**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 May 31, 2006**





OR





o 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  ̈





(2)Yes x No  ̈





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 May 31, 2006 was
      17,949,165.




-
          1
          -




**THE
                MACREPORT.NET, INC.****FORM
                10-QSB****May
                31, 2006****INDEX****PART
                I - FINANCIAL INFORMATION**PageItem
                1.Unaudited
                Consolidated Balance Sheet
            3Unaudited
                Consolidated Statements of Operations
            4Unaudited
                Consolidated Statements of Cash Flows
            6Unaudited
                Notes to Consolidated Financial Statements
            7Item
                2.
            Management’s
                Discussion and Analysis of FinancialCondition
                and Results of Operations
            10Item
                3.
            Controls
                and Procedures
            15**PART
                II - OTHER INFORMATION**Item
                1.
            Legal
                Proceedings
            16Item
                2.
            Changes
                in Securities
            16Item
                3.
            Defaults
                by the Company upon Its Senior Securities
            16Item
                4.
            Submission
                of Matters to a Vote of Security Holders
            17Item
                5.
            Other
                Information
            17Item
                6.
            Exhibits
                and Reports on Form 8-K
            18Signatures
            19Certification
                Pursuant to Section 302 of theSarbanes-Oxley
                Act of 2002








-
          2
          -


**PART
      I.**


**FINANCIAL
      INFORMATION**


**ITEM
      1.** **FINANCIAL
      STATEMENTS**


THE
      MACREPORT.NET, INC. AND SUBSIDIARY


CONSOLIDATED
      BALANCE SHEET - UNAUDITED


MAY
                31, 2006ASSETSCURRENT
                ASSETS:Cash and cash equivalents
            
            $
            5,193Marketable securities
            
            
            471,261Accounts receivable
            
            
            33,697Other current assets
            
            
            16,946Total current assets
            
            
            
            
            
            527,097PROPERTY
                AND EQUIPMENT, net
            
            
            
            
            
            2,526,356OTHER
                ASSETSDeposits
            
            
            9,571Total other assets
            
            
            
            
            
            9,571Total assets
            
            
            
            
            $
            3,063,024LIABILITIES
                AND STOCKHOLDERS' EQUITYCURRENT
                LIABILITIES:Cash overdraft
            
            $
            48,027Accounts payable and accrued expenses
            
            
            205,335Notes payable - current portion
            
            
            127,478Note Payable - Related Party
            
            
            963,044Due to related party
            
            
            1,084,000Deferred revenue
            
            
            167,864Total current liabilities
            
            
            
            
            
            2,595,748Note
                Payable - less current portion
            
            
            
            
            
            282,794Total
                Liabilities
            
            
            
            
            
            2,878,542STOCKHOLDERS'
                EQUITY:Preferred
                stock $.0001 par value, authorized
              5,000,000shares,
                no shares issued
            
            
            -Common
                stock $.0001 par value, authorized25,000,000
                shares, 17,949,165 sharesissued
                and outstanding
            
            
            1,795Additional
                paid-in-capital
            
            
            4,681,148Deficit
            
            
            (4,498,461
            )Total
                stockholders' equity
            
            
            
            
            
            184,482Total
                liabilities and stockholders' equity
            
            
            
            
            $
            3,063,024


See
      accompanying notes to consolidated financial statements.





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          3
          -


THE
      MACREPORT.NET, INC. AND SUBSIDIARY


CONSOLIDATED
      STATEMENTS OF OPERATIONS - UNAUDITED





Three
                months
            
            Three
                monthsending
            
            endingMay
                31,
            
            May
                31,2006
            
            2005REVENUES
            
            $
            389,967
            
            $
            441,590COST
                OF REVENUES
            
            
            104,995
            
            
            187,590GROSS
                PROFIT
            
            
            284,972
            
            
            254,000SELLING,
                GENERAL ANDADMINISTRATIVE
                EXPENSES
            
            
            290,844
            
            
            603,287LOSS
                BEFORE OTHER INCOME (EXPENSE)
            
            
            (5,872
            )
            
            (349,287
            )OTHER
                INCOME (EXPENSE):Net
                Rental Loss
            
            
            (230,882
            )
            
            (67,500
            )Unrealized
                loss on non-marketable securities
            
            
            (79,938
            )
            
            (111,406
            )Gain
                on sale of marketable securities
            
            
            233
            
            
            339Interest
                expense
            
            
            (7,965
            )
            
            (36,090
            )Interest
                income
            
            
            23
            
            
            65(318,529
            )
            
            (214,592
            )LOSS
                BEFORE PROVISION FORINCOME
                TAXES
            
            
            (324,401
            )
            
            (563,879
            )PROVISION
                FOR INCOME TAXES
            
            
            -
            
            
            -NET
                LOSS
            
            $
            (324,401
            )
            $
            (563,879
            )LOSS
                PER COMMON SHARE:BASIC
                AND DILUTED
            
            $
            (0.02
            )
            $
            (0.03
            )WEIGHTED
                AVERAGE NUMBER OFSHARES
                OUTSTANDING:BASIC
                AND DILUTED
            
            
            17,949,165
            
            
            16,869,964




See
      accompanying notes to consolidated financial statements.








-
          4
          -


THE
      MACREPORT.NET, INC. AND SUBSIDIARY


CONSOLIDATED
      STATEMENTS OF OPERATIONS - UNAUDITED





Six
                  months
              
              Six
                  monthsending
              
              EndingMay
                  31,
              
              May
                  31,2006
              
              2005REVENUES
              
              $
                  713,765
              
              $
                  919,240COST
                  OF REVENUES
              
              
              201,697
              
              
              303,983GROSS
                  PROFIT
              
              
              512,068
              
              
              615,257SELLING,
                  GENERAL ANDADMINISTRATIVE
                  EXPENSES
              
              
              599,002
              
              
              1,060,666LOSS
                  BEFORE OTHER INCOME (EXPENSE)
              
              
              (86,934
              )
              
              (445,409
              )OTHER
                  INCOME (EXPENSE):Net
                  Rental Loss
              
              
              (435,417
              )
              
              (191,133
              )Other
                  income
              
              
              -
              
              
              5,000Unrealized
                  loss on non-marketable securities
              
              
              (192,109
              )
              
              (30,834
              )Gain
                  (loss) on sale of marketable securities
              
              
              57
              
              
              (543,486
              )Interest
                  expense
              
              
              (15,918
              )
              
              (62,686
              )Interest
                  income
              
              
              58
              
              
              1,508(643,329
              )
              
              (821,631
              )LOSS
                  BEFORE PROVISION FORINCOME
                  TAXES
              
              
              (730,263
              )
              
              (1,267,040
              )PROVISION
                  FOR INCOME TAXES
              
              
              -
              
              
              125NET
                  LOSS
              
              $
              (730,263
              )
              $
              (1,267,165
              )LOSS
                  PER COMMON SHARE:BASIC
                  AND DILUTED
              
              $
              (0.04
              )
              $
              (0.08
              )WEIGHTED
                  AVERAGE NUMBER OFSHARES
                  OUTSTANDING:BASIC
                  AND DILUTED
              
              
              17,949,165
              
              
              16,869,964
 See
      accompanying notes to consolidated financial statements.





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          5
          -


THE
      MACREPORT.NET, INC. AND SUBSIDIARY


CONSOLIDATED
      STATEMENTS OF CASH FLOWS - UNAUDITED




Six
                months
            
            Six
                monthsending
            
            endingMay
                31,
            
            May
                31,2006
            
            2005CASH
                FLOWS FROM OPERATING ACTIVITIES:Net
                loss
            
            $
                (730,263)
            
            $
                (1,267,165)Adjustments
                to reconcile net loss to net cashused
                in operating activities:Depreciation
                and amortization
            
            47,560
            
            21,747Unrealized
                loss on non-marketable securities
            
            192,109
            
            30,834Changes
                in operating assets and liabilities:(Increase)
                decrease in assets:Trading
                securities
            
            
            3,100
            
            
            678,436Accounts
                receivable
            
            
            6,053
            
            
            8,268Other
                current assets
            
            
            (10,546
            )
            
            -Deposits
            
            
            (2,000
            )
            
            (2,650
            )Decrease
                in liabilities:Accounts
                payable and accrued expenses
            
            
            (148,240
            )
            
            (27,665
            )Deferred
                revenue
            
            
            (19,358
            )
            
            (274,538
            )Total
                adjustments
            
            
            68,678
            
            
            434,432Net
                cash used in operating activities
            
            
            (661,585
            )
            
            (832,733
            )CASH
                FLOWS FROM INVESTING ACTIVITIES:Purchase
                of property and equipment
            
            
            (264,963
            )
            
            (1,048,477
            )Net
                cash used in investing activities
            
            
            (264,963
            )
            
            (1,048,477
            )CASH
                FLOWS FROM FINANCING ACTIVITIES:Cash
                overdraft
            
            
            (58,408
            )
            
            -Net
                proceeds from issuance of common stock
            
            
            -
            
            
            2,000,000Repayments
                of notes payable
            
            
            (3,545
            )
            
            (78,491
            )Advances
                from related party
            
            
            961,000
            
            
            -Net
                cash provided by financing activities
            
            
            899,047
            
            
            1,921,509Net
                (decrease) increase in cash
            
            
            (27,501
            )
            
            40,299Cash
                and cash equivalents at beginning of period
            
            
            32,694
            
            
            851,034Cash
                and cash equivalents at end of period
            
            $
            5,193
            
            $
            891,333








See
      accompanying notes to consolidated financial statements.





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          6
          -


THE
      MACREPORT.NET, INC. AND SUBSIDIARY


NOTES
      TO
      UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
      THE
      SIX MONTHS ENDED MAY 31, 2006 AND MAY 31, 2005





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





The
      Condensed Consolidated Balance Sheet as of May 31, 2006, the Condensed
      Consolidated Statements of Operations and the Condensed Consolidated Statements
      of Cash Flows for the three and six months ended May 31, 2006 and May 31, 2005
      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, 2005.





The
      results of operations and cash flows for the three and six months ended May
      31,
      2006 are not necessarily indicative of the results to be expected for the full
      year.





Going
      Concern :


5.  The
      accompanying financial statements have been prepared assuming that the Company
      will continue as a going concern. As shown in the financial statements, the
      Company incurred a net loss of $730,263 for the six months ended May 31, 2006.
      At May 31, 2006 current liabilities exceed current assets by $2,068,651. These
      factors raise substantial doubt about the Company’s ability to continue as a
      going concern. Management of the Company intends to increase sales and profit
      margin to generate income and positive cash flow. The financial statements
      do
      not include any adjustments relating to the recoverability and classification
      of
      recorded assets, or the amounts and classification of liabilities that might
      be
      necessary in the event the Company cannot continue in existence.





**2.** **Summary
      of Significant Accounting Policies** **:**





Principles
      of consolidation





The
      consolidated financial statements include the accounts of the Company and four
      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 May 31, 2006, the Marcellus
      Group LLC owned eight 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 May
      31,
      2006, 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 to develop
      and
      operate a health spa. As of May 31, 2006, the spa was not yet operating.





Monolith
      Athletic Club, Inc. - A
      company owned 71% by the MacReport.Net that is the result of a merger in June
      2005 of Monolith Athletic Club. LLC, a newly formed company, and Springbay
      Oil
      Company, Inc., a company that was 71% owned by the MacReport.Net Inc. Monolith
      Athletic Club. Inc. was formed to purchase a franchise and operate a
      professional soccer team in the Syracuse, New York area. As of May 31, 2006,
      this company had not entered into any agreements in furtherance of its business
      plans.








-
          7
          -


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 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.





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 six and three months ended May 31, 2006 and May 31,
      2005
      are as follows:





*Three
              Months Ended May 31, 2006*
            
            Loss
            
            Shares
            
            Per
                ShareBasic
                EPS
            
            
            
            
            $
            (324,401
            )
            
            17,949,165
            
            $
            (0.02
            )Effect
                of Dilutive Securities
            
            
            
            
            
            -
            
            
            -
            
            
            -Diluted
                EPS
            
            
            
            
            $
            (324,401
            )
            
            17,949,165
            
            $
            (0.02
            )








*Six
              Months Ended May 31, 2006*
            
            Loss
            
            Shares
            
            Per
                ShareBasic
                EPS
            
            $
            (730,263
            )
            
            17,949,165
            
            $
            (0.04
            )Effect
                of Dilutive Securities
            
            
            -
            
            
            -
            
            
            -Diluted
                EPS
            
            $
            (730,263
            )
            
            17,949,165
            
            $
            (0.04
            )








*Three
              Months Ended May 31, 2005*
            
            Loss
            
            Shares
            
            Per
                ShareBasic
                EPS
            
            $
            (563,879
            )
            
            17,293,041
            
            $
            (0.03
            )Effect
                of Dilutive Securities
            
            
            -
            
            
            -
            
            
            -Diluted
                EPS
            
            $
            (563,879
            )
            
            17,293,041
            
            $
            (0.03
            )








-
          8
          -




*Six
                Months Ended May 31, 2005*
            
            Loss
            
            Shares
            
            Per
                ShareBasic
                EPS
            
            
            
            
            $
            (1,267,165
            )
            
            16,869,964
            
            $
            (0.08
            )Effect
                of Dilutive Securities
            
            
            
            
            
            -
            
            
            -
            
            
            -Diluted
                EPS
            
            
            
            
            $
            (1,267,165
            )
            
            16,869,964
            
            $
            (0.08
            )





**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.
























































-
          9
          -


**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.
      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 national financial publications.


**Selected
        Financial Data**
 Six
        Months
        ended,
 RESULTS
        OF OPERATIONS:  May
        31, 2006  May
        31, 2005
 
 Total
                  revenues
              
              $
              713,765
              
              $
              919,240Net
                  loss
              
              $
              (730,263
              )
              $
              (1,267,165
              )Net
                  loss attributable to common stockholders
                
                Basic
                  and fully diluted loss per common share
              
              $
                
                $
              (730,263
                
                (0.04
              )
                
                )
              $
                
                $
              (1,267,165
                
                (0.08
              )
                
                )Weighted
                  average common shares outstanding
              
              
              17,949,165
              
              
              16,869,964


**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 have 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**




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








-
          10
          -


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.





We
      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 national financial
      publications and, within these pages, highlights its clients and information
      regarding such client' business. The press release services can range from
      a set
      amount of client press releases per month to unlimited.





**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 Consolidated Financial Statements
      and the related Notes included elsewhere in this Annual Report.





*Revenue
      Recognition and Allowance for Doubtful Accounts.* 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.





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





-
          11
          -


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, 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.








**Results
      of Operations**





*Three
      Months ended May 31, 2006 compared with three months ended May 31, 2005.*





*Overall
      Financial Situation* .
      The
      Company had revenues of $389,967 for the three month period ended May 31, 2006,
      a decrease of $51,623 or12% from the three month period ended May 31, 2005.
      The
      Company's revenues consisted mainly of the selling of the packages of its
      services. The Company has cost of revenues of $104,995 for the three month
      period ended May 31, 2006, a decrease of $89,595 or 44% from the three month
      period ended May 31, 2005. 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. For the three month
      period ended May 31, 2005, the Company had revenues of $441,590 with costs
      of
      revenues of $187,590. The Company had stockholders' equity at May 31, 2006
      in
      the amount of $184,482, a decrease of $345,022 from the stockholders' equity
      at
      May 31, 2005 of $529,504. This decrease is primarily due to the net loss
      incurred in the last year. Selling general and administrative expenses decreased
      from the three month period ended May 31, 2005 by $312,443 or 52%, resulting
      in
      a loss from operations of $5,872 for the three month period ended May 31, 2006.
      Interest expense decreased by $28,125 for the three month period ended May
      31,
      2006 from $36,090 for the three month period ended May 31, 2005.




*Revenues.* The
      Company had revenues of $389,967 for the three month period ended May 31, 2006,
      a decrease of $51,623 or 12% from the three month period ended May 31, 2005.
      The
      decrease in revenues was attributed to a decrease in the number of employees
      devoted to sales of the Company's products which is being addressed by
      management.




*Selling,
      General and Administrative Expenses* .
      Selling
      general and administrative expenses decreased from the three month period ended
      May 31, 2005 by $312,443 or 52%, resulting in a loss from operations of $5,872
      for the three month period ended May 31, 2006. These expenses consist primarily
      of employee salaries and other corporate expenses, including business
      development and general legal activities.




*Six
      Months ended May 31, 2006 compared with Six months ended May 31, 2005.*





*Overall
      Financial Situation* .
      The
      Company had revenues of $713,765 for the six month period ended May 31, 2006,
      a
      decrease of $205,475 or 22% from the six month period ended May 31, 2005. The
      Company's revenues consisted mainly of the selling of the packages of its
      services. The Company has cost of revenues of $201,697 for the six month period
      ended May 31, 2006, a decrease of $102,286 or 34% from the six month period
      ended May 31, 2005. 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




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          12
          -


with
      its
      packages of services. For the six month period ended May 31, 2005, the Company
      had revenues of $919,240 with costs of revenues of $303,983. The Company had
      stockholders' equity at May 31, 2006 in the amount of $184,482, a decrease
      of
      $345,022 from the stockholders' equity at May 31, 2005 of $529,504. This
      decrease is primarily due to the net loss incurred in the last year. Selling
      general and administrative expenses decreased from the six month period ended
      May 31, 2005 by $461,664 or 44%, resulting in a loss from operations of $86,934
      for the six month period ended May 31, 2006. Interest expense decreased by
      $46,768 for the six month period ended May 31, 2006 from $62,686 for the Six
      month period ended May 31, 2005.




*Revenues.* The
      Company had revenues of $713,765 for the six month period ended May 31, 2006,
      a
      decrease of $205,475 or 22% from the six month period ended May 31, 2005.




*Selling,
      General and Administrative Expenses* .
      Selling
      general and administrative expenses decreased from the six month period ended
      May 31, 2005 by $461,664 or 44%, resulting in a loss from operations of $86,934
      for the six month period ended May 31, 2006. These expenses consist primarily
      of
      employee salaries and other corporate expenses, including business development
      and general legal activities.




**Liquid** **ity
      and Capital Resources**




For
      the
      period beginning October 2005 through July 2006, V. William Lucchetti, Jr.,
      the
      Company's Chief Executive Officer, Chairman of the Board of Directors and 92%
      shareholder of the Company has loaned the Company and its subsidiaries
      $1,872,583 pursuant to demand notes. Pursuant to the terms of the notes, the
      principal accrues interest at a rate of 7.5% per annum. In March 2006, Mr.
      Lucchetti demanded payment of the notes. The Company renegotiated the terms
      of
      the note and entered into a amended and restated secured note in favor of Mr.
      Lucchetti, pursuant to the terms of the amended notes dated March 15, 2006,
      the
      obligations of the Company and its subsidiaries are secured by all of the issued
      and outstanding equity of Marcellus Group, LLC and Ja Spa, LLC, the Company's
      wholly owned subsidiaries. In May 2006, the board of directors of the Company
      obtained an appraisal of the market value of the properties owned by Marcellus
      Group. The appraisal opinion estimated the fair market value of the properties
      at $1,875,000. The properties are subject to a $300,000 liability. On July
      1,
      2006, Mr. Lucchetti demanded payment of the notes. The Company entered into
      a
      settlement agreement with Mr. Lucchetti whereby the notes were forgiven in
      exchange for all of the issued and outstanding equity of Marcellus Group, LLC
      and Ja Spa, LLC. In addition, Mr. Lucchetti has agreed to assume all of the
      obligations of each company (including the $300,000 liability in connection
      with
      the properties) with the exception of the note in favor of Crown Mill
      Restoration Development LLC which was transferred as an obligation of the
      Company by consent of Mr. Lucchetti, the sole owner of the Crown Mill
      Restoration Development, LLC.





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, whereby Marcellus Group, LLC
      pursuant to a promissory note. The terms of the promissory note provide that
      interest accrues at a rate of eight percent (8%) and the principal and interest
      is payable as follows: (i) monthly installments of $25,946.98
      (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. Crown Mill has
      deferred payments due pursuant to the note for nine months (until September
      1,
      2006). The note was assumed by the Company pursuant to the settlement agreement
      with Mr. Lucchetti.





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 n ote
      (as
      amended), and the other notes with an aggregate principal amount of $97,997,
      have been cancelled. As of February 28, 2006, the note holder has agreed to
      convert the note, however, as of the date of this report, the note has not
      been
      converted into shares of common stock of the Company.





Convertible
      promissory notes totaling $119,980 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,
      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
      90
      days.





As
      of May
      31, 2006, we
      had
      $5,193 in cash and cash equivalents.





**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 38 full time employees and 46 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
      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 increasing or sales and marketing team;


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.




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          13
          -


**Inflation**




Since
      the
      inception of the Company in December 2000, the rate of inflation has remained
      low and the cost of the Company's operations has not been significantly affected
      by inflationary trends in the economy.







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





(a)
            Evaluation
                of disclosure controls and
                procedures.


12.


13.  As
      of the
      end of the period covered by this report, the Macreport carried out an
      evaluation, under the supervision and with the participation of the its Chief
      Executive Officer/Chief Financial Officer, of the effectiveness of the
      Macreport’s disclosure controls and procedures. Disclosure controls and
      procedures are designed to ensure that information required to be disclosed
      in
      the periodic reports filed or submitted under the Securities and Exchange Act
      of
      1934 is recorded, processed, summarized and reported within the time periods
      specified in the Securities and Exchange Commission’s rules and forms. Based
      upon that evaluation, the Chief Executive Officer/Chief Financial Officer
      concluded that the Macreport’s disclosure controls and procedures are effective
      in alerting them on a timely basis to material information relating to the
      Macreport.net required to be included in the Macreport’s reports filed or
      submitted under the Exchange Act.




(b)
            Changes
                in internal controls.





14.  There
      were no significant changes in the Macreport's internal controls or in other
      factors that could significantly affect these controls subsequent to the date
      of
      their evaluation, including any corrective actions with regard to significant
      deficiencies and material weaknesses.





15.  In
      accordance with the requirements of Section 13 or 15(d) of the Exchange Act,
      the
      registrant has caused this report to be signed on its behalf by the undersigned,
      thereunto duly authorized.






























































-
          14
          -


**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**





**Recent
      Sales of Unregistered Securities**





None





**Debt**





None





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





For
      the
      period beginning October 2005 through July 2006, V. William Lucchetti, Jr.,
      the
      Company's Chief Executive Officer, Chairman of the Board of Directors and 92%
      shareholder of the Company has loaned the Company and its subsidiaries
      $1,872,583 pursuant to demand notes. Pursuant to the terms of the notes, the
      principal accrues interest at a rate of 7.5% per annum. In March 2006, Mr.
      Lucchetti demanded payment of the notes. The Company renegotiated the terms
      of
      the note and entered into a amended and restated secured note in favor of Mr.
      Lucchetti, pursuant to the terms of the amended notes dated March 15, 2006,
      the
      obligations of the Company and its subsidiaries are secured by all of the issued
      and outstanding equity of Marcellus Group, LLC and Ja Spa, LLC, the Company's
      wholly owned subsidiaries. In May 2006, the board of directors of the Company
      obtained an appraisal of the market value of the properties owned by Marcellus
      Group. The appraisal opinion estimated the fair market value of the properties
      at $1,875,000. The properties are subject to a $300,000 liability. On July
      1,
      2006, Mr. Lucchetti demanded payment of the notes. The Company entered into
      a
      settlement agreement with Mr. Lucchetti whereby the notes were forgiven in
      exchange for all of the issued and outstanding equity of Marcellus Group, LLC
      and Ja Spa, LLC. In addition, Mr. Lucchetti has agreed to assume all of the
      obligations of each company (including the $300,000 liability in connection
      with
      the properties) with the exception of the note in favor of Crown Mill
      Restoration Development LLC which was transferred as an obligation of the
      Company by consent of Mr. Lucchetti, the sole owner of the Crown Mill
      Restoration Development, LLC.





Convertible
      promissory notes totaling $119,980 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


-
            15
            -
 conversion
        of notes into common stock.








**ITEM
      4.** **SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS**





None.





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





None.

























































































-
          16
          -





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




a)
                  ExhibitsExhibit
                  31.1
              Certification
                  of V. William
                  Lucchetti pursuant to Rule 13-14(a) and Item 307of
                  Regulation
                  SBExhibit
                  32.1
              Certification
                  by V. William
                  Lucchetti Pursuant to the 18 U.S.C. Section1350,
                  as Adopted Pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002b)
                  Reports on Form 8-K)None



















































-
          17
          -





**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/
                Vito W. Lucchetti, Jr.Vito
                W. Lucchetti, Jr.Chairman,
                Chief Executive Officer and President (Principal Executive Officer
                and
                Principal Accounting and Financial Officer)Date:
                July 20, 2006