**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

**__________________**

**Commission      File Number 000-50813**

**St.      Bernard Software, Inc.**

| **Delaware**                                                  | **20-0996152**                                      |
|---------------------------------------------------------------|-----------------------------------------------------|
| (State                or other Jurisdiction of incorporation) | (I.R.S.                Employer Identification No.) |

**15015      Avenue of Science**

**San      Diego, California**

**(858)      676-2277**

**Sand      Hill IT Security Acquisition Corp.**

**3000      Sand Hill Road**

**Building      1, Suite 240**

**Menlo      Park, California**

** **

----

| **Index**                                                  | **Page                No.**                                                                             |
|------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
| **Part                I: Condensed Financial Information** |                                                                                                    |
|                                                       |                                                                                                    |   |   |
|                                                       | Item                1 -Financial Statement                                                              | 3 |
|                                                       |                                                                                                    |   |   |
|                                                       |                                                                                                    | Unaudited                Condensed Balance Sheet | 3 |
|                                                       |                                                                                                    | Unaudited                Condensed Statements of Operations | 4 |
|                                                       |                                                                                                    | Unaudited                Condensed Statements of Cash Flows | 5 |
|                                                       |                                                                                                    | Notes                to Unaudited Condensed Financial Statements | 6 |
|                                                       |                                                                                                    |   |   |
|                                                       | Item                2 - Management’s Discussion and Analysis or Plan of                Operation  | 11 |
|                                                       |                                                                                                    |   |   |
|                                                       | Item                3 - Controls and Procedures                                                         | 13 |
|                                                       |                                                                                                    |   |   |
| **Part                II. Other Information**              |                                                                                                    |
|                                                       |                                                                                                    |   |   |
|                                                       | Item 2                - Unregistered Sales of Equity Securities and Use of                Preceeds | 13 |
|                                                       |                                                                                                    |   |
|                                                       | Item                6 - Exhibits and Reports on Form 8-K                                                | 14 |
|                                                       |                                                                                                    |   |   |
| Signatures                                                 |                                                                                                    | 15 |
| Exhibit                Index                               |                                                                                                    | 16 |

----

**PART      I. CONDENSED FINANCIAL INFORMATION**

**Item      1. Condensed Financial Statements**

**ST.      BERNARD SOFTWARE, INC.**

**(FORMERLY      KNOWN AS SAND HILL IT SECURITY ACQUISITION CORP.)**

**(A      Corporation in the Development Stage)**

**CONDENSED      BALANCE SHEET**

| **ASSETS**                                                                                             |   | **June                30, 2006****(Unaudited)** |       |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|
| **Current                assets:**                                                                     |   |                                            |       |
| Cash                                                                                                   |   | $                                               | 423        |   |
| Treasury                securities held in trust, at market                                            |   |                                            | 22,211,003 |   |
| Prepaid                expenses                                                                        |   |                                            | 252        |   |
| **Total                Assets**                                                                        |   | $                                               | 22,211,678 |   |
|                                                                                                   |   |                                            |       |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                          |   |                                            |       |   |
| **Current                Liabilities:**                                                                |   |                                            |       |   |
| Accounts                payable and accrued expenses                                                   |   | $                                               | 607,315    |   |
| Loans                from stockholders                                                                 |   |                                            | 82,300     |   |
| Warrant                liability                                                                       |   |                                            | 6,411,600  |   |
| **Total                Liabilities**                                                                   |   |                                            | 7,101,215  |   |
|                                                                                                   |   |                                            |       |   |
| Common                stock subject to possible conversion                                             |   |                                            |       |   |
| (821,589                shares at conversion value)                                                    |   |                                            | 4,439,979  |   |
|                                                                                                   |   |                                            |       |   |
| **Stockholders’                Equity:**                                                         |   |                                            |       |   |
| Preferred                stock, $0.01 par valueAuthorized                5,000,000 shares; none issued |   |                                            | -          |   |
| Common                stock, $0.01 par value                                                           |   |                                            |       |   |
| Authorized                50,000,000 shares                                                            |   |                                            |       |   |
| Issued                and outstanding 5,110,000 shares                                                 |   |                                            | 42,884     |   |
| Additional                paid-in capital                                                              |   |                                            | 12,267,992 |   |
| Deficit                accumulated during the development stage                                        |   |                                            | (1,640,482 | ) |
| **Total                Stockholders’ Equity**                                                    |   |                                            | 10,741,864 |   |
| **Total                Liabilities and Stockholders’ Equity**                                    |   | $                                               | 22,211,678 |   |

*See      accompanying notes to condensed financial statements*

----

**ST.      BERNARD SOFTWARE, INC.**

**(FORMERLY      KNOWN AS SAND HILL IT SECURITY ACQUISITION CORP.)**

**(A      Corporation in the Development Stage)**

**CONDENSED      STATEMENTS OF OPERATIONS**

|                                                           |   | Three                  months ended June                  30, 2006 (Unaudited) |       | Three                  months endedJune                  30, 2005 (Unaudited) Restated |   | Six                  months endedJune                  30, 2006 (Unaudited) |   | Six                  months endedJune                  30, 2006 (Unaudited) |      | Period                  from April                  15, 2004 (inception) to June 30, 2006 (Unaudited) |   |
|----------------------------------------------------------------|--------|--------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------------------------------|--------|
| Professional                  Fees                             |   | $                                                                              | (161,454   | )                                                                                      | $      | (51,439                                                                     | )      | $                                                                           | (246,236  | )                                                                                                     | $      | (113,605 | ) | $ | (808,893 | ) |
| Rents,                  Fees and Taxes                         |   |                                                                           | (23,465    | )                                                                                      |   | (100,259                                                                    | )      |                                                                        | (45,965   | )                                                                                                     |   | (122,759 | ) |   | (277,199 | ) |
| D&O                  Insurance                             |   |                                                                           | (32,085    | )                                                                                      |   | (33,866                                                                     | )      |                                                                        | (62,627   | )                                                                                                     |   | (64,711 | ) |   | (237,399 | ) |
| Travel,                  Lodging & Meals                   |   |                                                                           | (30,779    | )                                                                                      |   | (32,071                                                                     | )      |                                                                        | (46,798   | )                                                                                                     |   | (52,215 | ) |   | (193,851 | ) |
| Other                                                          |   |                                                                           | (115,523   | )                                                                                      |   | (26,933                                                                     | )      |                                                                        | (132,416  | )                                                                                                     |   | (63,427 | ) |   | (315,494 | ) |
| Operating                  loss                                |   |                                                                           | (363,307   | )                                                                                      |   | (244,569                                                                    | )      |                                                                        | (534,042  | )                                                                                                     |   | (416,717 | ) |   | (1,832,836 | ) |
| Interest                  income                               |   |                                                                           | 258,243    |                                                                                   |   | 136,156                                                                     |   |                                                                        | 480,460   |                                                                                                  |   | 260,054 |   |   | 1,260,953 |   |
|                                                           |   |                                                                           |       |                                                                                   |   |                                                                        |   |                                                                        |      |                                                                                                  |   |   |   |   |   |   |
| Warrant                  liability income/(expense)            |   |                                                                           | 904,200    |                                                                                   |   | (1,397,400                                                                  | )      |                                                                        | 8,220     |                                                                                                  |   | (986,400 | ) |   | (1,068,600 | ) |
| Net                  income (loss)                             |   | $                                                                              | 799,137    |                                                                                   |   | (1,505,813                                                                  | )      |                                                                        | (45,361   | )                                                                                                     |   | (1,143,063 | ) | $ | (1,640,482 | ) |
| Weighted                  Average Shares Outstanding -Basic    |   |                                                                           | 5,110,000  |                                                                                   |   | 5,110,000                                                                   |   |                                                                        | 5,110,000 |                                                                                                  |   | 5,110,000 |   |   | 4,547,457 |   |
| Weighted                  Average Shares Outstanding - Diluted |   |                                                                           | 13,330,000 |                                                                                   |   | 5,110,000                                                                   |   |                                                                        | 5,110,000 |                                                                                                  |   | 5,110,000 |   |   | 4,547,457 |   |
| Net                  income (Loss) Per Share - Basic           |   | $                                                                              | 0.16       |                                                                                   | $      | (0.29                                                                       | )      | $                                                                           | (0.01     | )                                                                                                     | $      | (0.22 | ) | $ | (0.36 | ) |
| Net                  income (Loss) Per Share - Dilute          |   | $                                                                              | (0.01      | )                                                                                      | $      | (0.29                                                                       | )      | $                                                                           | (0.01     | )                                                                                                     | $      | (0.22 | ) | $ | (0.36 | ) |

*See        accompanying notes to condensed financial statements*

----

**ST.      BERNARD SOFTWARE, INC.**

**(FORMERLY      KNOWN AS SAND HILL IT SECURITY ACQUISITION CORP.)**

**(A      Corporation in the Development Stage)**

**CONDENSED      STATEMENTS OF CASH FLOWS**

|                                                                              |   |   | **Six****months****ended****June****30,                2006****(Unaudited)** |   |     |   | **Six****months                ended****June                30, 2005****Unaudited)                Restated** |   | **Period                from****April                15, 2004 (inception) to****June                30, 2006****(Unaudited)** |   |
|-----------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------|--------|----------|--------|--------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| CASH                FLOW FROM OPERATING ACTIVITIES                                |   |   |                                                                         |   |     |   |                                                                                                         |   |                                                                                                                          |   |
| Net                income (loss)                                                  |   |        |                                                                         | $      | (45,361  | )      |                                                                                                         |        |                                                                                                                          | $      | (1,143,063 | ) | $ | (1,640,482 | ) |
| Compensation                expense related to issuance of Advisory Board options |   |   |                                                                         |   | 14,682   |   |                                                                                                         |   |                                                                                                                          |   | 14,682 |   |   | 46,493 |   |
| Purchase                of treasury bill in trust account                         |        |        |                                                                              |        | -        |        |                                                                                                              |   |                                                                                                                               |        | - |  |  | (21,025,000 | ) |
| Changes                in assets & liabilities:                               |   |   |                                                                         |   |     |   |                                                                                                         |   |                                                                                                                          |   |   |   |   |   |   |
| Accretion                of treasury bill and mark to market gain                 |   |   |                                                                         |   | (480,460 | )      |                                                                                                         |   |                                                                                                                          |   | (253,412 | ) |   | (1,186,778 | ) |
| Prepaid                expenses                                                   |   |   |                                                                         |   | 11,537   |   |                                                                                                         |   |                                                                                                                          |   | 61,690 |   |   | (250 | ) |
| Accounts                payable and accrued expenses                              |   |   |                                                                         |   | 352,349  |   |                                                                                                         |   |                                                                                                                          |   | 76,750 |   |   | 607,315 |   |
| Warrant                liability                                                  |   |   |                                                                         |   | (8,220   | )      |                                                                                                         |   |                                                                                                                          |   | 986,400 |   |   | 1,068,600 |   |
|                                                                              |   |        |                                                                         |   |     |   |                                                                                                         |   |                                                                                                                          |   |   |   |   |   |   |
| Net                cash used in operating activities                              |   |   |                                                                         |   | (155,473 | )      |                                                                                                         |   |                                                                                                                          |   | (256,953 | ) |   | (22,130,104 | ) |
|                                                                              |   |   |                                                                         |   |     |   |                                                                                                         |   |                                                                                                                          |   |   |   |   |   |   |
| CASH                FLOW FROM FINANCING ACTIVITIES                                |   |   |                                                                         |   |     |   |                                                                                                         |   |                                                                                                                          |   |   |   |   |   |   |
| Proceeds                from sale of common stock to initial stockholders    |   |   |                                                                         |   | -        |   |                                                                                                         |   |                                                                                                                          |   | - |   |   | 25,000 |   |
| Gross                proceeds from public offering                           |   |   |                                                                              |   | -        |   |                                                                                                         |   |                                                                                                                          |   | - |   |   | 24,660,000 |   |
| Costs                of public offering                                      |   |   |                                                                         |   | -        |   |                                                                                                         |   |                                                                                                                          |   | - |   |   | (2,636,773 | ) |
| Proceeds                from stockholder loan                                     |   |   |                                                                         |   | 82,300   |   |                                                                                                         |   |                                                                                                                          |   | - |   |   | 122,300 |   |
| Repayment                of stockholder loan                                      |   |   |                                                                         |   | -        |   |                                                                                                         |   |                                                                                                                          |   | - |   |   | (40,000 | ) |
| Net                cash provided by financing activities                          |   |   |                                                                         |   | 82,300   |   |                                                                                                         |   |                                                                                                                          |   | - |   |   | 22,130,527 |   |
|                                                                              |   |   |                                                                         |   |     |   |                                                                                                         |   |                                                                                                                          |   |   |   |   |   |   |
| NET                INCREASE (DECREASE) IN CASH                                    |   |   |                                                                         |   | (73,173  | )      |                                                                                                         |   |                                                                                                                          |   | (256,953 | ) |   | 423 |   |
| CASH                AT BEGINNING OF PERIOD                                        |   |   |                                                                         |   | 73,596   |   |                                                                                                         |   |                                                                                                                          |   | 783,134 |   |   | - |   |
| CASH                AT END OF PERIOD                                              |   |   |                                                                         |   | 423      |   |                                                                                                         |   |                                                                                                                          |   | 526,181 |   |   | 423 |   |

*See      accompanying notes to condensed financial      statements*

----

**ST.      BERNARD SOFTWARE, INC.**

**(FORMERLY      KNOWN AS SAND HILL IT SECURITY ACQUISITION CORP.)**

**(A      Corporation in the Development Stage)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS**

**1.       BASIS      OF PRESENTATION**

**2.       ORGANIZATION,      BUSINESS OPERATIONS**

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**3.       PUBLIC      OFFERING**

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*“Accounting      for Derivative Financial Instruments Indexed to, and Potentially Settled in,      a      Company’s Own Stock”*

----

| *(in                thousands except per share amounts)* |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |
|----------------------------------------------------------|--------|---------------------------------------------------------|--------|-------------------------------------------------------|--------|-------------------------------------------------|--------|--------------------------------|--------|-------------------------------------------|--------|--------------------------------|--------|
|                                                     |   | **As                of and for the Three Months Ended** |   | **As                of and for the Six Months Ended** |   | **As                of and for the Year Ended** |   |
|                                                     |   | **June                30, 2005**                        |   | **June                30, 2005**                      |   | **December                31, 2005**            |   |
|                                                     |   | **As                Previously Reported**               |   | **As                Restated**                        |   | **As                Previously Reported**       |   | **As                Restated** |   | **As                Previously Reported** |   | **As                Restated** |   |
| Assets                                                   |   | $                                                       | 21,951 |                                                  | $      | 21,951                                          |   | $                              | 21,951 |                                      | $      | 21,951                         |   | $ | 21,816 |   | $ | 21,816 |   |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Liabilities                                              |   | $                                                       | 93     |                                                  | $      | 6,422                                           |   | $                              | 93     |                                      | $      | 6,422                          |   | $ | 255 |   | $ | 6,675 |   |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Common                stock subject to conversion        |   | $                                                       | 4,269  |                                                  | $      | 4,269                                           |   | $                              | 4,269  |                                      | $      | 4,269                          |   | $ | 4,344 |   | $ | 4,344 |   |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Stockholders'                equity                      |   | $                                                       | 17,589 |                                                  | $      | 11,260                                          |   | $                              | 17,589 |                                      | $      | 11,260                         |   | $ | 17,217 |   | $ | 10,797 |   |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Warrant                liability income (expense)        |   | $                                                       | -      |                                                  | $      | (1,397                                          | )      | $                              | -      |                                      | $      | (986                           | )      | $ | - |   | $ | (1,077 | ) |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Pre-tax                income (loss)                     |   | $                                                       | (108   | )                                                     | $      | (1,505                                          | )      | $                              | (157   | )                                         | $      | (247                           | )      | $ | (468 | ) | $ | (1,545 | ) |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Provision                for income taxes                |   | $                                                       | -      |                                                  | $      | -                                               |   | $                              | -      |                                      | $      | -                              |   | $ | - |   | $ | - |   |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Net                income (loss)                         |   | $                                                       | (108   | )                                                     | $      | (1,505                                          | )      | $                              | (157   | )                                         | $      | (247                           | )      | $ | (468 | ) | $ | (1,545 | ) |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| **Weighted                average shares:**              |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Basic                                                    |   |                                                    | 5,110  |                                                  |   | 5,110                                           |   |                           | 5,110  |                                      |   | 5,110                          |   |   | 5,110 |   |   | 5,110 |   |
| Diluted                                                  |   |                                                    | 5,110  |                                                  |   | 5,110                                           |   |                           | 5,110  |                                      |   | 5,110                          |   |   | 5,110 |   |   | 5,110 |   |
|                                                     |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| **Earnings                (loss) per share**             |   |                                                    |   |                                                  |   |                                            |   |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
| Basic                                                    |   |                                                    | ($0.02 | )                                                     |   | ($0.29                                          | )      |                           | ($0.03 | )                                         |   | ($0.22                         | )      |   | ($0.09 | ) |   | ($0.30 | ) |
| Diluted                                                  |   |                                                    | ($0.02 | )                                                     |   | ($0.29                                          | )      |                           | ($0.03 | )                                         |   | ($0.22                         | )      |   | ($0.09 | ) |   | ($0.30 | ) |

*Reclassification*

**4.       TREASURY      SECURITIES**

----

**5.       COMMITMENT**

**6.       LOANS      FROM STOCKHOLDERS**

**7.**
**       **
**COMMON      STOCK**

**8.**
**PREFERRED      STOCK**

**9.**
**EARNINGS      PER SHARE**

|     |   | **Six                Months Ended June 30,** |   | **Three                Months Ended June 30,** |   | **Period              from April 15, 2004 (inception) to              June 30,** |
|----------|--------|----------------------------------------------|--------|------------------------------------------------|--------|----------------------------------------------------------------------------------|
|     |   | **2006**                                     |   | **2005**                                       |   | **2006**                                                                         |   | **2005** |   | **2006** |   | **2005** |
|     |   |                                         |   |                                           |   |                                                                             |   |   |   |   |   |   |
| Warrants |   | 8,220,000                                    |   | 8,220,000                                      |   | 8,220,000                                                                        |   |   |   |   |   |   |
|     |   | -                                            |   | -                                              |   | -                                                                                |   | -  |   | -  |   | -  |

**10.       SUBSEQUENT        EVENT**

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

**Forward      Looking Statements**

**Plan      of Operation**

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** **
**       **

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**Item      3. Controls and Procedures**

**PART      II. OTHER INFORMATION**

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

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**PART      II. OTHER INFORMATION**

**Item      6: Exhibits and Reports on Form 8-K**

| (a)    | Exhibits:                           |                                            |
|--------|-------------------------------------|-------------------------------------------------|
|   |                                |                                            |
|   | 31.1                                | Section                302 Certification by CEO |
|   |                                |                                            |
|   | 31.2                                | Section                302 Certification by CFO |
|   |                                |                                            |
|   | 32.1                                | Section                906 Certification by CEO |
|   |                                |                                            |
|   | 32.2                                | Section                906 Certification by CFO |
|   |                                |                                            |
|   |                                |                                            |
| (b)    | Reports                on Form 8-K: |

| **Date**                     | **Items**                          | **Financial                Statements** |
|------------------------------|------------------------------------|-----------------------------------------|
| June                6, 2006  | 1.01                               | None                                    |
| June                12, 2006 | 8.01                and 9.01       | None                                    |
| June                21, 2006 | 4.02                               | None                                    |
| June                27, 2006 | 1.01                and 9.01       | None                                    |
| June                28, 2006 | 4.02,                8.01 and 9.01 | None                                    |

----

|         |                                                 |         |
|--------------|------------------------------------------------------|--------------|
|         |                                                 |
|         | Dated: August 17, 2006                               |
|         |                                                 |
|         | ST.              BERNARD              SOFTWARE, INC. |
|    |                                            |    |
|         | /s/              John E.              Jones          |
|         | John                E. Jones                         |
|         | Chief Executive Officer                              |
|         |                                                 |
|         | /s/ Alfred Riedler                                   |
|         | Alfred                Riedler                        |
|         | Chief              Financial Officer                 |
|   |   |
|--------|--------|

----

**EXHIBIT      INDEX**

| Number | Description                                     |
|--------|-------------------------------------------------|
|   |                                            |   |   |
| 31.1   | Section                302 Certification by CEO |
|   |                                            |   |   |
| 31.2   | Section                302 Certification by CFO |
|   |                                            |   |   |
| 32.1   | Section                906 Certification by CEO |
|   |                                            |   |   |
| 32.2   | Section                906 Certification by CFO |

----