U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

                                  ------------

                                   FORM 10-KSB

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

                  For The Fiscal Year Ended: September 30, 2006

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

                     For the Transition Period From __ to __
                          Commission File No. 000-51675

                                Lane Co # 3, Inc.
                 (Name of Small Business Issuer in its Charter)

        Delaware                                                  20-3771425
(State of Incorporation)                                      (I.R.S. Employer
 (Small Business Issuer)                                     Identification No.)

          263 Queens Grant Road                                    06824-1929
              Fairfield, CT                                        (Zip Code)
(Address of principal executive offices

         Issuer's telephone number, Including Area Code: (203) 255-0341

        Securities registered pursuant to Section 12(b) of the Act: None

           Securities registered pursuant to Section 12(g) of the Act:

                         Common Stock, par value $0.0001

Check whether the issuer is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act. |_|

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

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendments to this Form 10-KSB. |X|

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act.) YES |X| NO |_|

The issuer's revenues for the fiscal year ended September 30, 2006 were $0.

The aggregate market value of the common stock held by non-affiliates of the
issuer was $0.00 on December 31, 2006.

As of December 31, 2006, there were 100,000 shares of common stock, $.0001 par
value per share, outstanding.

The following documents are incorporated by reference: None.

Transitional Small Business Disclosure Format (check one): Yes |_| No |X|

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                     PART I
                                     ------

Item 1   Description of Business                                               3
Item 2   Description of Property                                               9
Item 3   Legal Proceedings                                                     9
Item 4   Submission of Matters to a Vote of Security Holders                   9

                                     PART II
                                     -------

Item 5   Market for Common Equity and Related Stockholder Matters             10
Item 6   Management's Discussion and Analysis or Plan of Operation            10
Item 7   Financial Statements                                                 11
Item 8   Changes In and Disagreements with Accountants on Accounting and
           Financial Disclosure                                               11
Item 8A  Controls and Procedures                                              11
Item 8B  Other Information                                                    12

                                    PART III
                                    --------

Item 9   Directors, Executive Officers, Promoters and Control Persons;
           Compliance with Section 16(A) of the Exchange Act                  12
Item 10  Executive Compensation                                               13
Item 11  Security Ownership of Certain Beneficial Owners and Management       13
Item 12  Certain Relationships and Related Transactions                       14
Item 13  Exhibits                                                             14
Item 14. Principal Accountant Fees and Services                               14


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<PAGE>

                                     Part I

ITEM 1. DESCRIPTION OF BUSINESS

(a)   Business Development

      Lane Co #3, Inc. (the "Company" or the "Registrant") was incorporated in
the State of Delaware on November 2, 2005. Since inception, the Company has been
engaged in organizational efforts and obtaining initial financing. The Company
was formed as a vehicle to pursue a business combination and has made no efforts
to identify a possible business combination. As a result, the Company has not
conducted negotiations or entered into a letter of intent concerning any target
business. The business purpose of the Company is to seek the acquisition of, or
merger with, an existing company.

(b)   Business of Issuer

      The Company, based on proposed business activities, is a "blank check"
company. The SEC defines those companies as "any development stage company that
is issuing a penny stock, within the meaning of Section 3 (a)(51) of the
Exchange Act, and that has no specific business plan or purpose, or has
indicated that its business plan is to merge with an unidentified company or
companies." Many states have enacted statutes, rules and regulations limiting
the sale of securities of "blank check" companies in their respective
jurisdictions. Management does not intend to undertake any efforts to cause a
market to develop in our securities, either debt or equity, until we have
successfully concluded a business combination. The Company intends to comply
with the periodic reporting requirements of the Exchange Act for so long as we
are subject to those requirements.

      The Company was organized as a vehicle to investigate and, if such
investigation warrants, acquire a target company or business seeking the
perceived advantages of being a publicly held corporation. The Company's
principal business objective for the next 12 months and beyond such time will be
to achieve long-term growth potential through a combination with a business
rather than immediate, short-term earnings. The Company will not restrict its
potential candidate target companies to any specific business, industry or
geographical location and, thus, may acquire any type of business.

      The analysis of new business opportunities has and will be undertaken by
or under the supervision of the officers and directors of the Registrant. The
Registrant has considered potential acquisition transactions with several
companies, but as of this date has not entered into any Letter of Intent or
other agreement with any party. The Registrant has unrestricted flexibility in
seeking, analyzing and participating in potential business opportunities. In its
efforts to analyze potential acquisition targets, the Registrant will consider
the following kinds of factors:

      (a) Potential for growth, indicated by new technology, anticipated market
expansion or new products;

      (b) Competitive position as compared to other firms of similar size and
experience within the industry segment as well as within the industry as a
whole;

      (c) Strength and diversity of management, either in place or scheduled for
recruitment;

      (d) Capital requirements and anticipated availability of required funds,
to be provided by the Registrant or from operations, through the sale of
additional securities, through joint ventures or similar arrangements or from
other sources;

      (e) The cost of participation by the Registrant as compared to the
perceived tangible and intangible values and potentials;

      (f) The extent to which the business opportunity can be advanced;


                                       3
<PAGE>

      (g) The accessibility of required management expertise, personnel, raw
materials, services, professional assistance and other required items; and

      (h) Other relevant factors.

      In applying the foregoing criteria, no one of which will be controlling,
management will attempt to analyze all factors and circumstances and make a
determination based upon reasonable investigative measures and available data.
Potentially available business opportunities may occur in many different
industries, and at various stages of development, all of which will make the
task of comparative investigation and analysis of such business opportunities
extremely difficult and complex. Due to the Registrant's limited capital
available for investigation, the Registrant may not discover or adequately
evaluate adverse facts about the opportunity to be acquired.

FORM OF ACQUISITION

      The manner in which the Registrant participates in an opportunity will
depend upon the nature of the opportunity, the respective needs and desires of
the Registrant and the promoters of the opportunity, and the relative
negotiating strength of the Registrant and such promoters.

      It is likely that the Registrant will acquire its participation in a
business opportunity through the issuance of common stock or other securities of
the Registrant. Although the terms of any such transaction cannot be predicted,
it should be noted that in certain circumstances the criteria for determining
whether or not an acquisition is a so-called "tax free" reorganization under
Section 368(a)(1) of the Internal Revenue Code of 1986, as amended (the "Code"),
depends upon whether the owners of the acquired business own 80% or more of the
voting stock of the surviving entity. If a transaction were structured to take
advantage of these provisions rather than other "tax free" provisions provided
under the Code, all prior stockholders would in such circumstances retain 20% or
less of the total issued and outstanding shares of the surviving entity. Under
other circumstances, depending upon the relative negotiating strength of the
parties, prior stockholders may retain substantially less than 20% of the total
issued and outstanding shares of the surviving entity. This could result in
substantial additional dilution to the equity of those who were stockholders of
the Registrant prior to such reorganization.

      The present stockholders of the Registrant will likely not have control of
a majority of the voting shares of the Registrant following a reorganization
transaction. As part of such a transaction, all or a majority of the
Registrant's directors may resign and new directors may be appointed without any
vote by stockholders.

      In the case of an acquisition, the transaction may be accomplished upon
the sole determination of management without any vote or approval by
stockholders. In the case of a statutory merger or consolidation directly
involving the Company, it will likely be necessary to call a stockholders'
meeting and obtain the approval of the holders of a majority of the outstanding
shares. The necessity to obtain such stockholder approval may result in delay
and additional expense in the consummation of any proposed transaction and will
also give rise to certain appraisal rights to dissenting stockholders. Most
likely, management will seek to structure any such transaction so as not to
require stockholder approval.

      It is anticipated that the investigation of specific business
opportunities and the negotiation, drafting and execution of relevant
agreements, disclosure documents and other instruments will require substantial
management time and attention and substantial cost for accountants, attorneys
and others. If a decision is made not to participate in a specific business
opportunity, the costs theretofore incurred in the related investigation would
not be recoverable. Furthermore, even if an agreement is reached for the
participation in a specific business opportunity, the failure to consummate that
transaction may result in the loss to the Registrant of the related costs
incurred.

      We presently have no employees. Our sole officer and director is engaged
in outside business activities and anticipate that he will devote to our
business only several hours per week until the acquisition of a successful
business opportunity has been consummated. We expect no significant changes in
the number of our employees other than such changes, if any, incident to a
business combination.


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<PAGE>

RISK FACTORS

AN INVESTMENT IN THE COMPANY IS HIGHLY SPECULATIVE IN NATURE AND INVOLVES AN
EXTREMELY HIGH DEGREE OF RISK.

There may be conflicts of interest between our management and our non-management
stockholders.

Conflicts of interest create the risk that management may have an incentive to
act adversely to the interests of other investors. A conflict of interest may
arise between our management's personal pecuniary interest and its fiduciary
duty to our stockholders. Further, our management's own pecuniary interest may
at some point compromise its fiduciary duty to our stockholders. In addition,
our officers and directors are currently involved with other blank check
companies and conflicts in the pursuit of business combinations with such other
blank check companies with which they and other members of our management are,
and may be the future be, affiliated with may arise. If we and the other blank
check companies that our officers and directors are affiliated with desire to
take advantage of the same opportunity, then those officers and directors that
are affiliated with both companies would abstain from voting upon the
opportunity. In the event of identical officers and directors, the officers and
directors will arbitrarily determine the company that will be entitled to
proceed with the proposed transaction.

OUR BUSINESS IS DIFFICULT TO EVALUATE BECAUSE WE HAVE NO OPERATING HISTORY.

As the Company has no operating history or revenue and only minimal assets,
there is a risk that we will be unable to continue as a going concern and
consummate a business combination. The Company has had no recent operating
history nor any revenues or earnings from operations since inception. We have no
significant assets or financial resources. We will, in all likelihood, sustain
operating expenses without corresponding revenues, at least until the
consummation of a business combination. This may result in our incurring a net
operating loss that will increase continuously until we can consummate a
business combination with a profitable business opportunity. We cannot assure
you that we can identify a suitable business opportunity and consummate a
business combination.

THERE IS COMPETITION FOR THOSE PRIVATE COMPANIES SUITABLE FOR A MERGER
TRANSACTION OF THE TYPE CONTEMPLATED BY MANAGEMENT.

The Company is in a highly competitive market for a small number of business
opportunities which could reduce the likelihood of consummating a successful
business combination. We are and will continue to be an insignificant
participant in the business of seeking mergers with, joint ventures with and
acquisitions of small private and public entities. A large number of established
and well-financed entities, including small public companies and venture capital
firms, are active in mergers and acquisitions of companies that may be desirable
target candidates for us. Nearly all these entities have significantly greater
financial resources, technical expertise and managerial capabilities than we do;
consequently, we will be at a competitive disadvantage in identifying possible
business opportunities and successfully completing a business combination. These
competitive factors may reduce the likelihood of our identifying and
consummating a successful business combination.


                                       5
<PAGE>

FUTURE SUCCESS IS HIGHLY DEPENDENT ON THE ABILITY OF MANAGEMENT TO LOCATE AND
ATTRACT A SUITABLE ACQUISITION.

The nature of our operations is highly speculative and there is a consequent
risk of loss of your investment. The success of our plan of operation will
depend to a great extent on the operations, financial condition and management
of the identified business opportunity. While management intends to seek
business combination(s) with entities having established operating histories, we
cannot assure you that we will be successful in locating candidates meeting that
criterion. In the event we complete a business combination, the success of our
operations may be dependent upon management of the successor firm or venture
partner firm and numerous other factors beyond our control.

THE COMPANY HAS NO EXISTING AGREEMENT FOR A BUSINESS COMBINATION OR OTHER
TRANSACTION.

We have no arrangement, agreement or understanding with respect to engaging in a
merger with, joint venture with or acquisition of, a private or public entity.
No assurances can be given that we will successfully identify and evaluate
suitable business opportunities or that we will conclude a business combination.
Management has not identified any particular industry or specific business
within an industry for evaluation. We cannot guarantee that we will be able to
negotiate a business combination on favorable terms, and there is consequently a
risk that funds allocated to the purchase of our shares will not be invested in
a company with active business operations.

MANAGEMENT INTENDS TO DEVOTE ONLY A LIMITED AMOUNT OF TIME TO SEEKING A TARGET
COMPANY WHICH MAY ADVERSELY IMPACT OUR ABILITY TO IDENTIFY A SUITABLE
ACQUISITION CANDIDATE.

While seeking a business combination, management anticipates devoting no more
than a few hours per week to the Company's affairs. Our officers have not
entered into written employment agreements with us and are not expected to do so
in the foreseeable future. This limited commitment may adversely impact our
ability to identify and consummate a successful business combination.

THE TIME AND COST OF PREPARING A PRIVATE COMPANY TO BECOME A PUBLIC REPORTING
COMPANY MAY PRECLUDE US FROM ENTERING INTO A MERGER OR ACQUISITION WITH THE MOST
ATTRACTIVE PRIVATE COMPANIES.

Target companies that fail to comply with SEC reporting requirements may delay
or preclude acquisition. Sections 13 and 15(d) of the Exchange Act require
reporting companies to provide certain information about significant
acquisitions, including certified financial statements for the company acquired,
covering one, two, or three years, depending on the relative size of the
acquisition. The time and additional costs that may be incurred by some target
entities to prepare these statements may significantly delay or essentially
preclude consummation of an acquisition. Otherwise suitable acquisition
prospects that do not have or are unable to obtain the required audited
statements may be inappropriate for acquisition so long as the reporting
requirements of the Exchange Act are applicable.

THE COMPANY MAY BE SUBJECT TO FURTHER GOVERNMENT REGULATION WHICH WOULD
ADVERSELY AFFECT OUR OPERATIONS.

Although we will be subject to the reporting requirements under the Exchange
Act, management believes we will not be subject to regulation under the
Investment Company Act of 1940, as amended (the "Investment Company Act"), since
we will not be engaged in the business of investing or trading in securities. If
we engage in business combinations which result in our holding passive
investment interests in a number of entities, we could be subject to regulation
under the Investment Company Act. If so, we would be required to register as an
investment company and could be expected to incur significant registration and
compliance costs. We have obtained no formal determination from the Securities
and Exchange Commission as to our status under the Investment Company Act and,
consequently, violation of the Act could subject us to material adverse
consequences.


                                       6
<PAGE>

ANY POTENTIAL ACQUISITION OR MERGER WITH A FOREIGN COMPANY MAY SUBJECT US
TOADDITIONAL RISKS.

If we enter into a business combination with a foreign concern, we will be
subject to risks inherent in business operations outside of the United States.
These risks include, for example, currency fluctuations, regulatory problems,
punitive tariffs, unstable local tax policies, trade embargoes, risks related to
shipment of raw materials and finished goods across national borders and
cultural and language differences. Foreign economies may differ favorably or
unfavorably from the United States economy in growth of gross national product,
rate of inflation, market development, rate of savings, and capital investment,
resource self-sufficiency and balance of payments positions, and in other
respects.

THERE IS CURRENTLY NO TRADING MARKET FOR OUR COMMON STOCK.

Outstanding shares of our Common Stock cannot be offered, sold, pledged or
otherwise transferred unless subsequently registered pursuant to, or exempt from
registration under, the Securities Act and any other applicable federal or state
securities laws or regulations. These restrictions will limit the ability of our
stockholders to liquidate their investment.

OUR BUSINESS WILL HAVE NO REVENUES UNLESS AND UNTIL WE MERGE WITH OR ACQUIRE AN
OPERATING BUSINESS.

We are a development stage company and have had no revenues from operations. We
may not realize any revenues unless and until we successfully merge with or
acquire an operating business.

THE COMPANY INTENDS TO ISSUE MORE SHARES IN A MERGER OR ACQUISITION, WHICH WILL
RESULT IN SUBSTANTIAL DILUTION.

Our certificate of incorporation authorizes the issuance of a maximum of
100,000,000 shares of common stock and a maximum of 10,000,000 shares of
preferred stock. Any merger or acquisition effected by us may result in the
issuance of additional securities without stockholder approval and may result in
substantial dilution in the percentage of our common stock held by our then
existing stockholders. Moreover, the common stock issued in any such merger or
acquisition transaction may be valued on an arbitrary or non-arm's-length basis
by our management, resulting in an additional reduction in the percentage of
common stock held by our then existing stockholders. Our Board of Directors has
the power to issue any or all of such authorized but unissued shares without
stockholder approval. To the extent that additional shares of Common Stock or
Preferred Stock are issued in connection with a business combination or
otherwise, dilution to the interests of our stockholders will occur and the
rights of the holders of Common Stock might be materially adversely affected.

THE COMPANY HAS CONDUCTED NO MARKET RESEARCH OR IDENTIFICATION OF BUSINESS
OPPORTUNITIES, WHICH MAY AFFECT OUR ABILITY TO IDENTIFY A BUSINESS TO MERGE WITH
OR ACQUIRE.

The Company has neither conducted nor have others made available to us results
of market research concerning prospective business opportunities. Therefore, we
have no assurances that market demand exists for a merger or acquisition as
contemplated by us. Our management has not identified any specific business
combination or other transactions for formal evaluation by us, such that it may
be expected that any such target business or transaction will present such a
level of risk that conventional private or public offerings of securities or
conventional bank financing will not be available. There is no assurance that we
will be able to acquire a business opportunity on terms favorable to us.
Decisions as to which business opportunity to participate in will be
unilaterally made by our management, which may act without the consent, vote or
approval of our stockholders.


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<PAGE>

BECAUSE WE MAY SEEK TO COMPLETE A BUSINESS COMBINATION THROUGH A "REVERSE
MERGER", FOLLOWING SUCH A TRANSACTION WE MAY NOT BE ABLE TO ATTRACT THE
ATTENTION OF MAJOR BROKERAGE FIRMS.

Additional risks may exist since we will assist a privately held business to
become public through a "reverse merger." Securities analysts of major brokerage
firms may not provide coverage of our Company since there is no incentive to
brokerage firms to recommend the purchase of our common stock. No assurance can
be given that brokerage firms will want to conduct any secondary offerings on
behalf of our post-merger company in the future.

WE CANNOT ASSURE YOU THAT FOLLOWING A BUSINESS COMBINATION WITH AN OPERATING
BUSINESS, OUR COMMON STOCK WILL BE LISTED ON NASDAQ OR ANY OTHER SECURITIES
EXCHANGE.

Following a business combination, we may seek the listing of our common stock on
NASDAQ or the American Stock Exchange. However, we cannot assure you that
following such a transaction, we will be able to meet the initial listing
standards of either of those or any other stock exchange, or that we will be
able to maintain a listing of our common stock on either of those or any other
stock exchange. After completing a business combination, until our common stock
is listed on the NASDAQ or another stock exchange, we expect that our common
stock would be eligible to trade on the OTC Bulletin Board, another
over-the-counter quotation system, or on the "pink sheets," where our
stockholders may find it more difficult to dispose of shares or obtain accurate
quotations as to the market value of our common stock. In addition, we would be
subject to an SEC rule that, if it failed to meet the criteria set forth in such
rule, imposes various practice requirements on broker-dealers who sell
securities governed by the rule to persons other than established customers and
accredited investors. Consequently, such rule may deter broker-dealers from
recommending or selling our common stock, which may further affect its
liquidity. This would also make it more difficult for us to raise additional
capital following a business combination.

THERE IS NO PUBLIC MARKET FOR OUR COMMON STOCK, NOR HAVE WE EVER PAID DIVIDENDS
ON OUR COMMON STOCK.

There is no public trading market for our common stock and none is expected to
develop in the foreseeable future unless and until the Company completes a
business combination with an operating business and such business files a
registration statement under the Securities Act of 1933, as amended.
Additionally, we have never paid dividends on our Common Stock and do not
presently intend to pay any dividends in the foreseeable future. We anticipate
that any funds available for payment of dividends will be re-invested into the
Company to further its business strategy.

AUTHORIZATION OF PREFERRED STOCK.

Our Certificate of Incorporation authorizes the issuance of up to 10,000,000
shares of preferred stock with designations, rights and preferences determined
from time to time by its Board of Directors. Accordingly, our Board of Directors
is empowered, without stockholder approval, to issue preferred stock with
dividend, liquidation, conversion, voting, or other rights which could adversely
affect the voting power or other rights of the holders of the common stock. In
the event of issuance, the preferred stock could be utilized, under certain
circumstances, as a method of discouraging, delaying or preventing a change in
control of the Company. Although we have no present intention to issue any
shares of its authorized preferred stock, there can be no assurance that the
Company will not do so in the future.


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<PAGE>

CONTROL BY MANAGEMENT.

Management currently owns 100% of all the issued and outstanding capital stock
of the Company. Consequently, management has the ability to control the
operations of the Company and will have the ability to control substantially all
matters submitted to stockholders for approval, including:

      o     Election of the board of directors;

      o     Removal of any directors;

      o     Amendment of the Company's certificate of incorporation or bylaws;
            and

      o     Adoption of measures that could delay or prevent a change in control
            or impede a merger, takeover or other business combination.

Our President and Sole Director also owns 100 % of our issued and outstanding
common stock. Accordingly, this concentration of ownership by itself may have
the effect of impeding a merger, consolidation, takeover or other business
consolidation, or discouraging a potential acquiror from making a tender offer
for the common stock.

THIS REGISTRATION STATEMENT CONTAINS FORWARD-LOOKING STATEMENTS AND INFORMATION
RELATING TO US, OUR INDUSTRY AND TO OTHER BUSINESSES.

These forward-looking statements are based on the beliefs of our management, as
well as assumptions made by and information currently available to our
management. When used in this prospectus, the words "estimate," "project,"
"believe," "anticipate," "intend," "expect" and similar expressions are intended
to identify forward-looking statements. These statements reflect our current
views with respect to future events and are subject to risks and uncertainties
that may cause our actual results to differ materially from those contemplated
in our forward-looking statements. We caution you not to place undue reliance on
these forward-looking statements, which speak only as of the date of this
prospectus. We do not undertake any obligation to publicly release any revisions
to these forward-looking statements to reflect events or circumstances after the
date of this prospectus or to reflect the occurrence of unanticipated events.

ITEM 2. DESCRIPTION OF PROPERTY.

The Company neither rents nor owns any properties. The Company currently has no
policy with respect to investments or interests in real estate, real estate
mortgages or securities of, or interests in, persons primarily engaged in real
estate activities.

ITEM 3. LEGAL PROCEEDINGS.

There are not presently any material pending legal proceedings to which the
Registrant is a party or as to which any of its property is subject, and no such
proceedings are known to the Registrant to be threatened or contemplated against
it.

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

For the period from the inception of the Company on November 2, 2005 to December
31, 2006 there have been no matters submitted to the vote of the security
holders.


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                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

      (a) Market Information. The Company's common stock is not trading on any
stock exchange. There has been no market activity in its stock since its
inception through the date of this filing.

      (b) Holders. As of December 31, 2006 there was one holder of our common
stock.

      (c) Dividends. We have not paid any dividends on our common stock to date
and do not intend to pay dividends prior to the completion of a business
combination. The payment of dividends in the future will be contingent upon our
revenues and earnings, if any, capital requirements and general financial
condition subsequent to completion of a business combination. The payment of any
dividends subsequent to a business combination will be within the discretion of
our then board of directors. It is the present intention of our board of
directors to retain all earnings, if any, for use in our business operations
and, accordingly, our board does not anticipate declaring any dividends in the
foreseeable future.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

      The Company was organized as a vehicle to investigate and, if such
investigation warrants, acquire a target company or business seeking the
perceived advantages of being a publicly held corporation. Our principal
business objective for the next 12 months and beyond such time will be to
achieve long-term growth potential through a combination with a business rather
than immediate, short-term earnings. The Company will not restrict our potential
candidate target companies to any specific business, industry or geographical
location and, thus, may acquire any type of business.

      The Company does not currently engage in any business activities that
provide cash flow. The costs of investigating and analyzing business
combinations for the next 12 months and beyond such time will be paid with
amounts to be loaned to or invested in us by our stockholders, management or
other investors.

      During the next twelve months we anticipate incurring costs related to:

      (i) filing of Exchange Act reports, and

      (ii) costs relating to consummating an acquisition.

      We believe we will be able to meet these costs through amounts, as
necessary, to be loaned to or invested in us by our stockholders, management or
other investors.

      The Company may consider a business which has recently commenced
operations, is a developing company in need of additional funds for expansion
into new products or markets, is seeking to develop a new product or service, or
is an established business which may be experiencing financial or operating
difficulties and is in need of additional capital. In the alternative, a
business combination may involve the acquisition of, or merger with, a company
which does not need substantial additional capital, but which desires to
establish a public trading market for its shares, while avoiding, among other
things, the time delays, significant expense, and loss of voting control which
may occur in a public offering.

      Any target business that is selected may be a financially unstable company
or an entity in its early stages of development or growth, including entities
without established records of sales or earnings. In that event, we will be
subject to numerous risks inherent in the business and operations of financially
unstable and early stage or potential emerging growth companies. In addition, we
may effect a business combination with an entity in an industry characterized by
a high level of risk, and, although our management will endeavor to evaluate the
risks inherent in a particular target business, there can be no assurance that
we will properly ascertain or assess all significant risks.


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<PAGE>

      Our management anticipates that it will likely be able to effect only one
business combination, due primarily to our limited financing, and the dilution
of interest for present and prospective stockholders, which is likely to occur
as a result of our management's plan to offer a controlling interest to a target
business in order to achieve a tax free reorganization. This lack of
diversification should be considered a substantial risk in investing in us,
because it will not permit us to offset potential losses from one venture
against gains from another.

      The Company anticipates that the selection of a business combination will
be complex and extremely risky. Because of general economic conditions, rapid
technological advances being made in some industries and shortages of available
capital, our management believes that there are numerous firms seeking even the
limited additional capital which we will have and/or the perceived benefits of
becoming a publicly traded corporation. Such perceived benefits of becoming a
publicly traded corporation include, among other things, facilitating or
improving the terms on which additional equity financing may be obtained,
providing liquidity for the principals of and investors in a business, creating
a means for providing incentive stock options or similar benefits to key
employees, and offering greater flexibility in structuring acquisitions, joint
ventures and the like through the issuance of stock. Potentially available
business combinations may occur in many different industries and at various
stages of development, all of which will make the task of comparative
investigation and analysis of such business opportunities extremely difficult
and complex.

      We do not currently intend to retain any entity to act as a "finder" to
identify and analyze the merits of potential target businesses.

ITEM 7. FINANCIAL STATEMENTS.

Please see the financial statements beginning on page F-1 located elsewhere in
this annual report on Form 10-KSB and incorporated herein by reference.

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

None.

ITEM 8A. CONTROLS AND PROCEDURES.

The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in the Company's Exchange Act
reports is recorded, processed and summarized and is reported within the time
periods specified in the SEC's rules and forms, and that such information is
accumulated and communicated to the Company's management, including its Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely
decisions regarding required disclosure. In designing and evaluating the
disclosure control procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives,
and management necessarily was required to apply its judgment in evaluating the
cost-benefit relationship of possible controls and procedures.

As of the date of this report, the Company's management, including the President
(principal executive officer) and Chief Financial Officer, carried out an
evaluation of the effectiveness of the design and operation of the Company's
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based
upon the evaluation, the Company's President (principal executive officer) and
Chief Financial Officer concluded that the Company's disclosure controls and
procedures are effective in timely alerting them to material information
required to be included in the Company's periodic SEC filings. There have been
no significant changes in the Company's disclosure controls and procedures or in
other factors, which could significantly affect disclosure controls subsequent
to the date the Company's management carried out its evaluation. During the
period covered by this Annual Report on Form 10-KSB, there was no change in our
internal control over financial reporting (as defined in Rule 13a-15(f) under
the Exchange Act) that materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.


                                       11
<PAGE>

ITEM 8B. OTHER INFORMATION.

None.

                                    PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
WITH SECTION 16(A) OF THE EXCHANGE ACT.

(a) Identification of Directors and Executive Officers.

A. Identification of Directors and Executive Officers. The current officers and
directors will serve for one year or until their respective successors are
elected and qualified. They are:

Name                                Age   Position
---------------------------------   ---   --------------------------------------
John D. Lane                         60   President and Sole Director

Mr. Lane entered the securities industry in May 1969 with a bank-trading firm in
New Jersey. He formed Lane Capital Markets, LLC in 2001 as an Investment Banking
boutique focused on mergers and acquisitions, management consulting and company
re-positioning, deal structuring, managing and/or co-managing IPO's and
follow-on offerings, pipe transactions and private placements.

Mr. Lane has managed/co-managed numerous transactions and has participated in
hundreds since the early 1990's. Between 1984 and 2000, Mr. Lane held high-level
positions at investment banking firms based in Fairfield County, Connecticut. He
has been associated with several major firms including Boettcher & Co., Advest &
Co. and Dain Raucher. Mr. Lane has served as officer, director, owner,
trader,department manager, corporate finance director and syndicate manager. He
has been active in several Fairfield County organizations.

Mr. Lane has been an active member of several SIA committees, including the SIA
Small Firms Committee, in which he was Chairman in 1994, the SIA Membership
Committee, in which he was Chairman for several terms, and also served three
years on the SIA Syndicate Committee. In 1996, John traveled to China with the
SIA for 17 days as a guest of the Chinese government to meet with banks,
brokerage firms and the government to discuss experiences in the capital-raising
arena and several topics regarding the securities business. He is currently
serving as District Chairman for the Security Industry Association in the New
England district. He also served as a director of the Regional Investment
Bankers Association between 1991 and 1995. Mr. Lane was appointed to a
three-year term and to serve as Chairman for 2002 on the NASD District Business
Conduct Committee out of Boston, MA and has recently completed a three year term
on the NASD Small Firm Advisory Board, which meets and recommends solutions to
industry issues and their impact on regional and small broker/dealers. Mr. Lane
is also currently serving his third consecutive three-year term on the NASD
Corporate Finance Committee. Mr. Lane has worked for two years toward the
restructuring of the recently adopted NASD's Corporate Finance Rules. Mr. Lane
was recently appointed to serve on the newly created NASD Small Firm Task Force.

B. Significant Employees. None

C. Family Relationships. None

D. Involvement in Certain Legal Proceedings. None


                                       12
<PAGE>

E. The Board of Directors acts as the Audit Committee and the Board has no
separate committees. The Company has no qualified financial expert at this time
because it has not been able to hire a qualified candidate. Further, the Company
believes that it has inadequate financial resources at this time to hire such an
expert. The Company intends to continue to search for a qualified individual for
hire.

      (b) Section 16(a) Beneficial Ownership Compliance.

      Section 16(a) of the Securities Exchange Act of 1934, as amended, requires
our executive officers and directors and persons who own more than 10% of a
registered class of our equity securities to file with the Securities and
Exchange Commission initial statements of beneficial ownership, reports of
changes in ownership and annual reports concerning their ownership of the our
common stock and other equity securities, on Form 3, 4 and 5 respectively.
Executive officers, directors and greater than 10% shareholders are required by
the Securities and exchange Commission regulations to furnish our company with
copies of all Section 16(a) reports they file. Based solely on our review of the
copies of such reports received by us, and on written representations by our
officers and directors regarding their compliance with the applicable reporting
requirements under Section 16(a) of the Exchange Act, we believe that, with
respect to the fiscal year ended September 30, 2006, our officers and directors,
and all of the persons known to us to own more than 10% of our common stock,
filed all required reports on a timely basis.

      (c) Code of Ethics.

      We currently do not have a code of ethics. Upon consummation of a business
combination, we intend to adopt a code of ethics that applies to our principal
executive officer, principal financial officer, principal accounting officer or
controller or persons performing similar functions.

      (c) Board Committees and Designated Directors.

      The board of directors is currently composed of only one individual and we
do not have any committees. It is intended that the board of directors will
establish an Audit Committee upon the consummation of a business combination.
The board of directors will take all reasonable actions to ensure that one of
the members of the Audit Committee will be an "audit committee financial
expert," as such term is defined in the rules of the Securities and Exchange
Commission. We will evaluate establishing such committees in the future.

ITEM 10. EXECUTIVE COMPENSATION.

None of the Company's officers or directors has received any cash remuneration
since inception. Officers will not receive any remuneration upon completion of
the offering until the consummation of an acquisition. No remuneration of any
nature has been paid for or on account of services rendered by a director in
such capacity. None of the officers and directors intends to devote more than a
few hours a week to our affairs.

It is possible that, after the Company successfully consummates a business
combination with an unaffiliated entity, that entity may desire to employ or
retain one or a number of members of our management for the purposes of
providing services to the surviving entity. However, the Company has adopted a
policy whereby the offer of any post-transaction employment to members of
management will not be a consideration in our decision whether to undertake any
proposed transaction.

No retirement, pension, profit sharing, stock option or insurance programs or
other similar programs have been adopted by the Company for the benefit of its
employees.

There are no understandings or agreements regarding compensation our management
will receive after a business combination that is required to be included in
this table, or otherwise.

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

(a) Security ownership of certain beneficial owners.

The following table sets forth, as of December 31, 2006,the number of shares of
Common Stock owned of record and beneficially by executive officers, directors
and persons who hold 5% or more of the outstanding Common Stock of the Company.
Also included are the shares held by all executive officers and directors as a
group.


                                       13
<PAGE>

                                 Amount and Nature of
Name and                             Beneficial         Percentage
Address                              Ownership           of Class
------------------------------   --------------------   ----------
John D. Lane                           100,000             100%
263 Queens Grant Road
Fairfield, CT 06824-1929

All Officers and                       100,000             100%
Directors as a group

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Except as otherwise indicated herein, there have been no related party
transactions, or any other transactions or relationships required to be
disclosed pursuant to Item 404 of Regulation S-B.

ITEM 13.  EXHIBITS

(a) Exhibits:

Exhibit No.   Description
-----------   ------------------------------------------------------------------
31.1          Certification of Principal Executive Officer and Principal
              Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
              Act of 2002(1)

32.1          Certification of Principal Executive Officer and Principal
              Financial Officer pursuant to pursuant to 18 U.S.C. Section 1350,
              as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
              2002(1)

3.1           Certificate of Incorporation (1)

3.2           By-laws (1)

----------
(1) Incorporated by reference to the Registrant's Registration Statement on Form
10SB filed on December 15, 2005.

(b) The following documents are filed as part of the report:

1. Financial statements: Report of Independent Registered Public Accounting
Firm, Balance sheet, Statement of Operations, Statement of Stockholder's Equity,
Statement of Cash Flows, and Notes to Financial Statements.

ITEM 14  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

      The firm of Conner & Associates, P.C. ("Conner") acts as our principal
accountant. We paid $2,000 to Conner during the fiscal year ended September 30,
2006 for its audit of our November 30, 2005 financial statements which were
included in our form 10SB 12-G filed with the Securities and Exchange Commission
on December 15, 2005 and for its review of our forms 10QSB for the periods ended
December 31, 2005, March 31, 2006 and June 30, 2006. We have not paid Conner any
fees for the fiscal year ending September 30, 2006 for audit related or tax
fees, or for any other services.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly authorized.


                                       14
<PAGE>

Lane Co # 3, Inc.
(Registrant)

Date: January 9, 2007


By: /s/ John D. Lane
    -----------------------------------------
    (Signature)
    John D. Lane, President & Sole Director
    Principal Executive Officer
    Principal Financial Officer
    Principal Accounting Officer)


                                       15
<PAGE>

                                LANE CO #3, INC.
                    (a corporation in the development stage)

                              FINANCIAL STATEMENTS
                                       AND
             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

                               SEPTEMBER 30, 2006

<PAGE>

                                LANE CO #3, INC.
                    (a corporation in the development stage)

                          INDEX TO FINANCIAL STATEMENTS

                                                                           Page
                                                                           ----

Report of Independent Registered Public Accounting Firm                    F-2

Financial Statements

  Balance Sheet                                                            F-3

  Statement of Operations                                                  F-4

  Statement of Stockholder's Equity                                        F-5

  Statement of Cash Flows                                                  F-6

Notes to Financial Statements                                              F-7 -
                                                                           F-9


                                      F-1
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
Lane Co #3, Inc.

We have audited the accompanying balance sheet of Lane Co #3, Inc. (a
corporation in the development stage) as of September 30, 2006, and the related
statement of operations, stockholder's equity, and cash flows for the period
from November 02, 2005 (inception) to September 30, 2006. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Lane Co #3, Inc. as of
September 30, 2006, and the results of its operations and its cash flows for the
period from November 02, 2005 (inception) to September 30, 2006, in conformity
with United States generally accepted accounting principles.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Notes 1 & 6 to the
financial statements, the Company is in the development stage and has not
commenced operations. Its ability to continue as a going concern is dependent
upon its ability to develop additional sources of capital, locate and complete a
merger with another company and ultimately achieve profitable operations. These
conditions raise substantial doubt about its ability to continue as a going
concern. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.

/s/ Conner & Associates, PC

Newtown, Pennsylvania
January 9, 2007


                                       F-2
<PAGE>

LANE CO #3, INC
(a corporation in the development stage)
BALANCE SHEET
September 30, 2006
--------------------------------------------------------------------------------

ASSETS

    Total assets                                                        $    --
                                                                        =======

LIABILITIES AND STOCKHOLDER'S EQUITY

    Total liabilities                                                   $    --
                                                                        -------

Commitments and contingencies                                                --

Stockholder's equity
  Preferred stock, $.0001 par value, authorized 10,000,000 shares;
    none issued and outstanding                                              --
  Common Stock, $.0001 par value, authorized 100,000,000 shares;
    issued and outstanding 100,000 shares                                    10
  Additional paid in capital                                              9,490
  Deficit accumulated during the development stage                       (9,500)
                                                                        -------

    Total stockholder's equity                                               --
                                                                        -------

    Total liabilities and stockholder's equity                          $    --
                                                                        =======

                        See notes to financial statements


                                       F-3
<PAGE>

LANE CO #3, INC.
(a corporation in the development stage)
STATEMENT OF OPERATIONS
For the period from November 2, 2005 (inception) to September 30, 2006
--------------------------------------------------------------------------------

Sales                                                                  $     --

Cost of sales                                                                --
                                                                       --------

Gross profit                                                                 --
                                                                       --------

General and administrative expenses                                      (9,500)
                                                                       --------

Net loss                                                               $ (9,500)
                                                                       ========

Weighted average number of common
  shares outstanding (basic and diluted)                                100,000
                                                                       --------

Net loss per share (basic and diluted)                                 $ (0.095)
                                                                       ========

                        See notes to financial statements


                                       F-4
<PAGE>

LANE CO #3, INC.
(a corporation in the development stage)
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
For the period from November 2, 2005 (inception) to September 30, 2006
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                           Deficit
                                                                         Accumulated
                                                            Additional   During the
                              Common Stock   Common Stock    Paid-in     Development   Stockholder's
                                 Shares         Amount       Capital        Stage          Equity
                              ------------   ------------   ----------   -----------   -------------
<S>                              <C>             <C>          <C>          <C>            <C>
Balance, November 02, 2005            --         $--          $   --       $    --        $    --

Common shares issued             100,000          10          $6,990            --        $ 7,000

Capital contributions                 --          --          $2,500            --        $ 2,500

Net loss                              --          --              --       $(9,500)       $(9,500)
                                 -------         ---          ------       -------        -------

Balance, September 30, 2006      100,000         $10          $9,490       $(9,500)       $    --
                                 =======         ===          ======       =======        =======
</TABLE>

                        See notes to financial statements


                                       F-5
<PAGE>

LANE CO #3, INC.
(a corporation in the development stage)
STATEMENT OF CASH FLOWS
For the period from November 2, 2005 (inception) to September 30, 2006
--------------------------------------------------------------------------------

Cash flows from operating activities
  Net income (loss)                                                     $(9,500)
                                                                        -------

    Cash flows used in operating activities                              (9,500)
                                                                        -------

Cash flows from financing activities
  Proceeds from issuance of common shares                                 7,000
  Proceeds from additional capital contributions                          2,500
                                                                        -------

    Cash flows provided by financing activities                           9,500
                                                                        -------

Net increase in cash                                                         --

Cash, beginning of period                                                    --
                                                                        -------

Cash, end of period                                                     $    --
                                                                        =======


                        See notes to financial statements


                                       F-6
<PAGE>

LANE CO #3, INC.
(a corporation in the development stage)
Notes to Financial Statements
September 30, 2006
--------------------------------------------------------------------------------

NOTE 1 - Organization

Lane Co #3, Inc. ("the Company") was incorporated in State of Delaware on
November 2, 2005 and is currently in its development stage.

On December 15, 2005 the Company filed a Registration Statement of Form 10SB to
have its common stock, par value $0.0001 registered under Section 12(g) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). In accordance
with the provisions of the Exchange Act such Registration Statement became
effective on February 13, 2006.

As a blank check company, the Company's business is to pursue a business
combination through acquisition, or merger with, an existing company. As of the
date of the financial statements, the Company has made no efforts to identify a
possible business combination. As a result, the Company has not conducted
negotiations or entered into a letter of intent or any other agreement
concerning any target business. No assurances can be given that the Company will
be successful in locating or negotiating with any target company. Since
inception, the Company has been engaged in organizational efforts.

NOTE 2 - Summary of Significant Accounting Policies

The accompanying financial statements are prepared in accordance with accounting
principles generally accepted in the United States.

Significant accounting policies are as follows:

      a.    Use of Estimates

            The preparation of the statement of financial condition in
            conformity with accounting principles generally accepted in the
            United States requires management to make estimates and assumptions
            that affect the amounts of assets and liabilities and disclosure of
            contingent assets and liabilities at the date of the statement of
            financial condition and reported amounts of revenues and expenses
            during the reporting period. Actual results could differ from those
            estimates.

      b.    Cash and Cash Equivalents

            For purposes of the statement of cash flows, the Company considers
            highly liquid financial instruments purchased with a maturity of
            three months or less to be cash equivalents. For the period November
            2, 2005 (inception) through September 30, 2006, the Company did not
            maintain a bank account.

      c.    Income Taxes

            The Company utilizes the liability method of accounting for income
            taxes. Under the liability method, deferred tax assets and
            liabilities are determined based on the differences between
            financial reporting basis and tax basis of the assets and
            liabilities and are measured using enacted tax rates that will be in
            effect when the differences are expected to reverse. An allowance
            against deferred tax assets is recognized, when it is more likely
            than not, that such tax benefits will not be realized. See Note 5.

                                                                      Continued,


                                       F-7
<PAGE>

LANE CO #3, INC.
(a corporation in the development stage)
Notes to Financial Statements
September 30, 2006
--------------------------------------------------------------------------------

      d.    Loss per Common Share

            Loss per share is computed by dividing the net loss by the
            weighted-average number of shares of common stock outstanding during
            the period as required by the Financial Accounting Standards Board
            (FASB) under Statement of Financial Accounting Standards (SFAS) No.
            128.

      e.    New Accounting Pronouncement

            In September 2006, the Financial Accounting Standards Board issued
            Statement of Financial Accounting Standards No. 157 ("FAS 157"),
            Fair Value Measurements, which defines fair value, establishes a
            framework for measuring fair value in generally accepted accounting
            principles ("GAAP"), and expands disclosures about fair value
            measurements. FAS 157 applies under other accounting pronouncements
            that require or permit fair value measurements. Prior to FAS 157,
            there were different definitions of fair value and limited guidance
            for applying those definitions in GAAP. Moreover, that guidance was
            dispersed among the many accounting pronouncements that require fair
            value measurements. Differences in that guidance created
            inconsistencies that added to the complexity in applying GAAP. The
            changes to current practice resulting from the application of FAS
            157 relate to the definition of fair value, the methods used to
            measure fair value, and the expanded disclosures about fair value
            measurements. FAS 157 is effective for financial statements issued
            for fiscal years beginning after November 15, 2007, and interim
            periods within those fiscal years. The Company does not expect the
            adoption of FAS 157 to have an effect on its financial statements.

NOTE 3 - Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock. The
Preferred Stock of the Company shall be issued by the Board of Directors of the
Company in one or more classes or one or more series within any class and such
classes or series shall have such voting powers, full or limited, or no voting
powers, and such designations, preferences, limitations or restrictions as the
Board of Directors of the Company may determine, from time to time. As of
September 30, 2006, the Company had no outstanding preferred stock.

NOTE 4 - Common Stock

The Company is authorized to issue 100,000,000 shares of Company Stock. On
November 3, 2005, the Company issued 100,000 shares of Common Stock for total
consideration of $7,000 to the sole shareholder of the Company.

During the period from November 02, 2005 (inception) to September 30, 2006, the
sole shareholder of the Company made additional capital contributions of $2,500.

Holders of shares of Common Stock shall be entitled to cast one vote for each
share held at all stockholders' meetings for all purposes, including the
election of directors. The Common Stock does not have cumulative voting rights.
No holder of shares of stock of any class shall be entitled as a matter of right
to subscribe for or purchase or receive any part of any new or additional issue
of shares of stock of any class, or of securities convertible into shares of
stock of any class, whether now hereafter authorized or whether issued for
money, for consideration other than money, or by way of dividend.

                                                                      Continued,


                                       F-8
<PAGE>

LANE CO #3, INC.
(a corporation in the development stage)
Notes to Financial Statements
September 30, 2006
--------------------------------------------------------------------------------

NOTE 5 - Income Taxes

The Company has $9,500 in gross deferred tax assets at September 30, 2006
resulting from net operating loss carry-forwards. A valuation allowance has been
recorded to fully offset these deferred tax assets because the future
realization of the related income tax benefits is uncertain. Accordingly, the
net provision for income taxes is zero for the period November 02, 2005
(inception) to September 30, 2006. At September 30, 2006, the Company has
federal net operating loss carry forwards of approximately $9,500 available to
offset future taxable income through 2026. The difference between the tax
provision at the statutory federal income tax rate and the tax provision
attributable to loss before income taxes is as follows (in percentages):

                                          For the period
                                         November 2, 2005
                                       (inception) through
                                        September 30, 2006
                                       -------------------

Statutory federal income taxes                -34.0%
State taxes, net of federal benefits           -5.0%
Valuation allowance                            39.0%
                                              -----

Income tax rate                                 0.0%
                                              =====

NOTE 6 - Going Concern

The Company's financial statements have been presented on the basis that it is a
going concern in the development stage, which contemplates the realization of
assets and the satisfaction of liabilities in the normal course of business. As
of the date of these financial statements, the Company has made no efforts to
identify a possible business combination.

For the period from November 2, 2005 (inception) to September 30, 2006, the
Company incurred losses of $9,500.

The ability of the Company to continue as a going concern is dependent upon its
ability to find a suitable acquisition/merger candidate, raise additional
capital from the sale of common stock and, ultimately, the achievement of
significant operating revenues. The accompanying financial statements do not
include any adjustments that might be required should the Company be unable to
recover the value of its assets or satisfy its liabilities.


                                       F-9