----

| DELAWARE(State                or Other Jurisdiction ofIncorporation                or Organization) | 06-1390025(I.R.S.                EmployerIdentification                No.) |
|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|

----

----

----

----

**MPLC,      INC.**

**TABLE      OF CONTENTS**

| Part              I. FINANCIAL INFORMATION                                                        |   |   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                              |   |   |   |
| Item                1. Financial Statements (Unaudited)                                           |   |   | 3      |   |
|                                                                                              |   |   |   |   |
|  Balance                Sheet                                                                |   |   | 3      |   |
|                                                                                              |   |   |   |   |
|  Statements                of Operations                                                     |   |   | 4      |   |
|                                                                                              |   |   |   |   |
|  Statements                of Changes in Stockholders' Deficiency                            |   |   | 5      |   |
|                                                                                              |   |   |   |   |
|  Statements                of Cash Flows                                                     |   |   | 6      |   |
|                                                                                              |   |   |   |   |
|  Notes                to Financial Statements                                                |   |   | 7      |   |
|                                                                                              |   |   |   |   |
| Item                2. Management's Discussion and Analysis or Plan of Operation                  |   |   | 10     |   |
|                                                                                              |   |   |   |   |
| Item                3. Controls and Procedures                                                    |   |   | 11     |   |
|                                                                                              |   |   |   |   |
| Part              II. OTHER INFORMATION                                                           |   |   |   |   |
|                                                                                              |   |   |   |   |
| Item                1. Legal Proceedings                                                          |   |   | 12     |   |
|                                                                                              |   |   |   |   |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds |   |   | 12     |   |
|                                                                                              |   |   |   |   |
| Item                3. Defaults Upon Senior Securities                                            |   |   | 12     |   |
|                                                                                              |   |   |   |   |
| Item                4. Submission of Matters to a Vote of Security Holders                        |   |   | 12     |   |
|                                                                                              |   |   |   |   |
| Item                5. Other Information                                                          |   |   | 12     |   |
|                                                                                              |   |   |   |   |
| Item                6. Exhibits                                                                   |   |   | 12     |   |
|                                                                                              |   |   |   |   |
|  Signatures                                                                                  |   |   | 13     |   |
|                                                                                              |   |   |   |   |
|  Exhibit                Index                                                                |   |   | 14     |   |

----

**PART      I. FINANCIAL INFORMATION**

**ITEM      1 - FINANCIAL STATEMENTS**

| **MPLC,                INC.**                                                     |   |
|-----------------------------------------------------------------------------------|--------|
| **(A                DEVELOPMENT STAGE COMPANY)**                                  |   |
| **BALANCE                SHEETS**                                                 |   |
|                                                                              |   |   |   |
|                                                                              |   |   |   |
| **ASSETS**                                                                        |   |
|                                                                              |   |   |   |
|                                                                              |   | October                31, 2006 |   |
|                                                                              |   |   |   |
| CURRENT                ASSETS                                                     |   |   |   |
| Cash                                                                              |   | $ | 892 |   |
|                                                                              |   |   |   |   |
|                                                                              |   |   |   |   |
|                                                                              |   |   |   |   |
|                                                                              |   |   |   |   |
| Total                assets                                                       |   | $ | 892 |   |
|                                                                              |   |   |   |   |
|                                                                              |   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' DEFICIENCY**                       |
|                                                                              |   |   |   |   |
| CURRENT                LIABILITIES                                                |   |   |   |   |
| Accounts                payable and accrued expenses                              |   | $ | 28,355 |   |
|                                                                              |   |   |   |   |
|                                                                              |   |   |   |   |
| STOCKHOLDERS'                DEFICIENCY                                           |   |   |   |   |
| Preferred                stock, par value $.10 per share, 1,000,000 shares        |   |   |   |   |
| authorized,                no shares issued or outstanding                        |   |   | - |   |
| Common                stock, par value $.01 per share, 75,000,000 shares          |   |   |   |   |
| authorized,                issued                and outstanding                  |   |   | 750,000 |   |
| Additional                paid in capital (discount on par value of common stock) |   |   | (567,720 | ) |
| Deficit                accumulated during development stage                       |   |   | (209,743 | ) |
| Total                stockholders' deficiency                                     |   |   | (27,463 | ) |
|                                                                              |   |   |   |   |
| Total                liabilities and stockholders' deficiency                     |   | $ | 892 |   |

----

| **MPLC,                INC.**                         |   |
|-------------------------------------------------------|--------|
| **(A                DEVELOPMENT STAGE COMPANY)**      |   |
| **STATEMENTS                OF OPERATIONS**           |   |
|                                                  |   |
|                                                  |   |   |   |   |   |   |   |
|                                                  |   | For                    the ThreeMonths                  EndedOctober                31, 2006 |   | For                    the ThreeMonths                  EndedOctober                31, 2005 |   | Cumulative                      fromApril                    26, 2005ThroughOctober                31, 2006 |   |
|                                                  |   |   |   |   |   |   |   |
| Expenses                                              |   |   |   |   |   |   |   |
| General                and administrative expenses    |   | $ | 14,377 |   | $ | 50,449 |   | $ | 178,957 |   |
| Interest                expense                       |   |   | 23,228 |   |   | 1,346 |   |   | 34,032 |   |
|                                                  |   |   | 37,605 |   |   | 51,795 |   |   | 212,989 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Loss                before benefit from income taxes  |   |   | (37,605 | ) |   | (51,795 | ) |   | (212,989 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Benefit                from income taxes              |   |   | - |   |   | 4,400 |   |   | 3,246 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Net                loss                               |   | $ | (37,605 | ) | $ | (47,395 | ) | $ | (209,743 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Net                loss per share - basic and diluted |   | $ | (0.001 | ) | $ | (0.002 | ) | $ | (0.007 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding -  |   |   |   |   |   |   |   |   |   |   |
| basic                and diluted                      |   |   | 32,725,055 |   |   | 28,698,870 |   |   | 29,379,769 |   |

----

**MPLC,        INC.**

**(A          DEVELOPMENT STAGE COMPANY)**

**STATEMENTS            OF CHANGES IN STOCKHOLDERS' DEFICIENCY**

|                                                                                                 |   |   | Common                  Stock                                  |   |   | AdditionalPaid-InCapital(Discount |   |   | DeficitAccumulated                   During                                                   |   |   |                               |   |
|------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------|--------|--------|----------------------------------------------------------------------------------------------------|--------|--------|------------------------------------|--------|
|                                                                                                 |   |   | Shares                  Issuedand                  Outstanding |   |   | Amount                            |   |   | on                        Par Value                        of Common                        Stock) |   |   | Development                  Stage |   |   | Total |   |
|                                                                                                 |   |   |                                                           |   |   |                              |   |   |                                                                                               |   |   |                               |   |   |   |   |
|                                                                                                 |   |   |                                                           |   |   |                              |   |   |                                                                                               |   |   |                               |   |   |   |   |
| Balance                  at July 31, 2006                                                            |   |   | 28,698,870                                                     |   | $      | 286,989                           |   | $      | (286,989                                                                                           | )      | $      | (172,138                           | )      | $ | (172,138 | ) |
|                                                                                                 |   |   |                                                           |   |   |                              |   |   |                                                                                               |   |   |                               |   |   |   |   |
| Common                  stock redeemed pursuant to                                                   |   |   |                                                           |   |   |                              |   |   |                                                                                               |   |   |                               |   |   |   |   |
| stock                  purchase agreement (Note 4)                                                   |   |   | (23,448,870                                                    | )      |   | (234,489                          | )      |   | (313,231                                                                                           | )      |   | -                                  |   |   | (547,720 | ) |
|                                                                                                 |   |   |                                                           |   |   |                              |   |   |                                                                                               |   |   |                               |   |   |   |   |
| Common                  stock issued pursuant to                                                     |   |   |                                                           |   |   |                              |   |   |                                                                                               |   |   |                               |   |   |   |   |
| stock                  purchase agreement (Note 4),net                  of issuance costs of $20,000 |   |   | 69,750,000                                                     |   |   | 697,500                           |   |   | 32,500                                                                                             |   |   | -                                  |   |   | 730,000 |   |
|                                                                                                 |   |   |                                                           |   |   |                              |   |   |                                                                                               |   |   |                               |   |   |   |   |
| Net                  loss                                                                            |   |   | -                                                              |   |   | -                                 |   |   | -                                                                                                  |   |   | (37,605                            | )      |   | (37,605 | ) |
|                                                                                                 |   |   |                                                           |   |   |                              |   |   |                                                                                               |   |   |                               |   |   |   |   |
| Balance                  at October 31, 2006                                                         |   |   | 75,000,000                                                     |   | $      | 750,000                           |   | $      | (567,720                                                                                           | )      | $      | (209,743                           | )      | $ | (27,463 | ) |

----

**MPLC,          INC.**

**(A          DEVELOPMENT STAGE COMPANY)**

**STATEMENTS          OF CASH FLOWS**

|                                                       |   |   | For                  the Three Months Ended October 31, 2006 |   |   | For                  the Three Months Ended October 31, 2005 |   |   | Cumulative                  from April 26, 2005 Through October                  31, 2006 |   |
|------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------|--------|
| CASH                  FLOWS FROM OPERATING ACTIVITIES      |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
|                                                       |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| Net                  loss                                  |   | $      | (37,605                                                      | )      | $      | (47,395                                                      | )      | $      | (209,743                                                                                  | )      |
| Adjustments                  to reconcile net loss to      |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| net                  cash used in operating activities:    |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| Changes                  in assets and liabilities:        |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| (Increase)                  decrease in taxes receivable   |   |   | 2,583                                                        |   |   | (4,400                                                       | )      |   | -                                                                                         |   |
| Increase                  in accounts payable and          |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| accrued                  expenses and other liabilities    |   |   | 15,248                                                       |   |   | 1,082                                                        |   |   | 28,355                                                                                    |   |
| Net                  cash used in operating activities     |   |   | (19,774                                                      | )      |   | (50,713                                                      | )      |   | (181,388                                                                                  | )      |
|                                                       |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES      |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
|                                                       |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| Proceeds                  from sale of common stock        |   |   | 730,000                                                      |   |   | -                                                            |   |   | 730,000                                                                                   |   |
| Redemption                  of common stock                |   |   | (547,720                                                     | )      |   | -                                                            |   |   | (547,720                                                                                  | )      |
| Repayment                  of loan payable - shareholder   |   |   | (168,248                                                     | )      |   | -                                                            |   |   | (168,248                                                                                  | )      |
| Proceeds                  from loan payable - shareholder  |   |   | 5,000                                                        |   |   | 50,713                                                       |   |   | 168,248                                                                                   |   |
| Net                  cash provided by financing activities |   |   | 19,032                                                       |   |   | 50,713                                                       |   |   | 182,280                                                                                   |   |
|                                                       |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
|  Net                  increase (decrease) in cash     |   |   | (742                                                         | )      |   | -                                                            |   |   | 892                                                                                       |   |
|                                                       |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| CASH,                  beginning of period                 |   |   | 1,634                                                        |   |   | -                                                            |   |   | -                                                                                         |   |
|                                                       |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| CASH,                  end of period                       |   | $      | 892                                                          |   | $      | -                                                            |   | $      | 892                                                                                       |   |
|                                                       |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| SUPPLEMENTAL                  DISCLOSURES OF CASH          |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| FLOW                  INFORMATION                          |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
|                                                       |   |   |                                                         |   |   |                                                         |   |   |                                                                                      |   |
| Interest                  paid                             |   | $      | 34,032                                                       |   | $      | -                                                            |   | $      | 34,032                                                                                    |   |
| Income                  tax paid                           |   | $      | -                                                            |   | $      | -                                                            |   | $      | 288                                                                                       |   |
| Income                  tax refunds received               |   | $      | -                                                            |   | $      | -                                                            |   | $      | 5,070                                                                                     |   |

----

**MPLC,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**OCTOBER      31, 2006**

----

**MPLC,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**OCTOBER      31, 2006**

*Continued)*

----

**MPLC,      INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**OCTOBER      31, 2006**

----

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION**

----

QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

**ITEM      3. CONTROLS AND PROCEDURES**

**(a)      Evaluation of Disclosure Controls and Procedures.**

**(b)      Changes in Internal Controls.**

----

**PART      II -OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

**ITEM      2. UNREGISTERED SALE 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**

**ITEM      6. EXHIBITS**

| Exhibit              Number |   | Description              of Document |
|-----------------------------|--------|--------------------------------------|
|   |   |   |
|--------|--------|--------|
| Exhibit              31.1 |  | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002 (attached) |
|---------------------------|--|---------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
| Exhibit              31.2 |   | Certification              of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley              Act of 2002 (attached) |
|---------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
| Exhibit              32.1 |   | Certification              of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley              Act of 2002 (attached) |
|---------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
| Exhibit              32.2 |   | Certification              of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley              Act of 2002 (attached) |
|---------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

SIGNATURES

|  MPLC,              Inc.        |                                                                   |                               |
|--------------------------------------|------------------------------------------------------------------------|------------------------------------|
|                            |                                                              |                          |
| Date:              December 15, 2006 | By:                                                          | /s/ Robert              Ellin |
|                                 | Name: Robert Ellin                                                     |
|                                 | Title:              President and Chief              Executive Officer |

|                                 |                                                                   |                           |
|--------------------------------------|------------------------------------------------------------------------|--------------------------------|
|                                 |                                                                   |                           |
| Date:              December 15, 2006 | By:                                                          | /s/ Jay              Wolf |
|                                 | Name: Jay Wolf                                                         |
|                                 | Title:              Secretary and Chief              Financial Officer |

----

EXHIBIT      INDEX

----