| Delaware                                       |   | 26-0133324                            |
|------------------------------------------------|--------|---------------------------------------|
| (State                or other jurisdiction of |   | (I.R.S.                employer       |
| incorporation                or organization)  |   | identification                number) |

| c/o                Sands Brothers Venture Capital LLC   |                      |
|---------------------------------------------------------|---------------------------|
| 90                Park Avenue, 31st Floor               |                      |
| New                York, New York                       | 10016                     |
| (Address                of principal executive offices) | (Zip                Code) |

----

----

**SCOUT      ACQUISITION, INC.**

**-      INDEX -**

|                                                                                                            | Page(s)                             |
|------------------------------------------------------------------------------------------------------------|-------------------------------------|
| **PART                I - FINANCIAL INFORMATION:**                                                         |                                |
|                                                                                                       |                                |
| Item                1. Unaudited Financial Statements                                                      |                                |
|                                                                                                       |                                |
| Balance                Sheet as of September 30, 2006                                                      | F                -                1 |
|                                                                                                       |                                |
| Statements                of Operations from January 3, 2006 (inception)                                   |                                |
| To                September 30, 2006 and the three months ended                                            |                                |
| September                30, 2006                                                                          | F                -                2 |
|                                                                                                       |                                |
| Statement                of Stockholders’ Deficiency from January 3, 2006                (inception) |                                |
| To                September 30, 2006                                                                       | F                -                3 |
|                                                                                                       |                                |
| Statement                of Cash Flows from January 3, 2006 (inception)                                    |                                |
| To                September 30, 2006                                                                       | F                -                4 |
|                                                                                                       |                                |
| Notes                to unaudited Financial Statements                                                     | F-5                - F-7            |
|                                                                                                       |                                |
| Item                2. Management's Discussion and Analysis or Plan of                Operation            | 1                                   |
|                                                                                                       |                                |
| Item                3. Controls and Procedures                                                             | 1                                   |
|                                                                                                       |                                |
| **PART                II - OTHER INFORMATION:**                                                            |                                |
|                                                                                                       |                                |
| Item                1. Legal Proceedings                                                                   | 2                                   |
|                                                                                                       |                                |
| Item                2. Unregistered Sales of Equity Securities and Use of Proceeds                         | 2                                   |
|                                                                                                       |                                |
| Item                3. Defaults Upon Senior Securities                                                     | 2                                   |
|                                                                                                       |                                |
| Item                4. Submission of Matters to a Vote of Security Holders                                 | 2                                   |
|                                                                                                       |                                |
| Item                5. Other Information                                                                   | 2                                   |
|                                                                                                       |                                |
| Item                6. Exhibits                                                                            | 2                                   |
|                                                                                                       |                                |
| Signatures                                                                                                 | 3                                   |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements.**

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**BALANCE      SHEET (UNAUDITED)**

**As      of September 30, 2006**

| **ASSETS**                                                                                                                                         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                               |   |   |   |
| **CURRENT                ASSETS:**                                                                                                                 |   |   |   |
| Cash                and cash equivalents                                                                                                           |   | **$** | **10,681** |   |
| Prepaid                assets                                                                                                                      |   |   | **9,375** |   |
| **TOTAL                CURRENT ASSETS**                                                                                                            |   |   | **20,056** |   |
|                                                                                                                                               |   |   |   |   |
| **TOTAL                ASSETS**                                                                                                                    |   | **$** | **20****,056** |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIENCY**                                                                                  |
|                                                                                                                                               |   |   |   |   |
| **CURRENT                LIABILITIES:**                                                                                                            |   |   |   |   |
| Accounts                payable and accrued expenses                                                                                               |   | **$** | **6,439** |   |
|                                                                                                                                               |   |   | **6,439** |   |
|                                                                                                                                               |   |   |   |   |
| **LONG                TERM LIABILITIES:**                                                                                                          |   |   |   |   |
| Loans                from stockholders                                                                                                             |   |   | **18,750** |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
| **TOTAL                LIABILITIES**                                                                                                               |   |   | **25,189** |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
| **STOCKHOLDERS’                DEFICIENCY:**                                                                                                 |   |   |   |   |
| Preferred                stock, $.0001 par value; 10,000,000 shares authorized; none issued                and                outstanding          |   |   | **-** |   |
| Common                stock, $.0001 par value; 75,000,000 shares authorized; 1,500,000                shares                issued and outstanding |   |   | **150** |   |
| Additional                paid-in capital                                                                                                          |   |   | **24,850** |   |
| Deficit                accumulated during the development stage                                                                                    |   |   | **(30,133** | ) |
|                                                                                                                                               |   |   |   |   |
| **TOTAL                STOCKHOLDERS’ DEFICIENCY**                                                                                            |   |   | **(5,133** | ) |
|                                                                                                                                               |   |   |   |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIENCY**                                                                            |   | **$** | **20,056** |   |

**See      accompanying notes to unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENTS      OF OPERATIONS**

|                                                                    |   | **For                the Cumulative Period from Inception (January 3, 2006) to September                 30,**** 2006** |          | For                the Three Months Ended September 30, 2006 |   |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|---------------|-------------------------------------------------------------------|--------|
|                                                                    |   | **(unaudited)**                                                                                                                   |          | (unaudited)                                                       |   |
|                                                                    |   |                                                                                                                              |          |                                                              |   |
| **REVENUE**                                                             |   | **$**                                                                                                                             | **-**         |                                                              | $      | - |   |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
| General                and administrative expenses                      |   |                                                                                                                              | **29,696**    |                                                              |   | 9,107 |   |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
| **LOSS                BEFORE OTHER EXPENSES**                           |   |                                                                                                                              | **(29,696**   | **)**                                                             |   | (9,107 | ) |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
| **OTHER                EXPENSES:**                                      |   |                                                                                                                              |          |                                                              |   |   |   |
| Interest                expense                                         |   |                                                                                                                              | **437**       |                                                              |   | 187 |   |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
| **NET                (LOSS)**                                           |   | **$**                                                                                                                             | **(30,133**   | **)**                                                             | $      | (9,294 | ) |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
| **BASIC                AND DILUTED NET LOSS PER SHARE**                 |   | **$**                                                                                                                             | **(.02**      | **)**                                                             | $      | (.01 | ) |
|                                                                    |   |                                                                                                                              |          |                                                              |   |   |   |
| **WEIGHTED                AVERAGE NUMBER OF COMMON SHARES OUTSTANDING** |   |                                                                                                                              | **1,500,000** |                                                              |   | 1,500,000 |   |

**See      accompanying notes to unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENT      OF STOCKHOLDERS’ EQUITY**

**For      the period January 3, 2006 (inception) through September 30,      2006**

**(unaudited)**

|                                             |   |   |                           |   |   |                        |   |   |       |   |   | (Deficit)                 |   |   |                |   |
|--------------------------------------------------|--------|--------|--------------------------------|--------|--------|-----------------------------|--------|--------|------------|--------|--------|---------------------------|--------|--------|---------------------|--------|
|                                             |   |   |                           |   |   |                        |   |   |       |   |   | Accumulated               |   |   |                |   |
|                                             |   |   |                           |   |   |                        |   |   | Additional |   |   | During                the |   |   |                |   |
|                                             |   |   | Preferred                Stock |   |   | Common                Stock |   |   | Paid-in    |   |   | Development               |   |   | Stockholders’ |   |
|                                             |   |   | Shares                         |   |   | Amount                      |   |   | Shares     |   |   | Amount                    |   |   | Capital             |   |   |  Stage |   |   | Deficiency |   |
| **BALANCE                AT INCEPTION**          |   |   | -                              |   | $      | -                           |   |   | -          |   | $      | -                         |   | $      | -                   |   | $ | - |   | $ | - |   |
| Issuance                of common stock          |   |   | -                              |   |   | -                           |   |   | 1,500,000  |   |   | 150                       |   |   | 24,850              |   |   | - |   |   | 25,000 |   |
| Net                (loss)                        |   |   | -                              |   |   | -                           |   |   | -          |   |   | -                         |   |   | -                   |   |   | (30,133 | ) |   | (30,133 | ) |
| **BALANCE                AT September 30, 2006** |   |   | -                              |   | $      | -                           |   |   | 1,500,000  |   | $      | 150                       |   | $      | 24,850              |   | $ | (30,133 | ) | $ | (5,133 | ) |

**See      accompanying notes to unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENT      OF CASH FLOWS**

**For      the Cumulative Period January 3, 2006 (inception) through September 30,      2006**

**(unaudited)**

| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                    |   |   |    |
|-------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| Net                loss                                                                                     |   | $      | (30,133 | ) |
| Adjustments                to reconcile net (loss) to net cash used in operating                activities: |   |   |    |   |
| Changes                in operating assets and liabilities:                                                 |   |   |    |   |
| Increase                in prepaid assets                                                                   |   |   | (9,375  | ) |
| Increase                in accounts payable and accrued expenses                                            |   |   | 6,439   |   |
| **Net                cash used in operating activities**                                                    |   |   | (33,069 | ) |
|                                                                                                        |   |   |    |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                    |   |   |    |   |
| Proceeds                from issuance of common stock                                                       |   |   | 25,000  |   |
| Proceeds                from stockholder loans                                                              |   |   | 18,750  |   |
| **Net                cash provided by financing activities**                                                |   |   | 43,750  |   |
|                                                                                                        |   |   |    |   |
| **NET                INCREASE IN CASH AND CASH EQUIVALENTS**                                                |   |   | 10,681  |   |
|                                                                                                        |   |   |    |   |
| Cash                and cash equivalents at beginning of period                                             |   |   | -       |   |
|                                                                                                        |   |   |    |   |
| **CASH                AND CASH EQUIVALENTS AT END OF PERIOD**                                               |   | $      | 10,681  |   |

**See      accompanying notes to unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**September      30, 2006**

**NOTE      1      -             **
**ORGANIZATION      AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:**

|  | ***(a)*** | ***Organization                and Business:*** |
|--|-----------|-------------------------------------------------|

|  | ***(b)*** | ***Basis                  of Presentation:*** |
|--|-----------|-----------------------------------------------|

|  | ***(c)*** | ***Use                  of Estimates:*** |
|--|-----------|------------------------------------------|

|  | ***(d)*** | ***Cash                  and Cash                  Equivalents:*** |
|--|-----------|--------------------------------------------------------------------|

|  | ***(e)*** | ***Income                  Taxes:*** |
|--|-----------|--------------------------------------|

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITIED FINANCIAL STATEMENTS**

**September      30, 2006**

**NOTE      1 -            **
**ORGANIZATION      AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**(Continued):**

|  | ***(f)*** | ***Loss                  per Common Share:*** |
|--|-----------|-----------------------------------------------|

|  | ***(g)*** | ***Fair                  Value of Financial                  Instruments:*** |
|--|-----------|------------------------------------------------------------------------------|

**NOTE      2      -               **
**LOANS      FROM STOCKHOLDERS:**

**NOTE      3      -             **
**CAPITAL      STOCK:**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITIED FINANCIAL STATEMENTS**

**September      30, 2006**

**NOTE      3      -              **
**CAPITAL      STOCK (continued):**

**NOTE      4      -              **
**RECENT      ACCOUNTING PRONOUNCEMENTS:**

** **

**NOTE      5      -              **
**BASIS      OF PRESENTATION FOR INTERIM FINANCIAL STATEMENTS:**

----

**Item      2. Management’s Discussion and Analysis or Plan of Operation.**

**Item      3. Controls and Procedures.**

----

**PART      II — OTHER INFORMATION**

**Item      1. Legal Proceedings. **

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds.**

**Item      3. Defaults Upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security Holders.**

**Item      5. Other Information. **

**Item      6. Exhibits.**

| Exhibit | Description                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                    |
| *3.1    | Certificate                of Incorporation                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                    |
| *3.2    | By-laws                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                    |
| 31.1    | Certification                of the Company’s Principal Executive Officer and Principal Financial                Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,                with                respect to the registrant’s Quarterly Report on Form 10-QSB for the                quarter ended September 30, 2006. |
|    |                                                                                                                                                                                                                                                                                                                                                    |
| 32.1    | Certification                of the Company’s Principal Executive Officer and Principal Financial                Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to                Section                906 of the Sarbanes Oxley Act of                2002.                                                                   |

| * | Filed                as an exhibit to the Company's registration statement on Form 10-SB,                as                filed with                the Securities and Exchange Commission on June 9, 2006, and incorporated                herein                by this reference. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

| Date:                November 15, 2006 | SCOUT                ACQUISITION, INC. |
|----------------------------------------|----------------------------------------|
|                                   |                                   |
|                                   | By:                /s/ Scott Baily     |
|                                   | Name:                Scott Baily       |
|                                   | Title:                President        |

----