##### Table of Contents



U.S. SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 10-QSB
  þ
    
    Quarterly report under section 13 or 15(d) of the Securities Exchange Act of 1934 for the
quarterly period ended August 31, 2006.
 o
    
    Transition report under section 13 or 15(d) of the Securities Exchange Act of 1934 for the
transition period from  to .
 Commission
File No: 000-21951
 THE HERITAGE ORGANIZATION, INC.
  Colorado
    
    84-1356383(State or other jurisdiction 
of incorporation or organization)
    
    (IRS Employer Identification
No.)
 ATTN: Vickie Walker, P.O. Box 910  Addison, Texas 75001  (Address of Principal Executive Offices)
  þ o
  o o
 o o
   o þ




---



##### Table of Contents



PART 1  FINANCIAL INFORMATION
 ITEM 1. FINANCIAL STATEMENTS AND EXHIBITS




---



##### 



The Heritage Organization, Inc.
(A Development Stage Company)
 FINANCIAL STATEMENTS
(Unaudited)
 August 31, 2006
 CONTENTS
 Balance Sheet
    
    
    F-1Statements of Operations
    
    
    F-2Statements of Cash Flows
    
    
    F-3Notes to Financial Statements
    
    
    F-4Certification Pursuant to Rule 13a-14(a) or 15d-14(a)Certification Pursuant to 18 U.S.C. Section 1350




---



##### Table of Contents



THE HERITAGE ORGANIZATION, INC.
(A Development Stage Company)
 
 BALANCE SHEET
 ASSETS
 August 31, 2006
    
    
    May 31, 2006(Unaudited)CURRENT ASSETSCash and cash equivalents
    
    $
    2,148
    
    
    $
    7,994Total Current Assets
    
    
    2,148
    
    
    
    7,994Total Assets
    
    $
    2,148
    
    
    $
    7,994LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)CURRENT LIABILITIESAccounts payable
    
    $
    12,950
    
    
    $
    4,633Notes payable  related party
    
    
    65,000
    
    
    
    65,000Accrued interest  related party
    
    
    1,354
    
    
    
    1,607Total Current Liabilities
    
    
    79,304
    
    
    
    71,240Total Liabilities
    
    
    79,304
    
    
    
    71,240COMMITMENTS AND CONTINGENCIES
    
    
    
    
    
    
    STOCKHOLDERS EQUITY (DEFICIT)Preferred stock, $0.00001 par value; 10,000,000 shares
authorized; no shares issued and outstanding
    
    
    
    
    
    
    Common stock, $0.00001 par value; 99,000,000 shares
authorized; 14,000,000 shares issued and
outstanding
    
    
    140
    
    
    
    140Class B common stock, $0.00001 par value; 1,000,000
shares authorized; no shares issued and outstanding
    
    
    
    
    
    
    Additional paid-in capital
    
    
    92,969
    
    
    
    92,819(Deficit) accumulated during the development stage
    
    
    (170,265
    )
    
    
    (156,205
    )Total Stockholders Equity (Deficit)
    
    
    (77,156
    )
    
    
    (63,246
    )Total Liabilities and Stockholders Equity (Deficit)
    
    $
    2,148
    
    
    $
    7,994
 See accompanying notes to the financial statements
 F-1




---



##### Table of Contents



THE HERITAGE ORGANIZATION, INC.
(A Development Stage Company)
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 For the Periodfrom Inception
    
    
    For the three
    
    
    For the three(8/28/96) to
    
    
    months ended
    
    
    Months endedAugust 31,
    
    
    August 31,
    
    
    August 31,2006
    
    
    2006
    
    
    2005REVENUES
    
    $
    5
    
    
    $
    
    
    
    $
    EXPENSES:Amortization
    
    
    300
    
    
    
    
    
    
    
    Bank charges
    
    
    541
    
    
    
    32
    
    
    
    37Consulting fees
    
    
    62,800
    
    
    
    
    
    
    
    Directors fees
    
    
    200
    
    
    
    
    
    
    
    Filing fee
    
    
    3,297
    
    
    
    922
    
    
    
    1,290Legal & professional
    
    
    81,009
    
    
    
    11,535
    
    
    
    10,253Licenses and permits
    
    
    50
    
    
    
    
    
    
    
    Office expense
    
    
    2,534
    
    
    
    
    
    
    
    Rent expense
    
    
    6,000
    
    
    
    150
    
    
    
    150Total expenses
    
    
    156,731
    
    
    
    12,639
    
    
    
    11,730(LOSS) FROM CONTINUING
OPERATIONS
    
    
    (156,726
    )
    
    
    (12,639
    )
    
    
    (11,730
    )OTHER (EXPENSE):Interest expense
    
    
    (13,539
    )
    
    
    (1,421
    )
    
    
    (816
    )NET (LOSS)
    
    $
    (170,265
    )
    
    $
    (14,060
    )
    
    $
    (12,546
    )NET (LOSS) PER SHARE
    
    
    
    
    
    $
    *
    
    
    $
    *Weighted Average
Number of Shares
Outstanding
    
    
    
    
    
    
    14,000,000
    
    
    
    14,000,000
 
 *

    = less than $0.01
per share See accompanying notes to the financial statements
 F-2




---



##### Table of Contents



THE HERITAGE ORGANIZATION, INC.
(A Development Stage Company)
 
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 For the Periodfrom Inception
    
    
    For the three
    
    
    For the three(August 28, 1996) to
    
    
    months ended
    
    
    months endedAugust 31, 2006
    
    
    August 31, 2006
    
    
    August 31, 2005CASH FLOWS FROM (TO) OPERATING
ACTIVITIES:Net (loss)
    
    $
    (170,265
    )
    
    $
    (14,060
    )
    
    $
    (12,546
    )Adjustments to reconcile net
(loss) to net cash flows used in
operating activities:Amortization
    
    
    300
    
    
    
    
    
    
    
    Non cash rent expense
    
    
    6,000
    
    
    
    150
    
    
    
    150Expenses paid by shareholders
    
    
    15,609
    
    
    
    
    
    
    
    Stock issued for directors fees
    
    
    59,960
    
    
    
    
    
    
    
    Stock issued for consulting fees
    
    
    3,040
    
    
    
    
    
    
    
    Increase in accounts payable
    
    
    12,950
    
    
    
    8,317
    
    
    
    5,178Increase (decrease) in accrued interest
    
    
    1,354
    
    
    
    (253
    )
    
    
    191Net Cash Flows (Used in) Operating
Activities
    
    
    (71,052
    )
    
    
    (5,846
    )
    
    
    (7,027
    )CASH FLOWS FROM (TO) INVESTING
ACTIVITIES:Organization costs
    
    
    (300
    )
    
    
    
    
    
    
    Net Cash Flows (Used in) Investing
Activities
    
    
    (300
    )
    
    
    
    
    
    
    CASH FLOWS FROM (TO) FINANCING
ACTIVITIES:Issuance of common stock
    
    
    8,500
    
    
    
    
    
    
    
    Payments on notes payable
 related party
    
    
    (3,000
    )
    
    
    
    
    
    
    Proceeds from notes payable
 related party
    
    
    68,000
    
    
    
    
    
    
    
    10,000Net Cash Flows Provided By Financing
Activities
    
    
    73,500
    
    
    
    
    
    
    
    10,000NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
    
    
    2,148
    
    
    
    (5,846
    )
    
    
    2,973CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD
    
    
    
    
    
    
    7,994
    
    
    
    1,426CASH AND CASH EQUIVALENTS, END OF
PERIOD
    
    $
    2,148
    
    
    $
    2,148
    
    
    $
    4,399Supplemental Disclosures of Cash Flow
Information:Interest paid
    
    
    
    
    
    $
    1,674
    
    
    $
    625Taxes paid
    
    
    
    
    
    $
    
    
    
    $
    
 See accompanying notes to the financial statements
 F-3




---



##### Table of Contents



THE HERITAGE ORGANIZATION, INC.
(A Development Stage Company)
 
 NOTES TO FINANCIAL STATEMENTS
 August 31, 2006
 NOTE 1
 BASIS OF PRESENTATION
  NOTE 2
 GOING CONCERN AND PLAN OF OPERATION
   NOTE 3
 NOTES PAYABLE, RELATED PARTY
 Notes Payable
  Maturity Date
    
    Interest Rate
    
    Principal AmountNovember 8, 2006
    
    
    9.00
    %
    
    $
    5,000November 21, 2006
    
    
    9.00
    %
    
    
    5,000February 10, 2007
    
    
    8.25
    %
    
    
    5,000March 18, 2007
    
    
    8.25
    %
    
    
    5,000March 31, 2007
    
    
    8.25
    %
    
    
    10,000May 16, 2007
    
    
    8.25
    %
    
    
    5,000June 2, 2007
    
    
    10.00
    %
    
    
    5,000August 4, 2007
    
    
    10.25
    %
    
    
    5,000August 18, 2007
    
    
    10.25
    %
    
    
    5,000August 31, 2007
    
    
    10.25
    %
    
    
    5,000September 18, 2007
    
    
    10.25
    %
    
    
    5,000September 30, 2007
    
    
    10.25
    %
    
    
    5,000$
    65,000
   F-4




---



##### Table of Contents



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
 Liquidity and Capital Resources.
   Results of Operations.
     CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
  ITEM 3. CONTROLS AND PROCEDURES




---



##### Table of Contents



ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
  Designation
    
    Exhibit Description31.1*
    
    Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.32.1 *
    
    Certification of Chief Executive Officer and President of the Company, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    filed herewith 
 SIGNATURES
  Date: October 13, 2006
    
    By:
    
    /s/ Vickie WalkerVickie WalkerSecretaryChief Executive OfficerChief Financial Officer