UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________  FORM 10-QSB ______________  x
        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended September 30, 2005  o
        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the transition period from ______________ to ______________  Commission File No. 000-50494 ______________  EFFECTIVE PROFITABLE SOFTWARE, INC. (Exact name of small business issuer as specified in its charter) ______________  Delaware
        98-0412432(State or other jurisdiction ofincorporation or organization)
        (I.R.S. Employer Identification No.)  1 Innwood Circle, Suite 209, Little Rock, Arkansas
        72211(Address of principal executive offices)
        (Zip Code)  (501) 223-3310(Issuers telephone number)  Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. YesoNox  Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Exchange Act subsequent to the distribution of securities under a plan confirmed by a court. YesoNox  Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.  Yes
        x
        Noo  State the number of shares outstanding of each of the issuer's classes of common equity, as of June 8, 2006: 55,780,000 shares of
common stock.  Transitional Small Business Disclosure Format (check one): YesoNox     TABLE OF CONTENTS




PART I  FINANCIAL INFORMATION
        1Item 1.   Financial Information
        1Item 2.   Managements Discussion and Analysis or Plan of Operation
        2Item 3.   Controls and Procedures
        3PART II -OTHER INFORMATION
        4Item 1.   Legal Proceedings.
        4Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds.
        4Item 3.   Defaults Upon Senior Securities.
        4Item 4.   Submission of Matters to a Vote of Security Holders.
        4Item 5.   Other Information.
        4Item 6.   Exhibits and Reports of Form 8-K.
        5SIGNATURES
        6

i



PART I  FINANCIAL INFORMATION




Item 1.
        Financial Information








EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)





TABLE OF CONTENTS






PAGE
        1
        CONDENSED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2005 (UNAUDITED)PAGE
        2
        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2005, FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004, FOR THE PERIOD FROM FEBRUARY 23, 2004 (INCEPTION) TO SEPTEMBER 30, 2004 AND FOR THE PERIOD FROM FEBRUARY 23, 2004 (INCEPTION) TO SEPTEMBER 30, 2005 (UNAUDITED)PAGE
        3
        CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS DEFICIENCY FOR THE PERIOD FROM FEBRUARY 23, 2004 (INCEPTION) TO SEPTEMBER 30, 2005 (UNAUDITED)PAGE
        4
        CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005, FOR THE PERIOD FROM FEBRUARY 23, 2004 (INCEPTION) TO SEPTEMBER 30, 2004 AND FOR THE PERIOD FROM FEBRUARY 23, 2004 (INCEPTION) TO SEPTEMBER 30, 2005 (UNAUDITED)PAGES
        5 - 9
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2005 (UNAUDITED)




EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSEDCONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2005

(UNAUDITED)










ASSETSCURRENT ASSETSPrepaid expenses
        $
        900Total Current Assets
        
        900PROPERTY AND EQUIPMENT, NET
        
        9,973OTHER ASSETSDeposits
        
        1,400Total Other Assets
        
        1,400TOTAL ASSETS
        $
        12,273LIABILITIES AND STOCKHOLDERS DEFICIENCYCURRENT LIABILITIESCash overdraft
        $
        270Accounts payable
        
        6,273Stockholder loans
        
        37,957TOTAL LIABILITIES
        
        44,500STOCKHOLDERS DEFICIENCYCommon stock, $0.001 par value, 100,000,000 shares authorized, 53,280,000 shares issued and outstanding
        
        7,580Additional paid in capital
        
        109,761Accumulated deficit during development stage
        
        (149,568)Total Stockholders Deficiency
        
        (32,227)TOTAL LIABILITIES AND STOCKHOLDERS DEFICIENCY
        $
        12,273




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

1



EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSEDCONSOLIDATEDSTATEMENTS OF OPERATIONS

(UNAUDITED)










For the Three Months Ended
September 30, 2005
        
        For the Three Months Ended
September 30, 2004
        
        For the Nine Months Ended
September 30, 2005
        
        For the Period from
February 23, 2004 (Inception) to September 30, 2004
        
        For the
Period from February 23, 2004 (Inception) To September 30, 2005REVENUE
        $
        -
        $
        -
        $
        -
        $
        -
        $
        -OPERATING EXPENSESGeneral and administrative
        
        5,795
        
        23,369
        
        34,199
        
        24,315
        
        143,665Total Operating Expenses
        
        5,795
        
        23,369
        
        34,199
        
        24,315
        
        143,665LOSS FROM OPERATIONS
        
        (5,795)
        
        (23,369)
        
        (34,199)
        
        (24,315)
        
        (143,665)OTHER INCOME (EXPENSE)Other income
        
        -
        
        30
        
        -
        
        30
        
        30Loss on disposal of assets
        
        (3,306)
        
        -
        
        (3,306)
        
        -
        
        (3,306)Interest expense
        
        (851)
        
        -
        
        (1,982)
        
        -
        
        (2,627)Total Other (Income) Expense
        
        (4,157)
        
        30
        
        (5,288)
        
        30
        
        (5,903)NET LOSS
        $
        (9,952)
        $
        (23,339)
        $
        (39,487)
        $
        (24,285)
        $
        (149,568)NET LOSS PER SHARE  BASIC AND DILUTED
        $
        -
        $
        -
        $
        -
        $
        -
        $
        -WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING  BASIC AND DILUTED
        
        53,280,000
        
        49,951,085
        
        52,069,377
        
        46,052,510
        
        48,704,264

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

2



EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSEDCONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS DEFICIENCY

FOR THE PERIOD FROM FEBRUARY 23, 2004 (INCEPTION) TO SEPTEMBER 30, 2005

(UNAUDITED)










Common Stock
        
        Additional Paid-In
        
        Accumulated Deficit During DevelopmentShares
        
        Amount
        
        Capital
        
        Stage
        
        TotalCommon stock issued to founders for cash ($0.001 per share)
        
        45,000,000
        $
        4,500
        $
        (3,600)
        $
        -
        $
        900Common stock issued for services ($0.10 per share)
        
        3,000,000
        
        300
        
        59,700
        
        -
        
        60,000Common stock issued for cash ($0.10 per share)
        
        2,280,000
        
        230
        
        45,370
        
        -
        
        45,600In-kind contribution of interest on stockholders loans
        
        -
        
        -
        
        646
        
        -
        
        646Net loss for the period from February 23, 2004 (inception) to December 31, 2004
        
        -
        
        -
        
        -
        
        (110,081)
        
        (110,081)Balance, December 31, 2004
        
        50,280,000
        
        5,030
        
        102,116
        
        (110,081)
        
        (2,935)Common stock issued for services ($0.10 per share)
        
        500,000
        
        50
        
        9,950
        
        -
        
        10,000In-kind contribution of interest on stockholders loans
        
        -
        
        -
        
        1,795
        
        -
        
        1,795Shares issued in reverse merger
        
        2,500,000
        
        2,500
        
        (4,100)
        
        -
        
        (1,600)Net loss for the nine months ended September 30, 2005
        
        -
        
        -
        
        -
        
        (39,487)
        
        (39,487)BALANCE, SEPTEMBER 30, 2005
        
        53,280,000
        $
        7,580
        $
        19,761
        $
        (149,568)
        
        (32,227)

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

3



EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSEDCONSOLIDATEDSTATEMENT OF CASH FLOWS

(UNAUDITED)










For the Nine Months Ended September 30, 2005
        
        For the Period from
February 23, 2004 (Inception) to September 30, 2004
        
        For the Period from February 23, 2004 (Inception) To September 30, 2005CASH FLOWS FROM OPERATING ACTIVITIES:Net loss
        $
        (39,487)
        $
        (24,285)
        $
        (149,568)Adjustments to reconcile net loss to net cash provided
by (used in) operating activities:Depreciation
        
        2,176
        
        -
        
        3,512Loss on disposal of property and equipment
        
        3,306
        
        
        
        3,306In-kind contribution
        
        1,795
        
        -
        
        2,441Stock issued for payment of expenses
        
        10,000
        
        10,000
        
        70,000Prepaid expenses
        
        25,100
        
        (26,000)
        
        (900)Deposits
        
        -
        
        (1,400)
        
        (1,400)Rebate receivable
        
        -
        
        (500)
        
        -Increase (decrease) in accrued expenses
        
        3,814
        
        1,619
        
        4,673Net Cash Provided By (Used In) Operating Activities
        
        6,704
        
        (40,566)
        
        (67,936)CASH FLOWS FROM INVESTING ACTIVITIES:Sale of property and equipment
        
        1,925
        
        -
        
        1,925Purchase of property and equipment
        
        -
        
        (19,947)
        
        (18,716)Net Cash Provided By (Used In) Investing Activities
        
        1,925
        
        (19,947)
        
        (16,791)CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from issuance of loan payable  related party
        
        15,557
        
        -
        
        63,957Repayment of loans payable  related party
        
        (26,000)
        
        -
        
        (26,000)Proceeds from issuance of common stock
        
        -
        
        66,500
        
        46,500Cash Overdraft
        
        270
        
        -
        
        270Net Cash Provided By (Used In) Financing Activities
        
        (10,173)
        
        66,500
        
        84,727NET INCREASE (DECREASE) IN CASH
        
        (1,544)
        
        5,987
        
        -CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
        
        1,544
        
        -
        
        -CASH AND CASH EQUIVALENTS AT END OF PERIOD
        $
        -
        $
        5,987
        $
        -




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

4



EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSEDCONSOLIDATEDFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2005

(UNAUDITED)










NOTE 1
        ORGANIZATION AND BASIS OF PRESENTATION

(A) Basis of Presentation



The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.



It is managements opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year.



For further information, refer to the financial statements and footnotes included in the Companys Form 8-K/A for the year ended December 31, 2004.



(B) Organization



Effective Profitable Software, Inc., formally known as Modena 2, Inc., (a development stage company,) was organized under the laws of the State of Delaware.



EPS, Inc., (a development stage company), was incorporated in the State of Arkansas on February 23, 2004.



On May 10th, 2005 pursuant to a stock purchase agreement and share exchange between Effective Profitable Software, Inc. and EPS, Inc. and the shareholders of EPS, Inc., we purchased all of the outstanding shares of EPS for the issuance of 10,156,000 (50,780,000 post-split) shares of our stock to EPS shareholders. Pursuant to the agreement, EPS became a wholly owned subsidiary of Effective Profitable Software, Inc. As a result of the agreement, the transaction was treated for accounting purposes as a reorganization by the accounting acquirer (EPS, Inc.) and as a recapitalization by the accounting acquiree (Effective Profitable Software, Inc. f/k/a Modena 2, Inc.).



Accordingly, the financial statements include the following:




(1)
        The balance sheet consists of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost.



5



EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSEDCONSOLIDATEDFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2005

(UNAUDITED)










(2)
        The statement of operations includes the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the merger.

Activities during the development stage include developing the business plan and raising capital.



Effective Profitable Software, Inc. and its wholly-owned subsidiary are hereafter referred to as the Company.



The Company intends to develop computer software for use in technical analysis of financial markets.




NOTE 2
        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(A) Cash and Cash Equivalents



The Company considers cash on hand and amounts on deposit with financial institutions which have original maturities of three months or less to be cash and cash equivalents.



(B) Principles of Consolidation



The 2005 financial statements include the accounts of Effective Profitable Software, Inc. and its wholly-owned subsidiary EPS, Inc. from May 10, 2005. The 2004 financial statements include the accounts of EPS, Inc.



All significant intercompany accounts and transactions have been eliminated in consolidation.



(C) Income Taxes



The Company accounts for income taxes in accordance with the Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes, which requires the recognition of deferred tax assets and liabilities at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. The income tax provision shown on the accompanying statement of operations is zero since the deferred tax asset generated from the net operating loss is offset in its entirety by valuation allowances.





6



EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSEDCONSOLIDATEDFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2005

(UNAUDITED)







As of September 30, 2005, the Company had $149,568 of net operating loss carryforwards (NOL) which begin to expire in the year ended October 31, 2024. A deferred tax asset of $51,601 comprised of $43,375 for federal income taxes and $8,226 for state income taxes has been reserved by a valuation allowance to account for the potential benefit of the NOL.



(D) Fair Value of Financial Instruments



The Companys financial instruments, mainly accounts payable, accrued expenses and stockholder loans, approximate fair value.



(E) Use of Estimates



Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenue and expenses. Management has no reason to make estimates at this time.



(F) Earnings Per Share



Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by Financial Accounting Standards No. 128, Earnings Per Share.  As of September 30, 2005 and 2004, there were no common share equivalents outstanding.



(G) Recent Accounting Pronouncements



Statement of Financial Accounting Standards (SFAS) No. 154, Accounting Changes and Error Corrections  a replacement of APB Opinion No. 20 and FASB Statement No. 3 SFAS No. 151, Inventory Costs  an amendment of ARB No. 43, Chapter 4 SFAS No. 152, Accounting for Real Estate Time-Sharing Transactions  an amendment of FASB Statements No. 66 and 67 SFAS No. 153, Exchanges of Non-monetary Assets  an amendment of APB Opinion No. 29 and SFAS No. 123 (revised 2004), Share-Based Payment, do not have applicability to the Companys operations nor any impact on the Companys financial statements.









7



EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSEDCONSOLIDATEDFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2005

(UNAUDITED)










NOTE 3
        RELATED PARTY TRANSACTIONS

At September 30, 2005, related parties had loaned the company a total of $37,957. These loans are interest free and have no formal terms of repayment. The Company is accruing interest at a rate of 4% per annum and classifying the expense as an in-kind contribution.




NOTE 4
        STOCKHOLDERS EQUITY

(A) Issuance of Common Stock to Founders



On February 23, 2004, the company issued 9,000,000 shares of common stock to the Companys officers for services regarding the initial start up of the Company. The value of these shares was $900, or $.0001 per share.




(B) Stock Issued for Cash



During the six months ending December 31, 2004, the Company undertook a private placement issuance, Regulation D Rule offering whereby 456,000 shares of common stock were issued for cash of $45,600, or $0.10 per share.



(C) Stock Issued for Services



On April 1, 2004, the Company issued 100,000 shares of common stock for legal services. The shares were valued at a recent cash offering price of $10,000 or $0.10 per share.



During the last quarter of 2004, the Company issued 500,000 shares of common stock for services. The shares were valued at a recent cash offering price of $50,000, or $0.10 per share.



In January 2005, the Company issued 100,000 shares of common stock for services. The shares were valued at a recent cash offering price of $10,000, or $0.10 per share.



(D) Stock Issued in Reverse Merger



On May 10, 2005, Effective Inc. exchanged 500,000 shares of common stock for all the outstanding shares of EPS (See Note 1).







8



EFFECTIVE PROFITABLE SOFTWARE, INC. AND SUBSIDIARY

F/K/A MODENA 2, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSEDCONSOLIDATEDFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2005

(UNAUDITED)







(F) In-Kind Contribution



During the nine months ended September 30, 2005 and the period from February 23, 2004 to September 30, 2004, $1,795 and $646 of in-kind contributions relating to imputed interest on related party loans was recorded.



(G) Stock Split



On May 20, 2005, the Board of Directors approved a 5 for 1 forward stock split for all shareholders of the Company as of May 10,
2005. Per share weighted average share amounts have been retroactively restated in the accompanying unaudited financial statements
and related notes to reflect this stock split.






NOTE 5
        GOING CONCERN

The Company is in the development stage. The Company has no operations and has had recurring losses since inception and an accumulated deficit of $149,568. Accordingly, there is substantial doubt about the Companys ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Companys ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



NOTE 6
        SUBSEQUENT EVENTS

Subsequent to September 30, 2005, the Company issued  500,000 shares to one investor for cash  consideration  of $10,000
($0.10 per share) and 1,700,000 shares to two investors for cash of $44,000 ($0.02 per share).




9






Item 2.
        Managements Discussion and Analysis or Plan of Operation

The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our financial condition. The discussion should be read in conjunction with our financial statements and notes thereto appearing in this prospectus. The following discussion and analysis contains forward-looking statements, which involve risks and uncertainties. Our actual results may differ significantly from the results, expectations and plans discussed in these forward- looking statements.



Overview



On May 10, 2005, pursuant to a Stock Purchase Agreement and Share Exchange between us and EPS, Inc., an Arkansas corporation, and the
shareholders of EPS, we purchased all of the outstanding shares of EPS for the issuance of 10,156,000 (50,780,000 post-split) shares
of our stock to the EPS shareholders. Pursuant to the Agreement, EPS became a wholly owned subsidiary of the Company. Pursuant to the
terms of the Agreement, we filed Articles of Amendment with the State of Delaware changing our name to Effective Profitable Software,
Inc.



Based on the acquisition of EPS we changed our business focus to become a financial markets evaluation software company which focuses
on bringing affordable evaluation tools to the general public. We are based in Little Rock, Arkansas and are lead by Don Bratcher,
Gary Moore and Richard Torti. We use in house proprietary software for evaluation of markets, stocks, commodities, and other
financial instruments. We have developed an innovative evaluation system we call the TimingWave. At the center of the system is a
100% mechanical, unemotional timing model that is both powerful and simple to use. The system's web-based access will make it both
affordable and accessible and our evaluations will be easily understood.



On May 20, 2005, our directors and  shareholders  approved a 5-1 forward split of our outstanding  common shares  increasing the amount
of shares owned by these shareholders to 50,780,000 shares.



Plan of Operations



During the next twelve months, we expect to take the following steps in connection with the operations:



Initially we plan to prepare and execute a marketing  plan to develop our  subscription  base.  The majority of our member base will be
obtained from two sources:  search engine results and links placed in online market timing directories via link exchange  programs.  We
anticipate  that within  thirty to sixty days, a  comprehensive  marketing  plan will be  developed.  We expect to spend  approximately
$5,000 on marketing in the areas of Keyword  Advertising  and Sponsored  Links through  Google,  FindWhat,  and other similar  targeted
keyword  programs.  Another  area that we will  vigorously  pursue as part of our  marketing  and  branding  program  is search  engine
placement.  By  continuing  to work to optimize the site,  and by  increasing  the number of links to the site,  we feel we can receive
better search  results and search  engine  saturation,  which in turn directs more traffic to the website.  In addition to our internet
based effort we intend to advertise in national  papers Wall Street  Journal,  USA Today we anticipate  additional  subscriptions  from
word of mouth.



In the  latter  part of 2006 we intend to charge a  subscription  fee for our  services.  We  believe  our  programs  are so unique and
accurate  that no active  subscription  members  will be  affected  and we intend to inform  them when they  subscribe  that this is an
initial offer and prices will increase.  We currently have enough cash to satisfy our minimum cash  requirements  for the next 6 months
to maintain our operations.  However,  we may require additional funds to increase marketing,  to expand  international and for further
development of our Website.



We currently do not have enough cash to satisfy our minimum cash requirements for the next twelve months. In addition, we will require additional funds to increase marketing, to expand operations, and for further development of our website. No significant purchases of equipment are anticipated; however, a substantial surge in traffic and/ or membership could necessitate the purchase of additional servers.





2



As reflected in the accompanying financial statements, we are in the development stage with limited operations. This raises substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to raise additional capital and implement our business plan. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.



Capital Resources and Liquidity.



Our unaudited  balance sheet as of September 30, 2005 reflects assets of $12,273  consisting of prepaid  expense of $900,  property and
equipment of $9,973,  and deposits of $1,400.  Total liabilities as of September 30, 2005 were $44,500  consisting of cash overdraft of
$270, accounts payable of $6,273, and stockholder loans of $37,957.



As of September 30, 2005, we no cash.  Our general and  administrative  expenses are expected to average  $5,000 per month for the next
12 months based upon our projected  operating  budget. We currently do not have enough cash to satisfy more than one year of operations
without  receiving  additional  funds from our President or additional  investors.  Subsequent to September 30, 2005, we raised a total
of $54,000 from the issuance of stock.



Recent Financial Pronouncements

Statement of Financial  Accounting  Standards  ("SFAS") No. 154,  "Accounting  Changes and Error  Corrections  - a  replacement  of APB
Opinion  No. 20 and FASB  Statement  No. 3" SFAS No.  151,  "Inventory  Costs - an  amendment  of ARB No. 43,  Chapter 4" SFAS No. 152,
"Accounting  for Real Estate  Time-Sharing  Transactions - an amendment of FASB  Statements No. 66 and 67" SFAS No. 153,  "Exchanges of
Non-monetary  Assets - an  amendment  of APB  Opinion  No. 29" and SFAS No. 123  (revised  2004),  "Share-Based  Payment",  do not have
applicability to the Company's operations nor any impact on the Company's financial statements.



Going Concern Consideration



As reflected in the accompanying financial statements, we are in the development stage. We have no operations and have had recurring losses since inception and an accumulated deficit of $149,568. Accordingly, there is substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to raise additional capital and implement our business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



We believe that actions presently being taken to obtain additional funding and implement our strategic plans provide the opportunity for us to continue as a going concern.



Critical Accounting Policies



Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (GAAP). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use if estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or
conditions. We continue to monitor significant estimates made during the preparation of our financial statements.



Our significant accounting policies are summarized in Note 1 of our financial statements. While all these significant accounting
policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined
to be critical are those policies that have the most significant impact on our financial statements and require management to use a
greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current
facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on
our consolidated results of operations, financial position or liquidity for the periods presented in this report.



Off-Balance Sheet Arrangements



We have no off-balance sheet arrangements.





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Item 3.
        Controls and Procedures

Evaluation of disclosure controls and procedures



Under the supervision and with the participation of our management, including our principal executive officer and Chief Financial
Officer , we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule
15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), as of September 30, 2005. Based on that
evaluation, our principal executive officer and principal financial officer concluded that, a material weakness in our internal
accounting controls existed prior to September 30, 2005 so that our disclosure controls and procedures in place were not adequate to
ensure that information required to be disclosed by us, including our consolidated subsidiaries, in reports that we file or submit
under the Exchange Act, is recorded, processed, summarized and reported on a timely basis in accordance with applicable rules and
regulations. Although our principal executive officer and principal financial officer believe our current existing disclosure
controls and procedures are adequate to enable us to comply with our disclosure obligations, we intend to formalize and document the
procedures already in place and establish a disclosure committee.



Changes in internal controls



We are in the process of making  significant  changes to our internal controls  subsequent to the Evaluation Date. During the course of
the most recent  examination of our financial  statements for the period ended  September 30, 2005 by our independent  accountants,  we
were advised of the existence of a material weakness in our internal  accounting  controls that existed prior to September 30, 2005. We
are applying the necessary corrective action and believe this weakness will be remediated.



PART II - OTHER INFORMATION




Item 1.
        Legal Proceedings.

We are currently  not a party to any pending  legal  proceedings  and no such actions by, or to the best of our  knowledge,  against us
have been threatened.




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

None.




Item 3.
        Defaults Upon Senior Securities.

None




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

No matter was submitted during the quarter ending September 30, 2005, covered by this report to a vote of our shareholders, through the solicitation of proxies or otherwise.




Item 5.
        Other Information.

None







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Item 6.
        Exhibits and Reports of Form 8-K.


(a)
        Reports on Form 8-K and Form 8K-ADuring the three months ended September 30, 2005, we filed one Current Report on Form 8-K, as follows:-
        Date of event: September 9, 2005, as amended, wherein we reported information pursuant to Item 4.03, Changes In Registrants Certifying Accountant, that Gately & Associates, LLC was dismissed as the independent auditor for the Company and on October 14, 2005 was replaced by Webb & Company, P.A. as our principal independent auditors.


(b)
        ExhibitsExhibit Number
        Exhibit Title3.1
        Certificate of Incorporation; Certificate of Amendment to Certificate of Incorporation *3.3
        By-Laws *31.1
        Certification of Gary Moore pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
        Certification of Don Bratcher pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
        Certification of Gary Moore 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 Don Bratcher pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* Incorporated by reference to our quarterly report for the period-ending June 30, 2005 filed on Form 10-QSB filed with the SEC on
June 7, 2006 (File No. 000-50494).





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SIGNATURES



In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.



EFFECTIVE PROFITABLE SOFTWARE, INC.



By:/s/Gary Moore

Gary Moore

President,

Chief Executive Officer



June 8, 2006




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