----

**U.S.      SECURITIES AND EXCHANGE COMMISSION **

**FORM      10-QSB **

**x      **
**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934      **

**o      **
**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934      **

*Commission      file number 001-10196 *

**STUDIO      ONE MEDIA, INC. **

|                  DELAWARE                                                       |                  23-2517953                              |
|--------------------------------------------------------------------------------------|---------------------------------------------------------------|
|                  (State or other jurisdiction of incorporation or organization) |                  (IRS Employer  Identification No.) |

       

----

|                          |  **STUDIO ONE              MEDIA,              INC.**                                                                                                                             |                             |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|
|                          |                                                                                                                                                                                   |                             |
|                          |                  **INDEX**                                                                                                                                                        |  PAGE                NUMBER |
|                          |                  **PART                1 - FINANCIALS**                                                                                                                           |                             |
|                          |                                                                                                                                                                                   |                             |
|                  Item 1. |  Financial                Statements (Unaudited)                                                                                                                                  |  3                          |
|                          |                                                                                                                                                                                   |                             |
|                          |  Balance                Sheet - December 31, 2006 and June 30, 2006                                                                                                               |  3                          |
|                          |                                                                                                                                                                                   |                             |
|                          | Statement                of Operations - For the six months ended December 31, 2006 and 2005,                and                cumulative from July 1, 2002 through December 31, 2006 |  4                          |
|                          |                                                                                                                                                                                   |                             |
|                          | Statements                of Stockholders’ Deficiency - For the year ended June 30, 2002, 2003,                2004, 2005 and 2006 and the six months ended December 31, 2006    |  5                          |
|                          |                                                                                                                                                                                   |                             |
|                          | Statement                of Cash Flows - For the six months ended December 31, 2006 and 2005,                and                cumulative from July 1, 2002 through December 31, 2006 |  6                          |
|                          |                                                                                                                                                                                   |                             |
|                          | Notes                to Financial Statements                                                                                                                                           |  7                          |
|                          |                                                                                                                                                                                   |                             |
|  Item                2.  | Management’s                Discussion and Analysis of Financial Condition and Results of Operations                                                                             |  14                         |
|                          |                                                                                                                                                                                   |                             |
|  Item                3.  | Controls                and Procedures                                                                                                                                                 |  15                         |
|                          |                                                                                                                                                                                   |                             |
|                          | **PART                II - OTHER INFORMATION**                                                                                                                                         |                             |
|                          |                                                                                                                                                                                   |                             |
|                  Item 1. | Legal                Proceedings                                                                                                                                                       |  16                         |
|                          |                                                                                                                                                                                   |                             |
|  Item                2.  | Changes                in Securities                                                                                                                                                   |  16                         |
|                          |                                                                                                                                                                                   |                             |
|  Item                3.  | Defaults                Upon Senior Securities                                                                                                                                         |  16                         |
|                          |                                                                                                                                                                                   |                             |
|  Item                4.  | Submission                of Matters to a Vote of Security Holders                                                                                                                     |  16                         |
|                          |                                                                                                                                                                                   |                             |
|  Item                5.  | Other                Information                                                                                                                                                       |  16                         |
|                          |                                                                                                                                                                                   |                             |
|                  Item 6. | Exhibits                                                                                                                                                                               |  16                         |
|                          |                                                                                                                                                                                   |                             |
|                          | SIGNATURES                                                                                                                                                                             |                  17         |
|                          |                                                                                                                                                                                   |                             |

----

**PART      I - FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

|  **STUDIO                  ONE MEDIA, INC.**                                                           |
|-------------------------------------------------------------------------------------------------------------|
| (A                  Developing Stage company)                                                               |
|                                                                                                        |   |   |   |   |   |   |   |
|  BALANCE                  SHEET                                                                        |
|                                                                                                        |   |   | December                  31,  |   |   | June                  30, |   |
|                                                                                                        |   |   | 2006 |   |   | 2006 |   |
|                                                                                                        |   |   | (Unaudited)  |   |   | (Audited) |   |
|                                                                                                        |   |   |   |   |   |   |   |
| ASSETS                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Current                  Assets                                                                             |   |   |   |   |   |   |   |
|     Cash                                                                                |   | $ | 117,469 |   | $ | 207 |   |
|     Accrued                  Interest Receivable                                        |   |   | 77,460 |   |   | 57,295 |   |
|     Other                  Receivables                                                  |   |   | 2,700 |   |   | 0 |   |
|     Prepaid                  Expenses                                                   |   |   | 1,000 |   |   | 0 |   |
|     Notes                  Receivable-Current                                           |   |   | 436,404 |   |   | 430,404 |   |
|     Investments                  -                  Securities                          |   |   | 94,000 |   |   | 94,000 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Current Assets                                                                       |   |   | 729,033 |   |   | 581,906 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Property                  and Equipment, Net                                                                |   |   | 46,860 |   |   | 0 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Property and Equipment                                                               |   |   | 46,860 |   |   | 0 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Other                  Assets                                                                               |   |   |   |   |   |   |   |
|     Deposits                                                                            |   |   | 6,400 |   |   | 6,400 |   |
|     Other                  Assets                                                       |   |   | 65,322 |   |   | 0 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Other Assets                                                                         |   |   | 71,722 |   |   | 6,400 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Assets                                                                               |   |   | 847,615 |   |   | 588,306 |   |
|                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |
| LIABILITIES                  AND CAPITAL                                                                    |   |   |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Current                  Liabilities                                                                        |   |   |   |   |   |   |   |
|     Accounts                  Payable and Accrued Expenses                              |   |   | 97,655 |   |   | 352,058 |   |
|     Notes                  Payable - Current                                            |   |   | 182,348 |   |   | 726,468 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Current Liabilities                                                                  |   |   | 280,003 |   |   | 1,078,526 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Long-Term                  Liabilities                                                                      |   |   | 0 |   |   | 0 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Long-Term Liabilities                                                                |   |   | 0 |   |   | 0 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Liabilities                                                                          |   |   | 280,003 |   |   | 1,078,526 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Capital                                                                                                     |   |   |   |   |   |   |   |
|     Preferred                  Stock, authorized 10,000,000 shares, par value $0.001;   |   |   |   |   |   |   |   |
|     issued                  and oustanding are 524,044 shares at December 31, 2006      |   |   |   |   |   |   |   |
|     and                  June 30, 2006, respectively                                    |   |   | 524 |   |   | 524 |   |
|                                                                                                        |   |   |   |   |   |   |   |
|     Common                  Stock, authorized 100,000,000 shares, par value $0.001;     |   |   |   |   |   |   |   |
|     issued                  and outstanding are 3,403,492 and 2,791,324 shares at       |   |   |   |   |   |   |   |
|     December                  31,                  2006 and June 30, 2006, respectively |   |   | 3,404 |   |   | 2,779 |   |
|                                                                                                        |   |   |   |   |   |   |   |
|     Paid                  in                  Capital                                   |   |   | 26,286,988 |   |   | 24,351,850 |   |
|                                                                                                        |   |   |   |   |   |   |   |
|     Accumulated                  Deficit - Pre Development Stage                        |   |   | (24,404,302 | ) |   | (24,404,302 | ) |
|     Accumulated                  Deficit - Development Stage                            |   |   | (1,319,002 | ) |   | (441,071 | ) |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Capital                                                                              |   |   | 567,611 |   |   | (490,220 | ) |
|                                                                                                        |   |   |   |   |   |   |   |
| Total                  Liabilities & Capital                                                            |   | $ | 847,615 |   | $ | 588,306 |   |

----

|  **STUDIO                  ONE MEDIA, INC.**                              |
|--------------------------------------------------------------------------------|
|  (A                  Developing Stage                  company)           |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
|  STATEMENT                  OF OPERATIONS                                 |
|                                                                           |   |   |   |   |   |   |   |   | Cumulative  |   |
|                                                                           |   |   |   |   |   |   |   |   | July                  1, 2002  |   |
|                                                                           |   |   | Six                  Months Ended  |   |   | through |   |
|                                                                           |   |   | December                  31,  |   |   | December                  31, |   |
|                                                                           |   |   | 2006 |   |   | 2005 |   |   | 2006 |   |
|                                                                           |   |   | (Unaudited)  |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                       |   |   |   |   |   |   |   |   |   |   |
|     Sales                                                  |   |   | 0 |   |   | 0 |   |   | 0 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Total                  Revenues                                                |   |   | 0 |   |   | 0 |   |   | 0 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Cost                  of Sales                                                 |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Total                  Cost of Sales                                           |   |   | 0 |   |   | 0 |   |   | 0 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Gross                  Profit                                                  |   |   | 0 |   |   | 0 |   |   | 0 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                       |   |   |   |   |   |   |   |   |   |   |
|     General                  & Administrative Expenses |   |   | 746,293 |   |   | 11,249 |   |   | 1,285,377 |   |
|     Research&                  Development             |   |   | 139,252 |   |   | 0 |   |   | 139,252 |   |
|     Interest                  Expense                      |   |   | 20,668 |   |   | 33,980 |   |   | 296,071 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Total                  Expenses                                                |   |   | 906,213 |   |   | 45,229 |   |   | 1,720,700 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Interest                  Income                                               |   |   | 20,164 |   |   | 0 |   |   | 20,164 |   |
| Gain-Extinguishment/Indebtedne                                                 |   |   | 8,267 |   |   | 0 |   |   | 381,683 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
| Net                  Income                                                    |   |   | (877,781 | ) |   | (45,229 | ) |   | (1,318,852 | ) |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
|     Net                  Loss Per Share of Common Stock    |   |   | (0.29 | ) |   | (0.04 | ) |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |
|     Weighted                  Average Number of Shares     |   |   | 3,068,659 |   |   | 1,110,987 |   |   |   |   |

----

| **STUDIO                  ONE MEDIA, INC.**                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(A                  DevelpmentStage Company)**                                                                                                                                    |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **STATEMENTS                  OF STOCKHOLDERS' EQUITY**                                                                                                                             |
| **Six                  Months Ended December 31, 2006 and Years Ended June 30, 2006, 2005,                  2004                  and 2003**                                        |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated  |   |   | Accumulated |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit  |   |   | Deficit |   |   |   |   |
|                                                                                                                                                                                |   |   | Preferred                  Stock  |   |   | Common                  Stock |   |   | Paid                  In |   |   | Pre-Development |   |   | Development |   |   | Total |   |
|                                                                                                                                                                                |   |   | Shares  |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Stage |   |   | Equity |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  June 30, 2002                                                                                                                                             |   |   | 524,044 |   |   | 524 |   |   | 1,065,984 |   |   | 1,066 |   |   | 23,343,180 |   |   | (24,404,302 | ) |   | 0 |   |   | (1,059,532 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares surrendered                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     and                  cancelled                                                                                                                              |   |   |   |   |   |   |   |   | (36,458 | ) |   | (36 | ) |   | 36 |   |   |   |   |   |   |   |   | 0 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                                                                                           |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   | 0 |   |   | (118,808 | ) |   | (118,808 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  June 30, 2003                                                                                                                                             |   |   | 524,044 |   |   | 524 |   |   | 1,029,526 |   |   | 1,030 |   |   | 23,343,216 |   |   | (24,404,302 | ) |   | (118,808 | ) |   | (1,178,340 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     for                  services                                                                                                                               |   |   |   |   |   |   |   |   | 29,000 |   |   | 29 |   |   | 21,721 |   |   |   |   |   |   |   |   | 21,750 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 0 |   |   | (107,613 | ) |   | (107,613 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  June 30, 2004                                                                                                                                             |   |   | 524,044 |   |   | 524 |   |   | 1,058,526 |   |   | 1,059 |   |   | 23,364,937 |   |   | (24,404,302 | ) |   | (226,421 | ) |   | (1,264,203 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     for                  services                                                                                                                               |   |   |   |   |   |   |   |   | 65,000 |   |   | 65 |   |   | 48,685 |   |   |   |   |   |   |   |   | 48,750 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 0 |   |   | (106,677 | ) |   | (106,677 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  June 30, 2005                                                                                                                                             |   |   | 524,044 |   |   | 524 |   |   | 1,123,526 |   |   | 1,124 |   |   | 23,413,622 |   |   | (24,404,302 | ) |   | (333,098 | ) |   | (1,322,130 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     for                  services                                                                                                                               |   |   |   |   |   |   |   |   | 300,000 |   |   | 300 |   |   | 332,200 |   |   |   |   |   |   |   |   | 332,500 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued in                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     purchase                  of                  promissory notes                                                                                              |   |   |   |   |   |   |   |   | 839,227 |   |   | 839 |   |   | 313,274 |   |   |   |   |   |   |   |   | 314,113 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued in                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     purchase                  of                  securities                                                                                                    |   |   |   |   |   |   |   |   | 50,000 |   |   | 50 |   |   | 93,950 |   |   |   |   |   |   |   |   | 94,000 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued for cash                                                                                                                                      |   |   |   |   |   |   |   |   | 478,571 |   |   | 479 |   |   | 198,521 |   |   |   |   |   |   |   |   | 199,000 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (107,973 | ) |   | (107,973 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  June 30, 2006                                                                                                                                             |   |   | 524,044 |   |   | 524 |   |   | 2,791,324 |   |   | 2,792 |   |   | 24,351,567 |   |   | (24,404,302 | ) |   | (441,071 | ) |   | (490,490 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     for                  services                                                                                                                               |   |   |   |   |   |   |   |   | 178,334 |   |   | 178 |   |   | 559,078 |   |   |   |   |   |   |   |   | 559,256 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued for cash                                                                                                                                      |   |   |   |   |   |   |   |   | 296,334 |   |   | 296 |   |   | 484,204 |   |   |   |   |   |   |   |   | 484,500 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Shares issued in                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Satisfaction                  of                  Debt                                                                                                      |   |   |   |   |   |   |   |   | 137,500 |   |   | 138 |   |   | 892,139 |   |   |   |   |   |   |   |   | 892,277 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (877,781 | ) |   | (877,781 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2006                                                                                                                                         |   |   | 524,044 |   |   | 524 |   |   | 3,403,492 |   |   | 3,404 |   |   | 26,286,988 |   |   | (24,404,302 | ) |   | (1,318,852 | ) |   | 567,762 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| On                  May 6, 2004 the company executed a 60:1 reverse stock split of                  its common                  shares.  The effect of this split has          |   |   |   |   |   |
|      been                  retroactively applied to this statement along with a 6,608 share                  adjustment for transfer agent rounding error. |   |   |   |   |   |

----

| **STUDIO                  ONE MEDIA, INC.**                                        |
|------------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**                                 |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| **STATEMENTS                  OF CASH FLOWS**                                      |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   | **Cumulative**  |   |
|                                                                               |   |   | **Six                  Months Ended**  |   |   | **Six                  Months Ended** |   |   | **July                  1, 2002 through** |   |
|                                                                               |   |   | **December                  31, 2006**  |   |   | **December                  31, 2005** |   |   | **December                  31, 2006** |   |
|                                                                               |   |   | **(Unaudited)**  |   |   | **(Unaudited**)**** |   |   | **(Unaudited**)**** |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| *    Cash                  Flows From Operations*              |   |   |   |   |   |   |   |   |   |   |
| Net                  Profit (Loss)                                                 |   |   | ($877,781 | ) |   | ($45,229 | ) |   | ($1,318,852 | ) |
| Changes                  in Assets & Liabilities:                              |   |   |   |   |   |   |   |   |   |   |
|     Depreciation/Amortization                                  |   |   | 2,384 |   |   | 0 |   |   | 2,384 |   |
|     Accrued                  Interest Receivable               |   |   | (20,164 | ) |   | 0 |   |   | (77,460 | ) |
|     Notes                  Receivable                          |   |   | (6,000 | ) |   | 0 |   |   | (436,404 | ) |
|     Other                  Receivables                         |   |   | (2,700 | ) |   | 0 |   |   | (2,700 | ) |
|     Prepaid                  Expenses                          |   |   | (1,000 | ) |   | 0 |   |   | (1,000 | ) |
|     Investments                  -                  Securities |   |   | 0 |   |   | 0 |   |   | (94,000 | ) |
|     Deposits                                                   |   |   | 0 |   |   | 0 |   |   | (6,400 | ) |
|     Accounts                  Payable                          |   |   | 37,804 |   |   | 11,249 |   |   | (296,550 | ) |
|     Accrued                  Interest Payable                  |   |   | (292,356 | ) |   | 33,980 |   |   | (16,953 | ) |
|     Other                  Payables                            |   |   | 0 |   |   | 0 |   |   | (16,072 | ) |
| Net                  Cash From Operations                                          |   |   | (1,159,814 | ) |   | (0 | ) |   | (2,264,007 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| *    Cash                  Flows from Investment*              |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from Disposal of Assets                                  |   |   | 0 |   |   | 0 |   |   | 0 |   |
| Dividends                  received                                                |   |   | 0 |   |   | 0 |   |   | 0 |   |
| Purchase                  of Assets                                                |   |   | (114,566 | ) |   | 0 |   |   | (114,566 | ) |
| Net                  Cash from Investment                                          |   |   | (114,566 | ) |   | 0 |   |   | (114,566 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| *    Cash                  Flows from Financing*               |   |   |   |   |   |   |   |   |   |   |
| Dividends                  paid                                                    |   |   | 0 |   |   | 0 |   |   | 0 |   |
| Issuance                  of Stocks                                                |   |   | 1,935,763 |   |   | 0 |   |   | 2,946,213 |   |
| Decrease                  in Notes Payable                                         |   |   | (544,120 | ) |   | 0 |   |   | (450,172 | ) |
| Increase                  in Long Term Debt                                        |   |   | 0 |   |   | 0 |   |   | 0 |   |
| Net                  Cash from Financing                                           |   |   | 1,391,643 |   |   | 0 |   |   | 2,496,041 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| Net                  Increase (Decrease) in Cash                                   |   |   | 117,262 |   |   | 0 |   |   | 117,468 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| Cash,                  Beginning of Period                                         |   |   | 206 |   |   | 0 |   |   | 0 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| Cash,                  End of Period                                               |   | $ | 117,468 |   | $ | 0 |   | $ | 117,468 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |

----

**STUDIO            ONE MEDIA, INC. **

**NOTES            TO FINANCIAL STATEMENTS**

**SIX            MONTHS ENDED DECEMBER 31, 2006 AND 2005 **

       

**Note      1: Summary of Significant Accounting Policies **

**DESCRIPTION      OF BUSINESS, FINANCING AND BASIS OF FINANCIAL STATEMENT **
**PRESENTATION      **

**LIQUIDITY      AND CAPITAL RESOURCES **

**INCOME      TAXES **

----

**STUDIO        ONE MEDIA, INC. **

**NOTES        TO FINANCIAL STATEMENTS**

**SIX        MONTHS ENDED DECEMBER 31, 2006 AND 2005 **

**Note      1: Summary of Significant Accounting Policies - continued**

**LOSS      PER SHARE **

**USE      OF ESTIMATES **

**STOCK-BASED      COMPENSATION **

**Note      2: Accounts Payable, Accrued Expenses **

|                                |   |   | 12-31-06              |   |   | 12-31-05               |   |
|-------------------------------------|--------|--------|-----------------------|--------|--------|------------------------|--------|
|  Accounts              Payable |   | $      | 83,206                |   | $      | 445,387                |   |
|  Accrued              Interest |   |   | 14,449                |   |   | 23,379                 |   |
|  Salaries                      |   |   | 0                     |   |   | 16,072                 |   |
|  Total                         |   | $      | $              96,655 |   | $      | $              734,838 |   |

**Note      3: Short-Term Borrowings **

----

**STUDIO        ONE MEDIA, INC. **

**NOTES        TO FINANCIAL STATEMENTS**

**SIX        MONTHS ENDED DECEMBER 31, 2006 AND 2005 **

**Note      3: Short-Term Borrowings -      continued**

|                                      |   |   | Rates  |   |   | 12-31-06              |   |   | 12-31-05 |   |
|-------------------------------------------|--------|--------|-------------|--------|--------|-----------------------|--------|--------|----------|--------|
|  Investor              Group         |   |   | 10          | %      |   | 0                     |   |   | 399,253  |   |
|  Convertible              Debentures |   |   | 12-14       | %      |   | 45,000                |   |   | 45,000   |   |
|  Secured              Note           |   |   | 12          | %      |   | 0                     |   |   | 180,000  |   |
|  Individual                          |   |   |        |   |   | 0                     |   |   | 8,267    |   |
|  Total                               |   |   |        |   | $      | $              45,000 |   | $      | 632,500  |   |

**Note      4: Commitments and Contingencies **

**Note      5: Common Stock **

----

**STUDIO        ONE MEDIA, INC. **

**NOTES        TO FINANCIAL STATEMENTS**

**SIX        MONTHS ENDED DECEMBER 31, 2006 AND 2005 **

**Note      5: Common Stock  - continued**

       

**Note      6: Preferred Stock**

|                                 |   |   | Allocated                  |   |   | Outstanding |
|--------------------------------------|--------|--------|---------------------------------|--------|--------|-------------|
| Series                A Preferred    |   |   | 100,000                         |   |   | 15,500      |
| Series                B Preferred    |   |   | 200,000                         |   |   | 3,500       |
| Series                C Preferred    |   |   | 1,000,000                       |   |   | 13,404      |
| Series                D Preferred    |   |   | 375,000                         |   |   | 130,000     |
| Series                E Preferred    |   |   | 375,000                         |   |   | 275,000     |
| Series                P Preferred    |   |   | 600,000                         |   |   | 86,640      |
| Total                Preferred Stock |   |   | 2,650,000                       |   |   | 524,044     |

----

**STUDIO        ONE MEDIA, INC. **

**NOTES        TO FINANCIAL STATEMENTS**

**SIX        MONTHS ENDED DECEMBER 31, 2006 AND 2005 **

**Note      7: Stock Option Plan and Equity Incentive Plan **

The      Plan      has now expired. 

----

**STUDIO        ONE MEDIA, INC. **

**NOTES        TO FINANCIAL STATEMENTS**

**SIX        MONTHS ENDED DECEMBER 31, 2006 AND 2005 **

**Note      8: Income Taxes**

|                  Deferred                tax assets:                                                                     |   |   |       |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|                                                      Goodwill                                        |   | $      | 173,000    |   |
|                                                      Net                operating loss carryforwards |   |   | 9,003,156  |   |
|                                                                                                                          |   |   | 9,180,156  |   |
|                                                                                                                          |   |   |       |   |
|                  Net                deferred tax asset                                                                   |   |   | 9,0180,156 |   |
|                  Valuation                allowance                                                                      |   |   | (9,180,156 | )      |
|                                                                                                                          |   |   |       |   |
| Net                deferred tax asset reported                                                                                |   | $      | --         |   |

**NOTE       9.         The Effect of Recent Account Standards**

**Statement      No. 150 Accounting for Certain Financial Instruments with Characteristics of      both Liabilities and Equity (Issued 5/03) **

**Statement      No. 151 Inventory Costs-an amendment of ARB No. 43, Chapter 4 (Issued 11/04)      **

*Inventory      Pricing *

**Statement      No. 153 Exchanges of Non-monetary Assets (an amendment of APB Opinion No. 29)      **

*Accounting      for Non-monetary Transactions *

----

|   | **•** | increased                competitive pressures from existing competitors and new entrants; |
|--------|-------------|--------------------------------------------------------------------------------------------|

|   | **•** | increases                in interest rates or our cost of borrowing or a default under any                material                debt agreements; |
|--------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **•** | deterioration                in general or regional economic conditions; |
|--------|-------------|--------------------------------------------------------------------------|

|   | **•** | adverse                state or federal legislation or regulation that increases the costs                of                compliance, or adverse findings by a regulator with respect to existing                operations; |
|--------|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **•** | inability                to achieve future sales levels or other operating results; |
|--------|-------------|-------------------------------------------------------------------------------------|

|   | **•** | unavailability                of funds for capital expenditures and/or general working capital;                and |
|--------|-------------|--------------------------------------------------------------------------------------------------------------------|

|   | **•** | operational                inefficiencies in distribution or other systems. |
|--------|-------------|-----------------------------------------------------------------------------|

----

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

**SIX      MONTHS ENDED DECEMBER 31, 2006 AND 2005 **

**OVERVIEW      **

**RESULTS      OF OPERATIONS **

**LIQUIDITY      AND CAPITAL RESOURCES **

In      addition, we received approximately $46,000 in short term loans from a      shareholder to enable us to continue to investigate the business plan of and      to      pursue the acquisition of Studio One Entertainment,      Inc.

----

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF      FINANCIAL CONDITION AND RESULTS OF OPERATIONS -      continued**

**ITEM      3. CONTROLS AND PROCEDURES**

       

----

**PART      II - OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

**ITEM      2. CHANGES IN 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**

**Change      of Name **

**Subsequent      Events **

**ITEM      6. EXHIBITS**

**NO.      **
**TITLE      **

| 31.1 | Certification                of Chief Executive Officer and of Chief Financial officer pursuant                to the                Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as adopted                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification                of Chief Executive Officer and of Chief Financial officer pursuant                to 18                U.S.C. Section 1350, as adopted pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002 |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

       

**SIGNATURES**

|                                                          |                                                                           |                                                      |
|---------------------------------------------------------------|--------------------------------------------------------------------------------|-----------------------------------------------------------|
|                                                          | **STUDIO                ONE MEDIA, INC.**                                      |
|                                                     |                                                                      |                                                 |
| Date:                 *February                19, 2007* | By:                                                                  | /s/                 *Preston                J. Shea* |
|                                                          | *Preston                J. Shea*                                               |
|                                                          | *Financial                officer (Principal Executive and Financial Officer)* |

----