**U.S.        SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

**FORM        10-KSB**

|   | **x** | **ANNUAL                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                  OF                  1934** |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------|

**For        Fiscal Year Ended: December 31, 2007**

**OR**

|   | **o** | **TRANSITION                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                  OF                  1934** |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------|

**333-140148**

**LORETO        CORPORATION**

----

| **Nevada**                                                                                      |   | **20-5308449**                                                        |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| (State                  or other jurisdiction ofincorporation                  or organization) |   | (I.R.S.                  EmployerIdentification                  No.) |
|                                                                                            |   |                                                                  |
| **415                  Laurel St., #219, San Diego, CA**                                        |   | **92101**                                                             |
| (Address                  of principal executive offices)                                       |   | (Zip                  Code)                                           |

**(775)        352-4165**

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**None**

**None**

**None**

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**DOCUMENTS        INCORPORATED BY REFERENCE**

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**TABLE        OF CONTENTS**

| Item                  Number and Caption                                                                                                                                                        | Page   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                            |   |
|                                                                                                                                                                                            |   |
| Forward                  Looking Statements                                                                                                                                                     | 3      |
|                                                                                                                                                                                            |   |
| PART                  1                                                                                                                                                                         |   |
| Item                  1. Description of Business                                                                                                                                                | 3      |
| Item                  2. Description of Property                                                                                                                                                | 4      |
| Item                  3. Legal Proceedings                                                                                                                                                      | 4      |
| Item                  4. Submission of Matters to Vote of Security Holders                                                                                                                      | 4      |
| PART                  II                                                                                                                                                                        |   |
| Item                  5. Market for Common Equity and Related Stockholders                                                                                                                      | 4      |
| Item                  6. Plan of Operation                                                                                                                                                      | 6      |
| Item                  7. Financial Statements                                                                                                                                                   | 7      |
| Item                  8. Changes in and Disagreements with Accountants on Accounting                  and                  Financial Disclosure                                                 | 17     |
| Item                  8A. Controls and Procedure                                                                                                                                                | 17     |
| Item                  8B. Other Information                                                                                                                                                     | 18     |
| PART                  III                                                                                                                                                                       |   |
| Item                  9. Directors, Executive Officers, Promoters, Control Persons and                  Corporate                  Governance;Compliance with Section 16(a) of the Exchange Act | 18     |
| Item                  10. Executive Compensation                                                                                                                                                | 19     |
| Item                  11. Security Ownership of Certain Beneficial Owners and Management                                                                                                        | 20     |
| Item                  12. Certain Relationships and Related Transactions , and Director                  Independence                                                                           | 21     |
| Item                  13. Exhibits                                                                                                                                                              | 22     |
| Item                  14. Principal Accountant Fees and Services                                                                                                                                | 23     |

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**FORWARD-LOOKING        STATEMENTS**

*Except        for historical information, this report contains forward-looking statements        within the meaning of Section 21E of the Securities Exchange Act of 1934.        Such        forward-looking statements involve risks and uncertainties, including, among        other things, statements regarding our business strategy, future revenues        and        anticipated costs and expenses. Such forward-looking statements include,        among        others, those statements including the words “expects,” “anticipates,”“intends,” “believes” and similar language. Our actual results may differ        significantly from those projected in the forward-looking statements. Factors        that might cause or contribute to such differences include, but are not limited        to, those discussed in the sections “Plan of Operation” and “Description of        Business”. You are cautioned not to place undue reliance on the forward-looking        statements, which speak only as of the date of this report. We undertake        no        obligation to publicly release any revisions to the forward-looking statements        or reflect events or circumstances taking place after the date of this        document.*

**PART        I**

**ITEM        1.  **
**DESCRIPTION        OF BUSINESS**

**Business        Development**

**Patents,        Trademarks and Licenses, Franchises, Concessions, Royalty Agreements or Labor        Contracts**

**Research        and Development**

----

**Employees**

**ITEM        2.  **
**DESCRIPTION        OF PROPERTY**

**ITEM        3. **
**LEGAL        PROCEEDINGS**

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

**PART        II**

**ITEM        5. **
**MARKET        FOR COMMON EQUITY**

**AND        RELATED STOCKHOLDER MATTERS**

**Market        Information.**

| Quarter                  Ended      |   | High                  Bid |   | Low                  Bid |   |
|-------------------------------------|--------|---------------------------|--------|--------------------------|--------|
|                                |   |                      |   |                     |   |
| December                  31, 2007  |   | $                         | 0.05   |                     | $      | 0.05 |   |
| September                  30, 2007 |   | $                         | 0.05   |                     | $      | 0.05 |   |
| June                  30, 2007(1)   |   | $                         | 0.05   |                     | $      | 0.05 |   |

----

**Holders**

**Dividends**

**Recent        Sales of Unregistered Securities**

**Securities        Authorized For Issuance Under Equity Compensation Plans**

**Use        of Proceeds from Registered Securities**

----

**ITEM        6.  **
**PLAN        OF OPERATION**

----

**ITEM        7. **
**FINANCIAL        STATEMENTS**

|                                                                                                                                                                                                                                                  | Page   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                  |   |
| Report                  of Independent Registered Public Accounting Firm.                                                                                                                                                                             | 8      |
|                                                                                                                                                                                                                                                  |   |
| Balance                  Sheets as of December 31, 2007 and December 31, 2006                                                                                                                                                                         | 9      |
|                                                                                                                                                                                                                                                  |   |
| Statements                  of Operations for the years ended December 31, 2007 and December                  31, 2006                  and for the period from June 28, 2006 (inception) through December                  31,                  2007 | 10     |
|                                                                                                                                                                                                                                                  |   |
| Statement                  of Stockholders’ Deficit                                                                                                                                                                                             | 11     |
|                                                                                                                                                                                                                                                  |   |
| Statement                  of Cash Flows for the years ended December 31, 2007 and December                  31, 2006                  and for the period from June 28, 2006 (inception) through December                  31,                  2007  | 12     |
|                                                                                                                                                                                                                                                  |   |
| Notes                  to Financial Statements                                                                                                                                                                                                        | 13     |

----

----

**Loreto      Corporation**

**(A      Development Stage Company)**

**Balance      Sheet**

|                                                                                                                                                                                                                                           |   | **As                  of** |         |  **As                  of** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------------|----------------------------------|--------|
|                                                                                                                                                                                                                                           |   | **Dec. 31**           |         |  **Dec. 31**           |   |
|                                                                                                                                                                                                                                           |   | **2007**                   |         |  **2006**                   |   |
| **ASSETS**                                                                                                                                                                                                                                     |   |                       |         |                             |   |   |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| **Current                  Assets**                                                                                                                                                                                                            |   |                       |         |                             |   |   |   |
| Cash                                                                                                                                                                                                                                           |   | $                          | 805          |                             | $      | 8,623 |   |
| **Total                  Current Assets**                                                                                                                                                                                                      |   |                       | 805          |                             |   | 8,623 |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| **Other                  Assets**                                                                                                                                                                                                              |   |                       |         |                             |   |   |   |
| Lease                  Deposits                                                                                                                                                                                                                |   |                       | 500          |                             |   | 500 |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| **Total                  Other Assets**                                                                                                                                                                                                        |   |                       | 500          |                             |   | 500 |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| **TOTAL                  ASSETS**                                                                                                                                                                                                              |   | $                          | 1,305        |                             | $      | **9,123** |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| **LIABILITIES                  & STOCKHOLDERS' EQUITY**                                                                                                                                                                                    |   |                       |         |                             |   |   |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| **Current                  Liabilities**                                                                                                                                                                                                       |   |                       |         |                             |   |   |   |
| Loan                  from Director                                                                                                                                                                                                            |   | $                          | 13,200       |                             | **$**  |   |   |
| **Total                  Current Liabilities**                                                                                                                                                                                                 |   |                       | 13,200       |                             |   | - |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| **Total                  Liabilities**                                                                                                                                                                                                         |   |                       | 13,200       |                             |   | - |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| **Stockholders'                  Equity**                                                                                                                                                                                                      |   |                       |         |                             |   |   |   |
|                                                                                                                                                                                                                                           |   |                       |         |                             |   |   |   |
| Common                      stock, ($0.0015 par value, 50,000,000 shares authorized;12,500,000                      and 5,000,000 shares issued and outstanding as of December 31, 2007                      & 2006 respectively |   |                       | 18,750       |                             |   | 7,500 |   |
| Additional                  paid-in capital                                                                                                                                                                                                    |   |                       | 13,750       |                             |   | 2,500 |   |
| Deficit                  accumulated during Development stage                                                                                                                                                                                  |   |                       | (44,395      | )                                |   | (877 | ) |
| **Total                  Stockholders' Equity**                                                                                                                                                                                                |   |                       | (11,895      | )                                |   | 9,123 |   |
|                                                                                                                                                                                                                                           |   |                       |    |                             |   |    |   |
| **TOTAL                    LIABILITIES & STOCKHOLDERS' EQUITY**                                                                                                                                                                            |   | **$**                      | **1,305**    |                             | **$**  | **9,123** |   |

***See        Notes to Financial Statements***

----

| **Loreto                Corporation**            |
|--------------------------------------------------|
| **(A                Development Stage Company)** |
| **Statement                of Operations**       |

|                                                                                                    |   |                  |        |                   |   |  **June 28, 2006** |   |
|---------------------------------------------------------------------------------------------------------|--------|-----------------------|-------------|-----------------------------|--------|-----------------------------------|--------|
|                                                                                                    |   |                  |        |                   |   |  **(inception)**             |   |
|                                                                                                    |   | **Year Ended**   |        |  **Year Ended**   |   |  **through **           |   |
|                                                                                                    |   | **December 31,** |        |  **December 31,** |   |  **December 31,**       |   |
|                                                                                                    |   | **2007**              |        |  **2006**              |   |  **2006**                    |   |
|                                                                                                    |   |                  |        |                   |   |                         |   |
| **Revenues**                                                                                            |   |                  |        |                        |   |                              |   |   |   |   |
|                                                                                                    |   |                  |        |                        |   |                              |   |   |   |   |
| Revenues                                                                                                |   | $                     | -           |                        | $      | -                                 |   | $ | - |   |
|                                                                                                    |   |                  |        |                        |   |                              |   |   |   |   |
| **Total                Revenues**                                                                       |   |                  | -           |                        |   | -                                 |   |   | - |   |
|                                                                                                    |   |                  |        |                        |   |                              |   |   |   |   |
| **General                & Administrative Expenses**                                                |   |                  | 43,518      |                        |   | 877                               |   |   | 44,395 |   |
| **Total                General & Administrative Expenses**                                          |   |                  | **(43,518** | **)**                       |   | **(877**                          | **)**  |   | **(44,395** | **)** |
|                                                                                                    |   |                  |        |                        |   |                              |   |   |   |   |
| **Net                Income (Loss)**                                                                    |   | $                     | **(43,518** | **)**                       | **$**  | **(877**                          | **)**  | $ | **(44,395** | **)** |
|                                                                                                    |   |                  |        |                        |   |                              |   |   |   |   |
| **Basic                earnings per share**                                                             |   | $                     | (0.01       | )                           | **$**  | (0.00                             | )      |   |   |   |
|                                                                                                    |   |                  |        |                        |   |                              |   |   |   |   |
| **Weighted                    average number of ****common                    shares outstanding** |   |                  | 5,000,000   |                        |   | 5,000,000                         |   |   |   |   |

***See        Notes to Financial Statements***

----

**Loreto      Corporation**

**(A      Development Stage Company)**

**Statement      of Changes in Stockholders' Equity**

**From      June 28, 2006 (Inception) through December 31, 2007**

|                                                                                                     |   |       |           |             |   |           |   | **Deficit**     |         |            |   |
|----------------------------------------------------------------------------------------------------------|--------|------------|----------------|------------------|--------|----------------|--------|-----------------|--------------|-----------------|--------|
|                                                                                                     |   |       |           |             |   |           |   | **Accumulated** |         |            |   |
|                                                                                                     |   |       |           | **Common**       |   | **Additional** |   | **During**      |         |            |   |
|                                                                                                     |   | **Common** |           | **Stock**        |   | **Paid-in**    |   | **Development** |         |            |   |
|                                                                                                     |   | **Stock**  |           |  **Amount** |   | **Capital**    |   | **Stage**       |         |  **Total** |   |
|                                                                                                     |   |       |           |             |   |           |   |            |         |            |   |
| **Balance,                June 28, 2006**                                                                |   |       | **-**          |             | **$**  | **-**          |   | **$**           | **-**        |            | **$**  | **-** |   | **$** | **-** |   |
|                                                                                                     |   |       |           |             |   |           |   |            |         |            |   |   |   |   |   |   |
| Stock                  issued for cash on October 3, 2006 @ $0.002 per                  share            |   |       | 5,000,000      |             |   | 7,500          |   |            | 2,500        |            |   | - |   |   | 10,000 |   |
|                                                                                                     |   |       |           |             |   |           |   |            |         |            |   |   |   |   |   |   |
| Net                loss, December 31, 2006                                                               |   |       |      |             |   |      |   |            |    |            |   | (877 | ) |   | (877 | ) |
|                                                                                                     |   |       |                |             |   |                |   |            |              |            |   |  |   |   |  |   |
| **Balance,                December 31, 2006**                                                            |   |       | **5,000,000**  |             | **$**  | **7,500**      |   | **$**           | **2,500**    |            | **$**  | **(877** | **)** | **$** | **9,123** |   |
|                                                                                                     |   |       |           |             |   |           |   |            |         |            |   |   |   |   |   |   |
| Stock                    issued for cash on February 23, 2007 @ $0.004 per                    share |   |       | 4,500,000      |             |   | 6,750          |   |            | 11,250       |            |   | - |   |   | 18,000 |   |
|                                                                                                     |   |       |           |             |   |           |   |            |         |            |   |   |   |   |   |   |
| Stock                    issued for services on July 2, 2007 @ $0.0015 per                    share |   |       | 3,000,000      |             |   | 4,500          |   |            | -            |            |   | - |   |   | 4,500 |   |
|                                                                                                     |   |       |           |             |   |           |   |            |         |            |   |   |   |   |   |   |
| Net                loss, December 31, 2007                                                               |   |       |      |             |   |      |   |            |    |            |   | (43,518 | ) |   | (43,518 | ) |
|                                                                                                     |   |       |                |             |   |                |   |            |              |            |   |  |   |   |  |   |
| **Balance,                December 30, 2007**                                                            |   |       | **12,500,000** |             |   | **18,750**     |   |            | **13,750**   |            |   | **(44,395** | **)** |   | **(11,895** | **)** |

***See        Notes to Financial Statements***

----

**Loreto        Corporation**

**(A        Development Stage Company)**

**Statement        of Cash Flows**

|                                                                                                                        |   | **Year                Ended December 31,****2007** |         | **Year                Ended December 31,****2006** |   | **June                28, 2006 (inception)****through****December                31,****2007** |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------------|----------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                                     |   |                                               |         |                                               |   |                                                                                           |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |
| Net                income (loss)                                                                                            |   | $                                                  | (43,518      | )                                                  | $      | (877                                                                                           | )      | $ | (44,395 | ) |
| Adjustments                  to reconcile net loss to net cash provided by (used in) operating                  activities: |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| Changes                in operating assets and liabilities:                                                                 |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| (Increase)                Decrease Lease Deposits                                                                           |   |                                               |         |                                               |   | (500                                                                                           | )      |   | (500 | ) |
| Increase(Decrease)                Loan from Director                                                                        |   |                                               | 13,200       |                                               |   |                                                                                           |   |   | 13,200 |   |
| ***Net                cash provided by (used in) operating                activities***                                     |   |                                               | **(30,318**  | **)**                                              |   | **(1,377**                                                                                     | **)**  |   | **(31,695** | **)** |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                                     |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| ***Net                cash provided by (used in) investing                activities***                                     |   |                                               | **-**        |                                               |   | **-**                                                                                          |   |   | **-** |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                                     |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| Issuance                of common stock                                                                                     |   |                                               | 11,250       |                                               |   | 7,500                                                                                          |   |   | 18,750 |   |
| Additional                paid-in capital                                                                                   |   |                                               | 11,250       |                                               |   | 2,500                                                                                          |   |   | 13,750 |   |
| ***Net                cash provided by (used in) financing                activities***                                     |   |                                               | **22,500**   |                                               |   | **10,000**                                                                                     |   |   | **32,500** |   |
|                                                                                                                        |   |                                               |    |                                               |   |                                                                                      |   |   |    |   |
| ***Net                increase (decrease) in cash***                                                                        |   |                                               | **(7,818**   | **)**                                              |   | **8,623**                                                                                      |   |   | **805** |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| ***Cash                at beginning of period***                                                                            |   |                                               | **8,623**    |                                               |   | **-**                                                                                          |   |   | **-** |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| ***Cash                at end of year***                                                                                    |   | $                                                  | **805**      |                                               | $      | **8,623**                                                                                      |   | $ | **805** |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| **SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION**                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| Cash                paid during year for:                                                                                   |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| Interest                                                                                                                    |   |                                               |         |                                               |   |                                                                                           |   | $ | - |   |
|                                                                                                                        |   |                                               |         |                                               |   |                                                                                           |   |   |   |   |
| Income                Taxes                                                                                                 |   |                                               |         |                                               |   |                                                                                           |   | $ | - |   |

***See        Notes to Financial Statements***

----

**LORETO      CORPORATION**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**Dec      31, 2007**

**(Audited)      **

**NOTE        1. ORGANIZATION AND DESCRIPTION OF BUSINESS**

**NOTE        2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**a.        **
**Basis        of Accounting**

**b.        **
**Basic        Earnings per Share**
** **

----

**LORETO          CORPORATION**

**(A          DEVELOPMENT STAGE COMPANY)**

**NOTES          TO FINANCIAL STATEMENTS**

**Dec          31, 2007**

**(Audited)          **

**NOTE        2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

**c.        **
**Cash        Equivalents**
** **

**d.        **
**Use        of Estimates and Assumptions**

**e.        **
**Income        Taxes**

**NOTE        3. GOING CONCERN**

**NOTE        4. WARRANTS AND OPTIONS**

----

**LORETO      CORPORATION**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**Dec      31, 2007**

**(Audited)      **

**NOTE      5. RELATED PARTY TRANSACTIONS**

**NOTE      6. INCOME TAXES**

|                                           |   | **As of December 31,****2007** |       |
|------------------------------------------------|--------|-----------------------------------------------|------------|
|                                           |   |                                          |       |
| Deferred                tax assets:            |   |                                          |       |
| Net                operating tax carryforwards |   | $                                             | **44,395** |   |
| Other                                          |   |                                          | **-0-**    |   |
| Gross                deferred tax assets       |   |                                          | **-0-**    |   |
| Valuation                allowance             |   |                                          | **44,395** |   |
|                                           |   |                                          |       |   |
| Net                deferred tax assets         |   | $                                             | **-0-**    |   |

**NOTE      7. NET OPERATING LOSSES**

----

**LORETO        CORPORATION**

**(A        DEVELOPMENT STAGE COMPANY)**

**NOTES        TO FINANCIAL STATEMENTS**

**Dec        31, 2007**

**(Audited)**

**NOTE      8. STOCK TRANSACTIONS**

**NOTE      9. STOCKHOLDERS’ EQUITY**

----

**ITEM        8.  CHANGES        IN AND DISAGREEMENTS WITH ACCOUNTANTS ON**

**ACCOUNTING        AND FINANCIAL DISCLOSURE**

**ITEM      8A. CONTROLS AND PROCEDURES**

*Management’s      Annual Report on Internal Control Over Financial Reporting.*

*Internal      Control—Integrated Framework*

*Changes      in Internal Control over Financial Reporting*

----

**ITEM      8B. OTHER INFORMATION**

**PART      III**

**ITEM        9.  DIRECTORS,        EXECUTIVE OFFICERS,**

**PROMOTERS,        CONTROL PERSONS AND CORPORATE**

**GOVERNANCE;        COMPLIANCE WITH SECTION 16(A) OF**

**THE        EXCHANGE ACT**

**Executive      Officers and Directors**

| Name                            |   | Positions                  Held                 |   | Age    |   | Date                  of Electionor Appointmentas Director |
|---------------------------------|--------|-------------------------------------------------|--------|--------|--------|----------------------------------------------------------------------|
|                            |   |                                            |   |   |   |                                                                 |
| Magdalena                  Cruz |   | President,                  Secretary, Director |   | 53     |   | October                  1, 2006                                     |

----

**Board      of Directors **

**Compliance      with Section 16(a) of the Exchange Act **

**Code      of Ethics**

**ITEM        10.  EXECUTIVE        COMPENSATION**

----

**Summary      Compensation Table**

| Name andPrincipal Position   |   | Year   |   | Salary($) |   | Bonus($) |   | StockAwards($) |   | OptionAwards($) |   | Non-EquityIncentivePlanCompen-sation ($) |   | ChangeinPensionValueand Non-qualifiedDeferredCompen-sationEarnings($) |   | All OtherCompensation($) |   | Total ($) |   |
|----------------------------------------|--------|--------|--------|-----------|--------|----------|--------|----------------|--------|-----------------|--------|-----------------------------------------------|--------|----------------------------------------------------------------------------|--------|-------------------------------|--------|----------------|--------|
| (a)                                    |   | (b)    |   | (c)       |   | (d)      |   | (e)            |   | (f)             |   | (g)                                           |   | (h)                                                                        |   | (i)                           |   | (j)            |   |
|                                   |   |   |   |      |   |     |   |           |   |            |   |                                          |   |                                                                       |   |                          |   |           |   |
| Magdalena                Cruz,         |   |   | 2007   |      |   | 6,000    |   |           | 0      |            |   | 0                                             |   |                                                                       | 0      |                          |   | 0              |   |   | 0 |   |   | 0 |   |   | 6,000 |   |
| Chief                Executive Officer |   |   | 2006   |      |   | 0        |   |           | 0      |            |   | 0                                             |   |                                                                       | 0      |                          |   | 0              |   |   | 0 |   |   | 0 |   |   | 0 |   |

**Compensation      of Directors**

**ITEM        11.  **
**SECURITY        OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

|   | · | each                person or entity known by us to be the beneficial owner of more than                5% of                our common stock, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | each                of our directors, |
|--------|--------|---------------------------------------|

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|   | · | each                of our executive officers, and |
|--------|--------|----------------------------------------------------|

|   | · | all                of our directors and executive officers as a group. |
|--------|--------|------------------------------------------------------------------------|

| Name and Addressof Beneficial Owner                                                   |   | Title of Class      |   | Amount and NatureofBeneficial Ownership      |   | Percent of Class (1) |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                                      |   |                          |   |                                                        |   |                                |   |
| Magdalena                  Cruz415                  Laurel St., #219 San                  Diego, CA 92101 |   | Common                  Stock |   | 8,000,000                  shares                  (Direct) |   | 62.7                                | %      |
|                                                                                                      |   |                          |   |                                                        |   |                                |   |
| All                  executive officers and sole director as a group (1)                             |   | Common                  Stock |   | 8,000,000                  shares                  (Direct) |   | 62.7                                | %      |

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| (1) | Based                upon 12,750,000 shares issued and outstanding as at March 20,                2008. |
|-----|---------------------------------------------------------------------------------------------------------|

**Changes      in Control**

**Securities      Authorized for Issuance Under Equity Compensation Plans**

**ITEM        12.  CERTAIN        RELATIONSHIPS**

**AND        RELATED TRANSACTIONS,        AND**

**DIRECTOR        INDEPENDENCE**

**Certain      Relationships and Related Transactions**

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**Director      Independence**

**ITEM        13.  **
**EXHIBITS**

**Exhibits**

| ExhibitNo. |   | SEC ReportReference Number |   | Description                                                                                                                                                |
|------------|--------|--------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                 |   |                                                                                                                                                       |
| 3.1        |   | 3.1                                  |   | Articles                  of Incorporation of Registrant as filed with the Nevada Secretary                  of State                  on June 28, 200 (1) |
|       |   |                                 |   |                                                                                                                                                       |
| 3.2        |   | 3.2                                  |   | By-Laws                  of Registrant (1)                                                                                                                 |
|       |   |                                 |   |                                                                                                                                                       |
| 14         |   | *                                    |   | Code                  of Ethics                                                                                                                            |
|       |   |                                 |   |                                                                                                                                                       |
| 21         |   | *                                    |   | List                  of Subsidiaries                                                                                                                      |
|       |   |                                 |   |                                                                                                                                                       |
| 31.1/31.2  |   | *                                    |   | Rule                  13(a) – 14(a)/15(d) – 14(a) Certification of Principal Executive                  and Financial Officer        |
|       |   |                                 |   |                                                                                                                                                       |
| 32.1/32.2  |   | *                                    |   | Rule                  1350 Certification of Chief Executive and Financial                  Officer                                                         |

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| (1) | Filed                with the SEC on January 23, 2007 as an exhibit, numbered as indicated                above, to the Registrant’s registration statement (SEC File No.                333-140148) on Form SB-2, which exhibit is incorporated herein by                reference. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ITEM      14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.**

| Fee                Category           |         | Fiscal year ended December 31, 2007 |   | Fiscal year ended December 31, 2006 |   |
|---------------------------------------|--------------|--------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
| Audit                fees (1)         |    | $                                                            | 6,500  |                                                         | $      | 0 |   |
| Audit-related                fees (2) |         |                                                         | 0      |                                                         |   | 0 |   |
| Tax                fees (3)           |         |                                                         | 0      |                                |   | 0 |   |
| All                other fees (4)     |         |                                                         | 0      |                                                         |   | 350 |   |
| Total                fees             |         | $                                                            | 6,500  |                                                         | $      | 350 |   |

| (1) | Audit                fees consists of fees incurred for professional services rendered                for the                audit of consolidated financial statements, for reviews of our interim                consolidated financial statements included in our quarterly reports                on                Form 10-QSB and for services that are normally provided in connection                with                statutory or regulatory filings or                engagements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Audit-related                fees consists of fees billed for professional services that are reasonably                related to the performance of the audit or review of our consolidated                financial statements, but are not reported under “Audit fees.” |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Tax                fees consists of fees billed for professional services relating to                tax                compliance, tax planning, and tax                advice. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | All                other fees consists of fees billed for all other                services. |
|-----|----------------------------------------------------------------------------------------------|

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**SIGNATURES**

| Date:                March 31, 2008 | LORETO                CORPORATION |
|-------------------------------------|-----------------------------------|
|                                |                              |   |
|                                | By:                               | /s/              Magdalena Cruz |
|                                |                              | Magdalena                Cruz, |
|                                |                              | President                and Chief Executive Officer |

| SIGNATURE                           |   | TITLE                                                                                          |   | DATE                            |
|-------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|---------------------------------|
|                                |   |                                                                                           |   |                            |
| /s/ Magdalena Cruz                  |        | President,                  Treasurer Chief                                                    |   | March                  31, 2008 |
| Magdalena                  Cruz     |   | Executive                    Officer, ChiefFinancial                    and Accounting Officer |   |                            |
|                                |   |                                                                                           |   |                            |
| Board                  of Directors |   |                                                                                           |   |                            |
|                                |   |                                                                                           |   |                            |
| /s/                Magdalena Cruz   |   | Director                                                                                       |   | March                  31, 2008 |
| Magdalena                  Cruz     |   |                                                                                           |   |                            |

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