| 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 March 31, 2007                                                             | F                -                1         |
|                                                                                                          |                                        |
| Statements                of Operations for the Three Months Ended March 31, 2007                (unaudited), | F                -                2         |
| the                Period from January 3, 2006 (inception) through March 31, 2006 and                the      |                                        |
| Period                from January 3, 2006 (inception) through March 31, 2007                (unaudited)      |                                        |
|                                                                                                          |                                        |
| Statement                of Stockholders’ Deficiency from January 3, 2006                (inception)    | F                -                3         |
| to                March 31, 2007                                                                              |                                        |
|                                                                                                          |                                        |
| Statements                of Cash Flows for the Three Months Ended March 31, 2007                (unaudited), | F                -                4         |
| the                Period from January 3, 2006 (inception) through March 31, 2006 and                the      |                                        |
| Period                from January 3, 2006 (inception) through March 31, 2007                (unaudited)      |                                        |
|                                                                                                          |                                        |
|                                                                                                          |                                        |
| Notes                to Financial Statements (unaudited)                                                      | F                -                5 - F - 8 |
|                                                                                                          |                                        |
| 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                                                                      | 1                                           |
|                                                                                                          |                                        |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds             | 1                                           |
|                                                                                                          |                                        |
| Item                3. Defaults Upon Senior Securities                                                        | 1                                           |
|                                                                                                          |                                        |
| Item                4. Submission of Matters to a Vote of Security Holders                                    | 1                                           |
|                                                                                                          |                                        |
| 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)**

|                                                                                                                                               |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **ASSETS**                                                                                                                                         |   |
|                                                                                                                                               |   | **March                31, 2007** |   |
| **CURRENT                ASSETS:**                                                                                                                 |   |   |   |
| Cash                                                                                                                                               |   | **$** | **30,820** |   |
| Prepaid                expenses                                                                                                                    |   |   | **3,125** |   |
| **TOTAL                CURRENT ASSETS**                                                                                                            |   |   | **33,945** |   |
|                                                                                                                                               |   |   |   |   |
| **TOTAL                ASSETS**                                                                                                                    |   | **$** | **33,945** |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIENCY**                                                                                  |
|                                                                                                                                               |   |   |   |   |
| **CURRENT                LIABILITIES:**                                                                                                            |   |   |   |   |
| Accounts                payable and accrued expenses                                                                                               |   | **$** | **6,500** |   |
|                                                                                                                                               |   |   |   |   |
| **LONG                TERM LIABILITIES:**                                                                                                          |   |   |   |   |
| Loans                from stockholders                                                                                                             |   |   | **53,750** |   |
| Accrued                interest payable                                                                                                       |   |   |  **929** |   |
|                                                                                                                                               |   |   | **54,679** |   |
|                                                                                                                                               |   |   |   |   |
| **TOTAL                LIABILITIES**                                                                                                               |   |   | **61,179** |   |
|                                                                                                                                               |   |   |   |   |
|                                                                                                                                               |   |   |   |   |
| **STOCKHOLDERS’                DEFICIENCY:**                                                                                                 |   |   |   |   |
| Preferred                stock, $.0001 par value; 10,000,000 shares authorized; none issued                and                outstanding          |   |   | **-** |   |
| Common                stock, $.0001 par value; 75,000,000 shares authorized; 1,500,000                shares                issued and outstanding |   |   | **150** |   |
| Additional                paid-in capital                                                                                                          |   |   | **24,850** |   |
| Deficit                accumulated during the development stage                                                                                    |   |   | **(52,234** | **)** |
|                                                                                                                                               |   |   |   |   |
| **TOTAL                STOCKHOLDERS’ DEFICIENCY**                                                                                            |   |   | **(27,234** | **)** |
|                                                                                                                                               |   |   |   |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIENCY**                                                                            |   | **$** | **33,945** |   |

**See      accompanying notes to unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENTS      OF OPERATIONS**

|                                                                    |   | **For                the Three Months Ended**** March                31, 2007** |          | Period                from January 3, 2006 (Inception) through March                31, 2006 |   | Period                from January 3, 2006 (Inception) through March                31, 2007 |   |
|-------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|---------------|----------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|
|                                                                    |   | **(unaudited)**                                                                      |          |                                                                                         |   | (unaudited)                                                                                  |   |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |
| **REVENUE**                                                             |   | **$**                                                                                | **-**         |                                                                                         | $      | -                                                                                            |   | $ | - |   |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| General                and administrative expenses                      |   |                                                                                 | **12,576**    |                                                                                         |   | 12,500                                                                                       |   |   | 51,305 |   |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| **LOSS                BEFORE OTHER EXPENSES**                           |   |                                                                                 | **(12,576**   | **)**                                                                                        |   | (12,500                                                                                      | )      |   | (51,305 | ) |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| **OTHER                EXPENSES:**                                      |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| Interest                expense                                         |   |                                                                                 | **304**       |                                                                                         |   | 125                                                                                          |   |   | 929 |   |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| **NET                (LOSS)**                                           |   | **$**                                                                                | **(12,880**   | **)**                                                                                        | $      | (12,625                                                                                      | )      | $ | (52,234 | ) |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
|                                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| **BASIC                AND DILUTED NET LOSS PER SHARE**                 |   | **$**                                                                                | **(.01**      | **)**                                                                                        | $      | (.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’ DEFICIENCY**

|                                                   |   |                           |   |                        |   | Additional                Paid-in Capital |   | (Deficit)                Accumulated During the Development Stage |      | Stockholders’                Deficiency |   |
|--------------------------------------------------------|--------|--------------------------------|--------|-----------------------------|--------|-------------------------------------------|--------|-------------------------------------------------------------------|-----------|-----------------------------------------------|--------|
|                                                   |   |                           |   |                        |   |                                      |   |                                                              |      |
|                                                   |   |                           |   |                        |   |
|                                                   |   | Preferred                Stock |   | Common                Stock |   |
|                                                   |   | Shares                         |   | Amount                      |   | Shares                                    |   | Amount                                                            |      |
| **BALANCE,                JANUARY 3, 2006**            |   |                           | -      |                        | $      | -                                         |   |                                                              | -         |                                          | $      | - |   | $ | - |   | $ | - |   | $ | - |   |
| Issuance                of common stock                |   |                           | -      |                        |   | -                                         |   |                                                              | 1,500,000 |                                          |   | 150 |   |   | 24,850 |   |   | - |   |   | 25,000 |   |
| Net                (loss)                              |   |                           | -      |                        |   | -                                         |   |                                                              | -         |                                          |   | - |   |   | - |   |   | (39,354 | ) |   | (39,354 | ) |
| **BALANCE,                DECEMBER 31, 2006**     |   |                           | -      |                        |   | -                                         |   |                                                              | 1,500,000 |                                          |   | 150 |   |   | 24,850 |   |   | (39,354 | ) |   | (14,354 | ) |
| Net                (loss) (unaudited)                  |   |                           | -      |                        |   | -                                         |   |                                                              | -         |                                          |   | - |   |   | - |   |   | (12,880 | ) |   | (12,880 | ) |
| **BALANCE,                MARCH 31, 2007 (UNAUDITED)** |   |                           | -      |                        | $      | -                                         |   |                                                              | 1,500,000 |                                          | $      | 150 |   | $ | 24,850 |   | $ | (52,234 | ) | $ | (27,234 | ) |

**See      accompanying notes to unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENTS      OF CASH FLOWS**

|                                                                                                        |   | **For                the Three Months Ended**** March                31, 2007** |          | Period                from January 3, 2006 (Inception) through March                31, 2006 |   | Period                from January 3, 2006 (Inception) through March                31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|---------------|----------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|
|                                                                                                        |   | (**unaudited)**                                                                      |          |                                                                                         |   | (unaudited)                                                                                  |   |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |
| Net                loss                                                                                     |   | **$**                                                                                | **(12,880**   | **)**                                                                                        | $      | (12,625                                                                                      | )      | $ | (52,234 | ) |
| Adjustments                to reconcile net (loss) to net cash used in operating                activities: |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| Accrued                interest payable                                                                |   |                                                                                 |  **304** |                                                                                         |   |  125                                                                                    |   |   |  929 |   |
| Changes                in operating assets and liabilities:                                                 |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| Decrease                (increase) in prepaid expenses                                                      |   |                                                                                 | **3,125**     |                                                                                         |   | -                                                                                            |   |   | (3,125 | ) |
| Increase                in accounts payable and accrued expenses                                            |   |                                                                                 | **5,000**     |                                                                                         |   | -                                                                                            |   |   | 6,500 |   |
| **Net                cash used in operating activities**                                                    |   |                                                                                 | **(4,451**    | **)**                                                                                        |   | (12,500                                                                                      | )      |   | (47,930 | ) |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                    |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| Proceeds                from issuance of common stock                                                       |   |                                                                                 | **-**         |                                                                                         |   | -                                                                                            |   |   | 25,000 |   |
| Proceeds                from stockholder loans                                                              |   |                                                                                 | **35,000**    |                                                                                         |   | 12,500                                                                                       |   |   | 53,750 |   |
| **Net                cash provided by financing activities**                                                |   |                                                                                 | **35,000**    |                                                                                         |   | 12,500                                                                                       |   |   | 78,750 |   |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| **NET                INCREASE IN CASH**                                                                     |   |                                                                                 | **30,549**    |                                                                                         |   | -                                                                                            |   |   | 30,820 |   |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| Cash,                beginning of period                                                                    |   |                                                                                 | **271**       |                                                                                         |   | -                                                                                            |   |   | - |   |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| **CASH,                END OF PERIOD**                                                                      |   | **$**                                                                                | **30,820**    |                                                                                         | $      | -                                                                                            |   | $ | 30,820 |   |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| **Supplemental                Disclosures of Cash Flow Information**                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| Noncash                Financing Activities:                                                                |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |
| Stock                subscription receivable                                                                |   | **$**                                                                                | **-**         |                                                                                         | $      | 25,000                                                                                       |   | $ | - |   |
|                                                                                                        |   |                                                                                 |          |                                                                                         |   |                                                                                         |   |   |   |   |

**See      accompanying notes to unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**March      31, 2007**

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

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

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

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

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

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

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**March      31, 2007**

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

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

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

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

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**March      31, 2007**

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

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**March      31, 2007**

**NOTE      4 - **
**RECENT      ACCOUNTING PRONOUNCEMENTS (Continued):**

**NOTE      5 - **
**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 March 31, 2007. |
|    |                                                                                                                                                                                                                                                                                                                                                |
| 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:                May 15, 2007 | SCOUT                ACQUISITION, INC.        |
|-----------------------------------|-----------------------------------------------|
|                              |                                          |
|                              |                                          |
|                                   | By:                /s/ Scott Baily            |
|                                   | Name:                Scott Baily              |
|                              | Title:                    President |

----