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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.For the quarterly period ended March 31, 2008ORo
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.For the transition period from ___to ___
 Commission file number 001-33800
 Ideation Acquisition Corp.
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    77-0688094
(I.R.S. Employer Identification No.)
 1990 South Bundy Boulevard, Suite 620
Los Angeles, California
(Address of principal executive offices)
    
    90025
(Zip code)
 
  þ  ̈
   Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
  þ o




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TABLE OF CONTENTS
  
 PagePART 1
    
    FINANCIAL INFORMATION
    
    
    2ITEM 1
    
    FINANCIAL STATEMENTS
    
    
    2UNAUDITED CONDENSED BALANCE SHEETS AS OF MARCH 31, 2008 AND DECEMBER 31, 2007
    
    
    2UNAUDITED CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND THE PERIOD FROM JUNE 1, 2007 (DATE OF INCEPTION) THROUGH MARCH 31, 2008
    
    
    3UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND FOR THE PERIOD FROM JUNE 1, 2007 (DATE OF INCEPTION) THROUGH MARCH 31, 2008 (UNAUDITED)
    
    
    4NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
    
    
    5ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    12ITEM 3.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    15ITEM 4.
    
    CONTROLS AND PROCEDURES
    
    
    15PART II
    
    OTHER INFORMATION
    
    
    16ITEM 1.
    
    LEGAL PROCEEDINGS
    
    
    16ITEM 1A.
    
    RISK FACTORS
    
    
    16ITEM 2.
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    
    
    16ITEM 3.
    
    DEFAULTS UPON SENIOR SECURITIES
    
    
    16ITEM 4.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    16ITEM 5.
    
    OTHER INFORMATION
    
    
    16ITEM 6.
    
    EXHIBITS
    
    
    16SIGNATURES
    
    
    17EX-31.1 Section 302 Certification of CEOEX-31.2 Section 302 Certification of CFOEX-32.1 Section 906 Certification of CEOEX-32.2 Section 906 Certification of CFO




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PART 1  FINANCIAL INFORMATION
 
 ITEM 1. Financial Statements
 
 IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 Unaudited Condensed Balance Sheets
 March 31, 2008
    
    
    December 31, 2007AssetsCurrent Assets:Cash and cash equivalents
    
    $
    599,232
    
    
    $
    124,139Interest receivable
    
    
    195,318
    
    
    
    291,835Other current assets
    
    
    55,032
    
    
    
    49,256Total current assets
    
    
    849,582
    
    
    
    465,230Other asset, cash and cash equivalents held in trust
    
    
    78,815,000
    
    
    
    78,815,000Deferred tax asset
    
    
    89,691
    
    
    
    Total assets
    
    $
    79,754,273
    
    
    $
    79,280,230Liabilities and Stockholders EquityCurrent Liabilities:Accrued expenses
    
    $
    94,327
    
    
    $
    26,721Income taxes payable
    
    
    188,415
    
    
    
    74,244Franchise taxes payable
    
    
    51,539
    
    
    
    68,666Total current liabilities
    
    
    334,281
    
    
    
    169,631Long-term liabilityDeferred underwriters fee
    
    
    2,730,000
    
    
    
    2,730,000Common stock subject to possible redemption
(2,999,999 shares at March 31, 2008 and December 31, 2007
at redemption value of $7.88 per share)
    
    
    23,639,992
    
    
    
    23,639,992Commitments and contingenciesStockholders Equity:Preferred Stock, $0.0001 par value, 1,000,000 shares authorized; none issued and outstandingCommon Stock, $0.0001 par value, 50,000,000 shares authorized, 12,500,000 shares
issued and outstanding including 2,999,999 shares subject to possible redemption,
at March 31, 2008 and December 31, 2007
    
    
    1,250
    
    
    
    1,250Additional paid-in capital
    
    
    52,595,237
    
    
    
    52,595,237Income accumulated during the development stage
    
    
    453,513
    
    
    
    144,120Total stockholders equity
    
    
    53,050,000
    
    
    
    52,740,607Total liabilities and stockholders equity
    
    $
    79,754,273
    
    
    $
    79,280,230
  2




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IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 Unaudited Condensed Statements of Operations
 For the Three
    
    
    Period from June 1,Months Ended
    
    
    2007 (Inception) toMarch 31, 2008
    
    
    March 31, 2008Revenue
    
    $
    
    
    
    $
    Formation and operating costs
    
    
    171,773
    
    
    
    272,650Loss from operations
    
    
    (171,773
    )
    
    
    (272,650
    )Interest income
    
    
    686,009
    
    
    
    1,026,426Income before provision for income taxes (benefit)
    
    
    514,236
    
    
    
    753,776Provision for income taxes (benefit)Current
    
    
    294,534
    
    
    
    389,954Deferred
    
    
    (89,691
    )
    
    
    (89,691
    )Total provision for income taxes
    
    
    204,843
    
    
    
    300,263Net income
    
    $
    309,393
    
    
    $
    453,513Maximum number of shares subject to possible redemption:Weighted average number of shares, basic and diluted
    
    
    2,999,999
    
    
    
    1,278,523Income per share amount, basic and diluted
    
    $
    0.00
    
    
    $
    0.00Weighted average number of common shares outstanding
(not subject to possible redemption):Basic
    
    
    9,500,001
    
    
    
    5,414,755Diluted
    
    
    11,494,407
    
    
    
    7,409,160Income per share amount:Basic
    
    $
    0.03
    
    
    $
    0.08Diluted
    
    $
    0.03
    
    
    $
    0.06
  3




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IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 Unaudited Condensed Statements of Cash Flows
 For the Three
    
    
    Period from June 1,Months Ended
    
    
    2007 (Inception) toMarch 31, 2008
    
    
    March 31, 2008Cash flows from operating activities:Net income
    
    $
    309,393
    
    
    $
    453,513Adjustments to reconcile net income to net cash provided by operating activities:Deferred tax assets
    
    
    (89,691
    )
    
    
    (89,691
    )Changes in operating assets and liabilities:Interest receivable
    
    
    96,517
    
    
    
    (195,318
    )Other current assets
    
    
    (5,776
    )
    
    
    (55,032
    )Accrued expenses
    
    
    67,606
    
    
    
    94,327Income taxes payable
    
    
    114,171
    
    
    
    188,415Franchise taxes payable
    
    
    (17,127
    )
    
    
    51,539Net cash provided by operating activities
    
    
    475,093
    
    
    
    447,753Net cash used in investing activities:Cash and cash equivalents held in Trust Account
    
    
    
    
    
    
    (78,815,000
    )Cash flows from financing activities:Proceeds from notes payable to stockholders
    
    
    
    
    
    
    200,000Proceeds from common shares issued to founders
    
    
    
    
    
    
    25,000Proceeds from public offering
    
    
    
    
    
    
    80,000,000Proceeds from issuance of insider warrants
    
    
    
    
    
    
    2,400,000Repayment of notes payable to stockholders
    
    
    
    
    
    
    (200,000
    )Payment of underwriters discount and offering
    
    
    
    
    
    
    (3,458,521
    )Net cash provided by financing activities
    
    
    
    
    
    
    78,966,479Net increase in cash
    
    
    475,093
    
    
    
    599,232Cash and cash equivalents, beginning of period
    
    
    124,139
    
    
    
    Cash and cash equivalents, end of period
    
    $
    599,232
    
    
    $
    599,232Supplemental disclosure of non-cash financing activities:Deferred underwriters fees
    
    $
    
    
    
    $
    2,730,000Supplemental
disclosure of cash flow information:Cash paid
for income taxes
    
    $
    150,000
    
    
    $
    150,000
  4




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IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 Note 1  Organization and Nature of Business Operations
      5




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IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 NOTES TO CONDENSED FINANCIAL STATEMENTS  (Continued)
   
  Note 2 Summary of Significant Accounting Policies
 Basis of presentation
  Concentration of Credit Risk
  Cash and cash equivalents
  6




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IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 NOTES TO CONDENSED FINANCIAL STATEMENTS  (Continued)
 Preferred Stock
  Net Income per Common Share
   New Accounting Pronouncements
   Redeemable common stock
  7




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IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 NOTES TO CONDENSED FINANCIAL STATEMENTS  (Continued)
 Note 3  Initial Public Offering
   Note 4  Related Party Transactions
      8




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IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 NOTES TO CONDENSED FINANCIAL STATEMENTS  (Continued)
  Note 5  Income taxes
    For the Three
    
    
    Period from June 1, 2007Months Ended
    
    
    (Inception) toMarch 31, 2008
    
    
    March 31, 2008Current Tax ProvisionFederal
    
    $
    229,171
    
    
    $
    303,416State
    
    
    65,363
    
    
    
    86,538Total Current
    
    
    294,534
    
    
    
    389,954Deferred Tax Provision:Federal
    
    
    (69,787
    )
    
    
    (69,787
    )State
    
    
    (19,904
    )
    
    
    (19,904
    )Total Deferred
    
    $
    (89,691
    )
    
    $
    (89,691
    )
 9




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IDEATION ACQUISITION CORP.
 (a corporation in the development stage)
 NOTES TO CONDENSED FINANCIAL STATEMENTS  (Continued)
  For the Three
    
    
    Period from June 1,Months Ended
    
    
    2007 (Inception) toMarch 31, 2008
    
    
    March 31, 2008Provision at statutory rate
    
    $
    178,840
    
    
    $
    256,284State taxes, net of federal benefit
    
    
    30,003
    
    
    
    43,979Provision for income taxes
    
    $
    204,843
    
    
    $
    300,263
 Note 6  Fair Value Measurements
 Fair Value Measurement Effective Date of FASB Statement No. 157,
   SignificantQuoted Prices in
    
    
    Significant Other
    
    
    UnobservableMarch 31,
    
    
    Active Markets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    2008
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Cash and cash equivalents
    
    $
    .6
    
    
    $
    .6
    
    
    $
    
    
    
    $
    Cash and cash equivalents held in trust
    
    
    78.8
    
    
    
    78.8
    
    
    
    
    
    
    
    Total
    
    $
    79.4
    
    
    $
    79.4
    
    
    $
    
    
    
    $
    
  10




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IDEATION ACQUISITION CORP.
(a corporation in the development stage)
 NOTES TO CONDENSED FINANCIAL STATEMENTS  (Continued)
 Note 7 Commitments and contingencies
      11




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ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  Special Note About Forward-Looking Statements
  Overview
      12




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Results of Operation
    Liquidity and Capital Resources
      Recent Accounting Pronouncements
  13




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Redeemable common stock
  Critical Accounting Policies
 Basis of presentation
  Concentration of Credit Risk
  Cash and cash equivalents
  Preferred Stock
  Net Income per Common Share
   14




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ITEM 3.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
 ITEM 4.
    
    CONTROLS AND PROCEDURES
     Limitations on the Effectiveness of Controls
  15




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IDEATION ACQUISITION CORP.
 
 PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A. RISK FACTORS
  
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
 31.1
    
    Certification of Chief Executive Officer Pursuant to SEC Rule 13a-14(a)/15d-14(a)31.2
    
    Certification of Chief Financial Officer Pursuant to SEC Rule 13a-14(a)/15d-14(a)32.1
    
    Certification of Chief Executive Officer Pursuant to 18 U.S.C. §135032.2
    
    Certification of Chief Financial Officer Pursuant to 18 U.S.C. §1350
 
 *
    
    Filed herewith 16




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SIGNATURES
  Date: May 14, 2008
    IDEATION ACQUISITION CORP./s/ Robert N. FriedRobert N. FriedPresident, Chief Executive Officer and Director
(Principal Executive Officer) Date: May 14, 2008/s/ Rao UppaluriRao UppaluriTreasurer and Director
(Principal Financial Officer) 17