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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-QSB
 QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005
 
 Commission file number: 333-125542
 Eliason Funding Corporation
  WISCONSIN
(State of incorporation)
    
    20-1150223
(I.R.S. employer identification number)548 Highway 155
ST. GERMAIN, WISCONSIN
(Address of principal executive offices)
    
    54558
(Zip code)
  o þ
 o þ




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ELIASON FUNDING CORPORATION
 FORM 10-QSB
 FOR THE QUARTER ENDED SEPTEMBER 30, 2005
 PagePART I. FINANCIAL INFORMATIONITEM 1. Financial StatementsStatements of Financial ConditionSeptember 30, 2005 (Unaudited) and December 31, 2004
    
    
    1Statements of Operations (Unaudited)Quarter and Nine months ended September 30, 2005 andSeptember 30, 2004
    
    
    2Statements of Changes in Stockholders (Deficit) Equity (Unaudited)
    
    
    3Statements of Cash Flows (Unaudited)Nine Months ended September 30, 2005 and September 30, 2004
    
    
    4Notes to Financial Statements
    
    
    5ITEM 2. Managements Discussion and Analysis of Financial Condition andResults of Operations
    
    
    8ITEM 3. Controls and Procedures
    
    
    11PART II. OTHER INFORMATIONITEM 1. Legal Proceedings
    
    
    12ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    12ITEM 3. Defaults Upon Senior Securities
    
    
    12ITEM 4. Submission of Matters to a Vote of Security Holders
    
    
    12ITEM 5. Other Information
    
    
    12ITEM 6. Exhibits and Reports on Form 8-K
    
    
    13Signatures
    
    
    14302 Certification of Chief Executive Officer302 Certification of Chief Financial Officer906 Certification of Reporting Officers




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PART I. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 ELIASON FUNDING CORPORATION
 
 STATEMENTS OF FINANCIAL CONDITION
 September 30, 2005
    
    
    December 31, 2004Unaudited
    
    
    AuditedASSETSCash and cash equivalents
    
    $
    58,726
    
    
    $
    35,015Notes receivable  related parties
    
    
    492,000
    
    
    
    Total assets
    
    $
    550,726
    
    
    $
    35,015LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITYAccounts payable and accrued expenses
    
    $
    141,635
    
    
    $
    16,100Total current liabilities
    
    
    141,635
    
    
    
    16,100Notes payable  long-term
    
    
    518,000
    
    
    
    STOCKHOLDERS (DEFICIT) EQUITY:Common stock
    
    $
    10
    
    
    $
    10Additional paid in capital
    
    
    229,990
    
    
    
    99,990Accumulated deficit
    
    
    (338,909
    )
    
    
    (81,085
    )Total stockholders (deficit) equity
    
    
    (108,909
    )
    
    
    18,915Total liabilities and stockholders
(deficit) equity
    
    $
    550,726
    
    
    $
    35,015
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ELIASON FUNDING CORPORATION
 
 STATEMENTS OF OPERATIONS
 (Uuaudited)
 For the period fromThree
    
    Three
    
    Nine
    
    April 13, 2004 (date ofMonths Ended
    
    Months Ended
    
    Months Ended
    
    inception) throughSeptember 30, 2005
    
    September 30, 2004
    
    September 30, 2005
    
    September 30, 2004Revenues:Interest income
    
    $
    1,626
    
    
    $
    
    
    
    $
    1,784
    
    
    $
    Total revenues
    
    
    1,626
    
    
    
    
    
    
    
    1,784
    
    
    
    Expenses:Legal and accounting
    
    
    104,371
    
    
    
    2,203
    
    
    
    176,554
    
    
    
    27,739Advertising
    
    
    10,321
    
    
    
    
    
    
    
    16,098
    
    
    
    Administrative
    
    
    35,062
    
    
    
    
    
    
    
    65,169
    
    
    
    Interest expense
    
    
    1,787
    
    
    
    
    
    
    
    1,787
    
    
    
    Total expenses
    
    
    151,541
    
    
    
    2,203
    
    
    
    259,608
    
    
    
    27,739NET LOSS
    
    $
    (149,915
    )
    
    $
    (2,203
    )
    
    $
    (257,824
    )
    
    $
    (27,739
    )
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ELIASON FUNDING CORPORATION
 
 STATEMENTS OF CHANGES IN STOCKHOLDERS (DEFICIT) EQUITY
  For the Nine Months Ended September 30, 2005
 AdditionalCommon
    
    
    Paid in
    
    
    AccumulatedStock
    
    
    Capital
    
    
    Deficit
    
    
    TotalBalance December 31, 2004
    
    $
    10
    
    
    $
    99,990
    
    
    $
    (81,085
    )
    
    $
    18,915Additional paid in capital
    
    
    
    
    
    
    130,000
    
    
    
    
    
    
    
    130,000Net loss
    
    
    
    
    
    
    
    
    
    
    (257,824
    )
    
    
    (257,824
    )Balance September 30, 2005
    
    $
    10
    
    
    $
    229,990
    
    
    $
    (338,909
    )
    
    $
    (108,909
    )
 For the Period From Inception (April 13, 2004) Through September 30, 2004
 AdditionalCommon
    
    
    Paid in
    
    
    AccumulatedStock
    
    
    Capital
    
    
    Deficit
    
    
    TotalBalance at inception (April 13, 2004)
    
$
    
    
    
    $
    
    
    
    $
    
    
    
$
    Additional paid in capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net loss
    
    
    
    
    
    
    
    
    
    
    (27,739
    )
    
    
    (27,739
    )Balance September 30, 2004
    
    $
    
    
    
    $
    
    
    
    $
    (27,739
    )
    
    $
    (27,739
    )
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ELIASON FUNDING CORPORATION
 
 STATEMENTS OF CASH FLOWS
  For the period fromApril 13, 2004 (dateNine Months Ended
    
    
    of inception) throughSeptember 30, 2005
    
    
    September 30, 2004Cash flows from operating activities:Net loss
    
    $
    (257,824
    )
    
    $
    (27,739
    )Adjustments to reconcile net loss to net cash used in operating activities:Changes in:Notes receivable-related parties
    
    
    (492,000
    )
    
    
    Accounts payable and accrued liabilities
    
    
    125,535
    
    
    
    27,739Net cash used in operating activities
    
    
    (624,289
    )
    
    
    Cash flows from financing activities:Borrowings on long-term debt
    
    
    518,000
    
    
    
    Contribution of capital
    
    
    130,000
    
    
    
    Net cash provided by financing activities
    
    
    648,000
    
    
    
    NET INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    23,711
    
    
    
    Cash and cash equivalents at beginning of period
    
    
    35,015
    
    
    
    Cash and cash equivalents at end of period
    
    $
    58,726
    
    
    $
    Supplemental disclosures of cash flow information:Cash paid during the year for:Interest
    
    $
    1,080
    
    
    $
    
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ELIASON FUNDING CORPORATION
 
 NOTES TO FINANCIAL STATEMENTS
 NOTE A  ORGANIZATION AND PRESENTATION
   NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 1.
    
    Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and accompanying
notes. Management believes that the estimates utilized in preparing its financial
statements are reasonable and prudent. Actual results could differ from those estimates.
 2
    
    Cash and Cash EquivalentsThe Company considers cash and cash equivalents to include those investments with maturities
of 90 days or less.
 3.
    
    Income TaxesThe Company has elected, for federal and state income tax purposes, to be treated as
Qualified
S-Corporation subsidiary under the provisions of the Internal Revenue Code. Accordingly,
the Companys taxable income is included in the tax return of
its ultimate parent company, Eliason,
Inc.
 NOTE C  RELATED PARTY TRANSACTIONS
   Eliason, Inc.
    
    $
    192,000Eliason 1031 Properties Corporation
    
    
    300,000Total
    
    $
    492,000
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NOTE C  RELATED PARTY TRANSACTIONS (CONTINUED)
     NOTE D  NOTES RECEIVABLE
    NOTE E  NOTES PAYABLE
  MaximumClass
    
    Principal
    
    
    Maturity
    
    Rate
    
    
    Notes Issued2-Year
    
    $
    4,000,000
    
    
    2 years from the 1st day of month of issuance
    
    
    5.5
    %
    
    $
    15,0005-Year
    
    $
    5,000,000
    
    
    5 years from the 1st day of month of issuance
    
    
    6.5
    %
    
    
    12,0007-Year
    
    $
    6,000,000
    
    
    7 years from the 1st day of month of issuance
    
    
    7.5
    %
    
    
    5,00010-Year
    
    $
    6,000,000
    
    
    10 years from the 1st day of month of issuance
    
    
    9.0
    %
    
    
    486,000$
    518,000
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NOTE E  NOTES PAYABLE (CONTINUED)
  2006
    
    $
    2007
    
    
    15,0002008
    
    
    2009
    
    
    2010
    
    
    12,000Thereafter
    
    
    491,000$
    518,000
 NOTE F  SUBSEQUENT EVENT
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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
    General:
 Results of operations:
 8




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Three Months Ended September 30, 2005 compared to Three Months Ended September 30, 2004
 Revenues:
 Legal and accounting:
 Advertising:
 Administrative:
 Interest expense:
 9




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Nine Months Ended September 30, 2005 compared to the period from April 13, 2004 (date of inception)
through September 30, 2004
 Revenues:
 Legal and accounting:
 Advertising:
 Administrative:
 Interest expense:
 LIQUIDITY AND CAPITAL RESOURCES
    10




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THE POTENTIAL IMPACT OF KNOWN FACTS, COMMITMENTS, EVENTS AND UNCERTAINTIES
 Off-balance Sheet Arrangements:
 Contractual Obligations:
 Critical Accounting Policies:
 
 ITEM 3. CONTROLS AND PROCEDURES
   11




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PART II. OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
 
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
      12




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ITEM 6. EXHIBITS
 Exhibits
   13




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SIGNATURE
  ELIASON FUNDING CORPORATION
  Date: November 11, 2005
    /s/ David J. EliasonDavid J. Eliason, President 14




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INDEX TO EXHIBITS
 EXHIBITNUMBER
    
    DESCRIPTION3.1
    
    Articles of Incorporation (1)3.2
    
    Bylaws (1)4.1
    
    Form of Indenture between Eliason Funding Corporation and US Bank, National Association, as
Trustee (2)10.1
    
    Form of Management Services Agreement between Eliason Funding Corporation and Eliason, Inc.,
dated October 31, 2004 (1)10.2
    
    Form of Contribution Agreement between Eliason Funding Corporation, Brian Eliason, David
Eliason, Eliason, Inc. and Eliason Capital Group, Inc., dated January 13, 2005 (2)31.1
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
200231.2
    
    Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 200232
    
    Certification of Reporting Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 (1)
    
    Incorporated by reference from Registration Statement on Form SB-2 of Eliason
Funding Corporation Registration No. 333-125542, filed June 6, 2005.(2)
    
    Incorporated by reference from Amendment No. 1 to Registration Statement on Form
SB-2 of Eliason Funding Corporation Registration No. 333-125542 filed July 27, 2005.