**UNITED
      STATES SECURITIES AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**





**FORM
      10-QSB/A**


**(Amendment
      No. 1)**




**x**
            QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934 FOR THE QUARTERLY PERIOD ENDED**December
                31, 2007**o
            TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934 FOR THE TRANSITION PERIOD FROM ______________ TO
                ______________




**SKRM
      Interactive, Inc.**


**(Formerly
      SKREEM Entertainment Corp.)**


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




**Delaware**
            
            **0-2236**
            
            **33-0565710**(State
                or other jurisdiction of incorporation)
            
            (Commission
                File No.)
            
            (IRS
                Employer Identification No.)





**14553
      South 790 West**


**Bluffdale,
      Utah 84065**


(Address
      of principal executive offices, including zip code)





Issuer’s
      telephone number, including area code: (866) 922-9533





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




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Act). Yes o No x





As
      of
      February 25 , 2008 the
      issuer had 77,320,292 shares
      of common stock outstanding.





Transitional
      Small Business Disclosure Format (check one): Yes o No x














TABLE
      OF
      CONTENTS





SKRM
      Interactive, Inc.


(formerly
      SKREEM Entertainment Corp.)





Part
                I. Financial InformationExplanatory
                Note
            1Item
                1.
            Financial
                Statements
            2Unaudited
                Consolidated Balance Sheet - as of December 31, 2007
            2Unaudited
                Consolidated Statements of Operations for the nine months ended December
                31, 2007 and 2006 and for the period from inception, September 16,
                2002,
                to December 31, 2007
            3Unaudited
                Consolidated Statements of Operations for the three months ended
                December
                31, 2007 and 2006
            4Unaudited
                Consolidated Statements of Cash Flows for the nine months ended December
                31, 2007 and 2006 and for the period from inception, September 16,
                2002,
                to December 31, 2007
            5Notes
                to the Unaudited Consolidated Financial Statements
            6Item
                2.
            Management’s
                Discussion and Analysis or Plan of Operation
            8Item
                3.
            Controls
                and Procedures
            14Part
                II. Other InformationItem
                2.
            Unregistered
                Sales of Equity Securities and Use of Proceeds
            14Item
                6.
            Exhibits
            14









**EXPLANATORY
      NOTE**




SKRM
      Interactive, Inc. (“SKRM” or the “Company”) is filing this Amendment No. 1
      to Quarterly Report on Form 10-QSB/A for the purposes of adjusting the
      presentation of weighted shares in the Company’s financial statements set forth
      in Part I, Item 1, revising certain information presented in footnote number
      2
      to the Company’s financial statements set forth in Part I, Item 1, revising the
      disclosure presented under the heading “Management’s Discussion and Analysis or
      Plan of Operation” set forth in Part I, Item 2, modifying the disclosure
      presented under the heading “Controls and Procedures” set forth in Part I, Item3
      and updating the disclosure presented under the heading “Unregistered Sales of
      Equity Securities and Use of Proceeds set forth in Part II, Item 2.




The
      Items
      which are amended and restated herein are:




1.
        Part I, Item 1 - Financial Statements (including applicable
      footnotes);


2.
        Part I, Item 2 - Management’s Discussion and Analysis of
      Financial Condition or Plan of Operation


3.
        Part I, Item 3 – Controls and Procedures


4.
        Part II, Item 2 – Unregistered Sales of Equity Securities and
      Use of Proceeds





The
      remaining Items contained within this Amendment No. 1 to the Company’s
      Quarterly Report on Form 10-QSB/A consist of all other Items originally
      contained in the Company’s Quarterly Report on Form 10-QSB for the quarter
      ended December 31, 2007 as filed with the Securities and Exchange Commission
      on
      February 19, 2008. These remaining Items are not amended hereby, but are
      included for the convenience of the reader. In order to preserve the nature
      and
      character of the disclosures set forth in such Items as originally filed, except
      as expressly noted herein, this amendment continues to speak as of the date
      of
      the original filing, and the Company has not updated the disclosures in this
      report to speak as of a later date. While this report primarily relates to
      the
      historical periods covered, events may have taken place since the original
      filing that might have been reflected in this report if they had taken place
      prior to the original filing.




1





**Item
      1. FINANCIAL STATEMENTS**


SKRM
      Interactive, Inc.


(formerly
      SKREEM ENTERTAINMENT CORPORATION)


(A
      DEVELOPMENT STAGE COMPANY)


UNAUDITED
      CONSOLIDATED BALANCE SHEET


As
      of
      December 31, 2007




December
                31,2007ASSETSCurrent
                assets:Cash
                and Cash equivalents
            
            $
            156Total
                assets
            
            $
            156LIABILITIES
                AND SHAREHOLDERS' DEFICITCurrent
                liabilities:Accounts
                payable and accrued liabilities
            
            $
            50,147Notes
                payable – shareholder
            
            
            649,200Total
                current liabilities
            
            
            699,347CTotal
                liabilities
            
            
            699,347Shareholders'
                deficit:PrPreferred
                shares - $0.001 par value; 1,000,000 authorized, no shares issued
                or
                outstanding
            
            
            -Common
                shares - $0.001 par value; 199,000,000 authorized; 77,320,292 shares
                issued and outstanding
            
            
            77,320Additional
                paid - in capital (Deficit)
            
            
            (714,080
            )Deficit
                accumulated during the development stage
            
            
            (62,431
            )Total
                shareholders' deficit
            
            
            (699,191
            )Total
                liabilities and shareholders' deficit
            
            $
            156




The
      accompanying notes are an integral part of these unaudited consolidated
      financial statements




2




SKRM
      Interactive, Inc.


(formerly
      SKREEM ENTERTAINMENT CORPORATION)


(A
      DEVELOPMENT STAGE COMPANY)


UNAUDITED
      CONSOLIDATED STATEMENTS OF OPERATIONS For the Nine Months


Ended
      December 31, 2007 and 2006 and for the Period From Inception, September 16,
      2002,


to
      December 31, 2007




Nine
                Months Ended
            
            Inception
                toDecember 31,
            
            December 31,
            
            December 31,2007
            
            2006
            
            2007ExpensesOperatingGeneral
                and administrative
            
            $
            58,845
            
            
            -
            
            $
            62,431Total
                expenses
            
            
            58,845
            
            
            -
            
            
            62,431Loss
                from operations
            
            
            (58,845
            )
            
            -
            
            
            (62,431
            )Net
                Loss
            
            $
            (58,845
            )
            $
            -
            
            $
            (62,431
            )Weighted
                Average Shares Outstanding – basic and diluted
            
            
            52,982,137
            
            
            50,000,000Basic
                and diluted loss per shareContinuing
                Operations
            
            $
            (0.00
            )
            $
            0.00Net
                Loss
            
            $
            (0.00
            )
            $
            0.00





The
      accompanying notes are an integral part of these unaudited consolidated
      financial statements




3




SKRM
      Interactive, Inc.


(formerly
      SKREEM ENTERTAINMENT CORPORATION)


(A
      DEVELOPMENT STAGE COMPANY)


UNAUDITED
      CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended


December
      31, 2007 and December 31, 2006





Three Months EndedDecember 31
            
            December 312007
            
            2006ExpensesGeneral
                and administrative
            
            $
            58,845
            
            $
            -Total
                expenses
            
            
            58,845
            
            
            -Loss
                from operations
            
            
            (58,845
            )
            
            -Net
                Loss
            
            $
            (58,845
            )
            $
            -Weighted
                Average Shares Outstanding - basic and diluted
            
            
            63,274,176
            
            
            50,000,000Loss
                Per Share - basic and diluted
            
            $
            (0.00
            )
            $
            0.00




The
      accompanying notes are an integral part of these consolidated financial
      statements.




4




SKRM
      Interactive, Inc.


(formerly
      SKREEM ENTERTAINMENT CORPORATION)


(A
      DEVELOPMENT STAGE COMPANY)


UNAUDITED
      CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months


Ended
      December 31, 2007 and 2006 and for the Period From Inception, September 16,
      2002,


to
      December 31, 2007





Nine
                Months Ended
            
            Inception
                toDecember
                31,
            
            December
                31,
            
            December
                31,2007
            
            2006
            
            2007Cash
                Flows from Operating Activities:Net
                Loss
            
            $
            (58,845
            )
            $
            -
            
            $
            (62,431
            )Loss
                from continuing operations
            
            
            (58,845
            )
            
            -
            
            
            (62,431
            )Adjustments
                to reconcile net loss to net cash used in operating
                activities:Changes
                inAccounts
                payable and accrued liabilities
            
            
            50,147
            
            
            -
            
            
            50,147Net
                cash used in operating activities
            
            
            (8,698
            )
            
            -
            
            
            (12,284
            )Cash
                Flows from Investing Activities
            
            
            -
            
            
            -
            
            
            -Cash
                Flows from Financing ActivitiesProceeds
                from issuance of common stock
            
            
            -
            
            
            -
            
            
            3,586Net
                reverse merger adjustments
            
            
            8,854
            
            
            -
            
            
            8,854Net
                cash provided by financing activities
            
            
            8,854
            
            
            -
            
            
            12,440Net
                increase (decrease) in cash and cash equivalents
            
            
            156
            
            
            -
            
            
            156Cash
                and cash equivalentsBeginning
                of period - continuing operations
            
            
            -
            
            
            -
            
            
            -End
                of period - continuing operations
            
            $
            156
            
            $
            -
            
            $
            156




The
      accompanying notes are an integral part of these unaudited consolidated
      financial statements




5




SKRM
      Interactive, Inc.


(formerly
      SKREEM ENTERTAINMENT CORPORATION)


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS





Note
      1 -
      BASIS OF PRESENTATION





The
      accompanying unaudited consolidated condensed financial statements of SKRM
      Interactive, Inc. (“SKRM” or the “Company”), have been prepared in accordance
      with accounting principles generally accepted in the United States of America
      for interim financial information and with the instructions to Form 10-QSB
      and
      Item 310(b) of Regulation S-B. They do not include all of the information and
      footnotes required by accounting principles generally accepted in the United
      States of America for complete financial statements. In the opinion of
      management, all adjustments, consisting only of normal recurring adjustments,
      considered necessary for a fair presentation, have been included in the
      accompanying unaudited consolidated financial statements. Operating results
      for
      the periods presented are not necessarily indicative of the results that may
      be
      expected for the full year.





Note
      2 –
REVERSE MERGER





On
      September 12, 2007, the Company, Jeffrey Martin (a principal shareholders of
      the
      Company), Sector 10 Services-USA, Inc. (“Sector 10 Services”), Sector 10
      Holdings, Inc. (“Sector 10 Holdings”) and the Pericles DeAvila Institute for
      Humanitarian Studies (the “DeAvila Institute”) entered into a Stock Exchange
      Agreement (the “Exchange Agreement”) setting forth the terms and conditions upon
      which the above named parties thereto proposed to consummate a stock exchange
      transaction pursuant to which Sector 10 Holdings and the DeAvila Institute
      would
      transfer to the Company approximately 75% of the issued and outstanding shares
      of common stock of Sector 10 Services in exchange for (i) the Company’s issuance
      and delivery to Sector 10 Holdings and the DeAvila Institute of 47,058,824
      and
      2,941,176 newly-issued shares of the Company’s common stock (the “Common
      Stock”), respectively, and (ii) Mr. Martin’s transfer and delivery to Sector 10
      Holdings and the DeAvila Institute of 14,117,674 and 882,353 outstanding shares
      of Common Stock, respectively (collectively, the “Sector 10 Transaction”). A
      summary of the terms of the Exchange Agreement and related details were
      originally disclosed in a Current Report on Form 8-K filed with the Securities
      and Exchange Commission on October 11, 2007 (the “October Form
      8-K).





As
      disclosed in the October Form 8-K, the consummation of the transactions
      contemplated by the Exchange Agreement was conditioned upon the Company’s
      amendment of its Certificate of Incorporation to authorize the issuance of
      sufficient shares of the Company’s common stock to consummate the transactions
      contemplated by the Exchange Agreement. On or about September 13, 2007 the
      Company obtained the written consent of the holders of sufficient shares of
      the
      issued and outstanding shares of the Company’s common stock to amend the
      Company’s Certificate of Incorporation for the purpose of increasing the
      authorized capital of the Company to 200,000,000 shares of capital stock,
      consisting of 190,000,000 shares of Common Stock and 10,000,000 shares of
      preferred stock. Based on the approval of the Company’s shareholders holding a
      majority of the outstanding shares of the Common Stock, on September 15, 2007,
      the Company filed a Certificate of Amendment to the Company’s Certificate of
      Incorporation for the purpose of affecting the increase in the number of
      authorized shares of the Company’s capital stock.





In
      November 2007, based upon the approval of the Company’s shareholders holding a
      majority of the outstanding shares of the Company’s common stock of the
      Certificate of Amendment, and the filing of the Certificate of Amendment with
      the Secretary of State of the State of Delaware, the Company completed the
      transactions contemplated by the Exchange Agreement, including the issuance
      and
      delivery to Sector 10 Holdings and the DeAvila Institute of 47,058,824 and
      2,941,176 newly-issued shares of the Company’s common stock, respectively. The
      Company believes the issuance of such shares to Sector 10 Holdings and the
      DeAvila Institute was exempt from registration under the Securities Act of
      1933,
      as amended (the “Securities Act”), pursuant to the provisions of Section 4(2)
      thereof.





The
      shareholders of Sector 10 Services owned 85% of the issued and outstanding
      shares of Common Stock immediately after the Sector 10 Transaction was completed
      in November 2007. The Sector 10 Transaction is treated as a reverse merger
      for
      accounting purposes, with Sector 10 Services treated as the surviving entity.
      The Company’s financial statements have been adjusted to eliminate all prior
      SKRM Interactive information and include prior Sector 10 Services financial
      information.




6




A
      summary
      of significant adjustments to the balance sheet of the Company resulting from
      the Sector 10 Transaction is as follows:




DR
      (CR)




Assets
            
            Liabilities
            
            Common
              Stock
            
            Paid in
              Capital
            
            Retained
              Earnings
            
            Common
              Stock IssuedBalance
                at 9/30 – original 10Q
            
            
            99,768
            
            
            (2,035,384
            )
            
            (26,548
            )
            
            (7,080,898
            )
            
            9,043,062
            
            
            26,548,292Net
                restate adjustments
            
            
            (6,990
            )
            
            (6,651,012
            )
            
            -
            
            
            -
            
            
            6,658,002
            
            
            -Balance
                at 9/30 – amended 10Q
            
            
            92,778
            
            
            (8,686,396
            )
            
            (26,548
            )
            
            (7,080,898
            )
            
            15,701,064
            
            
            26,548,292Shares
                issued in exchange
            
            
            
            
            
            
            
            
            (50,000
            )
            
            50,000
            
            
            
            
            
            50,000,000Merger
                Adjustments
            
            
            (92,622
            )
            
            7,987,049
            
            
            (772
            )
            
            7,744,978
            
            
            (15,638,633
            )
            
            772,000Balance
                at 12/31/2007
            
            
            156
            
            
            (699,347
            )
            
            (77,320
            )
            
            714,080
            
            
            62,431
            
            
            77,320,292





The
      reporting period for the new entity has been requested to continue with a March
      31 fiscal year end. The Company is currently conducting its operations under
      the
      assumed name of Sector 10 Services, and management intends to seek shareholder
      approval to change the name of the Company to Sector 10, Inc. The Company’s
      management currently anticipates that the change of the Company’s name will
      occur prior to the conclusion of the Company’s fiscal year ending March 31,
      2008.





Note
      3 –
EQUITY





*During
      the Quarter ended: December 31, 2007:*





In
      November 2007, the Company received approval to increase its authorized capital
      stock to 200,000,000 shares. With this authorization, the Company issued
      50,000,000 shares of Common Stock (47,058,824 shares to Sector 10 Holdings
      Inc
      and 2,941,176 shares to the DeAvila Institute) as part of the Sector 10
      Transaction.





On
      November 30, 2007, the Company redeemed outstanding convertible notes in the
      original principal amount of $600,000, in exchange for the issuance of 1,200,000
      shares of Common Stock. A shareholder provided the shares in the initial
      transaction. The financial statements present a liability to shareholders of
      649,200 at December 31, 2007. This amount will be converted to equity when
      the
      1,200,000 shares are issued to the shareholder. The shares are expected to
      be
      issued before the conclusion of the Company’s fiscal year ending March 31, 2008.





On
      November 30, 2006, the Company issued warrants to purchase 10,000,000 shares
      of
      Common Stock at an exercise price of $1.75 per share to its convertible note
      holders. The warrants were amended as part of the November 30, 2007 repurchase
      agreement to remove any variable factors that could require adjustments to
      the
      outstanding warrants. As of December 31, 2007, the exercise price of the
      warrants was fixed at $1.75 and the warrants have been treated as equity for
      financial reporting purposes.





As
      a
      result of the Sector 10 Transaction, various adjustments were required to
      eliminate the prior SKRM Interactive activity and to include the information
      regarding Sector 10 Services. The merger adjustments and their impact on the
      Company’s balance sheet are identified in the schedule presented above in Note 2
– Reverse Merger.





Note
      4 –
GOING CONCERN





As
      of
      December 31, 2007, the Company’s revenue generating activities were not in
      place, and the Company has incurred significant losses since inception. These
      factors raise substantial doubt about the Company’s ability to continue as a
      going concern.




7




Management
      is currently negotiating contracts that are anticipated to generate revenues
      in
      the 4 th quarter
      of the Company’s fiscal year ending March 31, 2008. Management also intends to
      seek additional capital through equity and/or debt financing to assist the
      Company until profitable operations can be achieved. There can be no assurance
      that such funds will be available to the Company or available on terms
      acceptable to the Company. The financial statements do not include any
      adjustments that might result from the outcome of these uncertainties.





Note
      5 –
INCOME TAXES





Income
      taxes are accounted for using the asset and liability method. Deferred tax
      assets and liabilities are recognized for the future tax consequences
      attributable to differences between the financial statement carrying amounts
      of
      existing assets and liabilities and their respective tax bases and net operating
      loss carryforwards. Valuation allowances are established when necessary to
      reduce net deferred tax assets to the amount expected to be realized.





The
      Company’s financial statements for the three and nine-month periods ended
      December 31, 2007 and 2006 do not include any provision for income taxes.
      Accordingly, deferred tax assets have been entirely offset by valuation
      allowances. The difference between the amounts of income tax benefit that would
      result from applying domestic federal statutory income tax rates to the net
      loss
      and the net deferred tax assets is related to certain nondeductible expenses,
      state income taxes, and the change in the valuation allowance.





In
      June
      2006, FASB issued FIN48, *Accounting
      for Uncertainty in Income Taxes – an Interpretation of FASB Statement No.
      109.* It is
      effective for fiscal years beginning after December 15, 2006. The Company has
      determined that the application of FIN 48 is immaterial to the Company’s
      financial statements for the current period. As the Company expects the business
      to change significantly in the future, an evaluation regarding the impact of
      FIN
      48 will be reviewed on a quarterly basis.





**Item**  **2** . **Management’s
      Discussion And Analysis Or Plan Of Operation**




This
      report contains forward-looking statements within the meaning of Section 29a
      of
      the Securities Act of 1933, as amended, and Section 21e of the Securities
      Exchange Act of 1934, as amended. These forward-looking statements are subject
      to numerous risks and uncertainties that could cause actual results to differ
      materially from historical or anticipated results. You should not place undue
      reliance on such forward-looking statements, and, when considering such
      forward-looking statements, you should keep in mind the risk factors noted
      in
      this report, including the section of this report entitled “Risks Related to Our
      Business and Operations.” You should also keep in mind that all forward-looking
      statements are based on management’s existing beliefs about present and future
      events outside of management’s control and on assumptions that may prove to be
      incorrect. The following discussion and analysis should be read in conjunction
      with the Company’s financial statements and notes thereto, which are included
      elsewhere in this report.




**Overview**




On
      September 12, 2007, the Company, Jeffrey Martin (a principal shareholders of
      the
      Company), Sector 10 Services-USA, Inc. (“Sector 10 Services”), Sector 10
      Holdings, Inc. (“Sector 10 Holdings”) and the Pericles DeAvila Institute for
      Humanitarian Studies (the “DeAvila Institute”) entered into a Stock Exchange
      Agreement (the “Exchange Agreement”) setting forth the terms and conditions upon
      which the above named parties thereto proposed to consummate a stock exchange
      transaction pursuant to which Sector 10 Holdings and the DeAvila Institute
      would
      transfer to the Company approximately 75% of the issued and outstanding shares
      of common stock of Sector 10 Services in exchange for (i) the Company’s issuance
      and delivery to Sector 10 Holdings and the DeAvila Institute of 47,058,824
      and
      2,941,176 newly-issued shares of the Company’s common stock (the “Common
      Stock”), respectively, and (ii) Mr. Martin’s transfer and delivery to Sector 10
      Holdings and the DeAvila Institute of 14,117,674 and 882,353 outstanding shares
      of Common Stock, respectively (collectively, the “Sector 10 Transaction”). A
      summary of the terms of the Exchange Agreement and related details were
      originally disclosed in a Current Report on Form 8-K filed with the Securities
      and Exchange Commission on October 11, 2007 (the “October Form
      8-K).




8




In
      November 2007, based upon the approval by the Company’s shareholders of the
      Certificate of Amendment, and the filing of the Certificate of Amendment with
      the Secretary of State of the State of Delaware, the Company completed the
      transactions contemplated by the Exchange Agreement, including the issuance
      and
      delivery to Sector 10 Holdings and the DeAvila Institute of 47,058,824 and
      2,941,176 newly-issued shares of Common Stock, respectively. The Company
      believes the issuance of such shares to Sector 10 Holdings and the DeAvila
      Institute was exempt from registration under the Securities Act of 1933, as
      amended (the “Securities Act”), pursuant to the provisions of Section 4(2)
      thereof.





Prior
      to
      the execution of the Exchange Agreement, the Company entered into agreements
      with Sterling LLC (“Sterling”) and HLB & Associates, LLC (“HLB”), pursuant
      to which Sterling agreed to provide to the Company and its affiliates certain
      research, market review, strategic analysis, review and planning services and
      HLB agreed to provide to the Company certain planning, development, advertising
      and promotional services. As a result of the Company’s consummation of the
      transactions contemplated by the Exchange Agreement, and the corresponding
      change in the nature of the Company’s business operations, the Company’s Board
      of Directors (the “Board”) determined that the Company’s continued performance
      of the Sterling and HLB agreements was not in the best interests of the Company
      and its shareholders. Accordingly, on December 17, 2007 the Board terminated
      the
      Sterling and HLB agreements described above. The Company did not incur any
      early
      termination penalties as a result of the termination of either agreement.





Sector
      10
      Services has been developing relationships and presently has contracts under
      review that could generate significant revenues for the Company. The initial
      contracts are expected to be completed before the conclusion of the year ending
      March 31, 2008. If the Company is successful in negotiating and executing
      purchase contracts, and if the Company is able to expand its operations to
      fulfill product orders which could be issued under those contracts, neither
      possibility of which the Company can presently assure, the Company’s management
      believes the Company’s revenues and related cash flows of the Company would have
      a material impact on the Company financial statements.





**Going
      Concern Qualification**





The
      notes
      to the Company’s consolidated financial statements disclose that the limited
      cash flow of the Company has been absorbed in operating activities and the
      Company has incurred net losses since inception, and the Company has a working
      capital deficiency. In the event that funding from internal sources or from
      public or private financing is insufficient to fund the Company’s business, the
      Company will have to substantially cut back its level of spending, which could
      substantially curtail the Company’s operations. These factors raise substantial
      doubt about the Company’s ability to continue as a going concern. The Company’s
      going concern uncertainty may affect its ability to raise additional capital,
      and may also affect its ability to raise additional capital, and may also affect
      its relationships with suppliers and customers. Investors should carefully
      examine the Company’s financial statements.




**Results
      of Operations**





Nine
      Months Ended December 31, 2007 as Compared to the Nine Months Ended December
      31,
      2006





*Revenues
      -*





The
      Company had no revenues for the nine months ended December 31, 2007. The Company
      is currently negotiating various contracts which the Company’s management
      currently believes will generate revenues beginning in the fiscal quarter ending
      March 31, 2008.





The
      Company had no revenues for the nine months ended December 31,
      2006.





*Operating
      Expenses -*





All
      expenses for the Company were treated as general and administrative expenses.
      The Company had no separate operating expenses for the nine months ended
      December 31, 2007 or December 31, 2006. The Company’s management anticipates
      that the Company will begin to incur operating expenses if and when certain
      prospective contracts are finalized. The Company’s management currently believes
      that the contracts will generate revenues and operating expenses beginning
      in
      the fiscal quarter ending March 31, 2008.




9




*General
      and Administrative Expenses -*





General
      and administrative expenses were $58,845 for the nine months ended December
      31,
      2007. These expenses consisted primarily of accounting, consulting and
      professional fees of $52,438 and other expenses of $6,407.





General
      and administrative expenses were $0 for the nine months ended December 31,
      2006.





Three
      Months Ended December 31, 2007 as Compared to the Three Months Ended December
      31, 2006





*Revenues
      -*





The
      Company had no revenues for the three months ended December 31, 2007. The
      Company is currently negotiating various contracts which the Company’s
      management currently believes will generate revenues beginning in the fiscal
      quarter ending March 31, 2008.





The
      Company had no revenues for the three months ended December 31,
      2006.





*Operating
      Expenses -*





All
      expenses for the Company were treated as general and administrative expenses.
      The Company had no separate operating expenses for the three months ended
      December 31, 2007 or December 31, 2006. The Company’s management anticipates
      that the Company will begin to incur operating expenses if and when certain
      prospective contracts are finalized. The Company’s management currently believes
      that the contracts will generate revenues and operating expenses beginning
      in
      the fiscal quarter ending March 31, 2008.




*General
      and Administrative Expenses -*





General
      and administrative expenses were $58,845 for the three months ended December
      31,
      2007. These expenses are made up in large part by accounting, consulting and
      professional fees of $52,438 and other expenses of $6,407.





General
      and administrative expenses were $0 for the three months ended December 31,
      2006.





**Liquidity
      and Capital Resources**





As
      of
      December 31, 2007, SKRM had cash of $156. This amount is not sufficient to
      meet
      the Company’s working capital requirements for the balance of the fiscal year
      ending March 31, 2008 or for any future period.





The
      Company is currently negotiating various contracts which the Company’s
      management currently believes will generate cash flow in the fiscal quarter
      ending March 31, 2008. The Company may consider also generating funding from
      the
      sale of shares of Common Stock to in private transactions. There is no guarantee
      that the Company will be successful in arranging financing on acceptable terms.
      If the Company is not able to raise additional debt or equity, the Company’s
      ability to continue its business operations is highly unlikely.





The
      Company does not currently have any arrangements for financing and the Company
      may not be able to find such financing if required. Obtaining additional
      financing would be subject to a number of factors, including investor sentiment.
      Market factors may make the timing, amount, terms or conditions of additional
      financing unavailable to the Company.





The
      Company’s continuation as a going concern is dependent upon continued financial
      support from the Company’s shareholders or other parties.





*Total
      Assets -*





The
      Company had $156 in total assets as of December 31, 2007, comprised solely
      of
      cash.




10




*Total
      Liabilities -*





The
      Company had $699,347 in total liabilities as of December 31, 2007. The Company’s
      total liabilities as of December 31, 2007 were comprised of (a) $50, 197 of
      accounts payable and accrued liabilities and (b) $649,200 in notes payable
      to a
      shareholder. The Company is currently in negotiation with one of its
      shareholders with respect to the satisfaction of the $649,200 in notes payable.
      If the Company is successful in those negotiations, the Company hopes to satisfy
      the full amount of that debt through the issuance of shares of Common
      Stock.





*Operating
      Activities -*





Cash
      used
      in operations for the nine months and three months ended December 31, 2007
      was
      $8,698. Operating activities were affected by the change in accounts payable
      and
      accrued liabilities of $50,197.





Cash
      used
      in operations for the nine months and three months ended December 31, 2006
      was
      $0.





*Investing
      Activities -*





There
      was
      no cash from investing activities for the nine months or three months ended
      December 31, 2007 or December 31, 2006.





*Financing
      Activities -*





Cash
      used
      in financing activities for the nine months and the three months ended December
      31, 2007 was $8,854 comprised from net adjustments attributed to the Sector
      10
      Transaction.





Cash
      used
      in financing for the nine months and the three months ended December 31, 2006
      was $0.




**Risks
      Related to the Company’s Business and Operations**




*Investing
      in the Common Stock involves a high degree of risk. You should carefully
      consider the risks described below, and all of the other information set forth
      in this report before deciding to invest in shares of the Company’s common
      stock. In addition to historical information, the information in this report
      contains forward-looking statements about the Company’s future business and
      performance. The Company’s actual operating results and financial performance
      may be different from what the Company’s management expects as of the date of
      this report. The risks described in this report represent the risks that the
      Company’s management has identified and determined to be material to the
      Company. Additional risks and uncertainties not currently known to the Company’s
      management, or that the Company’s management currently deems to be immaterial,
      may also materially harm the Company’s business operations and financial
      condition.*





***Going
      Concern Qualification***





The
      Company has generated limited cash flow, has incurred net losses since inception
      and has a working capital deficiency. In the event that contracts are not
      executed, the Company will not be able to generate revenues sufficient to cover
      anticipated expenses. Existing funding from internal sources or from public
      or
      private financing is insufficient to fund the Company’s business. If the Company
      is unable to quickly generate capital from operating activities or from external
      sources, the Company will have to substantially curtail its operations and
      will
      likely need to suspend its operations entirely. These factors raise substantial
      doubt about the Company’s ability to continue as a going concern. The Company’s
      going concern uncertainty will likely affect its ability to raise additional
      capital, and may also affect its relationships with suppliers and prospective
      customers. Investors should carefully examine the Company’s financial
      statements.





11




***The
      Company has not generated revenues and has not executed any contracts for the
      sale of the Company’s products.***





The
      Company has not generated any revenues. Based on the consummation of the Sector
      10 Transaction, the Company has changed its business operations. Currently
      the
      Company is negotiating contracts that may generate revenues; however, none
      of
      those contracts has been executed, and the Company can provide no assurance
      that
      any such contracts will ever be executed. There can be no assurance that the
      Company will generate any revenues. If the Company does not generate revenues
      in
      the near term, the Company will have to substantially curtail its operations
      and
      will likely need to suspend its operations entirely.





***The
      Company uses outside sources to fulfill contract obligations and has limited
      control over the provider’s ability to meet the Company
      obligations.***





The
      Company will be required to supply various equipment and services under the
      contracts currently under negotiation. If the contracts are executed, of which
      the Company can provide no assurance, the Company intends to engage third-party
      suppliers to manufacture the products the Company proposes to sell under the
      contracts. The Company has no control over such third-party suppliers. If any
      or
      all of those third-party suppliers fails to supply sufficient products on a
      timely basis to meet the terms of any contract, the Company would be unable
      to
      perform its obligations to its customers, if any. If the Company is successful
      in negotiating and executing contracts for the sale of its products and if
      a
      third-party supplier fails to perform its obligations under its arrangement
      with
      the Company, the Company’s financial condition and results of operation would be
      materially and adversely affected.





***The
      directors, executive officers and principal shareholders of the Company have
      effective control of the Company, preventing non-affiliate shareholders from
      significantly influencing the Company’s direction and
      future.***





The
      Company’s directors, officers, and principal shareholders and their affiliates
      control in excess of 80% **** of the
      Company’s outstanding shares of common stock and are expected to continue to
      control a majority of our outstanding common stock following any financing
      transactions projected for the foreseeable future. These directors, officers
      and
      affiliates effectively control all matters requiring approval by the Company’s
      shareholders, including any determination with respect to the acquisition or
      disposition of assets, future issuances of securities, declarations of dividends
      and the election of directors. This concentration of ownership may also delay,
      defer, or prevent a change in control and otherwise prevent stockholders other
      than management’s affiliates from influencing the Company’s direction and
      future.





***The
      market for the Company’s stock is thin and subject to manipulation.***





The
      volume of trading in the Common Stock is limited and can be dominated by a
      few
      individuals. The limited volume, if any, can make the price of the Common Stock
      subject to manipulation by one or more shareholders and will significantly
      limit
      the number of shares of Common Stock that one can purchase or sell in a short
      period of time. An investor may find it difficult to dispose of shares of Common
      Stock or obtain a fair price for the Common Stock in the market.





***The
      market price for the Common Stock is volatile and may change dramatically at
      any
      time.***





The
      market price of the Common Stock is highly volatile. The price for the Common
      Stock may change dramatically as the result of announcements of the Company’s
      operating or financial results, the rate of the Company’s expansion, significant
      litigation or other factors or events that would be expected to affect the
      Company’s business or financial condition, results of operations and other
      factors specific to the Company’s business and future prospects. In addition,
      the market price for the Common Stock may be affected by various factors not
      directly related to the Company’s business, including the following:





·
            intentional
                manipulation of the price of the Common Stock by existing or future
                stockholders;·
            short
                selling of the Common Stock or related derivative
                securities;·
            a
                single acquisition or disposition, or several related acquisitions
                or
                dispositions, of a large number of the Company’s shares of Common
                Stock;




12




·
            the
                interest, or lack of interest, of the market in the Company’s business
                sector, without regard to the Company’s financial condition or results of
                operations;


·
            the
                adoption of governmental regulations and similar developments in
                the
                United States or abroad that may affect the Company’s ability to offer the
                Company’s products and services or affect the Company’s cost structure;·
            developments
                in the businesses of companies that purchase the Company’s products;
                and


·
            economic
                and other external market factors, such as a general decline in market
                prices due to poor economic indicators or investor
                distrust.





***Our
      business may be affected by increased compensation and benefits
      costs.***




The
      Company is currently negotiating various contracts that may generate revenues
      beginning in the quarter ended March 31, 2008. If the Company is able to execute
      any such contracts, of which there can be no assurance, the Company intends
      to
      new personnel to assist in the development and conduct of the Company’s business
      operations. The increased compensation and benefits associated with any new
      hires will impact the net results of the Company.





***The
      Company has not paid dividends and does not anticipate paying dividends in
      the
      future.***





The
      Company has not paid any cash dividends on its common stock to date and does
      not
      anticipate any cash dividends being paid to holders of its common stock in
      the
      foreseeable future. While the Company’s dividend policy will be based on the
      operating results and capital needs of the business, it is anticipated that
      any
      earnings will be retained to finance the Company’s future expansion. As the
      Company has no plans to issue cash dividends in the future, its common stock
      could be less desirable to other investors and as a result, the value of our
      common stock may decline, or fail to reach the valuations of other similarly
      situated companies who have issued cash dividends.





***The
      Common Stock is a “low-priced stock” and subject to regulation that limits or
      restricts the potential market for the stock.***





Shares
      of
      the Common Stock should be considered to be “low-priced” or “penny stock,”
resulting in increased risks to investors and certain requirements being imposed
      on some brokers who execute transactions in the common stock. In general, a
      low-priced stock is an equity security that:





·
            Is
                priced under five dollars;·
            Is
                not traded on a national stock exchange, the Nasdaq Global Market
                or the
                Nasdaq Capital Market;


·
            Is
                issued by a company that has less than $5 million in net tangible
                assets
                (if it has been in business less than three years) or has less than
                $2
                million in net tangible assets (if it has been in business for at
                least
                three years); and·
            Is
                issued by a company that has average revenues of less than $6 million
                for
                the past three years.





The
      Company believes the Common Stock is presently a “penny stock.” At any time that
      the Common Stock qualifies as a penny stock, the following requirements, among
      others, will generally apply:





·
            Certain
                broker-dealers who recommend penny stock to persons other than established
                customers and accredited investors must make a special written suitability
                determination for the purchaser and receive the purchaser’s written
                agreement to a transaction prior to sale.·
            Prior
                to executing any transaction involving a penny stock, certain
                broker-dealers must deliver to certain purchasers a disclosure schedule
                explaining the risks involved in owning penny stock, the broker-dealer’s
                duties to the customer, a toll-free telephone number for inquiries
                about
                the broker-dealer’s disciplinary history and the customer’s rights and
                remedies in case of fraud or abuse in the
                sale.


·
            In
                connection with the execution of any transaction involving a penny
                stock,
                certain broker-dealers must deliver to certain purchasers the following:


O
                bid and offer price quotes and volume information;


O
                the broker-dealer’s compensation for the trade;O
                the compensation received by certain salespersons for the
                trade;


O
                monthly accounts statements; andO
                a
                written statement of the customer’s financial situation and investment
                goals.





13




***Compliance
      with existing and new regulations of corporate governance and public disclosure
      may result in additional expenses.***





Compliance
      with changing laws, regulations, and standards relating to corporate governance
      and public disclosure, including the Sarbanes-Oxley Act of 2002 and other SEC
      regulations, requires large amounts of management attention and external
      resources. This may result in increased general and administrative expenses
      and
      a diversion of management time and attention from revenue-generating activities
      to compliance activities.





**Item
      3.**  **Controls
      and Procedures**





(a)  Based
      on
      the evaluation of our “disclosure
      controls and procedures” (as defined in the Securities Exchange Act of 1934
      Rules 13a-15(e) or 15d-15(e)) required by paragraph (b) of Rules 13a-15 or
      15d-15, the Company’s principal executive officer and principal financial
      officer concluded that as of December 31, 2007, the Company’s disclosure
      controls and procedures were not effective. This conclusion was based on the
      fact we were not able to prepare our financial information and provide
      sufficient time for review by the independent registered professional accounting
      firm in order to report within the time periods specified by the SEC’s rules and
      forms. The December 31, 2007 Form 10-QSB was filed prior to receiving final
      approval from its professional team thereby resulting in a need to amend various
      disclosures. This control deficiency resulted in a need to file amendments
      to
      the Company’s Quarterly Reports on Form 10-QSB for the quarters ended September
      30, 2007 and December 31, 2007. The Company has hired a new Chief Financial
      Officer who the Company anticipates will commence employment with the Company
      in
      March 2008. The Company intends to design controls and procedures for the
      financial reporting process to mitigate future timing and review issues. These
      new controls are expected to be in place for the fiscal year end March 31,
      2008.




(b)  There
      have been no changes in the Company’s internal control over financial reporting
      identified in connection with the evaluation required by paragraph (d) of
      Exchange Act Rules 13a-15 or 15d-15 that occurred during the Company’s last
      fiscal quarter that have materially affected, or are reasonably likely to
      materially affect, the Company’s internal control over financial
      reporting.




**PART
      II - OTHER INFORMATION**





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





On
      September 12, 2007, the Company, Jeffrey Martin, Sector 10 Services, Sector
      10
      Holdings, and the DeAvila Institute the Section 10 Transaction Exchange
      Agreement. The offer and sale of shares of common stock in the Sector 10
      Transaction were effected in reliance upon the exemptions for sales of
      securities not involving a public offering, as set forth in Section 4(2) of
      the
      Securities Act and/or Regulation D promulgated thereunder, based upon the
      following: (a) there was no public offering or general solicitation with respect
      to the Sector 10 Transaction offering; (b) each of Sector 10 Holdings and the
      DeAvila Institute investor was provided with certain disclosure materials and
      all other information requested with respect to the Company; (c) each of Sector
      10 Holdings and the DeAvila Institute acknowledged that all securities being
      purchased were “restricted securities” for purposes of the Securities Act, and
      agreed to transfer such securities only in a transaction registered under the
      Securities Act or exempt from registration under the Securities Act; and (d)
      a
      legend was placed on the certificates representing each such security stating
      that it was restricted and could only be transferred if subsequently registered
      under the Securities Act or transferred in a transaction exempt from
      registration under the Securities Act.




**Item
      6. Exhibits**





See
      the
      Exhibit Index attached hereto following the signature page.





14




**SIGNATURES**





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





SKRM
                Interactive, Inc.February
                25, 2008
            
            By:
                /s/ Pericles DeAvilaDate
            
            Pericles
                DeAvila, President (Principal Executive Officer)February
                25, 2008
            
            By:
                /s/ Pericles DeAvilaDate
            
            Pericles
                DeAvila
              Chief
                Financial Officer





15




**EXHIBIT
                INDEX****Exhibit
                No.**
            
            **Exhibit**
            
            **Incorporated
                by Reference/ FiledHerewith****[Discuss
                other exhibits]**31.1
            
            Rule
                13a-14(a)/15d-14(a) Certification of Chief Executive
                Officer
            
            Filed
                herewith31.2
            
            Rule
                13a-14(a)/15d-14(a) Certification of Chief Financial
                Officer
            
            Filed
                herewith32.1
            
            Section
                1350 Certification of Chief Executive Officer
            
            Filed
                herewith32.2
            
            Section
                1350 Certification of Chief Financial Officer
            
            Filed
                herewith




16