UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549










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




For
the quarterly period ended September 30, 2009




 ̈
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the transition period from
______ to  ______.




CAVALIER
HOLDINGS, INC.


(Exact
name of registrant as specified in Charter




Delaware
            
            000-52531
            
            20-8429161(State
      or other jurisdiction of
              incorporation
      or organization)
            
            (Commission
      File No.)
            
            (IRS
      Employee Identification No.)





420
Lexington Avenue, Suite 300


New York,
New York 10170


(Address
of Principal Executive Offices)









(212)
297-6218


(Issuer
Telephone number)







Check
whether the issuer (1) has filed all reports required to be filed by Section 13
or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
period that the issuer was required to file such reports), and (2)has been
subject to such filing requirements for the past 90 days. Yes x No  ̈





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).


Yes  ̈            
No  ̈




Indicate
by check mark whether the registrant is a larger accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one)




Large
      accelerated
      filer             ̈
            Accelerated
      filer  ̈Non-accelerated
      filer              ̈
            Smaller
      reporting company x





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





State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of November 23, 2009: 16,047,500  shares of common
stock.







CAVALIER
HOLDINGS, INC.


FORM
10-Q


September
31, 2009


INDEX




PART
      I— FINANCIAL INFORMATIONItem
      1.
                    Financial
      Statements
                    1Item
      2.
                    Management’s
      Discussion and Analysis of Financial Condition
                    2Item
      3.
                    Quantitative
      and Qualitative Disclosures About Market Risk
                    4Item
      4.
                    Control
      and Procedures
                    4PART
      II— OTHER INFORMATION
                    6Item
      1
                    Legal
      Proceedings
                    6Item
      2.
                    Unregistered
      Sales of Equity Securities and Use of Proceeds
                    6Item
      3.
                    Defaults
      Upon Senior Securities
                    6Item
      4.
                    Submission
      of Matters to a Vote of Security Holders
                    6Item
      5.
                    Other
      Information
                    6Item
      6.
                    Exhibits
      and Reports on Form 8-K
                    7SIGNATURE
                    7







ITEM
1. Financial Information




CAVALIER
HOLDINGS, INC.






FINANCIAL
      STATEMENTS
              Page
      #Consolidated
      Balance Sheets as of September 30, 2009 (Unaudited) and December 31,
      2008
              F-1Consolidated
      Statements of Operations for the three and nine months ended September 30,
      2009 (Unaudited)
              F-2Consolidated
      Statements of Cash Flows for the nine months ended  September
      30, 2009 (Unaudited)
              F-3Notes
      to the Financial Statements (Unaudited)
              F-4


1


CAVALIER
HOLDINGS, INC.


Balance
Sheets





September
      30,
                        2009
                        (Unaudited)
                      
                      
                      December 31,
                        2008ASSETSCurrent
      Assets:Cash
                      
                      $
                      152,702
                      
                      
                      $
                      217,651Prepaid
      expenses
                      
                      
                      -
                      
                      
                      
                      5,076Investments
                      
                      
                      15,100
                      
                      
                      
                      -Total
      Current Assets
                      
                      
                      167,802
                      
                      
                      
                      222,727Security
      deposit
                      
                      
                      17,200
                      
                      
                      
                      17,200TOTAL
      ASSETS
                      
                      $
                      185,002
                      
                      
                      $
                      239,927LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent Liabilities:Accrued
      expenses
                      
                      $
                      46,295
                      
                      
                      $
                      4,755Deferred
      revenue
                      
                      
                      42,334
                      
                      
                      
                      13,125Advance
      from stockholder
                      
                      
                      48,164
                      
                      
                      
                      22,276Total
      Current Liabilities
                      
                      
                      136,793
                      
                      
                      
                      40,156Stockholders'
      Equity:Preferred
      stock at $0.0001 par value; 10,000,000 shares
                        authorized;
      no shares issued and outstanding
                      
                      
                      -
                      
                      
                      
                      -Common
      stock: $0.001 par value; 100,000,000 shares
                        authorized,16,272,500
      and 16,047,500 shares issued and outstanding
                      
                      
                      1,628
                      
                      
                      
                      1,605Additional
      paid-in capital
                      
                      
                      367,056
                      
                      
                      
                      223,395Accumulated
      deficit
                      
                      
                      (320,475
                      )
                      
                      
                      (25,229
                      )Total
      Stockholders’ Equity
                      
                      
                      48,209
                      
                      
                      
                      199,771TOTAL
      LIABILITIES AND STOCKHOLDERS’ EQUITY
                      
                      $
                      185,002
                      
                      
                      $
                      239,927





See
accompanying notes to the consolidated financial statements.


F-1


CAVALIER
HOLDINGS, INC.


Statements
of Operations


(Unaudited)





For
      the Three
                  Months
      Ended
                  September
      30,
                  2009
                
                
                For
      the Nine
                  Months
      Ended
                  September
      30,
                  2009Revenue
                
                $
                33,923
                
                
                $
                46,022Operating
      Expenses:Compensation
                
                
                6,315
                
                
                
                76,595Consulting
                
                
                69,988
                
                
                
                96,967Professional
      fees
                
                
                14,649
                
                
                
                33,544Rent
      expense
                
                
                30,193
                
                
                
                88,066General
      and administrative
                
                
                29,136
                
                
                
                46,096Total
      Operating Expenses
                
                
                150,281
                
                
                
                341,268Loss
      before income taxes
                
                
                (116,358
                )
                
                
                (295,246
                )Income
      taxes
                
                
                -
                
                
                
                -Net
      loss
                
                $
                (116,358
                )
                
                $
                (295,246
                )Net
      loss per common share - basic and diluted
                
                $
                (0.01
                )
                
                $
                (0.02
                )Weighted
      average number of shares outstanding - basic and diluted
                
                
                16,130,652
                
                
                
                16,063,306





See
accompanying notes to the financial statements.


F-2





CAVALIER
HOLDINGS, INC.


Statements
of Cash Flows


(Unaudited)





For
      the Nine Months
                                                  Ended
                                                  September
      30, 2009CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      loss
                                                
                                                $
                                                (295,246
                                                )Adjustments
      to reconcile net loss to net cash used in operating
      activities:Changes
      in operating assets and liabilities:Decrease
      in prepaid expenses
                                                
                                                
                                                5,076Increase
      in investments
                                                
                                                
                                                (15,100
                                                )Increase
      in accrued expenses
                                                
                                                
                                                14,331Increase
      in deferred revenue
                                                
                                                
                                                29,209Net
      Cash Used in Operating Activities
                                                
                                                
                                                (261,730
                                                )CASH
      FLOWS FROM INVESTING ACTIVITIESCash
      received from reverse acquisition
                                                
                                                
                                                2,600Net
      Cash Provided by Investing Activities
                                                
                                                
                                                2,600CASH
      FLOWS FROM FINANCING ACTIVITIESSale
      of common stock, net of cost
                                                
                                                
                                                194,181Net
      Cash Provided by Financing Activities
                                                
                                                
                                                194,181NET
      CHANGE IN CASH
                                                
                                                
                                                (64,949
                                                )CASH
      AT BEGINNING OF PERIOD
                                                
                                                
                                                217,651CASH
      AT END OF PERIOD
                                                
                                                $
                                                152,702SUPPLEMENTAL
      DISCLOSURE OFCASH
      FLOW INFORMATION:Interest
      paid
                                                
                                                $
                                                -Taxes
      paid
                                                
                                                $
                                                -


F-3


CAVALIER
HOLDINGS, INC.


September
30, 2009


Notes to
Financial Statements


(Unaudited)





NOTE 1 –
ORGANIZATION





Cavalier
Holdings, Inc. (“Cavalier” or the “Company”) was incorporated under the laws of
the State of Delaware on February 7, 2007 to raise equity and search for a
business.





On August
28, 2009, the Company acquired Emissary Capital Group, LLC, a privately owned
Delaware limited liability company (“Emissary”), pursuant to an Agreement and
Plan of Share Exchange (the “Exchange”).  Emissary was organized under
the laws of the State of Delaware on November 5, 2008.  Emissary is a
company whose principal operations include providing strategic consulting and
research services to emerging growth companies primarily based in India and
China.  Upon consummation of the Exchange, the Registrant adopted the
business plan of Emissary.





Pursuant
to the terms of the Exchange, the Company acquired Emissary in exchange for an
aggregate of 12,047,500 newly issued shares (the “Exchange Shares”) of the
Company’s common stock, par value $0.0001 per share (the “Common Stock”),
resulting in an aggregate of 16,047,500 shares of the Company  common
stock issued and outstanding. As a result of the Exchange, Emissary became a
wholly-owned subsidiary of the Company.  The Company shares were
issued to the members of Emissary on a pro rata basis, on the basis of the
membership interests of Emissary held by such Emissary member at the time of the
Exchange.





As a
result of the ownership interests of the former shareholders of Emissary, for
financial statement reporting purposes, the merger between the Company and
Emissary has been treated as a reverse acquisition with Emissary deemed the
accounting acquirer and the Company deemed the accounting acquiree under the
purchase method of accounting in accordance with paragraph 805-40-05-2 of the
FASB Accounting Standards Codification. The reverse merger is deemed a capital
transaction and the net assets of Emissary (the accounting acquirer) are carried
forward to the Company (the legal acquirer and the reporting entity) at their
carrying value before the combination.  The acquisition process
utilizes the capital structure of the Company and the assets and liabilities of
Emissary which are recorded at historical cost.  The equity of the
Company is the historical equity of Emissary retroactively restated to reflect
the number of shares issued by the Company in the transaction.





Emissary
Capital Group, LLC (“Emissary”), is a limited liability company organized on
November 5, 2008 under the laws of the State of Delaware.





NOTE 2 –
SUMMARY OF ACCOUNTING POLICIES





Basis of
presentation





The
accompanying unaudited interim consolidated financial statements and related
notes have been prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”) for interim financial
information, and with the rules and regulations of the United States Securities
and Exchange Commission (“SEC”) to Form 10-Q and Article 8 of Regulation
S-X.  Accordingly, they do not include all of the information and
footnotes required by U.S. GAAP for complete financial
statements.  The unaudited interim financial statements furnished
reflect all adjustments (consisting of normal recurring accruals) which are, in
the opinion of management, necessary to a fair statement of the results for the
interim periods presented.  Interim results are not necessarily
indicative of the results for the full year.  These unaudited interim
consolidated financial statements should be read in conjunction with the
financial statements of the Company for the year ended December 31, 2008 and
notes thereto contained in the Company’s Annual Report on Form 10-K filed with
the SEC on October 1, 2009 and the financial statements of Emissary for the year
ended December 31, 2008 and notes thereto contained in the Company’s Current
Report on Form 8-K filed with the SEC on September 3, 2009.





The
consolidated financial statements include all the accounts of Cavalier as of and
for the interim period ended September 30, 2009.  Cavalier is included
as of August 28, 2009 (Date of acquisition) and for the period from August 28,
2009 (Date of acquisition) through September 30, 2009.  All
inter-company balances and transactions have been eliminated.


F-4




Use of
Estimates





The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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 as well as the reported amount of revenues and expenses during the
reporting period. Actual results could differ from these estimates.





Cash
Equivalents




The
Company considers all highly liquid investments with maturities of three months
or less at the time of purchase to be cash equivalents.





Investments




Investments
in certain securities may be classified into three categories:




•
            
            Held-to-Maturity—Debt
      securities that the entity has the positive intent and ability to hold to
      maturity are reported at amortized
cost.




•
            
            Trading Securities—Debt
      and equity securities that are bought and held principally for the purpose
      of selling in the near term are reported at fair value, with unrealized
      gains and losses included in
earnings.




•
            
            Available-for-Sale—Debt
      and equity securities not classified as either securities held-to-maturity
      or trading securities are reported at fair value with unrealized gains or
      losses excluded from earnings and reported as a separate component of
      shareholders’ equity.





The
Company periodically reviews its investments in marketable and non-marketable
securities and impairs any securities whose value is considered non-recoverable.
The Company's determination of whether a security is other than temporarily
impaired incorporates both quantitative and qualitative information.  GAAP
requires the exercise of judgment in making this assessment for qualitative
information, rather than the application of fixed mathematical criteria. The
Company considers a number of factors including, but not limited to, the length
of time and the extent to which the fair value has been less than cost, the
financial condition and near term prospects of the issuer, the reason for the
decline in fair value, changes in fair value subsequent to the balance sheet
date, and other factors specific to the individual investment. The Company's
assessment involves a high degree of judgment and accordingly, actual results
may differ materially from the Company's estimates and judgments.





Fair value of financial
instruments





The
Company follows paragraph 825-10-50-10 of the FASB Accounting Standards
Codification for disclosures about fair value of its financial instruments and
has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification
(“Paragraph 820-10-35-37”) to measure the fair value of its financial
instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair
value in accounting principles generally accepted in the United States of
America (U.S. GAAP), and expands disclosures about fair value measurements. To
increase consistency and comparability in fair value measurements and related
disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which
prioritizes the inputs to valuation techniques used to measure fair value into
three (3) broad levels.  The fair value hierarchy gives the highest
priority to quoted prices (unadjusted) in active markets for identical assets or
liabilities and the lowest priority to unobservable inputs.  The three
(3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are
described below:




Level
      1
                
                Quoted
      market prices available in active markets for identical assets or
      liabilities as of the reporting
date.




F-5




Level
      2
            
            Pricing
      inputs other than quoted prices in active markets included in Level 1,
      which are either directly or indirectly observable as of the reporting
      date.Level
      3
            
            Pricing
      inputs that are generally observable inputs and not corroborated by market
      data.




The
carrying amounts of the Company’s financial assets and liabilities, such as
cash, prepaid expenses, investments, accrued expenses, deferred revenues and
advances from officer/related party, approximate their fair values because of
the short maturity of these instruments.





The
Company does not have any assets or liabilities measured at fair value on a
recurring or a non-recurring basis, consequently, the Company did not have any
fair value adjustments for assets and liabilities measured at fair value at
September 30, 2009, nor gains or losses are reported in the statement of
operations that are attributable to the change in unrealized gains or losses
relating to those assets and liabilities still held at the reporting date for
the interim period then ended.




Revenue
Recognition





The
Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards
Codification for revenue recognition.  The Company recognizes revenue
when it is realized or realizable and earned less estimated future doubtful
accounts.  The Company considers revenue realized or realizable and
earned when all of the following criteria are met: (i) persuasive evidence of an
arrangement exists, (ii) the product has been shipped or the services have been
rendered to the customer, (iii) the sales price is fixed or determinable, and
(iv) collectability is reasonably assured.





Income
taxes





The
Company accounts for income taxes under Section 740-10-30 of the FASB Accounting
Standards Codification, which requires recognition of deferred tax assets and
liabilities for the expected future tax consequences of events that have been
included in the financial statements or tax returns.  Under this
method, deferred tax assets and liabilities are based on the differences between
the financial statement and tax bases of assets and liabilities using enacted
tax rates in effect for the year in which the differences are expected to
reverse.  Deferred tax assets are reduced by a valuation allowance to
the extent management concludes it is more likely than not that the assets will
not be realized.  Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or
settled.  The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in the Consolidated Statements of Income and
Comprehensive Income in the period that includes the enactment
date.





The
Company adopted section 740-10-25 of the FASB Accounting Standards Codification
(“Section 740-10-25”). Section 740-10-25 addresses the determination of whether
tax benefits claimed or expected to be claimed on a tax return should be
recorded in the financial statements.  Under Section 740-10-25, the
Company may recognize the tax benefit from an uncertain tax position only if it
is more likely than not that the tax position will be sustained on examination
by the taxing authorities, based on the technical merits of the
position.  The tax benefits recognized in the financial statements
from such a position should be measured based on the largest benefit that has a
greater than fifty (50) percent likelihood of being realized upon ultimate
settlement.  Section 740-10-25 also provides guidance on
de-recognition, classification, interest and penalties on income taxes,
accounting in interim periods and requires increased disclosures.  The
Company had no material adjustments to its liabilities for unrecognized income
tax benefits according to the provisions of Section 740-10-25.





Net loss per common
shares





Net loss
per common share is computed pursuant to section 260-10-45 of the FASB
Accounting Standards Codification.  Basic net loss per common share is
computed by dividing net loss by the weighted average number of common shares
outstanding during the period. Diluted net loss per common share is computed by
dividing net loss by the weighted average number of common shares and
potentially outstanding shares of common shares during each period. There were
67,500 warrants excluded as their effect would have been
anti-dilutive.





F-6




Recently Issued Accounting
Pronouncements





On June
5, 2003, the United States Securities and Exchange Commission (“SEC”) adopted
final rules under Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”),
as amended by SEC Release No. 33-9072 on October 13, 2009.  Under the
provisions of Section 404 of the Sarbanes-Oxley Act, public companies and their
independent auditors are each required to report to the public on the
effectiveness of a company’s internal controls.  The smallest public
companies with a public float below $75 million have been given extra time to
design, implement and document these internal controls before their auditors are
required to attest to the effectiveness of these controls.  This
extension of time will expire beginning with the annual reports of companies
with fiscal years ending on or after June 15, 2010.  Commencing with
its annual report for the year ending December 31, 2010, the Company will be
required to include a report of management on its internal control over
financial reporting. The internal control report must include a
statement





·
            of
      management’s responsibility for establishing and maintaining adequate
      internal control over its financial reporting;·
            of
      management’s assessment of the effectiveness of its internal control over
      financial reporting as of year end; and·
            of
      the framework used by management to evaluate the effectiveness of the
      Company’s internal control over financial
  reporting.





Furthermore,
it is required to file the auditor’s attestation report separately on the
Company’s internal control over financial reporting on whether it believes that
the Company has maintained, in all material respects, effective internal control
over financial reporting.





In June
2009, the FASB approved the “FASB Accounting Standards Codification” (the
“Codification”) as the single source of authoritative nongovernmental U.S. GAAP
to be launched on July 1, 2009.  The Codification does not change
current U.S. GAAP, but is intended to simplify user access to all authoritative
U.S. GAAP by providing all the authoritative literature related to a particular
topic in one place.  All existing accounting standard documents will
be superseded and all other accounting literature not included in the
Codification will be considered non-authoritative. The Codification is effective
for interim and annual periods ending after September 15,
2009.





In August
2009, the FASB issued the FASB Accounting Standards Update No. 2009-04 “Accounting for Redeemable Equity
Instruments - Amendment to Section 480-10-S99” which represents an update
to section 480-10-S99, distinguishing liabilities from equity, per EITF Topic
D-98, Classification and
Measurement of Redeemable Securities.  The Company does not
expect the adoption of this update to have a material impact on its consolidated
financial position, results of operations or cash flows.





In August
2009, the FASB issued the FASB Accounting Standards Update No. 2009-05 “Fair Value Measurement and
Disclosures Topic 820 – Measuring Liabilities at Fair Value”, which
provides amendments to subtopic 820-10, Fair Value Measurements and Disclosures
– Overall, for the fair value measurement of liabilities.  This update
provides clarification that in circumstances in which a quoted price in an
active market for the identical liability is not available, a reporting entity
is required to measure fair value using one or more of the following techniques:
1. A valuation technique that uses: a. The quoted price of the identical
liability when traded as an asset b. Quoted prices for similar liabilities or
similar liabilities when traded as assets. 2. Another valuation technique that
is consistent with the principles of topic 820; two examples would be an income
approach, such as a present value technique, or a market approach, such as a
technique that is based on the amount at the measurement date that the reporting
entity would pay to transfer the identical liability or would receive to enter
into the identical liability. The amendments in this update also clarify that
when estimating the fair value of a liability, a reporting entity is not
required to include a separate input or adjustment to other inputs relating to
the existence of a restriction that prevents the transfer of the liability. The
amendments in this update also clarify that both a quoted price in an active
market for the identical liability when traded as an asset in an active market
when no adjustments to the quoted price of the asset are required are Level 1
fair value measurements.  The Company does not expect the adoption of
this update to have a material impact on its consolidated financial position,
results of operations or cash flows.





In
September 2009, the FASB issued the FASB Accounting Standards Update No.
2009-08 “Earnings Per Share –
Amendments to Section 260-10-S99”,which represents technical corrections
to topic 260-10-S99, Earnings per share, based on EITF Topic D-53, Computation of Earnings Per Share
for a Period that includes a Redemption or an Induced Conversion of a Portion of
a Class of Preferred Stock and EITF Topic D-42, The Effect of the Calculation of
Earnings per Share for the Redemption or Induced Conversion of Preferred
Stock. The Company does not expect the adoption of this update to have a
material impact on its consolidated financial position, results of operations or
cash flows.


F-7





In
September 2009, the FASB issued the FASB Accounting Standards Update No.
2009-09 “Accounting for
Investments-Equity Method and Joint Ventures and Accounting for Equity-Based
Payments to Non-Employees”.  This update represents a
correction to Section 323-10-S99-4, Accounting by an Investor for
Stock-Based Compensation Granted to Employees of an Equity Method
Investee. Additionally, it adds observer commentAccounting Recognition for Certain
Transactions Involving Equity Instruments Granted to Other Than Employees
to the Codification. The Company does not expect the adoption to have a material
impact on its consolidated financial position, results of operations or cash
flows.





In
September 2009, the FASB issued the FASB Accounting Standards Update No.
2009-12 “Fair Value
Measurements and Disclosures Topic 820 – Investment in Certain Entities That
Calculate Net Assets Value Per Share (or Its Equivalent)”, which provides
amendments to Subtopic 820-10, Fair Value Measurements and Disclosures-Overall,
for the fair value measurement of investments in certain entities that calculate
net asset value per share (or its equivalent). The amendments in this update
permit, as a practical expedient, a reporting entity to measure the fair value
of an investment that is within the scope of the amendments in this update on
the basis of the net asset value per share of the investment (or its equivalent)
if the net asset value of the investment (or its equivalent) is calculated in a
manner consistent with the measurement principles of Topic 946 as of the
reporting entity’s measurement date, including measurement of all or
substantially all of the underlying investments of the investee in accordance
with Topic 820. The amendments in this update also require disclosures by major
category of investment about the attributes of investments within the scope of
the amendments in this update, such as the nature of any restrictions on the
investor’s ability to redeem its investments a the measurement date, any
unfunded commitments (for example, a contractual commitment by the investor to
invest a specified amount of additional capital at a future date to fund
investments that will be make by the investee), and the investment strategies of
the investees. The major category of investment is required to be determined on
the basis of the nature and risks of the investment in a manner consistent with
the guidance for major security types in U.S. GAAP on investments in debt and
equity securities in paragraph 320-10-50-1B. The disclosures are required for
all investments within the scope of the amendments in this update regardless of
whether the fair value of the investment is measured using the practical
expedient. The Company does not expect the adoption to have a material impact on
its consolidated financial position, results of operations or cash
flows.




Management
does not believe that any other recently issued, but not yet effective
accounting pronouncements, if adopted, would have a material effect on the
accompanying financial statements.





NOTE 3 –
GOING CONCERN





The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates continuity of operations,
realization of assets, and liquidation of liabilities in the normal course of
business.  As reflected in the accompanying financial statements, the
Company had an accumulated deficit of $320,472 a net loss and net cash used in
operations of $295,246 and $261,730 for the interim period ended September 30,
2009, respectively. These conditions raise substantial doubt about its ability
to continue as a going concern.




While the
Company is attempting to produce sufficient sales, the Company’s cash position
may not be sufficient to support the Company’s daily operations. While the
Company believes in the viability of its strategy to produce sales volume and in
its ability to raise additional funds, there can be no assurances to that
effect. The ability of the Company to continue as a going concern is dependent
upon the Company’s ability to further implement its business plan and generate
sufficient revenues. The financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going concern.
Management believes that the actions presently being taken to further implement
its business plan and generate revenues provide the opportunity for the Company
to continue as a going concern.





The
financial statements do not include any adjustments related to the
recoverability and classification of recorded asset amounts or the amounts and
classification of liabilities that might be necessary should the Company be
unable to continue in existence.


F-8





NOTE 4 –
INVESTMENT





During
the quarter, the Company entered into a financial advisory and independent
equity research consulting agreement to perform advisory services for a term one
year.  The Company received 100,000 shares of restricted common
stock.  A discount of 90% was applied to the valuation of the
restricted common stock’s closing stock price of $0.39 on the date of
issuance.





NOTE 5–
DEFERRED REVENUE





On
October 2, 2008, the Company entered into a financial advisory agreement to
perform advisory services for a term of one year.  The Company
received a retainer of $17,500 which has been recorded as deferred revenue and
is being amortized over the term of the agreement.





On
January 26, 2009, the Company entered into a financial advisory agreement to
perform advisory services for a term one year.  The Company received a
retainer of $7,500 which has been recorded as deferred revenue and is being
amortized over the term of the agreement.





On June
24, 2009, the Company entered into a financial advisory and independent equity
research consulting agreement to perform advisory services for a term one
year.  The Company received $10,000 which has been recorded as
deferred revenue and is being amortized over the term of the
agreement.





NOTE 6 –
ADVANCES FROM STOCKHOLDER





Through
September 30, 2009, stockholders have advanced the Company
$48,164.  The advances are payable on demand and bear no
interest.





NOTE 7 -
STOCKHOLDERS’ EQUITY





On August
28, 2009 the Company accepted subscriptions to purchase 9 Units consisting of
225,000 shares of the Company’s Common Stock and a warrant to purchase an
additional 67,500 shares of Common for an aggregate purchase price of
$225,000.





NOTE 8 –
CONCENTRATION OF RISK





For the
three months ended September 30, 2009, three unrelated customers comprised 100%
of total revenues.





NOTE 9 –
SUBSEQUENT EVENTS





The
Company has evaluated all events that occur after the balance sheet date of
September 30, 2009 through November 23, 2009, the date when the financial
statements were issued to determine if they must be reported.  The
Management of the Company determined that there was a reportable subsequent
event to be disclosed.





In
November 2009, the Board of Directors and the holders of a majority of Company
outstanding common stock of the Registrant approved an amendment to the
Registrant’s articles of incorporation to (i) increase the number of authorized
capital stock from 50,000,000 shares to 110,000,000 shares of which 100,000,000
shares will be Common Stock and 10,000,000 shares will be preferred stock par
value $0.0001 per share (the “Preferred Stock”), (ii) change the name of the
Registrant to Emissary Capital Group, Inc., and (iii) authorize the Board of
Directors to provide for the issuance of shares of preferred stock in series
and, by filing a certificate pursuant to the General Corporation Law of the
State of Delaware (hereinafter, along with any similar designation relating to
any other class of stock that may hereafter be authorized, referred to as a
“Preferred Stock Designation”), to establish from time to time the number of
shares to be included in each such series, and to fix the designation, power,
preferences and rights of the shares of each such series and the qualifications,
limitations and restrictions thereof (“Blank Check Preferred
Stock”).


F-9


Item
2. Management’s Plan of Operation.





Acquisition
and Reorganization




On August
28, 2009, the Acquisition of Emissary Capital Group, Inc. (“Emissary”) was
adopted as our business. As such, the following Management Discussion is focused
on the current and historical operations of Emissary, and excludes the prior
operations of the Registrant.





Overview





We are a
New York City-based company that provides strategic consulting and research
services to emerging growth companies primarily based in India and
China.  We provide a diversified array of services to small and medium
sized private companies, generally defined as those with annual revenues under
$200 million, in order to assist them to become publicly traded companies in the
U.S.  We earn consulting fees in cash and equity based upon the scope
of services rendered.  We seek to enhance our clients’ value,
including business development advice, strategic consulting, management
consulting and corporate governance advisory services.  In certain
circumstances, we also seek to provide investment capital to our portfolio
company clients in order to expand their growth potential.





We
believe that an opportunity exists for value creation in the emerging markets
countries, especially India and China, which are among the world's fastest
growing economies.  Based upon our relationships and on-the-ground
knowledge in India and China, we believe we are able to assist these companies
to access the U.S. capital markets.  We seek to utilize our
regulatory, legal, accounting and financial expertise to provide knowledge as
well as access to capital to fast growing companies which intend on becoming
world class, global enterprises.





Our
activities generate the following principal sources of revenue:





advisory
      fees, which are derived from strategic advisory
  services;realized
      and unrealized gains with respect to securities held for our own
      account;fees
      for our issuer-sponsored research report product;other
      miscellaneous sources of revenues, such as
  interest.





Although
we have multiple sources of revenue, most of our revenue is derived from our
advisory services and consists of advisory fees earned. We do not separately
prepare reports or analyze financial data or operating results, such as
operating expenses, profit and loss or assets, for our various operating
units.





Limited
Operating History; Need for Additional Capital





There is
no historical financial information about us upon which to base an evaluation of
our performance. We are in development stage operations and have generated
minimal revenues. We cannot guarantee we will be successful in our business
operations.  Our business is subject to risks inherent in the
establishment of a new business enterprise, including limited capital resources
and possible cost overruns.





We are
seeking equity financing to provide for the capital required to implement our
operations. We have no assurance that future financing will be available to us
on acceptable terms. If financing is not available on satisfactory terms, we may
be unable to continue, develop or expand our operations. Equity financing could
result in additional dilution to existing shareholders.





Liquidity
and Capital Resources





The
Company had cash and cash equivalents of $152,702 as of September 30,
2009.  On the same date, accrued expenses and other liabilities
outstanding totaled $136,793.





Since
inception, the Company has expended substantial resources on formulating and
developing its business plan. Consequently, we have sustained substantial
losses.  The Company has an accumulated deficit of $320,472 at
September 30, 2009.


2





The
Company’s current financial condition raises doubt as to its ability to continue
as a going concern.  The report of the Company’s independent public
accountants, which accompanied the financial statements for the year ended
December 31, 2008, contained going concern language.  On August 28,
2009, the Company had accepted subscriptions for shares of the Company’s common
stock and warrants in the aggregate amount of $225,000.  This sum is
insufficient for us to continue our operations through the current fiscal
year.  If the Company is unable to obtain debt or equity financing to
meet its cash needs it may have to severely limit, its business plan by reducing
the funds it hopes to expend marketing and developing its products and services
and establishing client relationships.





As of the
date of this report, we have yet to generate any significant revenues from our
business operations.





Commitments





On
October 2, 2008, the Company entered into a financial advisory agreement to
perform advisory services for a term of one year.  The Company
received a retainer of $17,500 which has been recorded as deferred revenue and
is being amortized over the term of the agreement.





On
January 26, 2009, the Company entered into a financial advisory agreement to
perform advisory services for a term one year.  The Company received a
retainer of $7,500 which has been recorded as deferred revenue and is being
amortized over the term of the agreement.





On June
24, 2009, the Company entered into a financial advisory and independent equity
research consulting agreement to perform advisory services for a term one
year.  The Company received $10,000 which has been recorded as
deferred revenue and is being amortized over the term of the
agreement.





Off-Balance
Sheet Arrangements




As of
September 30, 2009, we have no off-balance sheet arrangements such as
guarantees, retained or contingent interest in assets transferred, obligation
under a derivative instrument and obligation arising out of or a variable
interest in an unconsolidated entity.





CONTRACTUAL
OBLIGATIONS:





Not
applicable.





RECENT
ACCOUNTING PRONOUNCEMENTS





In June
2009, the FASB approved the “FASB Accounting Standards Codification” (the
“Codification”) as the single source of authoritative nongovernmental U.S. GAAP
to be launched on July 1, 2009. The Codification does not change current U.S.
GAAP, but is intended to simplify user access to all authoritative U.S. GAAP by
providing all the authoritative literature related to a particular topic in one
place. All existing accounting standard documents will be superseded and all
other accounting literature not included in the Codification will be considered
nonauthoritative. The Codification is effective for interim and annual periods
ending after September 15, 2009. The Codification is effective for the
Company in the interim period ending September 30, 2009 and the Company
does not expect the adoption to have a material impact on its consolidated
financial position, results of operations or cash flows.




In
May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (“SFAS
165”), which provides guidance to establish general standards of accounting for
and disclosures of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. SFAS
165 also requires entities to disclose the date through which subsequent
events were evaluated as well as the rationale for why that date was selected.
This disclosure should alert all users of financial statements that an entity
has not evaluated subsequent events after that date in the set of financial
statements being presented. SFAS 165 is effective for interim and annual periods
ending after June 15, 2009. Since FAS 165 at most requires additional
disclosures, the Company does not expect the adoption to have a material impact
on its consolidated financial position, results of operations or cash
flows.


3


In May
2009, the FASB issued SFAS No. 165, “Subsequent Events” (“SFAS 165”), which
provides guidance to establish general standards of accounting for and
disclosures of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. SFAS
165 also requires entities to disclose the date through which subsequent
events were evaluated as well as the rationale for why that date was selected.
This disclosure should alert all users of financial statements that an entity
has not evaluated subsequent events after that date in the set of financial
statements being presented. SFAS 165 is effective for interim and annual periods
ending after June 15, 2009. Since FAS 165 at most requires additional
disclosures, the Company does not expect the adoption to have a material impact
on its consolidated financial position, results of operations or cash
flows.




In April
2009, the FASB issued FSP FAS 107-1 and Accounting Principles Board (APB) 28-1
“Interim Disclosures about Fair Value of Financial Instruments”. The FSP amends
SFAS No. 107 “Disclosures about Fair Value of Financial Instruments” to
require an entity to provide disclosures about fair value of financial
instruments in interim financial information. This FSP is to be applied
prospectively and is effective for interim and annual periods ending after
June 15, 2009 with early adoption permitted for periods ending after
March 15, 2009. The company will include the required disclosures in its
quarter ending June 30, 2009.




In April
2009, the Financial Accounting Standards Board (FASB) issued FASB Staff Position
(FSP) Financial Accounting Standard (FAS) 157-4 “Determining Fair Value When the
Volume and Level of Activity for the Asset or Liability Have Significantly
Decreased and Identifying Transactions That Are Not Orderly”. Based on the
guidance, if an entity determines that the level of activity for an asset or
liability has significantly decreased and that a transaction is not orderly,
further analysis of transactions or quoted prices is needed, and a significant
adjustment to the transaction or quoted prices may be necessary to estimate
fair value in accordance with Statement of Financial Accounting Standards (SFAS)
No. 157 “Fair Value Measurements”. This FSP is to be applied prospectively
and is effective for interim and annual periods ending after June 15, 2009
with early adoption permitted for periods ending after March 15, 2009. The
company will adopt this FSP for its quarter ending June 30, 2009. There is
no expected impact on the financial statements.




OFF-BALANCE
SHEET ARRANGEMENTS




We do not
have any off-balance sheet arrangements that have or are reasonably likely to
have a current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to our
investors.





Item
3. Quantitative and Qualitative Disclosures About Market Risk.





The
Company is not exposed to market risk related to interest rates or foreign
currencies.





Item
4.Controls and Procedures.





Evaluation of disclosure controls
and procedures. We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), is recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's (“SEC”) rules, regulations
and related forms, and that such information is accumulated and communicated to
our principal executive officer and principal financial officer, as appropriate,
to allow timely decisions regarding required disclosure.





As of
September 30, 2009, we carried out an evaluation, under the supervision and with
the participation of our management, including our principal executive officer
and principal financial officer, of the effectiveness of the design and
operation of our disclosure controls and procedures. Based on this evaluation,
our principal executive and financial officer concluded that our disclosure
controls and procedures were effective.





This
quarterly report does not include an attestation report of the Company’s
registered public accounting firm regarding internal control over financial
reporting. Management’s report was not subject to attestation by the Company’s
registered public accounting firm pursuant to temporary rules of the Securities
and Exchange Commission that permit the Company to provide only management’s
report in this quarterly report on Form 10-Q.


4





Changes in internal controls.
There have been no changes in our internal controls or in other factors that
could significantly affect these controls and procedures during the period ended
September 30, 2009.


5





PART
II — OTHER INFORMATION





Item
1. Legal Proceedings.





To the
best knowledge of the officers and directors, the Company is not a party to any
legal proceeding or litigation.





Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.





On August
28, 2009, the Company acquired Emissary Capital Group, LLC, a privately owned
Delaware limited liability company (“Emissary”), pursuant to an Agreement and
Plan of Share Exchange (the “Exchange”).  Emissary was organized under
the laws of the State of Delaware on November 5, 2008.  Emissary’s
principal operations include providing strategic consulting and research
services to emerging growth companies primarily based in India and
China.  Upon consummation of the Exchange, the Company adopted the
business plan of Emissary.





Pursuant
to the terms of the Exchange, the Company acquired Emissary in exchange for an
aggregate of 12,047,500 newly issued shares (the “Exchange Shares”) of the
Company’s common stock, par value $0.0001 per share (the “Common Stock”),
resulting in an aggregate of 16,047,500 shares of the Company  common
stock issued and outstanding. As a result of the Exchange, Emissary became a
wholly-owned subsidiary of the Company.  The Company shares were
issued to the members of Emissary on a pro rata basis, on the basis of the
membership interests of Emissary held by such Emissary member at the time of the
Exchange.





Simultaneously
with the issuance of the Exchange Shares, we accepted subscriptions to purchase
9 Units consisting of 225,000 shares of the Company’s Common Stock and a warrant
to purchase an additional 67,500 shares of Common for an aggregate purchase
price of $225,000.





Item 3. Defaults Upon Senior
Securities.





None.





Item 4. Submission of Matters to a
Vote of Security Holders.





Subsequent
to the Exchange on August 28, 2009, the shareholders of the Company approved an
amendment to the Company’s articles of incorporation to (i) increase the number
of authorized capital stock from 50,000,000 shares to 110,000,000 shares of
which 100,000,000 shares will be Common Stock and 10,000,000 shares will be
preferred stock par value $0.0001 per share (the “Preferred Stock”), (ii) change
the name of the Company to Emissary Capital Group, Inc., and (iii) authorize the
Board of Directors to provide for the issuance of shares of preferred stock in
series and, by filing a certificate pursuant to the General Corporation Law of
the State of Delaware (hereinafter, along with any similar designation relating
to any other class of stock that may hereafter be authorized, referred to as a
“Preferred Stock Designation”), to establish from time to time the number of
shares to be included in each such series, and to fix the designation, power,
preferences and rights of the shares of each such series and the qualifications,
limitations and restrictions thereof (“Blank Check Preferred Stock”). Upon the
filing of a Definitive Information Statement and effectiveness of the name
change, the Company intends to apply to the Financial Industry Regulatory
Authority to apply for its stock symbol on the Over the Counter Bulletin Board.
The Company is considered a services company at this time.





Item
5. Other Information.





None.





6




Item
6. Exhibits.





Exhibit
              
              Description
      of Exhibit31.1
              
              Chairman
      of the Board and Chief Executive Officer Certification Pursuant to Section
      302 of the Sarbanes-Oxley Act of 2002.31.2
              
              Director,
      President and Chief Financial Officer Certification of Periodic Financial
      Report Pursuant to Section 302 of the Sarbanes-Oxley Act of
      200232.1
              
              Chairman
      of the Board and Chief Executive Officer Certification Pursuant to Section
      906 of the Sarbanes-Oxley Act of 200232.2
              
              Director,
      President and Chief Financial Officer Certification Pursuant to Section
      906 of the Sarbanes-Oxley Act of
2002





SIGNATURES





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


CAVALIER
      HOLDINGS, INC.
              (Registrant)Dated:
      November 23, 2009
            By:
            /s/  Amit
  TandonChairman
      of the Board,
              Chief
      Executive Officer


7