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 For the quarterly period ended June 30, 2006  __TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from ____ to ____.   AOB HOLDINGS, INC. (Name of small business in its charter)  Delaware0-5104098-0436981(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification Number)  471 W. Lambert Rd. #113
Brea, CA 92821(Address of principal executive offices) Issuers telephone number: 714-482-0430  Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities 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 No X  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes X No__  Applicable only to issuers involved in bankruptcy proceedings during the past five years.  Check whether the issuer has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes...  No....  Applicable only to corporate issuers:  State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date:  At June 30, 2006 there were 18,709,200 shares outstanding.  Transitional Small Business Disclosure Format (Check one):  Yes...No..X.    - 1 -     PART 1 - FINANCIAL  INFORMATION  ITEM 1.  FINANCIAL STATEMENTS AND EXHIBITS            AOB HOLDING, INC.  (FORMERLY KNOWN AS ASIA NETWORK, INC.)  (A DEVELOPMENT STAGE COMPANY)  UNAUDITED FINANCIAL STATEMENTS  FOR THE THREE AND NINE MONTH PERIODS ENDED  JUNE 30, 2006                    - 2 -     AOB HOLDING, INC. (A DEVELOPMENT STAGE COMPANY)   INDEX TO UNAUDITED FINANCIAL STATEMENTS      PAGEBALANCE SHEET (UNAUDITED)4STATEMENTS OF OPERATIONS (UNAUDITED)5STATEMENTS OF CASH FLOWS (UNAUDITED)6NOTES TO UNAUDITED FINANCIAL STATEMENTS7                     - 3 -     AOB HOLDING, INC. (A DEVELOPMENT STAGE COMPANY)  BALANCE SHEET (UNAUDITED)  June 30,ASSETS2006Current assetsCash$             1,994Accounts receivable1,437Total current assets3,431Total assets$             3,431LIABILITIES AND STOCKHOLDERS' DEFICITCurrent liabilitiesAccounts payable$           84,859Accounts payable - related party13,500Accrued salaries328,200Short term note - related party179,854Total current liabilities606,413Stockholders' deficitCommon stock:$.001 par value; 80,000,000 shares authorized;    18,709,200 shares issued and outstanding18,709Additional paid in capital402,391Deficit accumulated during the development stage(1,024,082)Total stockholders' deficit(602,982)Total liabilities and stockholders' deficit$             3,431      See notes to unaudited financial statements  - 4 -     AOB HOLDING, INC. (A DEVELOPMENT STAGE COMPANY)  STATEMENTS OF OPERATIONS (UNAUDITED) Three months endedThree months endedNine months endedNine months endedPeriod from   September 14, 2004          (inception) toJune 30,June 30,June 30,June 30,June 30,20062005200620052006RevenuesSales revenues$             18,158$                      -$             20,632$                      -$             20,632Cost of sales16,100-22,466-22,466Gross profit2,058-(1,834)-(1,834)Operating expensesCompensation21,243-210,698-399,697Consulting and legal11,129-20,977-121,460Rents4,500-13,539-27,039Software development19,57610,00058,598234,00092,598General and administrative41,51472,764106,894248,608380,427Total operating expenses97,96282,764410,706482,6081,021,221Loss from operations(95,904)(82,764)(412,540)(482,608)1,023,055)Other income (expense)222Interest (expense)1,482-(1,029)-(1,029)Total other income (expense)1,484-(1,027)-(1,027)Net loss before income taxes(94,420)(82,764)(413,567)(482,608)(1,024,082)Provision for income taxes-----Net loss$           (94,420)$          (82,764)$        (413,567)$        (482,608)$     (1,024,082)Basic and diluted net loss per share$               (0.01)$              (0.00)$              (0.02)$              (0.03)Weighted average number of shares outstanding18,710,40918,666,66718,701,13918,666,667  See notes to unaudited financial statements  - 5 -     AOB HOLDING, INC. (A DEVELOPMENT STAGE COMPANY)  STATEMENTS OF CASH FLOWS (UNAUDITED)  Nine months endedNine months endedPeriod from     September 14, 2004       (inception) toJune 30,June 30,June 30,200620052006Cash flows from operating activities:Net loss$      (413,567)$      (482,608)$   (1,024,082)Adjustments to reconcile net loss tonet cash used in operations:Stock issued for software development-200,000Changes in operating liabilities and assets:Accounts receivable(1,437)(1,437)Accounts payable98,359-98,359Accounts payable - related party154,771179,854Accrued liabilities119,791135,000328,200Net cash used in operations(42,083)(147,608)(419,106)Cash flows from financing activities:Issuance of common stock21,100200,000421,100Net cash provided by financing activities21,100200,000421,100Increase (decrease) in cash and cash equivalents(20,983)52,3921,994Cash and cash equivalents, beginning of period22,977--Cash and cash equivalents, end of period$           1,994$         52,392$           1,994Supplemental disclosures of cash flow information:Cash paid for interest$                 -$                 -Cash paid for income taxes$                 -$                 -  See notes to unaudited financial statements  - 6 -     AOB HOLDING, INC. (A DEVELOPMENT STAGE COMPANY)  NOTES TO UNAUDITED FINANCIAL STATEMENTS   1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  QUARTERLY FINANCIAL STATEMENTS  The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-QSB but do not include all of the information and footnotes required by generally accepted accounting principles and should, therefore, be read in conjunction with the Companys September 30, 2005 financial statements in Form 10-KSB. These statements do include all normal recurring adjustments, which the Company believes necessary for a fair presentation of the statements. The interim operating results are not necessarily indicative of the results for a full year.  DESCRIPTION OF BUSINESS  AOB Holdings, Inc. (a development stage Company) (the Company) was formed on September 14, 2004 in the State of Delaware as Asia Network, Inc. The Companys activities were primarily directed toward the raising of capital and seeking business opportunities until June 23, 2005, when it entered into an Agreement for Share Exchange (the Agreement) with AOB Capital, Inc. (AOBC), a Nevada corporation formed on November 22, 2004. AOBC is a development stage company whose activities are directed toward the development of reloadable and non-reloadable stored value cards.  Pursuant to the Agreement the Company issued 11,667,000 common shares in exchange for 1,500 shares of AOBC, representing 100% of the issued and outstanding common stock of AOBC. Prior to the Agreement the Company had 7,000,000 shares outstanding. The transaction resulted in the previous owners of AOBC owning 62.5% of the Company, thus the merger was accounted for as a retroactive recapitalization of AOBC rather than a business combination. Consequently, the financial statements are primarily those of AOBC.  ESTIMATES AND ASSUMPTIONS  The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.      - 7 -        AOB HOLDING, INC. (A DEVELOPMENT STAGE COMPANY)  NOTES TO UNAUDITED FINANCIAL STATEMENTS   1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  REVENUE RECOGNITION  The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, collectibility is reasonably assured, and there are no substantive performance obligations remaining.  Customer payments received in advance for providing reloadable and nonreloadable card maintenance services are recorded as deferred revenue and are then recognized proportionately as the card maintenance services are performed.  CASH AND CASH EQUIVALENTS  The Company invests idle cash primarily in money market accounts and certificates of deposit. Money market funds and all highly liquid debt instruments with an original maturity of three months or less are considered cash equivalents.  LOSS PER SHARE  Basic loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Due to net losses, potentially dilutive securities would be antidilutive and are therefore not included. At June 30, 2006 there were no potentially dilutive securities outstanding.  FISCAL YEAR  The Company has adopted September 30 as its fiscal year end.  SOFTWARE DEVELOPMENT COSTS  Company sponsored programming and software development costs, related to both present and future products, are charged to operations when incurred and are included in operating expenses.     - 8 -      AOB HOLDING, INC. (A DEVELOPMENT STAGE COMPANY)  NOTES TO UNAUDITED FINANCIAL STATEMENTS  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  INCOME TAXES  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date.  There is no provision for income taxes due to continuing losses. At June 30, 2006, the Company has net operating loss carryforwards for tax purposes of approximately $1,024,000, which expire through 2026. The Company has recorded a valuation allowance that fully offsets deferred tax assets arising from net operating loss carryforwards because the likelihood of the realization of the benefit cannot be established. The Internal Revenue Code contains provisions that may limit the net operating loss carryforwards available if significant changes in stockholder ownership of the Company occur.  2. RELATED PARTY TRANSACTIONS  The Company shares office space with a related party, to which it pays rent of $1,500 per month beginning in January 2005. At June 30, 2006 the Company owed $13,500 to the related party for rent. The amount is included in accounts payable  related party, bears no interest, and is payable on demand.  The Company has a note payable to a company controlled by a stockholder in the amount of $178,000 plus accrued interest of $1,854.  The terms of the note call for 12% annual interest with no fixed repayment terms and no prepayment penalty.  3.      COMMON STOCK  On May 5, 2006 the Company issued 10,000 shares of its common stock at $0.50 per share for legal services rendered.  On May 15, 2006 the Company repurchased and cancelled 10,000 shares of its common stock.  - 9 -       ITEM 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION  Certain statements in this report, including statements in the following discussion, which are not statements of historical fact, are what are known as forward-looking statements, which are basically statements about the future.  For that reason, these statements involve risk and uncertainty since no one can accurately predict the future.  Words such as plans, intends,  hopes, seeks, anticipates, expects, and the like, often identify such forward-looking statements, but are not the only indication that a statement is a forward-looking statement.  Such forward-looking statements include statements concerning our plans and objectives with respect to the present and future operations of the Company, and statements which express or imply that such present and future operations will or may produce revenues, income or profits.  Numerous factors and future events could cause the Company to change such plans and objectives, or fail to successfully implement such plans or achieve such objectives, or cause such present and future operations to fail to produce revenues, income or profits.  Therefore, the reader is advised that the following discussion should be considered in light of the discussion of risks and other factors contained in this report on Form 10-QSB and in the Companys other filings with the Securities and Exchange Commission.  No statements contained in the following discussion should be construed as a guarantee or assurance of future performance or future results.     Reporting Entity  In June 2005, the Company completed the acquisition of all of the issued and outstanding shares of AOB Capital, Inc. (AOBC) through a share exchange transaction.  The Company agreed to issue 11,667,000 of its shares of common stock in exchange for 1,500 shares of AOBC common stock, representing 100% of the issued and outstanding shares of AOBC.  As a result of the transaction, AOBC became a wholly-owned subsidiary of the Company.  The reverse acquisition described above has been treated as a recapitalization of AOBC and the accompanying financial statements reflect the financial condition, results of operations and cash flows of AOBC, the acquired company, for all periods presented.  Results of Operations  Three Month Period Ended June 30, 2006 Compared to Three Month Period Ended June 30, 2005  Sales revenues for the three months ended June 30, 2006 were $18,158 compared to $0 for the three months ended June 30, 2005.  Revenues increased because AOBH commenced operations.  We expect this revenue to gradually increase as we begin to market our products.  Cost of sales for the three months ended June 30, 2006 was $16,100, compared to $0 for the three months ended June 30, 2005.  The increase is due to the launch of operations, which were not in progress in June 2005.   - 10 -     AOBHs gross profit (loss) was $2,059 for the three months ended June 30, 2006, compared to $0 for the three months ended June 30, 2005.  The increased profit was due to an increase in card usage.  Operating expenses increased to $97,962 for the three months ended June 30, 2006 compared to $82,764 for the three months ended June 30, 2005.  Operating expenses included $21,243 for compensation expenses, $11,129 for consulting and legal fees, $4,500 for rent, $19,576 for software development and $41,514 for general and administrative expenses for the three months ended June 30, 2006.  For the three month period ended June 30, 2005, operating expenses consisted of $10,000 for software development and $72,764 for general and administrative expenses.  The increase in compensation expenses was due to the start of the Companys operations.  The increase in consulting and legal fees is due to the fees charged for services required for this registration statement.  The increase in rent is due to the commencement of operations.  The fee for software development is due to continued enhancement of the Companys EPP platform.  General and administrative expenses increased because of the commencement of operations.  Net loss increased to $95,904 for the three month period ended June 30, 2006 from $82,764 for the three month period ended June 30, 2005.  The increase in loss is due to an increase in operating expenses without an increase in revenue.  Nine Month Period Ended June 30, 2006 Compared to Nine Month Period Ended June 30, 2005  Sales revenues for the nine months ended June 30, 2006 were $20,632, compared to $0 for the nine months ended June 30, 2005.  The increase is due to commencement of operations on January 1, 2006.  Prior to that date, we did not have any operations and, consequently, had no revenue.  Cost of sales for the nine months ended June 30, 2006 was $16,100, compared to $0 for the nine month period ended June 30, 2005.  The increase is due to the beginning of operations and of sales.  Our gross profit (loss) for the nine months ended June 30, 2006 was $(1,834) compared to $0 for the nine months ended June 30, 2005.  The increase in loss was due to an increase in cost of sales without a sufficient increase in sales revenues.  Operating expenses for the nine month period ended June 30, 2006 were $410706, consisting of $210,698 in compensation expenses, $20,977 in consulting and legal fees, $13,539 in rent, $58,598 in software development expenses, and $106,894 in general and administrative fees.  For the nine-month period ended June 30, 2005, operating expenses were $482,608, consisting of $234,000 in software development costs and $248,608 in general and administrative expenses.  The increase in compensation expenses was due to an increase in the number of employees.  The increase in consulting and legal fees is due to the preparation of this document.  The increase in rent is due to the commencement of operations. The fee for software development is due to continued enhancement of the Companys EPP platform.  General and  - 11 -     administrative expenses decreased because of a one-time setup fee paid to the Third Party Processor and Sponsoring Bank for the establishment of service during the previous fiscal year.  Net loss for the nine months ended June 30, 2006 was $412,540, compared to $482,608 for the nine months ended June 30, 2005.  The decrease was due to a reduction in general and administrative expenses such as research and development, bank program, and legal and professional fees.     Liquidity And Capital Resources  As of June 30, 2006, AOBHs balance sheet reflects current assets of $3,431, total assets of $3,431, total current liabilities of $606,413, and shareholders deficit of $(602,982).  For the fiscal year ending September 30, 2005, AOBHs balance sheet reflected current assets of $22,977, total assets of $22,977, total current liabilities of $233,492, and shareholders deficit of $(210,515).  As of June 30, 2006, AOBH had $1,994 in cash and cash equivalents on hand.  We do not believe that this amount will be sufficient to meet our needs.  We will obtain funding through short-term notes from a shareholder of AOBH.  The shareholder has no contractual obligation to lend us these funds.  The Company will require additional capital in order to pay the costs associated with carrying out its plan of operations and the costs of compliance with its continuing reporting obligations under the Securities Exchange Act of 1934, as amended, for the fiscal year ending September 30, 2006 and thereafter.  No specific commitments to provide additional funds have been made by management or other shareholders, and the Company has no current plans, proposals, arrangements or understandings to raise additional capital through the sale or issuance of additional securities except for the fundraising plan under this report.  Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover its expenses.  Notwithstanding the foregoing, however, to the extent that additional funds are required, the Company anticipates that it will either continue to rely on its majority shareholder to pay expenses on its behalf, or it will seek to raise capital through the private placement of restricted securities. In addition, in order to minimize the amount of additional cash which is required in order to carry out its business plan, the Company might seek to compensate certain service providers by issuances of stock in lieu of cash.     Plan Of Operation  The Companys main operation center is located in the United States with worldwide operations in mind.  The Company will establish a Customer Service Center in Mainland China to service Chinese speaking cardholders and will outsource customer service to the Philippines to service English speaking cardholders.  The Company anticipates that the Customer Service Center in China will be established during the 2nd quarter of the 2007 fiscal year.  The marketing operation for each country in which the Company operates will be customized to local requirements and local market  - 12 -     conditions.  After successful product development of the Companys reloadable and non-reloadable cards, the Company plans to focus on the marketing and promotion of the cards and related services.  For the United States markets, the Company plans to target corporations and unions by developing marketing promotions through Chambers of Commerce, industry associations and insurance companies.  The Company plans to deploy in-house sales executives as well as to offer a Referral Agent Program for non-associated members of the Company to refer business opportunities to the Company.  The Company intends to deploy seminar speakers around the United States to introduce the benefit of using its product lines through seminars co-hosted with local Chambers of Commerce and industry associations.  We believe there has been an increase in demand for stored value cards in the Asia area, with a concentration of growth in mainland China.  The Company plans to enter the Chinese market by offering its Enterprise Payment Platform that is customized to local requirements.  The China Transportation Department in the Hainai Province has issued a Letter of Intent to enter into discussions with the Company for the provision of an electronic toll-collecting platform with cards, issued in conjunction with local banks, that automatically debit toll fees from a cardholders account when the user drives through a toll booth.  After successfully entering the Chinese market, the Company will continue to form strategic partnerships with local banks to provide a complete Enterprise Electronic Payment Platform service to mainland China.  Through the Companys existing EPP system, the Company can offer following services:  Electronic Ticket/Event Stored Value Card System, Electronic University Campus Stored Value Card System, and Closed-Loop Stored Value Gift Card System.  The Company is now in full operation with sales and marketing efforts beginning in April 2006.  Need for Additional Financing  The Company will require additional capital in order to pay the costs associated with carrying out its plan of operations and the costs of compliance with its continuing reporting obligations under the Securities Exchange Act of 1934, as amended, for the fiscal year ending September 30, 2006 and thereafter.  No specific commitments to provide additional funds have been made by management or other stockholders, and the Company has no current plans, proposals, arrangements or understandings to raise additional capital through the sale or issuance of additional securities prior to the location of a merger or acquisition candidate.  Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover its expenses.  Notwithstanding the foregoing, however, to the extent that additional funds are required, the Company anticipates that it will either continue to rely on its majority shareholder to pay expenses on its behalf, or it will seek to raise capital through the private placement of restricted securities. In addition, in order to minimize the amount of additional cash which is required in order to carry out its business plan, the Company might seek to compensate certain service providers by issuances of stock in lieu of cash.  - 13 -      ITEM 3. CONTROLS AND PROCEDURES  The Securities and Exchange Commission defines the term disclosure controls and procedures to mean a companys controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commissions rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuers management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.  The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is accumulated and communicated to Company management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on an evaluation performed, the Company's certifying officers have concluded that the disclosure controls and procedures were designed and were effective as of  June 30, 2006, to provide reasonable assurance of the achievement of these objectives. There has been no change in the Companys internal control over financial reporting during the quarter ended June 30, 2006, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.  ANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-QSB REPORT REFLECT MANAGEMENTS BEST JUDGMENT BASED UPON FACTORS CURRENTLY KNOWN AND INVOLVE RISKS AND UNCERTAINTIES.  ACTUAL RESULTS MAY VARY MATERIALLY.   PART II - OTHER INFORMATION  ITEM 1. LEGAL PROCEEDINGS.  None.  ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS  NameDate of SaleSharesAggregate Purchase PricePurchase Price Per Share  - 14 -      David Kern Peteler5/4/200610,000$5,000$0.50  These shares were issued as compensation for legal services rendered which were valued at $5,000.  This sale of unregistered securities was made under an exemption from registration afforded by Section 4(2) and Rule 506 of Regulation D under the Securities Act of 1933.  This transaction was a private offering made without advertising or public solicitation and made only to fewer than 35 investors. Purchasers were purchasing shares for their own account and acknowledged that the securities were not registered under the Securities Act and that the securities cannot be sold unless they are registered or unless an exemption is available. The investor had sufficient knowledge to evaluate the merits and risks of the investment.  ITEM 3. DEFAULTS UPON SENIOR SECURITIES   None.  ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS  None.  ITEM 5.  OTHER INFORMATION  None.  ITEM 6. EXHIBITS  (a) The following exhibits are filed herewith:  3(i) Articles of Incorporation (incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on November 23, 2004).  3(ii) Bylaws (incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on November 23, 2004).  31.1 Certification of Michael Lin pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.  31.2 Certification of Nelson Liao pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.  32.1 Certification of Michael Lin pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  32.2 Certification of Nelson Liao pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  - 15 -       SIGNATURES  In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.   AOB HOLDINGS, INC.   By: /s/ Michael Lin, CEO and Director  Date:    September 29, 2006    By: /s/ William Lin, CMO and Director  Date: September 29, 2006    By: /s/ Nelson Liao, CFO and Chairman  Date: September 29, 2006   - 16 -