXTHE MACREPORT.NET, INC. AND
SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE
NINE MONTHS ENDED AUGUST 31, 2005 AND 2004


**ITEM
1.****NOTES TO FINANCIAL STATEMENTS**

1. The
Condensed Consolidated Balance Sheet as of August 31, 2005, the Condensed
Consolidated Statements of Operations and the Condensed Consolidated Statements
of Cash Flows for the three and nine months ended August 31, 2005 and August 31,
2004 have been prepared by us without audit. All unaudited amounts are subject
to year-end adjustments and audit, but the Company believes all adjustments,
consisting only of normal and recurring adjustments, necessary to present fairly
the financial condition, results of operations and changes in cash flows for all
interim periods have been made. The results of operations for interim periods
are not necessarily indicative of the operating results for the full
year.

Footnote
disclosures normally included in the financial statements prepared in accordance
with generally accepted accounting principles have been omitted in accordance
with published rules and regulations of the Securities and Exchange Commission.
These financial statements should be read in conjunction with the audited
financial statements and notes thereto included in the Company’s form 10-KSB for
the most recent fiscal year ended November 30, 2004.


2.
Summary of Significant Accounting Policies:

Principles
of consolidation

The
consolidated financial statements include the accounts of the Company and three
subsidiaries. All significant intercompany transactions have been eliminated in
consolidation. The subsidiaries are as follows:

The
Marcellus Group, LLC - A company owned 100% by the MacReport.Net that was
formed in 2004 to acquire, renovate, and lease out commercial properties. As of
August 31, 2005, the Marcellus Group LLC owned nine buildings in the town of
Marcellus, New York.

MacNetworks
Inc. - A company owned 100% by the MacReport.Net that was formed in 2004. As
of August 31, 2005, there has been no material activity in this
corporation.

Spring
Bay Oil Company Inc. - A company owned 77% by the MacReport.Net that was
formed in 2004 to develop a product that can be used in the production of oil.
As of August 31, 2005, there has been no material activity in this
corporation.

JA
Spa, LLC - A company owned 100% by the MacReport.Net that was formed in
2005. As of August 31, 2005, there has been no material activity in this
corporation.

Use of
estimates

The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

Revenue
recognition
Revenues
from fee-based contracts with terms greater than one month are recognized
ratably over the life of the contract. Advertising revenues are recognized over
the period of the related ad.

Certain
agreements with customers provide for payment in the form of restricted equity
securities of publicly traded companies. In accordance with Financial Accounting
Standards Board Statement No. 123(R), "Accounting for Stock- 7 -
INDEXBased
Compensation", revenue recognized from these transactions is based on the value
of similar services rendered to other customers for whom the Company receives
payment in cash.

Marketable
securities

The
Company reports its investment in marketable securities under the provisions of
Financial Accounting Standards Board Statement No. 115 "Accounting for Certain
Investments in Debt and Equity Securities." In accordance with this standard,
securities which are classified as "trading securities" are recorded in the
Company's balance sheet at fair market value, with the resulting unrealized gain
or loss reflected in the Company's statement of operations in the current
period. Securities which are classified as "available for sale" are also
reported at fair market value, however, the unrealized gain or loss on these
securities is listed as a separate component of stockholders'
equity.

Net
(loss) income per common share and per common share equivalent
share

The
reconciliations for the nine and three months ended August 31, 2005 and August
31, 2004 are as follows:

*Nine
      Months Ended August 31, 2005*
    
    Loss
    
    Shares
    
    Per
      ShareBasic
      EPS
    
    
    
    
    $
    (1,549,146
    )
    
    17,012,019
    
    $
    (0.09
    )Effect
      of Dilutive Securities
    
    
    
    
    
    -
    
    
    -
    
    
    -Diluted
      EPS
    
    
    
    
    $
    (1,549,146
    )
    
    17,012,019
    
    $
    (0.09
    )

*Nine
      Months Ended August 31, 2004*
    
    Income
    
    Shares
    
    Per
      ShareBasic
      EPS
    
    
    
    
    $
    832,500
    
    
    16,280,292
    
    $
    0.05Effect
      of Dilutive Securities
    
    
    
    
    
    -
    
    
    405,765
    
    
    -Diluted
      EPS
    
    
    
    
    $
    832,500
    
    
    16,686,057
    
    $
    0.05


*Three
      Months Ended August 31, 2005*
    
    Loss
    
    Shares
    
    Per
      ShareBasic
      EPS
    
    
    
    
    $
    (281,981
    )
    
    17,293,041
    
    $
    (0.02
    )Effect
      of Dilutive Securities
    
    
    
    
    
    -
    
    
    -
    
    
    -Diluted
      EPS
    
    
    
    
    $
    (281,981
    )
    
    17,293,041
    
    $
    (0.02
    )

*Three
      Months Ended August 31, 2004*
    
    Income
    
    Shares
    
    Per
      ShareBasic
      EPS
    
    
    
    
    $
    356,097
    
    
    16,283,809
    
    $
    0.02Effect
      of Dilutive Securities
    
    
    
    
    
    -
    
    
    420,424
    
    
    -Diluted
      EPS
    
    
    
    
    $
    356,097
    
    
    16,704,233
    
    $
    0.02

Comprehensive
(loss) Income

Other
comprehensive income refers to revenues, expenses, gains and losses that under
generally accepted accounting principles are included in comprehensive income
but are excluded from net income as these amounts are recorded directly as an
adjustment to stockholders' equity. Comprehensive (loss) income approximated
(loss) net income for all periods presented.
- 8 -
INDEX**ITEM 2. MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS**

*The following discussion and analysis should be read in
conjunction with our financial statements and the notes thereto appearing
elsewhere in this report. This report contains statements that constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be identified by
the use of forward-looking terminology, such as “may”, “will”, “should”,
“expect”, “anticipate”, “estimate”, “project”, “continue”, “plans”, “intends” or
other similar terminology. We caution you that forward-looking statements are
not guarantees of future performance and involve risks and uncertainties, and
that actual results may differ materially from the statements that constitute
forward-looking statements as a result of various factors.*

**Introduction and Nature of Business**

Our core strategy is to be a leading Web portal for financial
professionals and business decision makers and worldwide provider of multimedia
production and distribution services to corporations and other organizations.
Our revenues have been generated from the sale of package services to public and
private companies. The packages range from merely exposure on our web site to a
comprehensive service package, including press release services and in certain
cases, client exposure in “Institutional Investor” magazine.

**Overview**

The MacReport.Net, Inc. was incorporated as a Delaware corporation
in December 2000. We commenced operations at such time. The Company is an
internet information and media company formed to allow publicly and privately
held companies to communicate relevant corporate information directly with the
investing public. This is done through the use of a web site that provides the
user with key information via management interviews, press releases, and other
information.

Prior to the fourth quarter of fiscal 2004, our activities had
been primarily devoted to business development, proof of concept activities,
recruiting personnel and other start-up activities, however, recently, our
revenues have grown substantially through sales of our services and products and
the Company’s focus has shifted to growing its customer base.

**General**

**The Macreport.net, Inc.**

We are an information and media company that provides a Web-based
forum for public and private issuers to communicate corporate audio news content
to the business, financial and investing community through our Web site, located
at www.macreport.net. We have built a user friendly, highly effective Web site
that aggregates and disseminates information from multiple sources.

Through content partnerships, we also provide Web-based financial
information to professionals who need quick access to reliable corporate,
industry and market intelligence. By visiting our website, users are able to
access comprehensive and up-to-the minute business and financial information on
public and private companies from several information providers drawing upon
multiple sources of content. Our services enable timely, online access to a wide
array of proprietary and partner content. These sources include both textual
information, such as news, trade press, SEC filings, executive biographies and
analyst reports, and numeric information, such as company financial results,
stock quotes and industry statistics.- 9 -
INDEXWe expect that visitors to our Web site use our information for
their professional endeavors, including financial and competitive research, as
well as for their personal activities. We believe that we provide advertisers
with a large, demographically desirable business audience.

We market and sell package services to public and private
companies. The packages range from merely exposure on our web site to a
comprehensive service package, including press release services as well as
client exposure on our website. Also, the Company purchases advertising pages
from "Institutional Investor" magazine and, within these pages, highlights its
clients and information regarding such client's business. The press release
services can range from a set amount of client press releases per month to
unlimited.

**Subsidiaries**

5.  The
Company incorporated Macnetworks, Inc., a Delaware corporation that is
wholly-owned by the Company. In February 2004, Macnetworks was appointed as a
General Partner for Van Pfeiffer, L.P., a New York limited partnership and hedge
fund that primarily invests in private investments in public companies. For its
services, Macnetworks will receive 1.5% of the net assets and 20% of profits, if
any, of Van Pfeiffer. Macnetworks has not, as of August 31, 2005, received any
compensation from Van Pfeiffer.

In 2004, the Company incorporated The Marcellus Group, LLC, a New
York limited liability company. As of August 31, 2005, The Marcellus Group
purchased nine commercial building properties in Marcellus, New York for the
purposes of office space for the Company. The buildings are currently being
renovated for use by the Company. A certain portion of the property will be
rented for retail commercial use.

In 2004, the Company also incorporated SpringBay Oil Company,
Inc., a New York corporation. SpringBay Oil Company was formed in 2004 to
develop a product that can be used in the production monitoring of oil wells. As
of August 31, 2005, there has been no material activity in this limited
liability company.

In February 2005, the Company incorporated JA Spa, LLC., a New
York limited liability company. JA Spa, LLC was formed to develop a health spa
concept within one of the properties owned by the Company in Marcellus, New
York. The business plans for JA Spa, LLC are currently being prepared.

In June 2005, the Company formed Monolith Athletic Club, LLC, a
New York limited liability company. Monolith was formed to purchase a franchise
and operate a professional soccer team in the Syracuse, New York area. Monolith
has not as of the date of this report entered into an agreement in furtherance
of its business plans.

On June 29, 2005, Springbay Oil Company, Inc. merged with Monolith
Athletic Club, LLC to form a new corporation, Monolith Athletic Club, Inc. The
Company owns 71% of all of the issued and outstanding shares of Monolith
Athletic Club, Inc.
- 10 -
INDEX
**Selected Financial Data**
Nine
Months ended,
RESULTS OF
OPERATIONS:                                            August
31, 2005  August 31, 2004

Total
      revenues
    
    $
    1,323,844
    
    $
    1,599,870Net
      (loss) income
    
    $
    (1,549,146
    )
    $
    832,500Net
      (loss) income attributable to common stockholders
      
      Basic
      (loss) income per common share
      Diluted
      (loss) income per common share
    
    $
      
      $
      $
    (1,549,146
      
      (0.09
      (0.09
    )
      
      )
      )
    $
      
      $
      $
    832,500
      
      0.05
      0.05Weighted
      average common shares outstanding - Basic
    
    
    17,012,019
    
    
    16,280,292Weighted
      average common shares outstanding - Diluted
    
    
    17,012,019
    
    
    16,686,057

**Results of Operations**

*Three Months ended August 31, 2005 compared with three months
ended August 31, 2004.*

*Overall Financial Situation*. The Company had revenues of
$404,604 for the three month period ended August 31, 2005, a decrease of $76,747
or 16% from the three month period ended August 31, 2004. The Company's revenues
consisted mainly of the selling of the packages of its services. The decrease in
revenues is due to the development of new sales personnel. The Company has cost
of revenues of $119,297 for the three month period ended August 31, 2005, an
increase of $44,241 or 59% from the three month period ended August 31, 2004.
The Company's cost of revenues includes the costs and expenses of its vendors
and subcontractors that provide services on behalf of the Company in connection
with its packages of services. The increase in cost of revenues is due to the
increased cost of newswire services due to customer usage. The Company had
stockholders' equity at August 31, 2005 in the amount of $247,524, an increase
of $914,543 from the stockholders' deficiency at August 31, 2004 of ($667,019).
This increase is primarily due to the company’s sale of unregistered securities
during the second quarter. Selling, general and administrative expenses
increased from the three month period ended August 31, 2004 by $92,136 or 30%
resulting in a loss from operations of ($116,196) for the three month period
ended August 31, 2005. These expenses consist primarily of professional fees and
other corporate expenses, including business development and general legal
activities. The increase is selling, general and administrative expenses is
primarily due to the increase in the number of full time employees. Interest
expense increased by $3,328 for the three month period ended August 31, 2005
from $20,262 for the three month period ended August 31, 2004 primarily due to
the Company’s debt financing in October 2004.

*Revenues*. The Company had revenues of $404,604 for the
three month period ended August 31, 2005, a decrease of $76,747 or 16% from the
three month period ended August 31, 2004. The Company's revenues consisted
mainly of the selling of the packages of its services. The decrease in revenues
is due to the development of new sales personnel.

*Selling, General and Administrative Expenses*. Selling,
general and administrative expenses increased from the three month period ended
August 31, 2004 by $92,136 or 30% resulting in a loss from operations of
($116,196) for the three month period ended August 31, 2005. These expenses
consist primarily of professional fees and other corporate expenses, including
business development and general legal activities. The increase is selling,
general and administrative expenses is primarily due to the increase in the
number of full time employees.

*Nine Months ended August 31, 2005 compared with nine months ended
August 31, 2004.*

- 11 -
INDEX*Overall Financial Situation*. The Company had revenues of
$1,323,844 for the nine month period ended August 31, 2005, a decrease of
$276,026 or 17% from the nine month period ended August 31, 2004. The Company's
revenues consisted mainly of the selling of the packages of its services. The
decrease in revenues is due to the development of new sales personnel. The
Company has cost of revenues of $423,280 for the nine month period ended August
31, 2005, an increase of $219,564 or 108% from the nine month period ended
August 31, 2004. The Company's cost of revenues includes the costs and expenses
of its vendors and subcontractors that provide services on behalf of the Company
in connection with its packages of services. The increase in cost of revenues is
due to the increased cost of newswire services due to customer usage. The
Company had stockholders' equity at August 31, 2005 in the amount of $247,524,
an increase of $914,543 from the stockholders' deficiency at August 31, 2004 of
($667,019). This increase is primarily due to the company’s sale of unregistered
securities during the second quarter. Selling, general and administrative
expenses increased from the nine month period ended August 31, 2004 by $633,323
or 76%, resulting in a loss from operations of ($561,605) for the nine month
period ended August 31, 2005. These expenses consist primarily of professional
fees and other corporate expenses, including business development and general
legal activities. The increase is selling, general and administrative expenses
is primarily due to the increase in the number of full time employees. Interest
expense increased by $23,310 for the nine month period ended August 31, 2005
from $62,966 for the nine month period ended August 31, 2004 primarily due to
the Company’s debt financing in October 2004.

*Revenues.*The Company had revenues of $1,323,844 for the
nine month period ended August 31, 2005, a decrease of $276,026 or 17% from the
nine month period ended August 31, 2004. The Company's revenues consisted mainly
of the selling of the packages of its services. The decrease in revenues is due
to the development of new sales personnel.

*Selling, General and Administrative Expenses*. Selling,
general and administrative expenses increased from the nine month period ended
August 31, 2004 by $633,323 or 76%, resulting in a loss from operations of
($561,605) for the nine month period ended August 31, 2005. These expenses
consist primarily of professional fees and other corporate expenses, including
business development and general legal activities. The increase is selling,
general and administrative expenses is primarily due to the increase in the
number of full time employees.

**Summary of Critical Accounting Policies; Significant
Judgments and Estimates**

Our discussion and analysis of our financial condition and results of
operations are based upon our Consolidated Financial Statements, which have been
prepared in accordance with accounting principles generally accepted in the
United States. The preparation of these financial statements requires us to make
significant estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent assets
and liabilities. These items are regularly monitored and analyzed by management
for changes in facts and circumstances, and material changes in these estimates
could occur in the future. Changes in estimates are recorded in the period in
which they become known. We base our estimates on historical experience and
various other assumptions that we believe to be reasonable under the
circumstances. Actual results may differ from our estimates if past experience
or other assumptions do not turn out to be substantially accurate.

A summary of those accounting policies that we believe are most
critical to fully understanding and evaluating our financial results is set
forth below. This summary should be read in conjunction with our Annual Report
on Form 10-KSB for the year ended November 30, 2004.

Revenue Recognition and Allowance for Doubtful Accounts. We recognize
revenue from the provision of professional services under written service
contracts with our clients. We derive our revenue from fixed-price, fixed-time
contracts. Revenue generated from these contracts is recognized based on the
ratio of labor hours incurred to estimated total labor hours. This method is
used because reasonably dependable estimates of the revenues and costs
applicable to various stages of a contract can be made, based on historical
experience and milestones set in the contract.- 12 -
INDEXRevenues from fee-based contracts with terms greater than one month
are recognized ratably over the life of the contract. Advertising revenues are
recognized over the period of the related ad.

Certain agreements with customers provide for payment in the form of
restricted equity securities of publicly traded companies. In accordance with
Financial Accounting Standards Board Statement No. 123(R), "Accounting for Stock
Based Compensation", revenue recognized from these transactions is based on the
value of similar services rendered to other customers for whom the Company
receives payment in cash.

If we do not accurately estimate the resources required or the scope
of work to be performed for a contract or we do not manage the project properly
within the planned time period, then we may recognize a loss on the contract.
Provisions for estimated losses on uncompleted contracts are made on a
contract-by-contract basis and are recognized in the period in which such losses
are determined. We have committed unanticipated additional resources to complete
projects in the past, which has resulted in lower than anticipated profitability
or losses on those contracts. We expect that we will experience similar
situations in the future. In addition, we may fix the price for some projects at
an early stage of the process, which could result in a fixed price that turns
out to be too low and, therefore, could adversely affect our business, financial
condition and results of operations.

In some instances during the quarter ended August 31, 2005, we
provided services to clients in exchange for equity instruments of the client.
We measure the fair value of the equity instrument on the date the parties come
to a mutual understanding of the terms of the arrangement and a commitment for
performance by us to earn the equity instruments is reached, or when the equity
is earned, whichever occurs earlier.

**Liquidity and Capital Resources**

In July 2005, JA Spa, a wholly-owned subsidiary of the Company,
borrowed $37,482.72 from Van Pfeiffer L.P. pursuant to a promissory note. The
terms of the promissory note provide that JA Spa shall pay to Van Pfeiffer the
principal balance together with interest at six percent (6%) on or by July 15,
2006.

In February 2005, the Company sold 1,000,000 shares of its common
stock to one individual for two million dollars ($2,000,000). The shares of
common stock are restricted. The issuance of the securities in the transaction
were deemed to be exempt from registration under the Securities Act of 1933, as
amended, in reliance on Section 4(2) of the Securities Act and Regulation D
promulgated thereunder as transactions by an issuer not involving any public
offering.

In October
2004, Marcellus Group, LLC, the Company's wholly owned subsidiary, borrowed one
million dollars ($1,000,000) from Crown Mill Restoration Development LLC, a New
York limited liability company wholly owned by V. William Lucchetti, Jr., the
Company's Chief Executive Officer, Chairman of the Board of Directors and 92%
shareholder of the Company, pursuant to a promissory note. The terms of the
promissory note provides that interest accrues at a rate of eight percent (8%)
and the principal and interest is payable as follows: (i) monthly installments
of $25,947 (representing accrued interest and $500,000 of principal) up to and
including November 1, 2006; and (ii) $500,000 payment due on November 1, 2006.
The Company prepaid a portion of the promissory note during the 3rd
quarter of fiscal 2005. Payments approximated $120,000.

As of August 31, 2005, we had $257,616 in cash and cash
equivalents.- 13 -
INDEX
**Current and Future Financing Needs**

We have spent, and expect to continue to spend, substantial
amounts in connection with growing our customer base. We have 42 full time
employees and 19 part time employees. We do not engage any consultants.

Based on our current plans, we believe that our cash and cash
equivalents and cash flows (from increasing revenues) will be sufficient to
enable us to meet our planned operating needs. However, the actual amount of
funds we may need to operate is subject to many factors, some of which are
beyond our control.

These factors include the following:

·
    costs
      associated with any acquisitions targets;

·
    costs
      associated with marketing our services;
and

·
    our
      ability to grow our customer base and retain our current
      customers.

We have
based our belief of not requiring any additional funds on assumptions that may
prove to be wrong.

**ITEM 3.****CONTROLS AND
PROCEDURES**

Within the 90-days prior to the filing of this quarterly report,
we carried out an evaluation, under the supervision and with the participation
of our Chief Executive Officer and Executive Vice President/Director, of the
effectiveness of the design and operation of our disclosure controls and
procedures. Based on this evaluation, our Chief Executive Officer and Vice
President/Director concluded that our disclosure controls and procedures are
effective in timely alerting them to material information required to be
included in this quarterly report.

There have been no significant changes in our internal controls or
in other factors that could significantly affect internal controls subsequent to
our most recent evaluation of our internal controls.- 14 -
INDEX**PART II.**
**OTHER INFORMATION**

**ITEM 1.****LEGAL
PROCEEDINGS**

The Company is involved in various legal proceedings and claims
incident to the normal conduct of its business. The Company believes that such
legal proceedings and claims, individually and in the aggregate, are not likely
to have a material adverse effect on its financial position or results of
operations.

**ITEM 2.****CHANGES IN SECURITIES AND USE OF
PROCEEDS**

In February 2005, the Company sold 1,000,000 shares of its common
stock to one accredited individual for two million dollars ($2,000,000). The
shares of common stock are restricted. The issuance of the securities in the
transaction were deemed to be exempt from registration under the Securities Act
of 1933, as amended, in reliance on Section 4(2) of the Securities Act and
Regulation D promulgated thereunder as transactions by an issuer not
involving any public offering.

**ITEM 3.****DEFAULTS BY THE COMPANY UPON ITS
SENIOR SECURITIES**

During March, April and May 2003, pursuant to a loan restructuring
of the $100,000 February 28, 2003 six month promissory note, the $100,000
January 14, 2002 120-day promissory note (as amended), the $100,000 November 16,
2001 60-day promissory note (as amended), and other notes (as included below)
with an aggregate principal amount of $97,997, the Company received an
additional $355,000 from the holder of the notes who is also a shareholder of
the Company. Pursuant to the restructuring, the Company issued this shareholder
(the holder of the notes) a convertible promissory note with an aggregate
principal amount of $752,997 plus interest accrued pursuant to the terminated
notes. In addition, pursuant to the loan restructuring, the holder of the note
is entitled to be issued warrants to purchase common stock of the Company in an
amount to be agreed upon between the Company and such holder. The convertible
note bears interest at a rate of 8% per annum with a maturity date of May 30,
2004. Pursuant to the terms of the convertible note, prior to May 30, 2004, we
may convert the balance due together with accrued interest into shares of common
stock. The conversion ratio is 2.50. Each of the prior notes, the $100,000
February 28, 2003 six month promissory note, the $100,000 January 14, 2002
10-day promissory note (as amended), the $100,000 November 16, 2001 60-day
promissory note (as amended), and the other notes with an aggregate principal
amount of $97,997, have been cancelled. As of July 1, 2005, the note has not
been repaid, but the Company is in the process of entering into an agreement
with the individual to convert the note into shares of common stock of the
Company.

Convertible promissory notes totaling $174,059 bear interest at a
rate of 8% per annum with maturity dates that have expired. Pursuant to the
terms of the convertible notes, if the Company does not prepay the notes prior
to their expiration, on the expiration date, the Company may convert the balance
due together with accrued interest into shares of the Company's common stock.
The conversion ratio for these notes is the greater of : (i) the amount that is
equal to the product of the closing bid price per share for the Common Stock, as
reported on the over-the-counter electronic bulletin board, or such other public
market that the Company’s Common Stock is then traded and seventy-five percent
(75%); and (ii) 3.50. The Company is currently in negotiations with these note
holders with respect to the conversion of notes into common stock and expects to
convert the notes within 60 days.- 15 -
INDEX
**ITEM 4.**    **SUBMISSION OF
MATTERS TO A VOTE OF SECURITY HOLDERS**

None.

**ITEM 5.**    **OTHER
INFORMATION**

None.

**ITEM 6.**    **EXHIBITS AND
REPORTS ON FORM 8-K**

a) Exhibits

Exhibit 31.1
    Certification of V. William Lucchetti
      pursuant to Rule 13-14(a) and Item 307 of Regulation SBExhibit 32.1
    Certification by V. William Lucchetti
      Pursuant to the 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906
      of the Sarbanes-Oxley Act of 2002

b) Reports on Form 8-K

None
- 16 -
INDEX

**SIGNATURES**

Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.


THE MACREPORT.NET, INC.(Registrant)By
    
    /s/ V. William Lucchetti, Jr.V. William Lucchetti, Jr.Chairman, Chief Executive Officer and
      President (PrincipalExecutive Officer and Principal
      Accounting and Financial Officer)


Date: October 17, 2005