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

                                   FORM 10-QSB

                                   (Mark One)
 |X|] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                                     OF 1934

                         For the quarterly period ended
                               September 30, 2006

                                       or

     |_| 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 0-28955

                                SYNDICATION, INC.

             (Exact name of registrant as specified in its charter)

           Delaware                                              57-2218873
 ------------------------------                              -------------------
(State or other jurisdiction of                                (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                              1250 24th Street, NW
                                    Suite 300
                             Washington, D.C. 20037
               (Address of principal executive offices (zip code))

                                 (202) 467-2788
              (Registrant's telephone number, including area code)

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

Indicate by check mark whether the registrant is a shell company (as defined by
Rule 12-b2 of the Exchange Act). Yes |_| No |X|

At September 30, 2006, there were 107,379,337 shares of common stock, $0.0001
par value per share, issued and outstanding.

Transitional Small Business Disclosure Format (Check One): Yes |_| No |X|

<PAGE>

PART I -- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)

                        CONSOLIDATED FINANCIAL STATEMENTS

                    September 30, 2006 and December 31, 2005

<PAGE>

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                           Consolidated Balance Sheets

                                     ASSETS

                                                     September 30,  December 31,
                                                         2006           2005
                                                     -------------  ------------
                                                      (Unaudited)

CURRENT ASSETS

              Cash                                     $ 282,549      $ 255,684
              Accounts Receivable                             --         12,300
              Prepaid Expenses                             1,400             --
                                                       ---------      ---------

                   Total Current Assets                  283,949        267,984
                                                       ---------      ---------

OTHER ASSETS

              Debt Offering Costs                        165,521         60,000
                  Accumulated Amortization               (34,404)            --
                                                       ---------      ---------

                   Total Other Assets                    131,117         60,000
                                                       ---------      ---------

                   TOTAL ASSETS                        $ 415,066      $ 327,984
                                                       =========      =========

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


                                       2
<PAGE>

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                     Consolidated Balance Sheets (continued)

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

<TABLE>
<CAPTION>
                                                                    September 30,   December 31,
                                                                         2006           2005
                                                                     ------------   ------------
                                                                     (Unaudited)
<S>                                                                  <C>            <C>
CURRENT LIABILITITES

              Accounts payable                                       $    52,116    $   103,717
              Accounts payable - related party                            33,054         18,419
              Notes Payable                                              138,011        301,761
              Notes payable - related party                              368,937        368,937
              Interest payable                                            33,455         37,043
              Interest payable - related party                           117,678         84,104
              Interest payable - convertible debenture                    87,275          1,318
              Derivative liability                                     2,100,528      1,668,627
                                                                     -----------    -----------

                   Total Current Liabilities                           2,931,054      2,583,926
                                                                     -----------    -----------

LONG TERM LIABILITIES

              Convertible debenture                                    1,105,000        468,038
              Debt discount - net of amortization                       (865,625)      (300,000)
                                                                     -----------    -----------

                   Total Long Term Liabilities                           239,375        168,038
                                                                     -----------    -----------

              TOTAL LIABILITIES                                        3,170,429      2,751,964
                                                                     -----------    -----------

STOCKHOLDERS' EQUITY (DEFICIT)

              Preferred stock: 20,000,000 shares authorized of
              $0.0001 par value, no shares issued and outstanding             --             --

              Common stock: 3,000,000,000 shares authorized of
              $0.0001 par value, 107,379,337 and 99,993,946 shares
              issued and outstanding respectively                         10,739          9,994
              Additional paid-in capital                               4,450,529      4,406,272
              Deficit accumulated prior to the development stage      (2,231,519)    (2,231,519)
              Deficit accumulated during the development stage        (4,985,112)    (4,608,727)
                                                                     -----------    -----------

                   Total Stockholders' Equity (Deficit)               (2,755,363)    (2,423,980)
                                                                     -----------    -----------

                   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
                   (DEFICIT)                                         $   415,066    $   327,984
                                                                     ===========    ===========
</TABLE>

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


                                       3
<PAGE>

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                      Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                         From Inception
                                                                                                             Of the
                                                                                                           Development
                                           For the Three months              For the Nine months             Stage on
                                           Ended 30th, September            Ended 30th, September            1/1/2004
                                                                                                             Through
                                           2006            2005              2006            2005           9/30/2006
                                      ---------------------------------------------------------------------------------
<S>                                   <C>              <C>              <C>              <C>              <C>
REVENUE                               $          --    $          --    $          --    $          --    $          --
                                      ---------------------------------------------------------------------------------

OPERATING EXPENSES
General and administrative                  182,354           42,649          465,988          229,376        1,281,877
Bad debt expense (recovery)                 (18,000)         (48,831)          38,314               --          397,253
Consulting                                   32,000           33,102          100,805          173,717        1,690,672
                                      ---------------------------------------------------------------------------------

Total Operating Expenses                    196,354           26,920          605,107          403,093        3,369,802
                                      ---------------------------------------------------------------------------------

OPERATING LOSS                             (196,354)         (26,920)        (605,107)        (403,093)      (3,369,802)
                                      ---------------------------------------------------------------------------------

OTHER INCOME (EXPENSES)
Interest Income                               2,059            3,801            2,770            3,801            2,770
Other income (expenses)                          --          255,000            6,413          255,000          125,813
Gain (loss) on investments                       --           61,962          (52,273)          (8,038)        (420,210)
Gain (loss) on derivative liability         660,225               --          418,099               --         (950,528)
Interest Expense                            (48,512)         (13,134)        (131,089)         (62,377)        (352,907)
                                      ---------------------------------------------------------------------------------

Total Other Income (Expenses)               613,772          307,629          243,920          188,386       (1,595,062)
                                      ---------------------------------------------------------------------------------

INCOME (LOSS) BEFORE INCOME                 417,418          280,709         (361,187)        (214,707)      (4,964,864)
              TAXES                   ---------------------------------------------------------------------------------

INCOME TAX EXPENSE                               --               --               --               --               --
                                      ---------------------------------------------------------------------------------
GAIN (LOSS) FROM CONTINUING                 417,418          280,709         (361,187)        (214,707)      (4,964,864)
              OPERATIONS              ---------------------------------------------------------------------------------

GAIN (LOSS) FROM DISCONTINUED               (15,198)          (5,250)         (15,198)          (5,250)         (20,248)
              OPERATIONS              ---------------------------------------------------------------------------------
NET INCOME (LOSS)                     $     402,220    $     275,459    $    (376,385)   $    (219,957)   $  (4,985,112)
                                      =================================================================================

BASIC AND DILUTED INCOME (LOSS)       $        0.00    $        0.02    $       (0.00)   $       (0.01)
              PER SHARE               ================================================================

WEIGHTED AVERAGE NUMBER OF
              SHARS OUTSTANDING         106,303,320       15,810,298      101,827,535       15,599,900
                                      ================================================================
</TABLE>

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


                                       4
<PAGE>

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                      Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                     From Inception
                                                                                                        Of the
                                                                                                      Development
                                                                            For the Nine months         Stage on
                                                                           Ended 30th, September        1/1/2004
                                                                                                         Thru
                                                                            2006           2005        9/30/2006
                                                                         ------------------------------------------
<S>                                                                      <C>            <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES

Net Loss                                                                 $  (376,385)   $  (219,957)    (4,985,112)

Adjustments to reconcile net loss to net cash provided (used) in
operating activities (Non-Cash expenses & income)
              Common stock issued for services                                    --             --      1,417,732
              Amortization of debt discount                                  239,375             --        239,375
              Amortization of debt offering costs                             34,405             --        (25,596)
              Amortization of deferred fees                                       --             --        406,000
              Expense of converted debt                                       45,000             --         45,000
              Bad debt expense                                                    --             --        278,187
              Loss on investment value                                            --             --        276,431
              Gain on accounts payable write-off                                  --             --        (39,932)
              Unearned compensation                                               --         82,500        190,000
              Increase in allowance for bad debts                                 --             --         80,752
              Loss (Gain) on derivative liabilities                         (418,099)            --        950,528
Changes in operating assets and liabilities
              (Increase) decrease in accounts receivable                      12,300        (20,025)            --
              (Increase) decrease in prepaid expenses                         (1,400)            --         (1,400)
              (Increase) decrease in Interest receivable-related party            --         (3,801)            --
              Increase (decrease) in accounts payable                        (51,601)      (243,644)        (3,892)
              Increase (decrease) in accounts payable - related party         14,635             --         32,054
              Increase (decrease) in interest payable - others                (3,588)        28,032         36,426
              Increase in interest payable - related party                    33,573         32,924         84,713
              Increase in interest payable - Convertible debentures           85,957          7,442         85,957
              Increase in accrued expenses                                        --             --         38,641
              Increase in accrued expenses - related party                        --             --         32,000
              Increase (decrease) in directors' fee accrued                       --         10,084        (44,000)
                                                                         -----------------------------------------

Net cash provided (used) in Operating Activities                            (385,826)      (326,445)      (906,134)
                                                                         -----------------------------------------
</TABLE>

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


                                       5
<PAGE>

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                Consolidated Statements of Cash Flows (continued)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                      From Inception
                                                                                         Of the
                                                                                       Development
                                                             For the Nine months         Stage on
                                                            Ended 30th, September        1/1/2004
                                                                                          Thru
                                                             2006           2005        9/30/2006
                                                          ------------------------------------------
<S>                                                       <C>            <C>            <C>
CASH FLOWS FROM INVESTING ACTIVITIES

(Increase) decrease in notes receivable - related party            --        (69,144)   $  (358,939)
(Increase) decrease in investments                                 --          7,000    $  (276,431)
(Increase) decrease in investments - related party                 --        (80,101)   $        --
Increase (decrease) in deferred acquisition costs                  --         (3,020)   $        --
                                                          -----------------------------------------

Net cash used in Investing Activities                              --       (145,265)      (635,370)
                                                          -----------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES

Stock issued for cash                                              --             --    $    50,000
Increase in notes payable                                          --             --    $        --
Proceeds from notes payable                                        --        530,000    $   707,500
Payments on notes payable                                    (163,750)       (28,750)   $  (265,739)
Increase in notes payable - related party                          --             --    $   280,097
Payments on notes payable - related party                          --             --    $   (24,260)
Increase in convertible debenture                             744,479             --    $ 1,244,479
Payment on convertible debentures                            (168,038)            --    $  (168,038)
                                                          -----------------------------------------

Net cash provided (used) in Financing Activities             (412,691)       501,250      1,824,039
                                                          -----------------------------------------

NET INCREASE  IN CASH                                          26,865         29,540        282,535

CASH, BEGINNING OF PERIOD                                     255,684         14,041             14

CASH, END OF PERIOD                                       $   282,549    $    43,581    $   282,549
</TABLE>

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


                                       6
<PAGE>

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                Consolidated Statements of Cash Flows (continued)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                      From Inception
                                                                                         Of the
                                                                                       Development
                                                             For the Nine months         Stage on
                                                            Ended 30th, September        1/1/2004
                                                                                          Thru
                                                             2006           2005        9/30/2006
                                                          ------------------------------------------
<S>                                                       <C>            <C>            <C>
SUPPLEMENTAL CASH FLOW INFORMATION

Cash Payments For:

              Income taxes                                $        --    $        --    $        --
              Interest                                    $        --    $        --    $    11,370

Non-Cash Financing Activities

              Common stock issued for deferred fees       $        --    $        --    $   304,000
              Common stock issued for converting N/P      $        --    $    20,000    $    65,000
              Common stock issued for converting debt     $    45,000    $    10,000    $    55,000
              Common stock issued for services            $        --    $        --    $ 1,417,732
</TABLE>

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


                                       7
<PAGE>

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                    September 30, 2006 and December 31, 2005

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

      The accompanying unaudited consolidated financial statements have been
      prepared by the Company pursuant to the rules and regulations of the
      Securities and Exchange Commission. Certain information and footnote
      disclosures normally included in consolidated financial statements
      prepared in accordance with accounting principles generally accepted in
      the United States of America have been omitted in accordance with such
      rules and regulations. The information furnished in the consolidated
      financial statements includes normal recurring adjustments and reflects
      all adjustments, which, in the opinion of management, are necessary for a
      fair presentation of such consolidated financial statements. Although
      management believes the disclosures and information presented are adequate
      to make the information not misleading, it is suggested that these
      consolidated financial statements be read in conjunction with the
      Company's most recent audited consolidated financial statements and notes
      thereto included in its December 31, 2005 Annual Report on Form 10-KSB.
      Operating results for the nine months ended September 30, 2006 are not
      necessarily indicative of the results that may be expected for the year
      ending December 31, 2006.

NOTE 2 - GOING CONCERN

      The Company's consolidated financial statements are prepared using
      accounting principals generally accepted in the Unites States of America
      applicable to a going concern which contemplates the realization of assets
      and liquidation of liabilities in the normal course of business. The
      consolidated financial statements do not reflect any adjustments that
      might result from the outcome of this uncertainty. It is management's
      intent to seek growth by way of a merger or acquisition. It is the belief
      that over the next 12 months that Company will acquire at least one or
      more of acquisition candidates. The acquisition process should provide
      capital, revenue and incomes as a result. There is no assurance that the
      Company will be successful in its acquisition efforts or in raising the
      needed capital.

NOTE 3 - DEBENTURE

      On December 30th 2005, Syndication, Inc. (the "Company"), in order to
      obtain alternative funding for its ongoing operations, the Company entered
      into a Termination Agreement with Cornell Capital Partners, LP (the
      "Investor") pursuant to which the Standby Equity Distribution Agreement
      entered between the Company and the Investor dated June 2004 was
      terminated. To that end, on December 30th 2005, the company then executed
      a Securities Purchase Agreement (the "Agreement") for the sale of (i)
      $1,150,000 in secured convertible debentures (the "Debentures") and (ii)
      stock purchase warrants (the "Warrants") to buy 120,000,000 shares of our
      common stock. During the 3rd quarter 2006, the Investor had converted into
      common stock secured convertible debentures worth $45,000. In accordance
      with EITF-00-19 and SFAS 150, since there is no explicit limit on the
      number of shares that are to be delivered upon exercise of the conversion
      feature,


                                       8
<PAGE>

                        SYNDICATION, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                    September 30, 2006 and December 31, 2005

      the Company is not able to assert that it will have sufficient authorized
      and unissued shares to settle the conversion option. As a result, the
      conversion feature should be accounted for as a derivative liability, with
      the fair value recorded in earnings each period.

NOTE 4 - SIGNIFICANT EVENTS

      "SYNDICATION, INC" Name changes

      In the First Quarter of 2006 the company took steps to stream line its
      name branding and changed the name of its subsidiary to "SYNDICATED
      PROPERTIES" from HTRG & associates as well as the parent company's banner
      to "SYNDICATION, INC" from syndication net. com inc. The company plans to
      move Syndicated Properties into real estate development away from the
      appraisal focus.

NOTE 5 - DISCONTINUED REAL ESTATE APPRAISAL OPERATIONS; SHIFT TO REAL ESTATE
DEVELOPMENT

      HTRG ASSOCIATES. LLC

      In 2006, the Company discontinued the Real Estate appraisal operations of
      its wholly owned subsidiary HTRG Associates, LLC., and shifted the focus
      of its operations to Real Estate Development. The accompanying financial
      statements have been presented to reflect the Real Estate appraisal
      operations of HTRG Associates, LLC as discontinued.

                                     For the nine months            For the year
                                            Ended                      ended
                                         Sept 30, 2006              Dec 31, 2005
                                     -------------------            ------------

      Revenues                           $  8,675                    $ 66,425

      Operating expenses                  (23,873)                    (66,398)
      Other Income (expenses)                  --                      (5,077)
                                         --------                    --------

      Net loss before income taxes        (15,198)                     (5,050)

      Income tax expense                       --                          --
                                         --------                    --------

      Net loss                           $(15,198)                   $ (5,050)

                                         ========                    ========


                                       9
<PAGE>

The net assets and liabilities of the discontinued operations were composed of
the following:

Assets:

      Cash                                    $            --    $        15,523
      Accounts receivable                                  --             12,300
                                              ---------------    ---------------
      Total Assets                            $            --    $        27,823
                                              ===============    ===============

      Liabilities:

      Accounts payable                        $            --    $        22,773
                                              ---------------    ---------------
      Total Liabilities                       $            --    $        22,773
                                              ===============    ===============


                                       10
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

FORWARD-LOOKING STATEMENTS

The information in this registration statement contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. This Act provides a "safe harbor" for forward-looking statements to
encourage companies to provide prospective information about themselves so long
as they identify these statements as forward looking and provide meaningful
cautionary statements identifying important factors that could cause actual
results to differ from the projected results. All statements other than
statements of historical fact made in this registration statement are forward
looking. In particular, the statements herein regarding industry prospects and
future results of operations or financial position are forward-looking
statements. Forward-looking statements reflect management's current expectations
and are inherently uncertain. Our actual results may differ significantly from
management's expectations.

The following discussion and analysis should be read in conjunction with our
financial statements and summary of selected financial data, included herewith.
This discussion should not be construed to imply that the results discussed
herein will necessarily continue into the future, or that any conclusion reached
herein will necessarily be indicative of actual operating results in the future.
Such discussion represents only the best present assessment of our management.

GENERAL

We are a consulting company formed to acquire controlling interests in or to
participate in the creation of, and to provide financial, management and
technical support to, development stage businesses. Our strategy is to integrate
affiliated companies into a network and to actively develop the business
strategies, operations and management teams of the affiliated entities.

It is the intent of our board of directors to develop and exploit all business
opportunities to increase efficiencies between companies with which we may
invest in or consult. In addition, we may acquire companies to be held as wholly
owned subsidiaries.

We had one wholly owned subsidiary, Kemper Pressure Treated Forest Products,
Inc. Kemper was engaged in the retail brokerage business of preservative treated
lumber such as utility poles, bridge pilings, timber and guardrail posts. Kemper
had one customer and as a result of limited revenue we elected to wind down
Kemper's operations during the fourth quarter of 2003. We have changed our focus
and growth efforts towards our consulting business and/or the acquisition of an
operating development company.

In September 2005, we launched Syndicated Properties LLC (f/k/a SP & Associates
LLC) ("SP") as a wholly owned subsidiary that will specialize in the real estate
development business. Through SP, we intend to leverage our activities from the
real estate appraisal business into real estate development.

On November 10, 2003, we entered into a Letter of Intent with Tri State
Metro-Territories, LLC (Tri-State) to acquire substantially all of the assets of
Tri-State. Brian Sorrentino, a major shareholder, director and an executive
officer of our company, is a 10% shareholder in Tri State. Mark Solomon, who
serves as a member of our Board of Directors and is a shareholder of our company
also is a member of Tri-State. Dale Hill, is a shareholder of our company and is
also a member of Tri-State. Tri State is in the business of selling franchised
hair coloring salon units under the name of "HCX the haircolorxperts. The assets
being negotiated by us include the exclusive right to the interest in the
prototype HCX Salons located in Columbia Maryland and Washington, DC. On March
18, 2004, we entered into privately negotiated exchange agreements to exchange
355,000 restricted shares of its common stock for 8% of membership interests of
Tri-State. In addition, from September 2004 through February 2005, we entered
into two purchase agreements whereby the Company purchased 3% of membership
interests of Tri-State for $115,000. During the quarter ended September 30,
2006, the Company increased its investment in Tri State by $35,101, which equals
an increase in the ownership of Tri State by approximately 1.69%, up from 13.75%
to 15.44%.

      Although it is our intent to acquire all the assets of Tri-State, the
specific terms and the evaluations of the potential transaction have not yet
been finalized and the pending audited financial statements of Tri-State are a
requirement for completion of that transaction. The transaction is also subject
to customary closing conditions, including but not limited to the receipt of all
definitive documents, valuations, consents, and approvals. There can be no
assurance as to whether or when the transaction will close.

THREE MONTHS ENDED SEPTEMBER 30, 2006 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 2005

      For the three months ended September 30, 2006 we did not have any revenue
and for the three months ended September 30, 2005 we had revenue of $23,675,
which is in discontinued operation. The decrease in revenue is primarily
attributed to the decreasing of consulting activity.

      The operating expenses for the three months ended September 30, 2006
increased by $169,434 to $196,354 for the three months ended September 30, 2006
from $26,920 for the three months ended September 30, 2005. Our operating
expenses consist of general and administrative expenses and consulting fees. The
reason for the increase relates to an increase in the payment of fees related to
the evaluation of acquisition opportunities of which we have no definitive plans
at this time.

      The net loss for the three months ended September 30, 2006 was $402,220
compared to net loss of $275,459 for the three months ended September 30, 2005.
The primary reasons for the increase in net loss was an increase in expenses.


                                       11
<PAGE>

Liquidity and Capital Resources

      Total current liabilities at September 30, 2006 were $2,925,573.

      We have historically incurred losses. For the three months ended September
30, 2006, we had a net loss of $402,220.

      On December 30, 2005, the Company, in order to obtain alternative funding
for its ongoing operations of the Company, entered into a Termination Agreement
with Cornell Capital Partners, LP (the "Investor") pursuant to which the Standby
Equity Distribution Agreement entered between the Company and the Investor dated
June 2004 was terminated. To that end, on December 30th 2005, the company then
executed a Securities Purchase Agreement (the "Agreement") for the sale of (i)
$1,150,000 in secured convertible debentures (the "Debentures") and (ii) stock
purchase warrants (the "Warrants") to buy 120,000,000 shares of our common
stock. On December 30, 2005, the company issued $300,000 of the $1,150,000
debenture.

      The debentures bears interest at 12 percent, mature three years from the
date of issuance, and are convertible into the Company's common stock, at a
conversion price equal to the lower of (i) $0.0132 or (ii) 85% of the lowest
weighted average price during the 30 trading days immediately preceding the
conversion date.

      In accordance with EITF-00-19 and SFAS 150, and because there is no
explicit limit on the number of shares that are to be delivered upon exercise of
the conversion feature, the Company is not able to assert that it will have
sufficient authorized and unissued shares to settle the conversion option. As a
result, the conversion feature will be accounted for as a derivative liability,
with the fair value recorded in earnings each period. On February 6, 2006 the
Company issued an additional $700,000 of the $1,150,000 debenture and on June 8,
2006 the Company issued the final $150,000 of the $1,150,000 debentures.

      Our future revenues and profits, if any, will depend upon various factors,
including the following:

      Whether we will be able to effectively evaluate the overall quality and
industry expertise of potential acquisition candidates; whether we will have the
funds to provide seed capital and mezzanine financing to brick-and-mortar,
e-commerce and Internet-related companies; and whether we can develop and
implement business models that will enable growth companies to develop.

      We may not be able to effect any acquisitions of or investments in
development stage companies if we are unable to secure sufficient funds to
finance our proposed acquisitions costs. We expect that our current cash and
cash equivalents will allow us to continue our current operation for six months.
If we are unable to generate additional revenues or secure financings, we may be
forced to cease or curtail operations.

      We intend for our management team to identify companies that are
positioned to succeed and to assist those companies with financial, managerial
and technical support. Over the next 12 months, we intend to increase revenue
and gross profit margin by focusing and expanding its consulting services and
seeking acquisition candidates. It is management's belief that potential
acquisition targets can be better identified and assessed for risk if we first
become involved with these candidates on a consulting capacity. Our strategy is
to integrate affiliated companies into a network and to actively develop the
business strategies, operations and management teams of the affiliated entities.

      We do not foresee any significant changes in the number of our employees
over the next twelve months except in the event we finalize an acquisition. We
have not paid dividends on our common stock, and intend to reinvest our earnings
to support our working capital and expansion requirements. We intend to continue
to utilize our earnings in the development and expansion of the business and do
not expect to pay cash dividends in the foreseeable future. It is the belief of
management that as we move toward an active trading status the ability to raise
capital by stock issuance to effect our business plan is enhanced.

      We do not expect to sell any manufacturing facilities or significant
equipment over the next twelve months except within the demands of potential
acquisitions that we may pursue.

Off-Balance Sheet Arrangements

      We have no off-balance sheet arrangements that have or are reasonably
likely to have a current or future material effect on us.

ITEM 3. CONTROLS AND PROCEDURES

      As of the end of the period covered by this report, we conducted an
evaluation, under the supervision and with the participation of our chief
executive officer and chief financial officer of our disclosure controls and
procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange
Act). Based upon this evaluation, our chief executive officer and chief
financial officer concluded that our disclosure controls and procedures are
effective to ensure that information required to be disclosed by us in the
reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Commission's
rules and forms. There was no change in our internal controls or in other
factors that could affect these controls during our last fiscal quarter that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.


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<PAGE>

                           PART 2 - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

      We are not a party to any material litigation and management has no
knowledge of any threatened or pending litigation against it.

ITEM 2. CHANGES IN SECURITIES

      We have not issued securities for the period ended September 30, 2006.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES:

      Not Applicable

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

      Not Applicable

ITEM 5. OTHER INFORMATION

      Not Applicable

ITEM 6. EXHIBITS

31.1  Certification by the Chief Executive Officer Pursuant to Section 302 of
      the Sarbanes-Oxley Act of 2002.

31.2  Certification by the Chief Financial Officer Pursuant to Section 302 of
      the Sarbanes-Oxley Act of 2002.

32.1  Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section
      1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002.

32.2  Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section
      1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002.

                                   SIGNATURES

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

                                SYNDICATION, INC.

By: /s/Brian Sorrentino
    ------------------------------------
    Brian Sorrentino
    CEO and Principal Executive Officer
    Dated: November 20, 2006

By: /s/Mrutyunjaya S. Chittavajhula.
    ------------------------------------
    Mrutyunjaya S. Chittavajhula.
    CFO and Principal Accounting Officer
    Dated: November 20, 2006


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