----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**xQUARTERLY      REPORT UNDER      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**oTRANSITION      REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**Panda      Ethanol, Inc.**

| Nevada                                                                                       | 33-0986282                                                         |
|----------------------------------------------------------------------------------------------|--------------------------------------------------------------------|
| (State                or other jurisdiction of incorporation                or organization) | (I.R.S.                Employer Identification                No.) |

| 4100                Spring Valley, Suite 1002, Dallas, Texas 75244 |
|--------------------------------------------------------------------|
| (Address                of principal executive offices)            |

| 972.361.1200                                     |
|--------------------------------------------------|
| (Issuer’s                Telephone Number) |
|                                             |   |

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**APPLICABLE      ONLY TO CORPORATE ISSUERS**

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements**

----

**CIRRACOR,              INC. **

**(NOW              KNOWN AS PANDA ETHANOL, INC. AND FORMERLY KNOWN AS FULL CIRCLE PROMOTIONS,              INC.)**

** (A              DEVELOPMENT STAGE COMPANY)**

**BALANCE            SHEET - SEPTEMBER 30, 2006**

**(UNAUDITED)**

| **ASSETS**                                                                   |
|------------------------------------------------------------------------------|
|                                                                         |   |   |
| **Current                      assets:**                                     |   |   |
| Cash                                                                         | $ | 2,806 |   |
|                                                                         |   |   |   |
| **Property                      and equipment,**                      net of |   |   |   |
| accumulated                      depreciation of $1,746                      |   | 2,136 |   |
|                                                                         |   |   |   |
|                                                                         | $ | 4,942 |   |
|                                                                         |   |   |   |
| **LIABILITIES                      AND STOCKHOLDERS' DEFICIT**               |
|                                                                         |   |   |   |
| **Current                      liabilities:**                                |   |   |   |
| Accounts                      payable and accrued expenses                   | $ | 20,547 |   |
| Accounts                      payable - related parties                      |   | 57,165 |   |
| Advances                      from officer                                   |   | 6,991 |   |
| Advances                      from shareholders                              |   | 50,000 |   |
| Income                      taxes payable                                    |   | 800 |   |
|                                                                         |   |   |   |
|  Total                      current liabilities                         |   | 135,503 |   |
|                                                                         |   |   |   |
| **Stockholders'                      deficit:**                              |   |   |   |
| Preferred                      stock, $0.001 par value; 50,000,000 shares    |   |   |   |
| authorized;                      no shares issued or outstanding             |   | - |   |
| Common                      stock, $0.001 par value; 500,000,000 shares      |   |   |   |
| authorized;                      1,200,000 issued and outstanding            |   | 3,521 |   |
| Additional                      paid-in capital                              |   | 167,822 |   |
| Deficit                      accumulated during development stage            |   | (301,904 | ) |
|                                                                         |   |   |   |
| Total                      stockholders' deficit                        |   | (130,561 | ) |
|                                                                         |   |   |   |
|                                                                         | $ | 4,942 |   |

**The            accompanying notes form an integral part of these financial            statements.**

----

**CIRRACOR,                INC. **

**(NOW                KNOWN AS PANDA ETHANOL, INC. AND FORMERLY KNOWN AS FULL CIRCLE PROMOTIONS,                INC.)**

** (A                DEVELOPMENT STAGE COMPANY)**

**STATEMENTS            OF OPERATIONS **

**(UNAUDITED)**

|                                                            |                                                |      |                                               |   |                                           |   |     |      |  **For                      the period** |   |
|-----------------------------------------------------------------|-----------------------------------------------------|-----------|----------------------------------------------------|--------|------------------------------------------------|--------|----------|-----------|-----------------------------------------------|--------|
|                                                            |                                                |      |                                               |   |                                           |   |     |      | **from                        October 12,**   |   |
|                                                            | **For                      the three months ended** |      | **For                      the nine months ended** |   | **2001                        (inception) to** |   |
|                                                            | **September                      30,**              |      | **September                      30,**             |   | **September                      30,**         |   |
|                                                            | **2006**                                            |      | **2005**                                           |   | **2006**                                       |   | **2005** |      | ** 2006**                                |   |
| **Net                      revenue**                            | $                                                   | -         |                                               | $      | 6,059                                          |   | $        | -         |                                          | $      | 4,370 |   | $ | 84,577 |   |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **Cost                      of revenue**                        |                                                | -         |                                               |   | 7,739                                          |   |     | -         |                                          |   | 5,787 |   |   | 68,648 |   |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **Gross                      profit (loss)**                    |                                                | -         |                                               |   | (1,680                                         | )      |     | -         |                                          |   | (1,417 | ) |   | 15,929 |   |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **General                      and administrative expenses**    |                                                | 41,928    |                                               |   | 14,725                                         |   |     | 99,776    |                                          |   | 60,645 |   |   | 312,526 |   |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **Loss                      from operations**                   |                                                | (41,928   | )                                                  |   | (16,405                                        | )      |     | (99,776   | )                                             |   | (62,062 | ) |   | (296,597 | ) |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **Other                      income (expense)**                 |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| Other                      income                               |                                                | -         |                                               |   | -                                              |   |     | -         |                                          |   | - |   |   | 98 |   |
| Interest                      expense                           |                                                | -         |                                               |   | (192                                           | )      |     | (1,275    | )                                             |   | (220 | ) |   | (1,547 | ) |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
|                                                            |                                                | -         |                                               |   | (192                                           | )      |     | (1,275    | )                                             |   | (220 | ) |   | (1,449 | ) |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **Loss                      before provision for income taxes** |                                                | (41,928   | )                                                  |   | (16,597                                        | )      |     | (101,051  | )                                             |   | (62,282 | ) |   | (298,046 | ) |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **Provision                      for income taxes**             |                                                | -         |                                               |   | -                                              |   |     | 3,858     |                                          |   | - |   |   | 3,858 |   |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **Net                      loss**                               | $                                                   | (41,928   | )                                                  | $      | (16,597                                        | )      | $        | (104,909  | )                                             | $      | (62,282 | ) | $ | (301,904 | ) |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **Net                      loss per common share -**            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| **basic                      and dilutive:**                    |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| Net                      loss per common share,                 |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| restated                      for reverse stock split           |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| of                      0.340885 to 1on November 6, 2006        | $                                                   | (0.03     | )                                                  | $      | (0.01                                          | )      | $        | (0.09     | )                                             | $      | (0.05 | ) | $ | (0.26 | ) |
|                                                            |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| Weighted                      average common shares             |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| outstanding                      - basic and dilutive,          |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| restated                      for reverse stock split of        |                                                |      |                                               |   |                                           |   |     |      |                                          |   |   |   |   |   |   |
| 0.340885                      to 1on November 6, 2006           |                                                | 1,200,000 |                                               |   | 1,200,000                                      |   |     | 1,200,000 |                                          |   | 1,200,000 |   |   | 1,146,145 |   |

**The            accompanying notes form an integral part of these financial            statements.**

----

**CIRRACOR,                INC. **

**(NOW                KNOWN AS PANDA ETHANOL, INC. AND FORMERLY KNOWN AS FULL CIRCLE PROMOTIONS,                INC.)**

** (A                DEVELOPMENT STAGE COMPANY)**

**STATEMENT            OF STOCKHOLDERS' EQUITY (DEFICIT)**

|                                                                                                                   |                                  |      |        |   |            |   | **Deficit**     |    |              |   |
|------------------------------------------------------------------------------------------------------------------------|---------------------------------------|-----------|-------------|--------|-----------------|--------|-----------------|---------|-------------------|--------|
|                                                                                                                   |                                  |      |        |   |            |   | **accumulated** |    | **Total**         |   |
|                                                                                                                   |                                  |      |        |   | **Additional**  |   | **during**      |    | **stockholders'** |   |
|                                                                                                                   | **Common                      stock** |      | **paid-in** |   | **development** |   | **equity**      |    |
|                                                                                                                   | **Shares**                            |      | **Amount**  |   | **capital**     |   | **stage**       |    | **(deficit)**     |   |
| **Balance                        at October 12, 2001, date of incorporation**                                          |                                  | -         |        | $      | -               |   | $               | -       |              | $      | - |   | $ | - |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Issuance                      of Founder Shares for services at $0.0001 per share (October                      2001), |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| restated                      for reverse stock split of 0.340885 to 1 on November 6,                      2006        |                                  | 859,030   |        |   | 2,520           |   |            | -       |              |   | - |   |   | 2,520 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Issuance                        of common stock for cash at $0.02 per share (January                        2002)      |                                  | 236,489   |        |   | 694             |   |            | 13,181  |              |   | - |   |   | 13,875 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for office expenses                                        |                                  | -         |        |   | -               |   |            | 5,500   |              |   | - |   |   | 5,500 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Net                      loss from inception to September 30, 2002                                                     |                                  | -         |        |   | -               |   |            | -       |              |   | (29,543 | ) |   | (29,543 | ) |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| **Balance                      at September 30, 2002**                                                                 |                                  | 1,095,519 |        |   | 3,214           |   |            | 18,681  |              |   | (29,543 | ) |   | (7,648 | ) |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for office expenses                                        |                                  | -         |        |   | -               |   |            | 6,000   |              |   | - |   |   | 6,000 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for services from officers                                 |                                  | -         |        |   | -               |   |            | 22,301  |              |   | - |   |   | 22,301 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Issuance                        of common stock for cash at $0.20 per share (August                        2003)       |                                  | 12,442    |        |   | 37              |   |            | 7,263   |              |   | - |   |   | 7,300 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Net                      loss for the year ended September 30, 2003                                                    |                                  | -         |        |   | -               |   |            | -       |              |   | (10,917 | ) |   | (10,917 | ) |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| **Balance                      at September 30, 2003**                                                                 |                                  | 1,107,961 |        |   | 3,251           |   |            | 54,245  |              |   | (40,460 | ) |   | 17,036 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for office expenses                                        |                                  | -         |        |   | -               |   |            | 6,000   |              |   | - |   |   | 6,000 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for services from officers                                 |                                  | -         |        |   | -               |   |            | 27,500  |              |   | - |   |   | 27,500 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Issuance                        of common stock for cash at $0.20 per share (December 2003)                            |                                  | 92,039    |        |   | 270             |   |            | 53,730  |              |   | - |   |   | 54,000 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Net                      loss for the year ended September 30, 2004                                                    |                                  | -         |        |   | -               |   |            | -       |              |   | (64,516 | ) |   | (64,516 | ) |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| **Balance                      at September 30, 2004**                                                                 |                                  | 1,200,000 |        |   | 3,521           |   |            | 141,475 |              |   | (104,976 | ) |   | 40,020 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for office expenses                                        |                                  | -         |        |   | -               |   |            | 6,000   |              |   | - |   |   | 6,000 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for services from officers                                 |                                  | -         |        |   | -               |   |            | 6,867   |              |   | - |   |   | 6,867 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Net                      loss for the year ended September 30, 2005                                                    |                                  | -         |        |   | -               |   |            |    |              |   | (77,444 | ) |   | (77,444 | ) |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| **Balance                      at September 30, 2005**                                                                 |                                  | 1,200,000 |        |   | 3,521           |   |            | 154,342 |              |   | (182,420 | ) |   | (24,557 | ) |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for office expenses                                        |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| (unaudited)                                                                                                            |                                  | -         |        |   | -               |   |            | 6,000   |              |   | - |   |   | 6,000 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Additional                      paid-in capital in exchange for services from officers                                 |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| (unaudited)                                                                                                            |                                  | -         |        |   | -               |   |            | 7,480   |              |   | - |   |   | 7,480 |   |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Net                      loss for the transition period ended December 31, 2005                                        |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| (unaudited)                                                                                                            |                                  | -         |        |   | -               |   |            | -       |              |   | (14,575 | ) |   | (14,575 | ) |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| Net                      loss for the nine months ended September 30, 2006                                             |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| (unaudited)                                                                                                            |                                  | -         |        |   | -               |   |            | -       |              |   | (104,909 | ) |   | (104,909 | ) |
|                                                                                                                   |                                  |      |        |   |            |   |            |    |              |   |   |   |   |   |   |
| **Balance                      at September 30, 2006 (unaudited)**                                                     |                                  | 1,200,000 |        | $      | 3,521           |   | $               | 167,822 |              | $      | (301,904 | ) | $ | (130,561 | ) |

**The            accompanying notes form an integral part of these financial            statements.**

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**CIRRACOR,                INC. **

**(NOW                KNOWN AS PANDA ETHANOL, INC. AND FORMERLY KNOWN AS FULL CIRCLE PROMOTIONS,                INC.)**

** (A                DEVELOPMENT STAGE COMPANY)**

**STATEMENTS            OF CASH FLOWS **

**(UNAUDITED)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   | **For                      the period**     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|----------|----------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **For                      the nine months ended** |     | **from                      October 12,**    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **September                      30,**             |     | **2001                      (inception) to** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **2006**                                           |     | **2005**                                     |   | **September                      30, 2006** |   |
| **Cash                      flows provided by (used for) operating                      activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |     |                                         |   |                                        |   |
| Net                      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | $                                                  | (104,909 | )                                            | $      | (62,282                                     | )      | $ | (301,904 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Adjustments                      to reconcile net loss to net cash used for operating activities                      -**                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                               |     |                                         |   |                                        |   |   |   |   |
| Bad                      debt expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                               | -        |                                         |   | -                                           |   |   | 1,000 |   |
| Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                               | 582      |                                         |   | 582                                         |   |   | 1,746 |   |
| Non-cash                      issuance of common stock for services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                               | -        |                                         |   | -                                           |   |   | 2,520 |   |
| Non-cash                      additional paid-in capital in exchange for office                      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                               | 4,500    |                                         |   | 4,500                                       |   |   | 29,500 |   |
| Non-cash                      additional paid-in capital in exchange for services from                      officers                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                               | -        |                                         |   | 5,787                                       |   |   | 64,148 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **(Increase)                      decrease in assets -**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                               |     |                                         |   |                                        |   |   |   |   |
|  Accounts                      receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                               | -        |                                         |   | 4,020                                       |   |   | (1,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Increase                      (decrease) in liabilities -**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                               |     |                                         |   |                                        |   |   |   |   |
|  Accounts                      payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                               | 15,736   |                                         |   | 3,594                                       |   |   | 20,548 |   |
|  Accounts                      payable - related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                               | 57,165   |                                         |   | -                                           |   |   | 57,165 |   |
|  Income                      taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                               | 800      |                                         |   | -                                           |   |   | 800 |   |
|  Deferred                      revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                               | (5,500   | )                                            |   | 14,000                                      |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
|  Net                      cash used for operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                               | (31,626  | )                                            |   | (29,799                                     | )      |   | (125,477 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Cash                      flows used for investing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                               |     |                                         |   |                                        |   |   |   |   |
| Payments                      to acquire property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                               | -        |                                         |   | -                                           |   |   | (3,882 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Cash                      flows provided by (used for) financing                      activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                               |     |                                         |   |                                        |   |   |   |   |
| Proceeds                      from officer advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                               | 5,036    |                                         |   | 4,300                                       |   |   | 11,470 |   |
| Repayments                      of officer advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                               | (4,480   | )                                            |   | -                                           |   |   | (4,480 | ) |
| Proceeds                      from shareholder advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                               | 25,000   |                                         |   | -                                           |   |   | 50,000 |   |
| Proceeds                      from issuance of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                               | -        |                                         |   | -                                           |   |   | 75,175 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
|  Net                      cash provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               | 25,556   |                                         |   | 4,300                                       |   |   | 132,165 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Net                      increase (decrease) in cash and cash equivalents**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                               | (6,070   | )                                            |   | (25,499                                     | )      |   | 2,806 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Cash                      and cash equivalents**,                      beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                               | 8,876    |                                         |   | 25,499                                      |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Cash                      and cash equivalents**,                      end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $                                                  | 2,806    |                                         | $      | -                                           |   | $ | 2,806 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Supplemental                      disclosure of cash flow information:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                               |     |                                         |   |                                        |   |   |   |   |
| Income                      taxes paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $                                                  | 3,058    |                                         | $      | -                                           |   | $ | 3,058 |   |
| Interest                      paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $                                                  | 1,327    |                                         | $      | 220                                         |   | $ | 1,547 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| **Supplemental                      disclosure of non-cash financing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                               |     |                                         |   |                                        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| In                      October 2001, the Company issued 859,030, shares of its common                      stock in                      exchange for services to incorporate the Company, restated                      for reverse                      stock split of 0.340885 to 1 on November 6, 2006. The Founder                      Shares were valued at the Company's par value of its common                      stock totaling                      $2,520, which represented its fair market value on the date                      of                      issuance. |                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                               |     |                                         |   |                                        |   |   |   |   |
| In                      December 2003, the Company issued 92,039 shares at approximately                      $0.59 per                      share for $54,000, restated for reverse stock split of 0.340885                      to 1                      on November 6, 2006. However, the Company only received $36,000.                      Subsequently, the Company received the remaining $18,000 in                      January                      2004.                                                                                                                      |                                               |

**The            accompanying notes form an integral part of these financial            statements.**

----

**CIRRACOR,                INC. **

**(NOW                KNOWN AS PANDA ETHANOL, INC. AND FORMERLY KNOWN AS FULL CIRCLE PROMOTIONS,                INC.)**

** (A                DEVELOPMENT STAGE COMPANY)**

**NOTES            TO FINANCIAL STATEMENTS (UNAUDITED)**

**NINE            MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 AND THE **

**PERIOD            FROM OCTOBER 12, 2001 (INCEPTION) TO SEPTEMBER 30, 2006**

| **(1)** | **Nature                      of Business:** |
|---------|----------------------------------------------|

| **(2)** | **Summary                      of Significant Accounting                      Policies:** |
|---------|-------------------------------------------------------------------------------------------|

**Interim            Financial Statements:**

**Basis            of Presentation:**

----

**CIRRACOR,                INC. **

**(NOW                KNOWN AS PANDA ETHANOL, INC. AND FORMERLY KNOWN AS FULL CIRCLE PROMOTIONS,                INC.)**

** (A                DEVELOPMENT STAGE COMPANY)**

**NOTES            TO FINANCIAL STATEMENTS (UNAUDITED)**

**NINE            MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 AND THE **

**PERIOD            FROM OCTOBER 12, 2001 (INCEPTION) TO SEPTEMBER 30, 2006**

**Use            of Estimates:**

| **(3)** | **Related-Party                      Transactions:** |
|---------|------------------------------------------------------|

----

**CIRRACOR,                INC. **

**(NOW                KNOWN AS PANDA ETHANOL, INC. AND FORMERLY KNOWN AS FULL CIRCLE PROMOTIONS,                INC.)**

** (A                DEVELOPMENT STAGE COMPANY)**

**NOTES            TO FINANCIAL STATEMENTS (UNAUDITED)**

**NINE            MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 AND THE **

**PERIOD            FROM OCTOBER 12, 2001 (INCEPTION) TO SEPTEMBER 30, 2006**

| **(4)** | **Income                      Taxes:** |
|---------|----------------------------------------|

| **(5)** | **Agreement                      and Plan of Merger:** |
|---------|--------------------------------------------------------|

| **(6)** | **Equity:** |
|---------|-------------|

----

**Item            2. Plan of Operation**

| ·   | our                        ability to complete construction of our ethanol plants; the                        projected                        growth or contraction in the ethanol market in which we will                        operate; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | fluctuations                        in the market price of ethanol; |
|--------------------|---------------------------------------------------------------------|

| ·   | our                        business strategy for expanding, maintaining or contracting                        our presence                        in this market; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                        ability to obtain the necessary capital to finance our initiatives; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | anticipated                        trends in our financial condition and results of operations; |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | our                        ability to distinguish ourselves from our current and future                        competitors; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                        in or elimination of laws, tariffs, trade or other controls                        or enforcement                        practices such as: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | national,                        state or local energy policy; |
|---------------|----------------------------------------------------------------|

| o   | federal                        ethanol tax incentives; |
|---------------|--------------------------------------------------------|

| o   | regulation                        currently under consideration pursuant to the passage of                        the Energy Policy                        Act of 2005, which contains a renewable fuel standard and                        other                        legislation mandating the usage of ethanol or other oxygenate                        additives;                        state and federal regulation restricting or banning the use                        of Methyl                        Tertiary Butyl Ether, or MTBE, a fuel derived from                        methanol; |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | environmental                        laws and regulations applicable to our operations and the                        enforcement                        thereof; and |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | regulations                        related to homeland security; |
|---------------|------------------------------------------------------------------|

| ·   | changes                        in weather and general economic conditions; |
|--------------------|----------------------------------------------------------------------------|

| ·   | overcapacity                        within the ethanol and petroleum production and refining                        industries; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | total                        United States consumption of gasoline; |
|--------------------|---------------------------------------------------------------------|

| ·   | availability                        and costs of products and raw materials, particularly corn,                        coal and                        natural gas; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | labor                        relations; fluctuations in petroleum prices; |
|--------------------|---------------------------------------------------------------------------|

| ·   | our                        or our employees’ failure to comply with applicable laws and regulations; |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | our                        ability to generate free cash flow to invest in our business                        and service                        our indebtedness; limitations and restrictions contained                        in the                        instruments and agreements governing our indebtedness; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                        ability to raise additional capital and secure additional                        financing; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                        in interest rates; |
|--------------------|---------------------------------------------------|

| ·   | our                        ability to retain key employees; |
|--------------------|-------------------------------------------------------------|

| ·   | liability                        resulting from actual or potential future litigation; competition; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | plant                        shutdowns or disruptions at our plant or plants whose products                        we will                        market; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | availability                        of shuttle trains, rail cars and trucks; risks regarding                        a loss of or                        substantial decrease in purchases by our major customers; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | risks                        related to hedging decisions, including whether or not to                        enter into                        hedging arrangements and the possibility of financial losses                        related to                        hedging arrangements; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | risks                        related to diverting management’s attention from ongoing business                        operations; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | other                        risks detailed in our current filings with the SEC, including                        our most                        recent filings on Form 10-KSB or Form 10-QSB, which discuss                        other                        important risk factors concerning our historical                        operations. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Critical            Accounting Policy and Estimates. **

----

**Liquidity            and Capital Resources.**

**For            the three month period ending September 30, 2006.**

**Results            of Operations.**

**Revenues.**

**Operating            Expenses.**

**For            the nine month period ending September 30, 2006.**

**Results            of Operations.**

**Revenues.**

----

**Operating            Expenses.**

**Our            Plan of Operation for the Next Twelve Months. **

----

**Subsequent              Events. **

**Off-Balance            Sheet Arrangements.**

**Item            3. Controls and Procedures**

**PART            II — OTHER INFORMATION**

**Item            1. Legal Proceedings.**

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

**Item            3. Defaults Upon Senior Securities**

**Item            4. Submission of Matters to Vote of Security Holders**

**Item            5. Other Information**

**Item            6. Exhibits **

31.            Rule            13a-14(a)/15d-14(a) Certifications 

----

**SIGNATURES**

|                                              |                                                                                       |                                                              |
|---------------------------------------------------|--------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|                                              | **Panda                        Ethanol, Inc.,**a                        Nevada corporation |
|                                         |                                                                                  |                                                         |
| Date: November                      17, 2006 | By:                                                                              | /s/ Todd                      W.                      Carter |
|                                              | Todd W. CarterChief Executive Officer, President,                        Director          |