UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-Q



(Mark One)



xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE
30, 2012



 ̈TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934



For the transition period from _______________
to _______________.



COMMISSION FILE NUMBER: 333-152376



SEALS ENTERTAINMENT CORPORATION

(Exact name of registrant as specified
in its charter)



|DELAWARE                                 |  | 26-2691611         
|---------------------------------------- |  | -------------------
|(State or other jurisdiction of          |  | (I.R.S. Employer   
|incorporation or organization)           |  | Identification No.)
|                                         |  |                    
|3340 Peachtree Road, N.E.                |  |                    
|Atlanta, GA                              |  | 30326              
|(Address of principal executive offices) |  | (Zip Code)         



REGISTRANT'S TELEPHONE NUMBER, INCLUDING
AREA CODE (404) 230-9600



230 North Park Blvd Suite 104

Grapevine, TX 76051

(Former name, former address and former
fiscal year, if changed since last report)





Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 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. YesxNo ̈



Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer"
in Rule 12b-2 of the Exchange Act (Check one):



Large
accelerated filer ̈Accelerated filer ̈



Non-accelerated
filer ̈Smaller
reporting companyx

(Do not check if a smaller reporting company)



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YesxNo ̈



APPLICABLE ONLY TO ISSUERS INVOLVED IN
BANKRUPTCY PROCEEDINGS DURING THE

PRECEDING FIVE YEARS:



Indicate
by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YesoNoo



APPLICABLE ONLY TO CORPORATE ISSUERS:



Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.  As of August 6, 2012, there were 19,184,410 shares of common
stock, par value $0.005, issued and outstanding.













SEALS ENTERTAINMENT CORPORATION



TABLE OF CONTENTS



|PART I - FINANCIAL INFORMATION                                                                 |  | 3 
|---------------------------------------------------------------------------------------------- |  | --
|                                                                                               |  |   
|ITEM 1  Financial Statements                                                                   |  | 4 
|                                                                                               |  |   
|ITEM 2  Management's Discussion and Analysis of Financial Condition and Results of Operations. |  | 9 
|                                                                                               |  |   
|ITEM 3  Quantitative and Qualitative Disclosures About Market Risk                             |  | 10
|                                                                                               |  |   
|ITEM 4 Controls and Procedures                                                                 |  | 11
|                                                                                               |  |   
|PART II - OTHER INFORMATION                                                                    |  | 12
|                                                                                               |  |   
|ITEM 1  Legal Proceedings                                                                      |  | 12
|                                                                                               |  |   
|ITEM 1A Risk Factors                                                                           |  | 12
|                                                                                               |  |   
|ITEM 2  Unregistered Sales of Equity Securities and Use of Proceeds                            |  | 12
|                                                                                               |  |   
|ITEM 3  Defaults Upon Senior Securities                                                        |  | 12
|                                                                                               |  |   
|ITEM 4  Mine Safety Disclosures                                                                |  | 12
|                                                                                               |  |   
|ITEM 5  Other Information                                                                      |  | 12
|                                                                                               |  |   
|ITEM 6  Exhibits                                                                               |  | 12
|                                                                                               |  |   
|Signatures                                                                                     |  | 12



2









PART I - FINANCIAL INFORMATION



This Quarterly Report includes forward-looking statements within
the meaning of the Securities Exchange Act of 1934 (the "Exchange Act"). These statements are based on management's beliefs
and assumptions, and on information currently available to management. Forward-looking statements include the information concerning
our possible or assumed future results of operations set forth under the heading "Management's Discussion and Analysis of
Financial Condition and Results of Operations." Forward-looking statements also include statements in which words such as
"expect," "anticipate," "intend," "plan," "believe," "estimate," "consider"
or similar expressions are used.



Forward-looking statements are not guarantees of future performance.
They involve risks, uncertainties and assumptions. Our future results and shareholder values may differ materially from those expressed
in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.











3







ITEM 1 FINANCIAL STATEMENTS



|Seals Entertainment Corporation
|-------------------------------
|(A Development Stage Company)  
|Balance Sheets                 
|(Unaudited)                    



|                                                         |  |               |   |                  
|-------------------------------------------------------- |  | ------------- | - | -----------------
|                                                         |  | June 30, 2012 |   | December 31, 2011
|                                                         |  |               |   |                  
|Assets                                                   |  |               |   |                  
|                                                         |  |               |   |                  
|Cash and cash equivalents                                |  | $9            |   |                  
|Total current assets                                     |  | 9             |   |                  
|                                                         |  |               |   |                  
|Total assets                                             |  | $9            |   |                  
|                                                         |  |               |   |                  
|Liabilities and stockholders' deficit                    |  |               |   |                  
|                                                         |  |               |   |                  
|Accounts payable and accrued expenses                    |  | $69,636       |   |                  
|Related party payable                                    |  | 34,668        |   |                  
|Total current liabilities                                |  | 104,304       |   |                  
|                                                         |  |               |   |                  
|Total liabilities                                        |  | 104,304       |   |                  
|                                                         |  |               |   |                  
|Stockholders' deficit                                    |  |               |   |                  
|                                                         |  |               |   |                  
|Preferred Stock 20,000,000 shares authorized             |  |               |   |                  
|at par value of $ 0.005, no shares isued and outstanding |  | -             |   |                  
|Common Stock 100,000,000 shares authorized               |  |               |   |                  
|at par value of $ 0.005, 13,184,410 and                  |  |               |   |                  
|19,184,410 shares issued and outstanding as of           |  |               |   |                  
|June 30, 2012 and December 31, 2011, respectively        |  | 95,922        |   |                  
|Additional paid-in capital                               |  | 221,369       |   |                  
|Accumulated deficit during development stage             |  | (421,586      | ) |                  
|Total stockholders' deficit                              |  | (104,295      | ) |                  
|                                                         |  |               |   |                  
|Total liabilities & stockholders' deficit                |  | $9            |   |                  





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







4













|SEALS ENTERTAINMENT CORPORATION
|-------------------------------
|(A Development Stage Company)  
|Statements of Operations       
|(Unaudited)                    





|                                  |  |                            |            |   |                          |   |           | From Inception | 
|--------------------------------- |  | -------------------------- | ---------- | - | ------------------------ | - | --------- | -------------- | 
|                                  |  | For the Three Months Ended |            |   | For the Six Months Ended |   |           | (May 23, 2007) | 
|                                  |  | June 30,                   |            |   | June 30,                 |   |           | Through        | 
|                                  |  | 2012                       |            |   | 2011                     |   |           | 2012           | 
|                                  |  |                            |            |   |                          |   |           |                | 
|                                  |  |                            |            |   |                          |   |           |                | 
|Operating Expenses:               |  |                            |            |   |                          |   |           |                | 
|                                  |  |                            |            |   |                          |   |           |                | 
|Compensation                      |  | $                          | 30,000     |   |                          | $ | -         |                | 
|Professional fees                 |  |                            | 28,945     |   |                          |   | -         |                | 
|General and administrative        |  |                            | 10,256     |   |                          |   | 13,876    |                | 
|                                  |  |                            |            |   |                          |   |           |                | 
|Total Operating Expenses          |  |                            | 69,201     |   |                          |   | 13,876    |                | 
|                                  |  |                            |            |   |                          |   |           |                | 
|Loss from operations              |  |                            | (69,201    | ) |                          |   | (13,876   | )              | 
|                                  |  |                            |            |   |                          |   |           |                | 
|Other expense:                    |  |                            |            |   |                          |   |           |                | 
|Interest expense                  |  |                            |            |   |                          |   |           |                | 
|Franchise tax expense             |  |                            | -          |   |                          |   | -         |                | 
|                                  |  |                            |            |   |                          |   |           |                | 
|Net loss                          |  | $                          | (69,201    | ) |                          | $ | (22,813   | )              | 
|                                  |  |                            |            |   |                          |   |           |                | 
|                                  |  |                            |            |   |                          |   |           |                | 
|Basic loss per common share       |  | $                          | (0.00      | ) |                          | $ | (0.01     | )              | 
|                                  |  |                            |            |   |                          |   |           |                | 
|                                  |  |                            |            |   |                          |   |           |                | 
|Weighted average number of common |  |                            |            |   |                          |   |           |                | 
|shares outstanding                |  |                            | 17,206,788 |   |                          |   | 3,545,653 |                | 





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







5









|SEALS ENTERTAINMENT CORPORATION
|-------------------------------
|(A Development Stage Company)  
|Statement of Cash Flows        
|(Unaudited)                    



|                                                     |  |                          |          |   |                |   |         | From inception | 
|---------------------------------------------------- |  | ------------------------ | -------- | - | -------------- | - | ------- | -------------- | 
|                                                     |  | For the Six Months ended |          |   | (May 23, 2007) |  
|                                                     |  | June 30,                 |          |   | through        |  
|                                                     |  | 2012                     |          |   | 2011           |   |         | June 30, 2012  | 
|                                                     |  |                          |          |   |                |   |         |                | 
|CASH FLOWS FROM OPERATING ACTIVITIES                 |  |                          |          |   |                |   |         |                | 
|Net loss                                             |  | $                        | (127,345 | ) |                | $ | (36,689 | )              | 
|Adjustment to reconcile net loss to net              |  |                          |          |   |                |   |         |                | 
|cash used in operating activities:                   |  |                          |          |   |                |   |         |                | 
|Interest                                             |  |                          | -        |   |                |   | -       |                | 
|Common stock issued for services                     |  |                          | 40,000   |   |                |   | 13,500  |                | 
|Changes in operating assets and liabilities:         |  |                          |          |   |                |   |         |                | 
|Increase in accounts payable                         |  |                          | 64,461   |   |                |   | 15,215  |                | 
|Decrease in prepaid expenses                         |  |                          | -        |   |                |   | 3,000   |                | 
|NET CASH USED IN OPERATING ACTIVITIES                |  |                          | (22,884  | ) |                |   | (4,974  | )              | 
|                                                     |  |                          |          |   |                |   |         |                | 
|                                                     |  |                          |          |   |                |   |         |                | 
|CASH FLOWS FROM FINANCING ACTIVITIES                 |  |                          |          |   |                |   |         |                | 
|Proceeds from related party                          |  |                          | 22,813   |   |                |   | 4,450   |                | 
|Proceeds from share issuance                         |  |                          | -        |   |                |   | -       |                | 
|Proceeds from promissory note                        |  |                          | -        |   |                |   | 200,526 |                | 
|Additional capital contributed                       |  |                          |          |   |                |   | -       |                | 
|NET CASH PROVIDED BY FINANCING ACTIVITIES            |  |                          | 22,813   |   |                |   | 204,976 |                | 
|                                                     |  |                          |          |   |                |   |         |                | 
|NET INCREASE IN CASH AND CASH EQUIVALENTS            |  | $                        | (71      | ) |                | $ | 200,002 |                | 
|                                                     |  |                          |          |   |                |   |         |                | 
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     |  |                          | 80       |   |                |   | 255     |                | 
|CASH AND CASH EQUIVALENTS AT END OF PERIOD           |  |                          | 9        |   |                |   | 200,257 |                | 
|                                                     |  |                          |          |   |                |   |         |                | 
|SUPPLEMENTAL DISCLOSURE OF CASH FLOWS                |  |                          |          |   |                |   |         |                | 
|INFORMATION                                          |  |                          |          |   |                |   |         |                | 
|Cash paid for interest                               |  | $                        | -        |   |                | $ | -       |                | 
|Cash paid for taxes                                  |  | $                        | -        |   |                | $ | -       |                | 
|NON-CASH INVESTING AND FINANCING ACTIVITIES:         |  |                          |          |   |                |   |         |                | 
|Shares issued to settle related party payable        |  | $                        | -        |   |                | $ | 75,427  |                | 
|Settlement of related party payables and recorded as |  |                          |          |   |                |   |         |                | 
|additional paid-in capital                           |  | $                        | -        |   |                | $ | -       |                | 
|                                                     |  |                          |          |   |                |   |         |                | 



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





6









SEALS ENTERTAINMENT CORPORATION

(A Development Stage Company)



Notes to Unaudited Financial Statements



NOTE 1 - CONDENSED FINANCIAL STATEMENTS



The accompanying unaudited financial statements
have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for
interim financial information and with the instructions for Form 10-Q and Article 210 8-03 of Regulation S-X.  In the opinion
of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flows at June 30, 2012 and for all periods presented have been made.



Certain information and footnote disclosures
normally included in financial statements prepared have been condensed or omitted. It is suggested that these financial statements
be read in conjunction with the most recent filing of the Form 10-K which included the financial statements and notes thereto as
of December 31, 2011. The operating results for the three and six months periods ended June 30, 2012 is not necessarily indicative
of the operating results that may be expected for the fiscal year ending December 31, 2012.



NOTE 2 - GOING CONCERN



The Company’s financial statements
are prepared in conformity with generally accepted accounting principles applicable to a going concern which contemplates the realization
of assets and liquidation of liabilities in the normal course of business. The Company has had no revenues and has generated losses
from operations. The Company has accumulated a deficit of ($421,586) and currently has net working capital deficit of $104,295
as of June 30, 2012.



In order to continue as a going concern
and achieve a profitable level of operations, the Company will need, among other things, additional capital resources and to develop
a consistent source of revenue. Management’s plans include investing in and developing an operating business.



The ability of the Company to continue
as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually
attain profitable operations.



These financial statements do not include
any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities
that might result from this uncertainty.



NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES



Use of Estimates



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 disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.



Cash and cash equivalents



For purposes of the statement of cash flows,
the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.



Loss per common share



Basic loss per share is calculated using
the weighted-average number of common shares outstanding during each reporting period. Diluted loss per share includes potentially
dilutive securities such as outstanding options and warrants, using various methods such as the treasury stock or modified treasury
stock method in the determination of dilutive shares outstanding during each reporting period. The Company does not have any potentially
dilutive instruments.



Development -Stage Company



The accompanying financial statements have
been prepared in accordance with the FASB ASC Topic 915 "Accounting and Reporting by Development-Stage Enterprises".
A development-stage enterprise is one in which planned principal operations have not commenced or if its operations have commenced,
there has been no significant revenue therefrom. Development-stage companies report cumulative costs from the enterprise's inception.



Recent Accounting Pronouncements



The Company evaluated all of the other
recent accounting pronouncements and deemed that they did not have a material impact on our financial statements.





7









SEALS ENTERTAINMENT CORPORATION

(A Development Stage Company)



Notes to Financial Statements



NOTE 4 – RELATED PARTY TRANSACTIONS



As of June 30, 2012 a company, of which
the current CEO is also an officer, has advanced $34,668 for the administration and other costs of operations on an unsecured basis;
bearing no interest and due on demand.



Note 5 – CHANGE OF NAME



On April 24, 2012 the Company Board of Directors approved the
amendment of the Articles of Incorporation to change the name to Seals Entertainment Company, Inc. and on June 14, 2012 the name
was officially changed with the Delaware Secretary of State.



NOTE 6 – STOCKHOLDERS DEFICIT



On February 16, 2012, the Company issued 1,000,0000 shares of
common stock to a consultant, Teresa Vellardita, Designee of Vince Vellardita, for services valued at $5,000 and 1,000,000 shares
of common stock to Emmitt Lamar Seals, III, the CEO of the Company, for Services.



On May 1, 2012, the Company issued 6,000,000 shares of common
stock to Emmitt Lamar Seals, III, the CEO of the Company, for Services valued at $30,000.



The Company, on February 15, 2012, amended the Articles of Incorporation
to provide for an increase in the total number of authorized Common shares to 100,000,000. Also, the Company authorized 20,000,000
shares of Preferred Stock with the Board of Directors authorized to designate the classes and/or series of Preferred stock with
the various rights and preferences.



8







ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS



Our Management's Discussion and Analysis contains not only statements
that are historical facts, but also statements that are forward-looking (within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934). Forward-looking statements are, by their very nature, uncertain
and risky. These risks and uncertainties include international, national and local general economic and market conditions; demographic
changes; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; existing
government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; fluctuations
and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability
to attract and retain qualified personnel; the ability to protect technology; and other risks that might be detailed from time
to time in our filings with the Securities and Exchange Commission.



Although the forward-looking statements in this Quarterly Report
reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them.
Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and
outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully
review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested
parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.



OVERVIEW



Seals Entertainment Corporation (formerly
Triangle Alternative Network Incorporated) (“SEALS”) is a development stage company that was incorporated in the state
of Delaware on April 1, 2008 and was the holding company for Triangle Alternative Network, LLC (“TAN, LLC” and, together
with SEALS., "SEALS", the "Company", "we", "us" or "our").  We are
a start-up company that was originally organized to develop a television network to provide programming to the Gay, Lesbian, Bi-Sexual
and Trans-gender (“GLBT”) Community.



After attempting to develop programming,
it was determined that the Company did not want to develop this particular programming and had not entered into a definitive contract
to sell the programming. The film and production costs were transferred to related parties in exchange for the debt owed to them
for advances to the Company.



OUR CORPORATE INFORMATION



SEALS was incorporated in the State of Delaware on April 1,
2008 under the name of Triangle Alternative Network, Inc. The Company officially changed its name to Global Smart Energy, Inc.
on February 8, 2011. On June 13, 2012 the Company officially filed an amendment of the Articles of Incorporation to change the
name to Seals Entertainment Company, Inc. SEALS has no full time employees. Our principal executive offices are located at 3340
Peachtree Road, N.E., Atlanta, GA and our telephone number is (404) 230-9600.



Liquidity and Capital Resources



Cash Requirements



At June 30, 2012, we had cash on hand of $9 compared to $80
at December 31, 2011. Management feels that the cash on hand is not sufficient for the next twelve months. We anticipate that our
cash requirements will increase substantially as a result of the fact that we are now a public, reporting company and are beginning
to develop a business plan. We anticipate that we will require approximately $336,000 to meet our minimal operating requirements
for the next twelve months. We have not established our revenues and have not established any other source for the required operating
funds. For future implementation of a business plan, expansion and growth Management anticipates a need for a total cash requirement
of approximately $3,500,000.



THREE MONTHS ENDED JUNE 30, 2012 COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 2011



REVENUES, EXPENSES AND LOSS FROM OPERATIONS



Our revenues, operating expenses and net loss for the three
months ended June 30, 2012 and June 30, 2011 are as follows:



|                      |  | Three Months   |         |   | Three Months   |  
|--------------------- |  | -------------- | ------- | - | -------------- | -
|                      |  | Ended June 30, |         |   | Ended June 30, |  
|                      |  | 2012           |         |   | 2011           |  
|                      |  |                |         |   |                |  
|Revenue               |  | $              | -       |   |                | $
|                      |  |                |         |   |                |  
|Operating expenses    |  |                | 69,201  |   |                |  
|                      |  |                |         |   |                |  
|Franchise tax expense |  |                | -       |   |                |  
|                      |  |                |         |   |                |  
|Net Loss              |  | $              | (69,201 | ) |                | $





9









Revenues for the three months ended June 30, 2012 were $0, compared
to $0 for the three months ended June 30, 2011.



For the three months ended June 30, 2012, operating expenses
totaled $69,201 as compared to $13,876 for the three months ended June 30, 2011. The increase was primarily due to payments of
monthly compensation to current officers and directors of the Company, increased professional fees for filing and other professional
expenses.



SIX MONTHS ENDED JUNE 30, 2012 COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 2011



REVENUES, EXPENSES AND LOSS FROM OPERATIONS



Our revenues, operating expenses and net loss for the six months
ended June 30, 2012 and June 30, 2011 are as follows:



|                      |  | Six Months     |          |   | Six Months     |  
|--------------------- |  | -------------- | -------- | - | -------------- | -
|                      |  | Ended June 30, |          |   | Ended June 30, |  
|                      |  | 2012           |          |   | 2011           |  
|                      |  |                |          |   |                |  
|Revenue               |  | $              | -        |   |                | $
|                      |  |                |          |   |                |  
|Operating expenses    |  |                | 126,946  |   |                |  
|                      |  |                |          |   |                |  
|Franchise tax expense |  |                | 400      |   |                |  
|                      |  |                |          |   |                |  
|Net Loss              |  | $              | (127,346 | ) |                | $



Revenues for the six months ended June 30, 2012 were $0, compared
to $0 for the six months ended June 30, 2011.



For the six months ended June 30, 2012, operating expenses totaled
$127,346 as compared to $36,689 for the six months ended June 30, 2011. The increase was primarily due to payments of monthly compensation
to current officers and directors of the Company, increased professional fees for filing and other professional expenses.



Sources and Uses of Cash



Operations



For the six months ended June 30, 2012, we used cash in our
operation of $22,884 compared to $4,974 for the Three months ended June 30, 2011. These changes were primarily the result of the
loss from operations of $127,346 and increased payments to officers and directors, professional and accounting fees paid to maintain
corporate requirements.



Financing



We had net cash flows of $22,813 from financing activities for
the six months ended June 30, 2012 compared to $ 204,976 for the six months ended June 30, 2011. Cash in the amount of $22,813
came from related party advances for the six months ended June 30, 2012.



CRITICAL ACCOUNTING POLICIES



The discussion and analysis of our financial condition and results
of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally
accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments
that affect the reported amounts of assets, liabilities, revenues and expenses. In consultation with our Board of Directors, we
have identified the following accounting policies that we believe are key to an understanding of our financial statements. These
are important accounting policies that require management's most difficult, subjective judgments.



Our critical accounting policies, including the assumptions
and judgments underlying them, are disclosed in our Calendar Year 2011 Form 10-K in Note 1- Summary of Significant Accounting Policies
included in our Financial Statements.  There were no significant changes to our critical accounting policies during the three
months ended June 30, 2012. On an ongoing basis, we evaluate our estimates based on historical experience and on various other
assumptions that are believed to be reasonable under the circumstances, the result of which form the basis for making judgments
about the carrying value of assets and liabilities that are not readily apparent from other sources.  Results may differ from
these estimates due to actual outcomes being different from those on which we based our assumptions.



Off-balance-Sheet Arrangements



We have no off-balance-sheet arrangements that are reasonably
likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results
of operations, liquidity, capital expenditures or capital resources that is deemed by our management to be material to investors.



ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK





10









As a smaller reporting company we are not required to provide
the information required by this Item.



ITEM 4 CONTROLS AND PROCEDURES



Evaluation of Disclosure Controls and Procedures



Our management is responsible for establishing and maintaining
a system of disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Exchange Act) that is designed to ensure
that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported, within the time specified in the Commission's 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 Exchange Act is accumulated and communicated to the issuer's management, including
its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions,
as appropriate to allow timely decisions regarding required disclosure.



Pursuant to Rule 13a-15(b) under the Exchange Act, the Company
carried out an evaluation with the participation of the Company's management, the Company's Chief Executive Officer ("CEO")
and Chief Financial Officer ("CFO"), of the effectiveness of the Company's disclosure controls and procedures (as defined
under Rule 13a-15(e) under the Exchange Act) as of the six months ended June 30, 2012. Based on that evaluation, our Chief Executive
Officer and Chief Financial Officer have concluded that as of June 30, 2012, our disclosure controls and procedures were not effective
at the reasonable assurance level due to the material weaknesses described below.



In light of the material weaknesses described below, we performed
additional analysis and other post-closing procedures to ensure our financial statements were prepared in accordance with generally
accepted accounting principles. Accordingly, we believe that the financial statements included in this report fairly present, in
all material respects, our financial condition, results of operations and cash flows for the periods presented.



A material weakness is a control deficiency (within the meaning
of the Public Company Accounting Oversight Board (PCAOB)) or combination of control deficiencies, such that there is a reasonable
possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected. Management
has identified the following two material weaknesses which have caused management to conclude that, as of June 30, 2012, our disclosure
controls and procedures were not effective at the reasonable assurance level:



1. We do not have written documentation of our internal control
policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404
of the Sarbanes-Oxley Act. Management evaluated the impact of our failure to have written documentation of our internal controls
and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted
represented a material weakness.



2. We do not have sufficient segregation of duties within accounting
functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always
be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody
of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our
failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control
deficiency that resulted represented a material weakness.



To address these material weaknesses, management performed additional
analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects,
our financial position, results of operations and cash flows for the periods presented.



Remediation of Material Weaknesses



To remediate the material weaknesses in our disclosure controls
and procedures identified above, we have continued to refine our internal procedures to begin to implement segregation of duties
and to reduce the number of audit adjustments. To assist management with additional internal controls, the general ledger and accounting
records are under the control of an independent certified public accountant as a consultant to the Company on a monthly basis.



Changes in Internal Control over Financial Reporting. Except
as noted above, there were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f)
under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely
to materially affect, our internal control over financial reporting.



CHANGES IN INTERNAL CONTROLS



Our management, with the participation of our Chief Executive
Officer and Chief Financial Officer, performed an evaluation to determine whether any change in our internal controls over financial
reporting occurred during the six-month period ended June 30, 2012. Based on that evaluation, our Chief Executive Officer and our
Chief Financial Officer concluded that no change occurred in the Company's internal controls over financial reporting during the
six-months ended June 30, 2012 that has materially affected, or is reasonably likely to materially affect, the Company's internal
controls over financial reporting.



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PART II - OTHER INFORMATION



ITEM 1 LEGAL PROCEEDINGS



The Company is not involved in any legal proceedings.



ITEM 1A RISK FACTORS



We are a smaller reporting company as defined by Rule 12b-2
of the Securities Exchange Act of 1934 and are not required to provide the information under this item.



ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS



On February 16, 2012, the Company issued
1,000,000 shares of common stock to a consultant, Teresa Vellardita, designee of Vince Vellardita, for services valued at $5,000
and 1,000,000 shares of common stock to Emmett Lamar Seals, III, the CEO of the Company, for services valued at $5,000.



On May 1, 2012, the Company issued 6,000,000 shares of common
stock to Emmitt Lamar Seals, III, the CEO of the Company, for Services valued at $30,000.



ITEM 3 DEFAULTS UPON SENIOR SECURITIES



There have been no events that are required to be reported under
this Item.



ITEM 4 MINE SAFETY DISCLOSURES



Not Applicable



ITEM 5 OTHER INFORMATION



On June 22, 2012 the Company filed form S-1, Registration Statement,
and can be viewed in its entirety at www.sec.gov under company filings.



ITEM 6 EXHIBITS



3.1 Articles of Incorporation (incorporated by reference to
our Form S-1 as filed with the Securities and Exchange Commission on July 17, 2008).









3.2 Certificate of Amendment of Certificate of Incorporation.
(incorporated by reference to our Form 10-K as filed with the Securities and Exchange Commission on







3.3 Bylaws (incorporated by reference to our Form S-1 as filed
with the Securities and Exchange Commission on July 17, 2008).





31 Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.





32 Certification pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.





101.INS       XBRL Instance Document*





101.SCH      XBRL Taxonomy Extension
Schema Document*







101.CAL      XBRL Taxonomy Extension
Calculation Linkbase*







101.LAB      XBRL Taxonomy Extension
Label Linkbase*







101.PRE      XBRL Taxonomy Extension
Presentation Linkbase*







101.DEF      XBRL Taxonomy Extension
Definition Linkbase*



* To be filed by amendment.







12





SIGNATURES



Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



|Seals Entertainment Corporation
|-------------------------------
|                               
|                               
|Dated: August 20, 2012         
|                               
|                               

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